Analysis of cashmere value chain in Mongolia

Abstract

Cashmere is a luxury material and one of the most sought-after fiber in the world. While high-end fashion demand is high especially in developed countries, more than 90 percent of the production is contributed by developing countries. Mongolia, the second-largest producer, produces around 9500 metric tons of raw cashmere every year, accounting for about 40 percent of raw cashmere in the world. The industry itself is one of the most important foreign currency generators, as well as income donors for herders.