Mongolia has announced a major financial initiative to bolster its wool, cashmere, and leather processing industries. Spearheaded by President Ukhnaa Khurelsukh’s “White Gold” national campaign, the country has secured substantial funding to modernize and expand its domestic processing capabilities.
A recent agreement between the Ministry of Food, Agriculture, and Light Industry and ten leading commercial banks will inject 788.9 billion Mongolian tugriks (over 231 million US dollars) into these sectors. This investment will provide crucial circulating capital and concessional investment loans to businesses over the next year.
The “White Gold” campaign, running until 2028, outlines ambitious targets for increased processing and export growth. Currently, Mongolia processes only a fraction of its raw materials domestically. The campaign aims to double the full cashmere processing level from 20 to 40 per cent, projecting a rise in cashmere exports from 398 million to 690 million US dollars. Similar growth is anticipated for wool, with processing expected to jump from 25 to 55 per cent and exports forecasted to more than double from 52 million to 119 million US dollars. Leather processing is also set for expansion, targeting an increase from 30 to 50 per cent, with exports projected to rise from 9.6 million to 22.4 million US dollars.
This initiative is expected to have a significant impact on Mongolia’s economy, creating over 8,000 new jobs within these key sectors. The investment aims to enhance the country’s industrial capacity and strengthen its position in the global market for these valuable natural resources.
Mongolia boasts substantial annual production of raw materials, including 37,000 tonnes of sheep wool, 10,000 tonnes of goat cashmere, 2,000 tonnes of camel wool, 400 tonnes of yak fur, and 18 million hides and skins. This focus on value-added processing represents a strategic move to diversify Mongolia’s economy, which has historically relied heavily on mining. With a large nomadic herding population and 64.7 million livestock recorded at the end of 2023, the development of these industries is a natural progression for the nation.
