“White Gold” national program expanded to boost livestock-derived raw material processing
On June 23, 2025, the Ministry of Food, Agriculture, and Light Industry (MOFALI), the Mongolian Commodity Exchange, commercial banks, and factories signed contracts to secure funding through promissory notes, aiming to increase cashmere sales and support the export of combed cashmere.
Key Economic Initiative: “White Gold” National Program
Mongolia has launched the ambitious “White Gold” national program, a strategic initiative aimed at transforming its wool, cashmere, and leather industries by boosting domestic processing and reducing reliance on exports of raw materials. Spearheaded by President U.Khurelsukh, the program is positioned as a cornerstone of Mongolia’s light industry revitalization plan through 2028.
The “White Gold” initiative aims to double Mongolia’s processing of wool, cashmere, and leather, significantly increasing exports and creating over 8,000 new jobs.
Cashmere: Exports to grow from USD 398M → 690M
Wool: Exports to rise from USD 52M → 119M
Leather: Revenue to jump from MNT 57.8B → 900B
With a total budget of MNT 2.19 trillion, the program is funded through the state budget, bank loans, and international aid. It seeks to reduce raw material exports and boost local value-added production.
Mongolia has an annual capacity to produce approximately 50,000 tons of wool and cashmere, including 37,000 tons of sheep wool, 10,000 tons of cashmere, 2,000 tons of camel wool, and 400 tons of yak down. However, more than 70 percent of these raw materials are currently exported in washed but unprocessed form.
Despite its global leadership in cashmere supply, Mongolia currently processes only a small portion of its raw materials. The White Gold program aims to double processing levels within four years, increase exports by two to three times, and create over 8,000 jobs.
To achieve this, the government has committed:
2.2 trillion MNT in tax exemptions, subsidies, and low-interest loans,
Establishment of production and technology parks,
A financing agreement with 10 commercial banks to provide 788 billion MNT in soft loans in 2025.
This initiative is expected to:
Increase value-added exports,
Reduce Mongolia’s dependence on imported goods,
Position the country as a global leader in sustainable livestock-derived industries.
The program has been widely welcomed by both public and private stakeholders, including leading manufacturers and NGOs, signaling a united effort to unlock Mongolia’s full economic potential in this sector.