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Today, Gobi has become the largest vertically integrated cashmere producer in Mongolia and one of the five largest in the world. Exporting to 200 companies in 40 countries and operating 51 branch stores in major cities across the world (namely London, Berlin, Prague, Moscow, New York, Brussels, Milan, Tokyo, Paris, Seoul), Gobi is also branding itself as an environmentally conscious company, introducing Eco collections like Organic Cashmere and Light Cashmere.
Our Mongolian Partner, MICC has published an equity report on this unique and exciting company. Read about its challenges and opportunities in the €4 billion luxury cashmere industry.

Gobi Cashmere Equity Report

Mongolia’s Cashmere Market

The Mongolian cashmere industry has reason to be optimistic. Garment exports now exceed US$ 9 million (up nearly 200% in 7 years), several major domestic fashion brands boast fully integrated supply chains, and overall cashmere supply stands at record levels — 8,900 tons in 2015, or approximately 20% of global supply. Strong demand for cashmere has pushed herders to expand their herd sizes, resulting in a 93% goat population increase (15.4 million to 25.5 million) over 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.

Mongolia’s Cashmere Report February 2017

Mongolia’s Meat Market

Mongolia has the quality and quantity to supply demanding meat markets in Russia and China. A new report by our Mongolian partner MICC, reveals this unexploited export opportunity and explains its main challenges.
Some basic data:

  • Since 2004 animal product export fell 13% as mining export rose 550% to $4.2bn. MICC believes meat export can become billion-dollar industry
  • Cashmere exports constitute the vast majority of animal product exports, with meat contributing only a small fraction (~30mln)
  • Mongolian livestock population is at record 61.5 mln, surpassing many major meat export countries. Exports haven’t’ increased proportionately
  • New Zealand offers insightful comparative case, with similar animal composition and population size — but has US$3.8bn meat export industry
  • Mongolia does not efficiently export meat given livestock size (compared to major players) due to FMD bans. Major exporters are FMD-free.

  • Mongolia Meat Market Report 2017