The Asian Development Bank (ADB) has signed a loan agreement for 30 million US dollars to strengthen the production and marketing chain of cashmere in Mongolia. This project will also create over 360 jobs in the food service sector.
The investments will be directed towards purchasing raw cashmere from herders, which will improve working conditions and enhance production sustainability. Additionally, the project aims to increase the deep processing of raw materials and modernize food industry enterprises.
Mongolia produces 45% of the world's raw cashmere, but only 10% of this raw material is processed into finished products. The rest is exported abroad as minimally processed wool, which causes economic damage to the country.
Funding will significantly increase the capacities of processing factories and stabilize the incomes of livestock breeders, creating 367 new jobs in specialized areas.
The project represents a strategic step towards developing non-raw material exports from Mongolia and turning local cashmere into a competitive international brand. International support will be an important incentive for enhancing the competitiveness of Mongolian brands and creating new opportunities for youth in high technology and manufacturing.

Published Date:2026-09-21