Mongolian Cashmere and Herder Economics — 2026-10-27
Mongolia’s cashmere exports have surged by 37% year-on-year in the first nine months of 2026, reaching 25.9 billion USD in total foreign trade volume. Despite record export figures, local herders report dissatisfaction with raw fibre auction prices, even as top bids reached ₮198,000 per kilogram.
Mongolian Cashmere and Herder Economics — 2026-10-27
Export volumes surge by 37%
In the first nine months of 2026, Mongolia’s export of combed cashmere increased by 37% compared to the same period in the previous year. This growth contributed to a total foreign trade volume of 25.9 billion USD for the country. The significant rise in export volume highlights the continued strength of demand for Mongolian fibre despite global economic fluctuations.
Herders dissatisfied with auction prices
Recent cashmere auctions saw top prices reach ₮198,000 per kilogram, yet local herders expressed dissatisfaction with the returns. This disconnect between high-end market prices and herder income persists despite government policies banning raw cashmere exports since 2023 to encourage domestic value addition. The tension underscores the ongoing challenge of ensuring economic benefits trickle down to the primary producers.
Policy focus on processing capacity
The Mongolian government continues to prioritize increasing domestic processing capabilities. The national strategy aims to raise the level of full cashmere processing from the current 20% to 40 percent. This policy is designed to expand export revenues from the baseline of 398 million USD to a target of 690 million USD, shifting the economic model from raw material supply to finished goods.
Local view
Local media outlets like Eguur.MN report that while auction prices hit highs of ₮198,000, the "gonsgor" (disappointment) among herders remains a key narrative. The local press highlights the friction between the "new value-added production policy" and the actual financial gains for herders, who feel the benefits of the export ban are not fully realized at the pasture level.
Context & numbers
- Global Supply Share: Mongolia supplies approximately 40% of the world’s raw cashmere, producing an estimated 9,500 tonnes per year.
- Herd Size: The country maintains a goat population of roughly 27 million, which is critical for sustaining this output.
- Processing Gap: Currently, only 20% of cashmere is fully processed domestically, with the majority of value captured by foreign processors, particularly in China.
On the radar
- Sustainability Pressures: A recent study highlights the carbon footprint and economic trade-offs in Mongolia's cashmere value chain, noting that global demand for "sustainable" fibre is driving herd sizes up, which intensifies pasture degradation.
- Winter Dzuud Risk: With the winter season approaching, herders are monitoring weather patterns closely. The loss of 9.4 million adult animals in 2024 remains a stark reminder of the vulnerability of the sector to extreme weather events.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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