Inner Mongolia’s facettes including cashmere

TextileFuture has tried to establish a complete dossier on Inner Mongolia for you including historical and latest facts on cashmere. We apologize that the material was not so easy to be compiled and will show different time frames, but we feel, nevertheless that it gives you some excellent facts for your own examinations of the country.

General Background

Inner Mongolia has a total area of 1.18 million square km, accounting for 12.3 % of the national total and is the third largest province or autonomous region of China. The total population stood at 25.2 million in 2016. The capital city is Hohhot city.

It is one of the five autonomous regions of China. It has 49 ethnic groups and Mongolian is the second largest ethnic group (about 19 % of the total population) besides Han.

Inner Mongolia has the largest grassland area in China, accounting for 19 % of the nation’s total available grassland. It also has the largest forest area, accounting for 12 % of the national total. Therefore, Inner Mongolia is important bases for livestock and forestry industries. The region’s number of sheep and goats accounted for about 18.3 % of the national total in 2016.

Inner Mongolia is also rich in mineral deposits, such as rare earth and coal. It is the region which discovered the largest number of new minerals. Among the more than 50 recognised new minerals in the world, Inner Mongolia has ten of them. The region is one of the leading production bases of coal in China. It has the second largest reserves of coal after Shanxi. The region aims to become a major national base for energy, metallurgy industry and green agricultural production.


The primary sector still accounted for 8.8 % of Inner Mongolia’s GDP in 2016. Animal husbandry is an important sector accounting for about 43 % of the gross output of the agricultural sector. Due to the large number of sheep and goats, Inner Mongolia is the leading production base for sheep wool and cashmere, accounting for 31 % and 44 % of the national total respectively in 2016. The region also has the largest output of mutton which accounted for 21.5 % of the national total in 2016.

The number of cattle more than doubled to reach about 6.5 million by 2016 from 3 million in 2001. Inner Mongolia is the leading base of cow milk, accounting for 20.4 % of the national total in 2016. Hohhot city, the capital city of Inner Mongolia, is also named as the Dairy Capital of China. Famous national brands in dairy product have emerged, including Mingniu (蒙牛) and Yili (伊利) .

In terms of sown area, corn is the leading grain crop. Other major industrial crops include oil bearing crops such as sunflower seeds and vegetables including tomatoes. The region is also a leading production base of potatoes in China.

The share of industry in Inner Mongolia’s GDP has increased markedly over the years. The region’s industry is highly related to its natural resources and mainly consists of further processing of natural resources and agricultural products.

Inner Mongolia is the leading base for electricity generation for supplying to other provinces. It also has the largest wind power production capacity in China. Other major industry sectors include smelting and pressing of ferrous and non-ferrous metals, food manufacturing and metal products.


Inner Mongolia has rich tourism resources including the natural scenery of large pastures or desert adventures such as the Sound Bay. The Mongolian ethnic culture and historical relics are also major attractions.

In 2016, Inner Mongolia received 96.3 million (+15.3 %) domestic tourists with the tourism receipts of RMB263.6 billion (+20.1 %) and 1.78 million (+10.7 %) overseas tourists with the foreign exchange revenue of USD 1.14 billion (+18.3 %).

Foreign Trade

Major export items included base metal and related products, chemicals and related products, and textile materials. In 2016, major export markets included Mongolia, Russia, the US and South Korea.

Foreign Investment

In 2016, most of Inner Mongolia’s utilised FDI went to the manufacturing sector (43 % of the total utilised FDI in 2016). Mining was the second largest sector accounting for 27 % of the total FDI in 2016.

Consumer Market

Hohhot and Baotou are the two leading consumer centres, accounting for 22.1 % and 20.9 % of the region’s total retail sales in 2016. In 2016, the per capita disposable income of urban households in Inner Mongolia was RMB32,975 an increase of 7.8 %.   


Belt and Road Inner Mongolia: Strategic objectives and key deliverables

China’s Belt and Road Initiative (BRI) aims to promote economic links between countries along its routes, and integrate regional development strategies. China, Mongolia and Russia are building the China-Mongolia-Russia Economic Corridor in a bid to strengthen existing cross-border trade and investment between the three countries and turn the region into an integral part of the BRI. Inner Mongolia, a border province in northern China, acts as a bridgehead between China and its northern neighbours. It serves as a logistics centre and trade hub along the China-Mongolia-Russia Economic Corridor and plays an important role in China’s external-oriented economic development.

China-Mongolia-Russia Trade Hub

The Inner Mongolia Autonomous Region, on China’s northern border, is a major trading partner of neighbouring Mongolia and Russia. Trade with the two countries accounts for over 50% of Inner Mongolia’s import-export trade as well as a considerable share of China’s trade with both countries. Two of the region’s border cities, Erenhot and Manzhouli, are China’s largest trade hubs with Mongolia and Russia respectively.

Since Inner Mongolia’s foreign trade is mainly conducted with Mongolia and Russia, its export growth relies heavily on the economic conditions of the two countries. Between 2014 and 2016, falling commodity prices badly affected economic growth in Mongolia and Russia, which naturally led to a lacklustre performance by Inner Mongolia’s exports in that period. Inner Mongolia’s exports to Mongolia dropped by more than 40% in US dollar terms in 2016 from the year before, while its overall exports declined by 20% in the same year.

Processing Trade: Great Potential for Growth

Despite being China’s base for trade with Mongolia and Russia, Inner Mongolia’s advantages as a border province have not been fully made use of. Currently its import-export trade is conducted mainly in the form of “general trade” and “small-scale border trade”.

Compared with other border provinces in the south, the share of Inner Mongolia’s total trade accounted for by processing trade using local or imported resources is relatively low. In Guangxi, for example, processing trade accounts for about 20% of its total trade; in Yunnan, the share is about 10%. In Inner Mongolia, processing trade accounts for less than 5% of its total trade. In other words, its trade structure can be improved.

In light of this, Inner Mongolia has been trying to develop its processing trade in recent years. Construction of import-export resources processing parks has begun in Erenhot and Manzhouli. Imported resources (such as wood and animal and agricultural products) are used for processing and the products are either exported to markets in Europe and America or sold domestically to other regions in China. With processing facilities in Inner Mongolia becoming better and more advanced, the potential for developing import-export processing trade in the autonomous region is vast.

Pillar of China-Mongolia-Russia Economic Corridor

China, Mongolia and Russia signed the Plan on Establishing the China-Mongolia-Russia Economic Corridor in 2016, the first multilateral co-operation plan launched under the BRI. It aims to expand tripartite trade, raise product competitiveness, improve cross-border transport, and develop infrastructure facilities. Taking advantage of its role in China-Mongolia-Russia trade, Inner Mongolia serves as a strategic nexus along the China-Mongolia-Russia Economic Corridor.

One of the key objectives in building the China-Mongolia-Russia Economic Corridor is to construct a logistics passageway crossing the three countries, which should promote tripartite trade between them. Of the seven railway routes outlined in the Plan, six will pass through Inner Mongolia. Two of the three China-Europe Railway Express (CR Express) routes connecting China with Europe leave Chinese territory via Inner Mongolia. Currently, about half of the trains running between China and Europe pass through Inner Mongolia.

In line with the objectives of the BRI, China, Mongolia and Russia are devoting resources to the construction of the Ulanqab-Ulaanbaatar-Ulan-Ude logistics channel. Comprehensive logistics parks are being built and business links strengthened to try to improve transport connections along the passageway, as well as linking the cities of Ulanqab and Ulaanbaatar in Inner Mongolia with the city of Ulan-Ude in Russia.

China, Mongolia and Russia have also prioritised working together to raise production capacity and investment, deepen economic and trade co-operation, and accelerate the synergy between China’s BRI, Russia’s Eurasian Economic Union, and Mongolia’s Prairie Road development initiatives.

Industrial Upgrading a Boost to BRI

As well as promoting foreign trade, Inner Mongolia is also actively pursuing the transformation and upgrade of its indigenous industries, which will help boost the BRI. With its rich energy resources, vast land size and abundant and cheap electricity, Inner Mongolia is ideal for the development of modern industries requiring high power consumption, such as cloud computing. Its climate, with its low temperatures, also offers a natural, cool environment for businesses to house their data centres at low cost.

Hohhot Shengle Modern Service Industry District is the largest cloud computing industry base in Inner Mongolia. It has put a lot of work into developing cloud computing data centres and big data projects. China’s top three telecommunications operators, China Telecom, China Mobile and China Unicom, have all established a presence in the park.

With its vast grasslands and well-developed animal husbandry industry, Inner Mongolia has also placed great emphasis on the reform, innovation and modernisation of animal husbandry. A large number of businesses in the Shengle district are engaged in collecting and analysing all kinds of data on sectors such as the dairy industry and grassland ecology. Others specialise in the ‘smart’ rearing of dairy cattle, providing services such as breeding and reproductive technologies to improve dairy cattle breeds.    

Cashmere in China

China is the world’s leading producer of de-haired cashmere and cashmere finished products. The raw material resources and processing capacity in China dwarfs that of any other country. The industry emerged out nowhere in the 1990s and really taken off since joined the World Trade Organisation (WTO) in 2001. [Source:Cashmere World 2013]

In the early 2000s, China was home to more than 60 million cashmere-producing goats. They produced 20000 tons of cashmere annually. The result of all these goats was an oversupply of cashmere often of dubious quality. Most cashmere goats in China are raised in Inner Mongolia or Xinjiang.

Marina Romanov wrote in Mongolia Briefing: “Cashmere down hair in China comes from goats grazing on the plains of Inner Mongolia, Xinjiang, and the Himalayan Mountain highlands leading to the Tibetan Plateau — regions surrounding the Gobi Desert, which also constitutes a third of Mongolia’s territory. The fibres are locally combed, cleaned, dyed, and spun before being knitted into fabric in northern Chinese mills or exported. [Source: Marina Romanov, Mongolia Briefing, February 24, 2012]

According to Cashmere World: In the past 30 years the development of China’s cashmere industry was reflected in the quantity of cashmere produced. As the industry matured it became evident that growth will be limited by the amount of material available. The future of the cashmere industry in China will be about higher value-added products and established brands. Price competition will abate and be replaced by quality and brand competition. This implies that Cashmere companies worldwide will have to rely on innovation to achieve sustainability, launch brands and implement vital marketing strategies to remain competitive.

History of the Cashmere Industry in China

In the Mao era, the Chinese cashmere trade was controlled by the Communist and the supply was shipped to foreign countries. In the 1970s, as the economy began opening up, Hong Kong industrialist Tang Hsiang Chien was invited to open up a cashmere factory in Xinjiang. It was China’s first foreign-Chinese joint venture. Supervised by Augustine Tse, the factory was manned by Uyghurs and other Xinjiang minorities using technology and expertise from Japan.

The factory, run under the name Xinjiang Tianshan, opened in 1981 with 1200 employees. The first orders from a New York retailer came a few years later. By the mid-1980s, Xinjiang Tianshan was a major supplier for low-priced, private label cashmere sweaters. In the late 1980s and 1990s the cashmere industry boomed. By 2005, China and Hong Kong accounted for 80 percent of U.S. cashmere knit imports, up from 66 percent in 1995.

The Chinese cashmere industry is centred primarily in Inner Mongolia. China began its drive to become a cashmere superpower in the 1990s. Production increased from around 9000 tons in 1990 to 12000 tons in 1998. Finishing facilities are capable of producing 20 million cashmere pieces a year.

In 1991 China threw the cashmere market into a tizzy when it withheld its entire supply from the world market. In recent years China has begun banning cashmere goats from Inner Mongolia for environmental reasons, reducing the supply by 30 percent to 7000 tons.

Cashmere Goat Herders in China

There are many cashmere goat herders in Inner Mongolia and elsewhere in China. In 1994, the Chinese Communist government dismantled collective farms, carved up the grasslands and returned them to herders. In Inner Mongolian, most herders live in permanent settlements and live as Mongolians in Mongolia did under the Soviets. Children of Inner Mongolian herders go to school in nearby towns. Instruction is in Chinese and Mongolian. About 90 percent of Mongolia herders had televisions in the early 2000s.

Keith Bradsher wrote in the New York Times: “Nicknamed the “diamond fibre” in Inner Mongolia, cashmere has changed the life of Yrthashun, a herder who like many ethnic Mongolians has only one name. He lives in the tiny village of Baiyuanhua, a four-hour drive north of Hohhot on a two-lane, paved road that traverses a vast flatness, where close-cropped grass and areas of dirt stretch beneath an immense sky.As affluence spread worldwide in the 1990s, the middle classes began to wear cashmere and Mr. Yrthashun grew prosperous. As recently as a year ago, the cashmere combed from his flock of 100 thigh-high Kashmir goats sold for as much as USD 27.50 a pound, allowing Mr. Yrthashun to buy a compact Chinese car.” [Source: Keith Bradsher, New York Times, June 19, 2009 \=/]

After the global financial crisis in 2008-2009 the price of cashmere fell by almost half and after that herders were forced to sell many of their goats for meat.”The end to goat herding after centuries is the most sorrowful thing I have ever had to face,” Mr. Yrthashun said. The problem is not just the collapse of the cashmere market, but also a government ban on Kashmir goats across much of Inner Mongolia for environmental reasons. Hungry goats with sharp hooves have denuded arid plateaus and broken up the soil, contributing to dust storms that fill the sky in Beijing and other cities in Northeastern China.

Cashmere Exports from China

According to customs statistics, China’s cashmere and cashmere products exported between January and July of 2010 were valued at USD 552.7 million, increasing by 25.2 t year-on-year, including 1380 tonnes of cashmere and de-haired wool, worth USD 95.42 million, increasing by 69.1 % and 78.6 % respectively year-on-year; and included USD 457.28 million worth of cashmere products, increasing by 17.8 % year-on-year. A total of 2464 tonnes, worth USD 20.025 million of cashmere yarn was exported, increasing by 74 % and 56.7 % respectively year-on-year. The export of cashmere scarves reached USD 34.85 million, increasing by 8.7 % year-on-year. The export of cashmere sweaters reached USD 20.997 million, decreasing by 2.2 %year-on-year. [Source: Cashmere World 2013]

The export of cashmere products realised a double digit increase between January and July 2013, year compared to the same time in 2009, however there is still some way to go for exports to regain the strength seen in 2008.

Raw material prices remain high, but the selling prices for finished products do not adjust correspondingly, and the profits of the cashmere intensive processing enterprises do not increase with the rising export amount. The price rise of production factors such as raw materials leads to the rise of cost of downstream products, while Chinese cashmere materials and cashmere finished products export enterprises are generally lacking in bargaining power. According to CFNA Director Mr. Tian, it will be difficult for companies to manage the cost rise of exported products and RMB appreciation, and solutions must be sought.

In spite of increased demand of overseas markets, the foundation for the world economic recovery is uncertain for the short term. However, CFNA believes that the overall trend of the cashmere industry is becoming better and more stable, expecting a yearly growth rate of about 15 %.

Cashmere Industry in China

According to USAID: For decades the government of China has subsidized its cashmere processing with very low interest rate loans, reduced contributions to social benefits and, until recently, export bounties. As yet, however, no Chinese processor has been able to integrate forward into the international channels of distribution much less develop an internationally recognized brand name. [Source: USAID, May 2005 <^>]

The processing sector in China has enjoyed subsidies for over thirty years and has developed into a powerhouse with which other countries are not able to compete. Of note, the Chinese government never distorted the market for cashmere by using export taxes; rather it advanced very low interest rate loans, reduced social contributions for cashmere producers, and paid export bounties depending on the level of processing.

The cashmere herding and processing sectors in China are largely located in Inner Mongolia, one of China’s poorer regions. Since the 1970s, the Chinese government has granted substantial subsidies to the cashmere processing sector: low interest rate loans, tariff protection, no charges for worker welfare and housing, and export subsidies in the form of tax rebates as a percentage of export sales (the percentages escalating depending on the stage of processing). It also has a strict licensing system for traders and excludes all foreign traders. When China joined to the WTO, it agreed to end the export incentives in 2004. It has alsoreduced its subsidies on interest rates on bank loans, although commercial bank rates remain very low in China.

In April 2005, at the China International Cashmere Forum, in speeches by several officials and industry representatives, the Chinese outlined their strategy for their cashmere industry: worldwide dominance by controlling and regulating the entire value-added chain for cashmere by controlling the supply and pricing of raw cashmere and being the “factory to the world” for finished cashmere products either as contract producers or in alliances with international brand holders, and, more importantly, by either developing or buying brand names for themselves.

Cashmere Processing Sector in China

According to USAID: Compared to production costs in Inner Mongolia in China, labour costs (including fringe benefits) are about 25 % higher in Mongolia, while labor productivity is 25 percent less than in China. China has been able to develop cashmere clusters of herders, processors, machinery and parts manufacturers, die and other chemical input producers, and traders and service providers (repairs, shipping and transportation, and so on). Overall, at each stage of the value added chain, production costs are 30 % to 40 % higher in Mongolia compared to China. [Source: USAID, May 2005]

On the demand side, Chinese processors have several advantages over those in Mongolia. They have a large, protected domestic market in which they can sell lower quality pure cashmere products (produced using the lower quality portion of the Mongolian raw cashmere they purchase) at high prices. Although on average Mongolian cashmere has a larger diameter than Chinese cashmere, it also is longer so that when it is mixed with Chinese cashmere it reduces pilling in garments. Mongolian producers cannot access raw Chinese cashmere to be able to produce this mixture.

The fatal constraint on many firms in the sector is the cost of funds in Mongolia relative to their cost in China and abroad. The cost of funds for a medium-sized, privately-owned processor in Mongolia is 37 % /year (2.5% /month) compared to 1 % – 6 % in China and 6 percent abroad in dollars. These far lower capital costs allow Chinese processors to pay substantially higher prices for their inputs than can the processors in Mongolia. Put another way, low capital costs in China compared to Mongolia compress the value added in each stage of the processing value added chain. Mongolian processors cannot operate profitably in this compressed value chain if they pay such high interest rates. Conversely, low interest rates in China increase the value of the raw cashmere produced by Mongolian herders when used as an input to the processing sector in China.

Troubles for Chinese Cashmere Manufacturers in 2008-2009

Reporting from Inner Mongolia at the time of the global financial crisis in 2008-2009, Keith Bradsher wrote in the New York Times: “Yarn factories, which take cloud-soft wool from the goats and spin it for the sweater factories’ looms, are suffering too. The Tiaje Cashmere Company’s factory here, a windowless hall the size of a football field, is filled with rows of machines that transform wool into yarn. But, because business has shrunk, in recent months only a handful of workers have laboured in small pools of light in an otherwise dark expanse of shadowed machinery. “I wish more of the lights were on; it is a bit dark,” said Lin Siuchi, a soft-spoken 38-year-old, adjusting several spools of downy white cashmere being twisted into yarn. “I’m not afraid to be here alone,” she said, “but I would be happier if there were more people here with me.” [Source: Keith Bradsher, New York Times, June 19, 2009]

“The Tiaje Cashmere Company sells yarn to the nearby Inner Mongolia Harmony Industry and Trade Company, which knits beautifully textured sweaters and other cashmere garments for the American and Italian markets. But, the factory has been operating at less than half of capacity for much of the last year. Employment at the factory fell to 50 early this year. Muren, the owner and general manager, who also has only one name, said that employment had since recovered to 70 — but this is supposed to be the annual surge of production, from June to September, to accommodate the autumn retailing season in the West. \=/

“Inner Mongolia Harmony has orders for 20,000 sweaters so far this year, compared with 28000 at this time last year. And Mr. Muren differs with some economists, saying that he sees little sign of a nascent recovery in the United States. “Our American and European customers say the situation is terrible,” he said. Da Lisu, the merchandise manager of the rival Inner Mongolia Saihan Cashmere Products Company, said some cashmere companies had failed in recent months. One mistake by the failed companies was to ship sweaters to American customers on promises that they would be paid later, Ms. Da said.

“I’ve had friends at companies that have gone bankrupt because U.S. buyers have reneged on payments,” said Ms. Da, who added that she did not know the identity of these American buyers. Her company demands payment in advance and has not had problems, she said, and it is following that policy with particular attention now. “We all have to be much more cautious,” she said. Mr. Wang said that American buyers facing slower sales had become much quicker to reject shipments by complaining that the garments did not precisely match the original specifications. “Our sizes are very accurate — now they say, ‘You made a mistake,” ” he said.

“Complaints about the accuracy of designs are often followed by demands from buyers for further deep price reductions. “They say, ‘please give me a discount and I can sell it anyway,” ” Mr. Wang said, folding the fingers of his left hand in the shape of a gun and pretending to shoot such buyers. As China tries to make up for falling exports of all sorts, many export industries are trying to sell more to the domestic market. But, garments designed for American customers frequently cannot be marketed in China, and demand in China is still weak for luxuries like cashmere sweaters.

“Indeed, the speed of the economic downturn left Inner Mongolia Dongda with 2000 unsold sweaters made for Americans. Now they are piled in a warehouse. In China, Mr. Wang said, “we can only sell the ‘S’ size.” But Mr. Muren sees one small sign of hope in Inner Mongolia: the global recovery in commodities prices is starting to reach cashmere, as companies have started stockpiling raw cashmere again in anticipation of eventual better times, pushing up the price by 3 to 5 % in the last several weeks. “Some people are collecting the cashmere even though they do not have orders,” he said, “because they think, and I also think, that this is the bottom price.”

Cashmere Companies and Designers in China

The largest Chinese cashmere company is called Eerduosi. It produces about a third of the world’s cashmere and controls half the output of China. It employs 13,000 people and is 44 percent owned by the Chinese government. In the mid 2000s, it decided that cashmere was not enough, and made plans to invest almost USD 100 million to diversify into banking, electricity and property.

Cashmere sweaters sold in Britain include Loro Plana baby cashmere sweaters (USD 1500); Superfine cropped cardigans at N. Peal (USD 350), Bora V-necks (USD 225), Jigsaw merino machmere sweater (USD 120), M&S Autograph jumper of Uniqlo V-neck (USD 105) and Women’s Primark jumper (USD 57). Profits margins are much larger for high-end cashmere products. Some cashmere mixes contain as little as 5 percent cashmere. When low end cashmere marketers are squeezed by high cashmere prices they often respond by lowering the cashmere content on their products rather than raising prices.

Augustine Tse of Cashmere House is a designer known for his cashmere jogging suits, hooded sweaters, bathrobes, baby clothes and even bikinis. Sales topped USD 100 million in 2005 and his name was mentioned in the film “Friends with Money.” Tse’s doubled-faced men’s cashmere jackets sell for USD 2200, half the price of similar Italian varieties. Among the satisfied customers are Madonna who bought Tse clothes for her children and Steven Spielberg who gave cashmere jogging suits as gifts to his friends.

Cashmere and decertification in China

Since the 1960s, the average grass output has declined in Inner Mongolia by one third to two thirds as the size of cashmere goat herds there has increased. To prevent overgrazing there are limits on the numbers of animals livestock herders can raise.

Keith Bradsher wrote in the New York Times: “The problem is not just the collapse of the cashmere market, but also a government ban on Kashmir goats across much of Inner Mongolia for environmental reasons. Hungry goats with sharp hooves have denuded arid plateaus and broken up the soil, contributing to dust storms that fill the sky in Beijing and other cities in northeastern China. [Source: Keith Bradsher, New York Times, June 19, 2009]

Jane Macartney wrote in The Times of London: “Fly over Mongolia in summer and the steppes look as green as they must have done when Genghis Khan and his armies galloped across the land — but the switch is startling as the flight crosses the border into China’s Inner Mongolian region. The ground suddenly turns brown…The culprit is the humble goat — and the fascination of fashionistas for cashmere.” In China, where the problem of desertification and loss of pastureland is far more advanced” than in Mongolia, “the authorities have decimated goat flocks and ordered more rotational farming. [Source: Jane Macartney, The Times of London, August 8, 2009]

Cashmere – Mongolia to globalise cashmere trade via joint platform with China’s Bohal Exchange

Suppliers of about 40 % of the world’s raw cashmere Mongolia, hopes to increase profit trading in the wool used in some of the world’s priciest luxury fashions by opening up a new online platform for global buying via China’s Bohai exchange.

A cashmere goat

According to the Mongolian Commodity Exchange (MCE) the platform started trading in mid-April. Trading in agricultural products and coal and copper could follow at a later date. But cashmere currently accounts for around 90 % of the exchange’s total trade: In 2017, 7000 tonnes of washed cashmere were sold on the MCE with a total value of 521 billion tugrik (USD 217.99 million).

Chuluunbaatar Bayar, GM, MCE stated that cooperation with the Bohai Commodity Exchange is opening up a market for Mongolian commodities not only in China but to other countries as well. He further added Italian buyers would be able to buy Mongolian cashmere via the Bohai exchange. The cashmere launch follows the signing of a strategic cooperation agreement with the Bohai Commodity Exchange (BOCE) in January. BOCE already trades a variety of textile products including cotton, cashmere, goose feathers and eiderdown.

Mongolia has maximized profit from its cashmere industry, by processing cheaply across the border in China. The Mongolian government launched a four-year program to boost the industry in February, with the aim of increasing exports more than fivefold, providing financial support to help domestic firms improve technology and boosting the country’s processing capacity.

Mongolia has an estimated total of 27 million goats, and an annual cashmere production capacity of 9400 tonnes.

If you would like to follow the production of cashmere, please use the following link to see the different stages as photography   

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