The production of cashmere from goats is one of the most promising options for hill sheep farmers wishing to diversify. Not only is cashmere, the down from the secondary hair follicles, a valuable commodity but goats’ grazing preferences can benefit pasture management and ecology. Because no economically viable breeds of cashmere bearing goats are indigenous to the UK, goats were imported from Iceland, Siberia, Tasmania and New Zealand and an extensive crossbreeding programme involving these genotypes and native feral goats was undertaken to produce genotypes suitable to Scottish conditions (Bishop and Russel, 1994). At the completion of this crossbreeding programme the best means of continued improvement of the existing cashmere goat population was considered to be selection for genetic merit, based on an index combining traits of economic importance. This paper summarises responses to the first two years of this selection.