The Public and Private Sector Consultative Meeting of the “White Gold” national program took place at the State Palace, with President U.Khurelsukh delivering the opening remarks. The initiative, which aims to significantly enhance the processing of livestock-derived products such as wool, cashmere, and leather, is expected to transform Mongolia's light industry sector over the next four years.
President U.Khurelsukh highlighted the historical significance of livestock in Mongolia, stating, “The benefits from livestock and the production of livestock-derived products have always played a crucial role in the growth and development of any country, its national security, and the welfare of its people. We, the Mongols, have a rich history of utilizing the benefits of our treasured livestock and processing their raw materials for millennia, supporting the livelihoods of our citizens.”
Despite steady growth in livestock production over the past three decades, Mongolia has struggled to fully process its raw materials. In 2024, exports of wool, cashmere, and leather accounted for less than three percent of the nation's exports, while the country continues to import approximately 190 million USD worth of wool and cashmere clothing, leather goods, shoes, and leather products annually.
The “White Gold” national program aims to address these issues by doubling the processing level for wool, cashmere, and leather within four years, and by increasing production and exports two to three times. The plan also includes the creation of over 8,000 new jobs. To support these goals, the government has outlined 27 measures, which include 2.2 trillion MNT in tax and customs exemptions, reductions, and low-interest loans for wool, cashmere, and leather enterprises. In 2025, around 800 billion MNT will be allocated in soft loans through 10 commercial banks, with an additional 66 billion MNT in subsidies for loan interest rates in the state budget.
Minister of Food, Agriculture, and Light Industry J.Enkhbayar presented the Action Plan for the “White Gold” national program and highlighted the economic potential of the initiative. “Mongolia supplies more than 40 percent of the world’s cashmere market, and our national manufacturers are recognized as global leaders in this area,” he said. “The global cashmere market is expected to grow by 6 percent annually until 2029, reaching 4.3 billion USD. Similarly, the global wool market is projected to grow by 3.2 percent by 2029, and the leather market by 4.3 percent.”
Minister J.Enkhbayar also emphasized the importance of Mongolia's livestock resources, with the country counting 57.7 million heads of livestock as of last year. According to the 2024 livestock census, Mongolia will produce 8,500 tons of cashmere, 30,000 tons of wool, 1,900 tons of camel wool, and 397.6 tons of yak down in 2025. To process these materials more efficiently, the government plans to establish production and technology parks that will increase the full processing of cashmere to 20 to 40 percent, wool processing to 25 to 55 percent, and deep processing of leather to 30 to 50 percent.
The “White Gold” national program, running until 2028, presents a critical opportunity for Mongolia to capitalize on the growth of the global market for livestock-derived products and significantly enhance the economic contribution of its light industry sector.
Businesses expressed appreciation for program implementation (pod)
At the ongoing “White Gold” national program in Mongolia, key figures from both the public and private sectors gathered to discuss the expansion of the wool, cashmere, and leather industries.
CEO of “Darkhan Nekhii”, B.Gerelmaa shared her company’s active involvement in the movement. "We’ve already joined the 'White Gold' national movement. We initially requested a loan of 20 billion MNT, and so far, we have received 16.9 billion MNT. Currently, we are implementing four projects, including the launch of a compressed leather production facility as part of our efforts to process leather industry waste. The loan process has been smooth and efficient, and with tax policy support, we expect our operations to grow three to five times within the next five years."
Highlighting the role of financial support in the success of the program, the Governor of the Bank of Mongolia, B.Lkhagvasuren discussed the government’s efforts to facilitate loans for businesses in the wool, cashmere, and leather industries. "The Ministry of Food, Agriculture, and Light Industry and 10 commercial banks of Mongolia have signed a Financing Agreement to support the processing industry. In 2025 alone, 788 billion MNT will be allocated for working capital and investment loans. These loans will offer favorable interest rates: 5 to 6 percent for investment loans and 9 to 10 percent for working capital loans, significantly lower than the current average interest rate of 17 to 18 percent."
A.Davaasuren, Executive Director of the “White Gold” NGO, spoke on behalf of the non-governmental organizations involved in the initiative. “We, along with leaders from the Mongolian Wool and Cashmere Association, the Wool Products Manufacturers Association, and the Mongolian Association of Leather Industry, proposed the formation of a non-governmental organization dedicated to the ‘White Gold’ program. As a result, the ‘White Gold' NGO was established to further coordinate and support these efforts", says A.Davaasuren.
In addition to these discussions, the Public and Private Sector Consultative Meeting saw the participation of various government officials including representatives from the Bank of Mongolia, commercial banks, and key industries also contributed to the meeting's dialogue.
The "White Gold" national movement, a government-led initiative, aims to elevate Mongolia’s wool, cashmere, and leather processing industries, positioning the country as a leader in the global market. The successful implementation of these measures, backed by robust financial support and strategic partnerships, is expected to create thousands of jobs and significantly boost the economy over the coming years.
