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David Shaw classes fibre shorn from a Cashmere goat on his farm. When South Otago farmer David Shaw reached a crossroads he had to decide to either "give up on goats" or find a market for cashmere.

For 18 months, he contacted "anybody and everybody" with links to the industry globally, in a bid to create a complete supply chain for New Zealand cashmere.

After calling yarn engineers Woolyarns, he discovered the Wellington firm was importing cashmere from China to spin.

On the initial call, Woolyarns offered to take five tonnes of his fibre, which would require the shearing of 25,000 cashmere goats.

Fewer than 5000 cashmere goats are being farmed in New Zealand now.

He runs about a fifth of the national herd on his sheep and beef farm in Waiwera South, near Clinton — the largest commercial herd in New Zealand.

The goats account for about 10% of his stock units.

To bridge some of the supply shortfall, he was calling on more sheep and beef farmers to introduce some cashmere goats to their operation.

"We’ve got a market but we haven’t got supply."

Goat fibre was worth up to 100 times more than coarse sheep wool, he said.

A partnership formed with Woolyarns to scour and de-hair domestic goat fibre about two years ago, which was a game-changer for the industry, he said.

Woolyarns now owns half of a company he set up, New Zealand Cashmere Genetics.

New Zealand Cashmere Genetics staff now support farmers introducing a goat herd, including the supply of genetics, mostly from cashmere bucks.

Since the partnership was formed, about 20 goat herds had been established across New Zealand, including in Otago and Southland.

An open day on his farm attracted about 25 people earlier this month.

"A lot of southern farmers came to get a feel for what we are doing."

Most of his goats were shorn standing up, using a head cradle to hold them still.

The wool on the best 25% of his herd averaged 14 microns.

"The high performing ones have the potential to be be the best paid enterprise on the farm."

The dream was for New Zealand cashmere to be as popular a product as New Zealand merino wool.

Merino sheep were limited to being run in dry conditions, where cashmere goats could be farmed across New Zealand.

Some farmers could be nervous about introducing goats to their operation because of what happened in the 1980s.

David Shaw shears a cashmere goat on his farm in South Otago.PHOTOS: SHAWN MCAVINUE Mr Shaw bought his first goats in 1985, when sheep values were low and the Government had introduced tax incentives for farmers to diversify.

The first goats he bought were feral multi-coloured does from the North Island.

He then bought a white angora buck to put over them.

"All the kids come out white and automatically produce the best grade fibre."

Cashmere fibre prices were "booming" and farmers were being paid about $170 per kg.

Most of the cashmere was being exported to Scottish firm Dawson International.

Farmers introduced cashmere genetics from Australia and Africa to increase the amount of fibre produced.

At the time, one in six farmers ran goats, the national herd peaking at about 1.5million goats.

"Every man and his dogs was into goats."

After the stock market crash in 1987, the demand for cashmere "disappeared".

The Government removed tax breaks and many people exited the industry, including "Queen St farmers".

Some farmers remained in the industry because they had signed a five-year fixed-price supply contract with Dawson in 1985.

When those contracts expired, the industry "ground to a halt" in the early 1990s.

As farmers exited the industry, he bought some of the top fibre-producing herds in the nation, to save them from being killed for meat.

He ran about 600 does in the peak of the 1980s, and reduced the doe herd to about 200 after the crash.

A focus on improving the genetics of the herd continued.

"Some people play golf, I bred my goats ... you see genetic gain really quickly and that’s what has kept me interested."

Now a goat could produce up to three times more fibre than a goat in the early days of the industry.

The fibre was "as good as anywhere in the world" and now fetched up to $150 per kg.

He had decided to stick with goats because he liked them as an animal and liked working with them.

Unlike sheep, goats did not require dagging or crutching, and did not get bearings.

A herd of cashmere goats on David and Robyn Shaw’s farm in South Otago. PHOTOS: SHAWN MCAVINUE Goats ate weeds on the farm including thistles, blackberry, briar and gorse.

As goats ate pasture from the top down — the opposite way to a sheep — it removed seed heads and improved the quality of the pasture.

Goats left the clover for sheep to eat.

Research had shown the growth rates of sheep and cattle improved when goats were introduced to a farm system, allowing farms to finish stock faster on the same amount of feed and making a more efficient system.

As a goat’s diet differed from sheep and beef, they could be introduced to a system with no significant impact, he said.

Farmers were more open to introducing new methods if it helped them reduce inputs, such as using less herbicides and fertiliser.

Goat meat is lean and high in protein and prices range between $4.50 per kg to $8 per kg.

About 120,000 goats, mostly feral, are slaughtered for their meat in New Zealand annually.

Mr Shaw enjoyed running goats.

"People think they are totally wild, but anyone that runs them enjoys their goats more than their sheep."

Goats were more "inquisitive and intelligent" than sheep and had a personality similar to a dog.

A goat’s curiosity "got them into a bit of mischief" and electric fencing was required to contain them.

"A goat will test your fences — if a dog can get through a fence, a goat will probably figure out how to as well."