Mongolia’s cashmere industry experienced a sharp decline in early 2025. According to new customs data, exports dropped by 55% in the first quarter.
Mongolia exported only 72.3 tons of combed cashmere during this period. The total export value reached 8.5 million U.S. dollars. Compared to last year, this marks a major downturn.
Despite this drop, the government remains optimistic. Authorities continue to push forward with the national “White Gold” campaign. This program, led by President Ukhnaa Khurelsukh, aims to revitalize the sector.
Through this campaign, Mongolia plans to invest 198 billion tugriks. That equals around 57.5 million U.S. dollars. The funds will go toward expanding cashmere processing capacity nationwide.
Officials want to process all raw cashmere locally by 2028. They also hope to increase deep processing to 40 percent by that year.
According to the Ministry of Food, Agriculture and Light Industry, the long-term goal remains clear. Mongolia’s cashmere industry should contribute around 700 million U.S. dollars in export revenue annually.
At present, the country houses around 50 processing enterprises. Together, these companies can handle up to 119,000 tons of combed cashmere. However, current output falls short of that capacity.
Many experts say infrastructure improvements must continue. Others stress the need for workforce training and modern machinery. The success of the “White Gold” plan depends on such upgrades.
In the face of global market challenges, local production is key. Mongolia seeks to reduce its reliance on raw material exports. Instead, leaders want to create more value through domestic processing.
By focusing on innovation and investment, Mongolia’s cashmere industry hopes to recover. Leaders believe the country can become a global hub for high-quality cashmere products.
