In accordance with Parliamentary Resolution No. 63, titled “On Some Measures to Support the Processing of Animal Raw Materials”, the President of Mongolia has launched the White Gold national movement in 2024. This initiative aims to enhance the domestic production and export of wool, cashmere and leather by supporting industrial processing and improving competitiveness in global markets. Within the framework of this movement, Mongol Bank has developed general financing and operational guidelines to help stimulate production and value-added processing in the animal raw materials sector. The program is particularly focused on mobilizing investment, strengthening infrastructure and enhancing industry standards and human capital.
Mongolia holds a dominant position in the global raw cashmere supply, accounting for 40 percent of the world’s production - second only to China, which supplies 50 percent. While Mongolia provides 0.51 percent of global wool consumption and 0.03 percent of raw leather, China imports a substantial share of these resources, accounting for 65.7 percent of global wool imports and 15 percent of leather imports. This presents a strategic opportunity for Mongolia to expand its exports, given its proximity to key markets. However, despite its rich resource base, Mongolia continues to underutilize its processing capacity. In the wool sector, only 41 percent of washing plant capacity, 51 percent of combing, 46 percent of spinning, 48 percent of braiding and weaving, and 45 percent of carpet manufacturing capacity are being utilized. In the cashmere industry, 70 to 75 percent of washed cashmere is exported directly, bypassing domestic value-added processes. While washing and combing plants operate at full capacity, spinning mills are only using about 30 percent of their potential based on raw material availability.
In the leather sector, the country produces around 10 million pieces of raw hides and skins annually. Out of this, more than two million are deeply processed, over five million are semi-processed, and the remaining portion remains unused. Processing rates vary significantly by animal: 42 percent of cowhide, 2.7 percent of horsehide, 95.5 percent of camel hide, 45.5 percent of sheepskin, and 49 percent of goatskin are currently processed.
To support the White Gold program, a total budget of 2.19 trillion MNT has been allocated. Of this, 682.4 billion MNT will be financed from the state budget, directed primarily toward subsidizing loan interest rates, building infrastructure, developing industry standards and strengthening professional training. The remaining 1.51 trillion MNT will be mobilized through commercial bank financing, with the government providing interest rate support under preferential terms to enterprises involved in the sector.
Through the implementation of this program, the country aims to transform its animal raw material sector from an exporter of unprocessed materials into a competitive producer of high-value goods, expanding its presence in regional and global markets. The initiative is expected to generate sustainable economic growth, create jobs and revitalize rural and manufacturing economies across the country.

Published Date:2025-04-09