Ulaanbaatar, February 21, 2025 /MONTSAME/. The Public and Private Sector Consultative Meeting of the “White Gold” National Movement initiated by the President of Mongolia took place at the State Palace of Mongolia on February 20, 2025.

President of Mongolia Khurelsukh Ukhnaa delivered opening remarks at the Public and Private Sector Consultative Meeting of the “White Gold” National Movement. President Khurelsukh noted, “The benefits from livestock and the production of livestock-derived products have always played a crucial role in the growth and development of any country, its national security, and the welfare of its people. We, the Mongols, have a rich history of utilizing the benefits of our treasured livestock and processing their raw materials for millennia, supporting the livelihoods of our citizens.

Over the past 30 years, livestock production has steadily increased, but we have not been able to fully process our livestock raw materials, referred to as "white gold," such as wool, cashmere, and leather. In 2024, exports of wool, cashmere, and leather products made up less than three percent of exports in Mongolia. Additionally, we import approximately USD 190 million worth of wool and cashmere clothing, leather goods, shoes, and leather products each year.

The “White Gold” National Movement aims at doubling the level of processing for wool, cashmere, and leather within four years, increasing production and exports by two to three times, and creating over 8,000 new jobs. To achieve this goal, 27 measures will be implemented, providing MNT 2.2 trillion worth of tax and customs exemptions, reductions, and low-interest, long-term loans to wool, cashmere, and leather enterprises and producers in Mongolia. These measures are reflected in the Resolution of the State Great Khural of Mongolia, and 12 public organizations will cooperate to implement them. This is unprecedented state support for the light industry sector in over 30 years. In 2025 alone, around MNT 800 billion in soft loans will be distributed through 10 commercial banks, with MNT 66 billion allocated in the State Budget of Mongolia to subsidize loan interest rates.

Last month, the decision was made to grant over MNT 90 billion in loans to six businesses and producers in the wool, cashmere, and leather industries. In this regard, I would like to express my sincere gratitude to the banking and financial sector, and the private sector, for supporting the great cause of developing Mongolia’s light industry."

Minister of Food, Agriculture, and Light Industry of Mongolia Enkhbayar Jadamba made a presentation on the Action Plan of the "White Gold" National Movement, and the coordination and cooperation of stakeholders."

Minister Enkhbayar Jadamba said, "Mongolia supplies more than 40 percent of the world's cashmere market, with our national manufacturers recognized as major players in this area. The global cashmere market is projected to grow 6 percent annually until 2029, reaching USD 4.3 billion. According to global wool market statistics, Mongolia ranks first in sheep population, with the capacity to produce 30,000 tons of wool per year. The wool market is expected to expand by 3.2 percent by 2029, reaching USD 45.6 billion. Meanwhile, the global leather market is projected to grow at an average annual rate of 4.3 percent, reaching USD 376.2 billion by 2029. The "White Gold" National Movement will run until 2028, presenting a favorable economic period. It is crucial to leverage this opportunity wisely.” 

"Our country counted 57.7 million heads of livestock last year. According to the results of the 2024 livestock census, we will prepare 8,500 tons of cashmere, 30,000 tons of wool, 1,900 tons of camel wool, 397.6 tons of yak down, and 17.2 million leather and hides this year. Therefore, the Government of Mongolia will establish production and technology parks and increase the capacity to process livestock raw materials. For example, the level of full processing of cashmere will be increased to 20-40 percent, the level of wool processing to 25-55 percent, and the level of deep processing of leather and hides to 30-50 percent," mentioned Minister Enkhbayar Jadamba.

CEO of “Dakhan Nekhii “JVC B. Gerelmaa: “Our company has already joined the “White Gold” National Movement. We initially requested a loan of MNT 20 billion, and have so far received MNT 16.9 billion. We are currently implementing four projects. For instance, as part of our efforts to process waste from the leather industry, we are working on launching a compressed leather production facility. The loan process has been smooth and efficient. Naturally, if businesses receive tax policy support, our operations are projected to grow three to five times within the next five years."

The Governor of the Bank of Mongolia Lkhagvasuren Byadran highlighted, “The Ministry of Food, Agriculture, and Light Industry of Mongolia and 10 commercial banks of Mongolia have signed a Financing Agreement for the Working Capital and Investment Loans to Support Wool, Cashmere, and Leather Processing Industry. Under this National Movement, MNT 788 billion in loans will be provided to light industry enterprises in 2025. Businesses can access loans in two forms: working capital loans and investment loans. Investment loans will have a four-year maturity with an interest rate of 5-6 percent while working capital loans will have a two-year maturity with an interest rate of 9-10 percent. Given that the current average interest rate in the banking system stands at 17-18 percent, the government is providing subsidies to make this program feasible. Also, a decision has been made to issue loans totaling MNT 101 billion.”

Executive Director of the “Tsagaan Alt” [White Gold] NGO A. Davaasuren: "The leaders of the Mongolian Wool and Cashmere Association, the Wool Products Manufacturers Association, and the Mongolian Association of Leather Industry, and representatives of private enterprises jointly issued a proposal to the Office of the President of Mongolia to form a non-governmental organization of the “White Gold” National Movement. As a result, the “White Gold” NGO was established."

The Public and Private Sector Consultative Meeting was attended by President of Mongolia Khurelsukh Ukhnaa, Minister of Food, Agriculture, and Light Industry of Mongolia Enkhbayar Jadamba, Economic Policy Advisor to the President of Mongolia Davaadalai Batsuuri, Deputy Prime Minister of Mongolia Amarsaikhan Sainbuyan, Minister of Finance of Mongolia Javkhlan Bold, Chairman of the Parliamentary Standing Committee on Environment, Food, and Agriculture Beisen Bulan, as well as representatives from the Bank of Mongolia, commercial banks, and enterprises of leather, wool, and cashmere.