The U.S. Embassy has hosted a discussion on an independent comprehensive study funded by the U.S. Agency for International Development (USAID) on Mongolia’s cashmere sector.

While Mongolia accounts for approximately 40 percent of the world’s cashmere production, practically all (94 percent) is exported, in either raw or minimally processed form.  Because cashmere is not processed before it departs Mongolia, other countries benefit from adding value by combing, washing, dying, spinning and sewing the final product, creating local jobs their.  Processing cashmere in other countries also allows them to blend inferior cashmere with high quality Mongolian cashmere, while still labeling it as Mongolian.

Speaking at the event, U.S. Ambassador Michael Klecheski stated, “One of the embassy’s top priorities is to assist Mongolia in diversifying its economy, and helping to expand the cashmere sector represents a key part of this strategy.  Further developing this sector will provide meaningful, sustainable income for workers all across the value chain from the herder to the exporter.”

Officials from Mongolian Ministry of Food, Agriculture, and Light Industry; Ministry of Foreign Affairs; Mongolian Wool and Cashmere Association; and over 80 industry representatives attended the virtual event.