Goatherds hit hard by row over bananas

THEY DON'T eat bananas on the Mongolian grasslands. But as the traditional nomadic herders shelter in isolated ger tents against the long winter, a tit-for-tat American-European trade dispute over the sub- tropical fruit is threatening the subsistence livelihoods of those who provide one-third of the world's cashmere.

Few nomads know that a US-Brussels argument over banana imports will hit life on the steppes. "I hadn't heard about the trade dispute," said Sereeter, a 40-year-old goatsman from Tuv province who sells his cashmere at the raw materials market in Ulan Bator. "I think it may cause some effect, but I do not know whether it will be positive or negative."

In the next few weeks, as the goats start moulting their winter growth, the herders will begin cutting the raw "greasy" cashmere that is destined to end up as luxury-priced sweaters and scarves on the other side of the world. But it is not clear who will be buying their wool. While attention has so far focused on the Scottish cashmere industry, the impoverished Mongolian nomads also look like being innocent victims of the "banana wars" because of a World Trade Organisation ruling this week that gave Washington the right to impose punitive 100 per cent import tariffs on $191m (pounds 116m) of European imports. On the threatened list of goods are cashmere products, many manufactured with Mongolian wool.

"The impact on the Mongolian herder unfortunately will be most extreme," said Ronnie Lamb in Ulan Bator, the executive director of Mongol Amicale, a US-Mongolian joint venture that last year processed 300 tons of cashmere, a large proportion for export to Italian companies, which re-exported finished fashion goods to the US. "Most of the Mongolian herdsmen here live below a sustainable level. They come out of a long, cold, hard winter and they have no savings, they have no contingencies, no reserves, they need to eat, they need to survive, and send their children to school and to clothe themselves." Mr Lamb, a Scotsman, splits his time between Mongolia and his company's Bradford firm, which sells on cashmere to end-users.

Mongol Amicale buys its cashmere direct from the herders, but Mr Lamb said the company might hold off on some spring purchases until the outcome of the trade dispute was clearer. "We've no idea that contracts we have in hand are actually going to be honoured."

It is a potentially disastrous situation for nomadic herders in one of the most isolated and extreme geographical regions on earth, where winter temperatures fall to minus 40C. And it is a "double whammy", said Mr Lamb, for the industry. Last year, the world cashmere price collapsed, with herdsmen receiving just $9 a kilogram - half the level of 1994-95 - because sales of cashmere clothes plummeted in Japan and South-east Asia, hard hit by the area's economic crisis. With the "banana wars", Mongolian cashmere sales to clothing manufacturers in Scotland and Italy are also in danger of evaporating, because the punitive tariffs will make European-made sweaters and scarves unsellable across the Altantic.

"It's a disaster for Mongolia," said John Napoleoni, the chief financial officer for Forte Cashmere, a US firm that processes raw cashmere in Ulan Bator. Cashmere is the country's second biggest foreign exchange earner, and Mongolia can ill-afford another economic shock. The country, for seven decades a Soviet satellite state, was left reeling in the early Nineties when Moscow's subsidies disappeared overnight.

Sereeter, who like most Mongolians uses one name, added: "Herdsmen with many animals live quite wealthily, selling meat, skins and cashmere. But the life of herdsmen with fewer numbers of livestock is not that good ... Animal husbandry is a risky business; harsh weather can kill your animals, or you have to slaughter them to get cash and food and clothing."

The ultra-soft cashmere fibres are a precious commodity in the West, but most herders have little notion of the price of the finished products. With each animal yielding just 200g to 380g of cashmere a year, Mongolia's 11 million goats will this year produce around 2,500 tons of the raw wool. About 90 per cent of Mongolia's cashmere wool is exported.

At worst, the "banana wars" may play into the hands of aggressive Chinese traders and smugglers, who tend to outwit the herders on price. "The Chinese may be loading their wagons anticipating a great windfall because the European manufacturers are out of the ballpark," said Mr Napoleoni.

Additional reporting from Enkhamgalan in Ulan Bator.

Suggested Topics
News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
Arts and Entertainment
Friends is celebrating its 20th anniversary this year
tvSeries celebrates 20th anniversary
News
news
Life and Style
Jack Cooksey goes for the grand unveiling - moments before dropping his new iPhone 6 on the floor
iphone launch
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Liam Neeson said he wouldn't
tv

Liam Neeson's Downton dreams

Sport
Yaya Touré (left) and Bayern Munich’s Spanish defender Juan Bernat
football
Arts and Entertainment
A spell in the sun: Emma Stone and Colin Firth star in ‘Magic in the Moonlight’
filmReview: Magic In The Moonlight
Sport
A 'Sir Alex Feguson' tattoo
football

Arts and Entertainment
Ben Whishaw is replacing Colin Firth as the voice of Paddington Bear
tv

Thriller is set in the secret world of British espionage

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Tutor required for Level 3 Workskills

£6720 - £33600 per annum: Randstad Education Nottingham: Randstad Eduction are...

Primary Supply Teacher - Loughborough

£90 - £120 per day: Randstad Education Leicester: Are you a Teacher looking fo...

Primary General Cover Teachers

Negotiable: Randstad Education Leicester: Are you a Newly Qualified Teacher lo...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week