Mongolia is making great efforts to elevate its wool, cashmere, and leather industries, aiming for economic growth and diversification beyond mining. The government announced bold measures to boost these sectors under the national campaign White Gold, initiated by President Ukhnaa Khurelsukh.
On Thursday, the Ministry of Food, Agriculture, and Light Industry, along with 10 leading commercial banks, signed a financing agreement to inject 788.9 billion Mongolian tugriks (approximately $231 Million USD) into these industries.
This investment is part of a larger vision to strengthen Mongolia’s processing capabilities and global market reach. The White Gold campaign, running until 2028, seeks to double Mongolia’s processing capacity in cashmere, wool, and leather.
The current figures reveal that only 20% of cashmere is fully processed domestically. The government plans to raise this to 40%t, boosting cashmere export revenues from $398 million USD to $690 million USD.
Similarly, wool processing will increase from 25% to 55%, with exports projected to rise from $52 million USD to $119 million USD.
In the leather and hides sector, the deep processing level is set to jump from 30% to 50%, with exports expected to grow from $9.6 million USD to $22.4 million USD.
This ambitious initiative is projected to generate over 8,000 new jobs, marking a significant milestone for the country. Enhanced processing and export capabilities are expected to fortify Mongolia’s industrial base, adding resilience to its mining-dependent economy.
Mongolia’s livestock industry plays a pivotal role in this transformation. With an average annual production capacity of 37,000 tons of sheep wool, 10,000 tons of goat cashmere, 2,000 tons of camel wool, 400 tons of yak fur, and 18 million hides and skins, the nation is well-positioned to scale up production.
Promoting livestock and related industries aligns with Mongolia’s strategy to diversify its economy. As one of the world’s last nomadic cultures, the country had 64.7 million livestock at the end of 2023, according to the National Statistics Office.
