Mongolian Companies Supply Cashmere to Chanel and Schneiders

2023-01-12 08:36:54

Ulaanbaatar /MONTSAME/. The Ministry of Food, Agriculture and Light Industry informed that twelve new cashmere dehairing plants were under construction. Thus, Mongolia will have 43 plants in total once they start operating.

Mongolia produces 48 percent of the total raw cashmere in the world. But only 10% of processed cashmere is dehaired and exported. Even though the capacity to produce 6,017 tons of dehaired cashmere is installed in 40 plants, only 25% is being used.

According to the Government’s adjustment that requires hair content in goat cashmere which is crossed the border for export and import must not exceed 0.3%, only dehaired cashmere is allowed to export. As a result of that, the export volume increased and Mongolian companies started to cooperate with global TOP brands. For instance, 90% of dehaired cashmere is exported to Italy and about 20 Mongolian enterprises launched cooperation with TOP brands, such as "Loro Piana", "Falconeri", "Chanel", and "Schneider".

As of November 2022, the export volume of dehaired cashmere has reached 809.1 tons, up 2.2 times compared with the same period of the previous year. In addition, the average price for dehaired cashmere was USD 91.1 per kg in 2021, while in 2022, it raised to USD 108.3.