Here is an interview from Daily News with Bat-Erdene.J, Member of parliament and President of Mongolian wool and cashmere association. Please read the full interview from 057th Daily news of 29th March 2022.

-Mongolia is supplies about 50 percent of the world’s cashmere. But it is also failing to reap the benefits. For example, as the Head of the Mongolian wool and cashmere association what do you think about this?

-Mongolia supplies about 50 percent of the world’s cashmere alone. However, 80 percent of the cashmere is exported directly, about 9 percent is produces and the remaining 11 percent is combed. With the exception of a single company that exports dehaired cashmere to Italy, almost 100 percent of its cashmere is exported to China. However, European countries and Italy which produce the most cashmere products, consider China to be the main producer of raw materials for the cashmere market. There is a research that the world market consumes about 20 billion USD worth of cashmere products a year. So we are supplying 10 billion USD of that 20 billion USD in raw materials. However, we earn about 240 million USD from the cashmere market in Mongolia. In fact, about 90 percent of the raw materials that can dominate the world cashmere market we are produced raw without any added value. Therefore, in 2018 the price of domestic cashmere has increased due to the approval of the Cashmere Program and the fact that local companies are buying cashmere alongside Chinese traders. Furthermore, a decision was made to ban the export of washed cashmere from 1st January 2023. This decision was made to export cashmere by combing it and using it as the next product. In Mongolia, it is forbidden to export cashmere by after removing its dirt.