"Ulaanbaatar, Mongolia — MICC’s February 2017 report, entitled “Export Expansion and Goat Growth: Cashmere Quality Decline Threatens Industry’s Gains” assess the state of the domestic cashmere industry. The country has reason to be optimistic. Garment exports now exceed US$ 9 million (up nearly 200% in 7 years), several major domestic fashion brands fully integrated supply chains, and overall cashmere supply stands at record levels — 8,900 tons in 2015, or approximately 20% of global supply. In response, goat breeding has exploded, with a nearly 10 million head increase in 10 years.
Yet mismanaged breeding has significantly reduced the average fiber quality, decreasing the percentage of usable raw fiber from 82% to 70%. Lower raw cashmere quality increases the industry’s susceptibility to supply chain shocks, threatening to undermine the impressive gains of the past decade. MICC’s newest report identifies fiber quality as a major threat to the Mongolian cashmere’s future and briefly suggests strategies for a more sustainable industry.
See the full report here