survey on production and manufacturing of the wool

Mongolian Wool and Cashmere Association
Mongolian-German Project on “International Trade Policy/WTO”
SURVEY ON PRODUCTION AND
MANUFACTURING OF THE WOOL,
CASHMERE, AND CAMEL HAIR
Dr. Prof. G. Yondonsambuu (Head of MWCA)
D. Altantsetseg (Executive Director, MWCA)
Ulaanbaatar
2003
Contents
page
I. Mongolian Livestock and Raw Material Resource
1.1.Mongolian Livestock
1.2.Resource of Raw Wool and Cashmere
by Development Region
by Darkhan Uul Province
by Zavkhan Province
1
1
II. Quality and Utilization of Raw Material
2.1. Quality of Raw Wool, Cashmere and Camel Hair
2.2. Current Situation of Raw Material Utilization
2
5
III. Wool, Cashmere and Camel's Hair Processing Industry
3.1. Cashmere Processing Industry
3.1.1. Establishment of Cashmere Processing Industry
3.1.2. Difficulties and Challenges Faced by Cashmere Processing Industry
3.1.3. Perspective Trends for Further Development
6
7
9
3.2. Wool Processing Industry
3.2.1. The Establishment of the Basis of Wool Processing Industry
3.2.2. Difficulties and Challenges Faced by Cashmere Processing Industry
3.2.3. Perspective Trends
10
11
14
3.3. Camel’s Hair Processing Industry
3.3.1. The Establishment of the Basis of Camel’s Hair Processing Industry
15
3.3.2. Challenges Experienced in Camel’s Hair Quality and Processing Technology 16
3.3.3. Perspective Trends
18
IV. Wool, Cashmere Articles Export Volume, Structure, Pricing
4.1. Cashmere Export and Opportunities
4.2. Export of Knitting Industry
4.3. Prices and Rates
19
21
22
V. Production Capabilities of Darkhan Uul and Zavkan Provinces
5.1.Darkhan-Uul
5.2.Zavkhan
23
24
VI. Annexes
26
VII. References
48
P.O.Box:Ulaanbaatar 36/456
Tel: 976-11-342950
Fax: 976-11-343033
E-mail: [email protected], [email protected], [email protected]
I. Mongolian livestock and raw material resource
1.1. Mongolian livestock
The Mongolian livestock has amounted 23.7 million heads, out of which sheep amounted
10.5 million, goat - 9.1 million, camel - 252.2 thousand, horse - 1.9 million and cattle - 1.8
million in 2002. Comparing with year 1998 when the Mongolian livestock has reached its
highest record, the total livestock number has decreased by 9.2 million out of which 2 million
goats, 4.2 million sheep and significant amount of horses, cattle and camels. The cause for
such a considerable decrease in the total number of livestock was the natural disaster “zud”
(extraordinarily harsh winter), draught, and food and mouth disease that continued for two
consecutive years. Total amount of livestock is illustrated in Annex 1.
The supply and reserves of the raw cashmere has doubled from 1500 t to 3000 t during
1993-2000 as well as the number of goats has increased from 6.1 to 11.0 million heads.
However, the growth in heads of goat causes significant increase of adult goat proportion
(30%) within the herd that will affect negatively not only quality of cashmere productivity but
also the grazing pasture by overloading it. Number of sheep, goat and camel heads in
Zavkhan and Darkhan-Uul aimags is illustrated in Annex 2.
1.2. Resource of raw wool and cashmere
Figure 1. Resource allocation of wool by regions:
Resource allocation of wool
Forest and mountain
area
30%
UB
1%
Eastern area
15%
Western area
31%
Central area
23%
Figure 2. Resource allocation of cashmere by regions:
Resource allocation of cashmere
Forest and
mountain area
30%
UB
1%
Eastern area
15%
Western area
30%
Central area
24%
1
Figure 3. Resource allocation of camel hair by regions:
Resource allocation of camel hair
Eastern area
19%
Forest and mountain
area
15%
Western area
26%
Central area
40%
Total number of sheep and goat heads also size of raw wool, cashmere and camel hair are
illustrated in Annex 3, Annex 4 and Annex 5 respectively.
II. Quality and usage of raw material
2.1 Quality of raw wool, cashmere and camel hair
A. Cashmere
Classification of goat breeds in Mongolia is listed below:
Strain: Buural
Breed: Mongol
Bayandelger
Gobi Gurvan Saikhan
Erchim
Uuliin bor
Olgiin-Ulaan
Onjool
Zalaa jinstiin tsagaan
Key features of stated breeds and strains shown in Annex 6. The quality of the Chinese
cashmere ranked on the top position followed by the Mongolian one on the second position.
Comparative table of Chinese and Mongolian cashmere quality indicators:
Chinese
cashmere
Mongolian
cashmere
Average size of micron
13.5-14.5
Length
33.35 mm
Color
White, pale
15.5-16.0
38-43 mm
Pale, dark
Size of micron and color of Chinese cashmere is far the best; however the length of fiber in
Mongolian cashmere is longer and considered being the best for spinning. Recently, the
quality of cashmere is becoming a main concern of scientists, experts and institutions.
Research shows a double increase in heads of goat compared to 1990s; however the
diameter of fiber is increasing year after year.
2
Goat Head
12000
thous.head
10000
8000
6000
4000
2000
0
1992
1993
1994
1995
1996
1997
years
1998
1999
2000
2001
2002
The diameter of fiber of the Mongolian cashmere had been 14.5 micron for the last 20 years.
However, recently it is becoming 15.5 to 16.5 micron in diameter, indicating the increase in
thickness by 1.5 to 2.0 micron. Below is the average fiber micron size for raw cashmere
received by “Gobi” Cashmere Co. Ltd
Average
diameter
/mkm/
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
15.4
15.5
16.0
16.2
16.1
16.6
16.7
17.0
17.4
17.1
A v e ra g e o f m ic ro n /ye a rs/
18
17
16
15
14
1993
1995
1997
1999
2001
Scientists explain that due to the following factors the width of cashmere fiber has been
altered:
1. Proportion of mixed breeds mainly with high output but thick micron cashmere breeds
such as Gobi Gurvan Saikhan and Uuliin Bor within a herd is increasing. Study
shows 37.1% of total breading stock either the abovementioned breed or mixed with
them.
2. There has been a dramatic increase in the number of adult male goats compared to
1998, revealing some 5 times increase compared to 1998 (research has been done
by PhD Yo. Zagdsuren and PhD B. Mandakh from MLASI).
3
Such quality deterioration of Mongolian cashmere directly affects its price level. The Iranian
and Afghan cashmere belong to “Cashgora” classification with fiber diameter 17.0-19.0
micron and in terms of quantity and quality they are ranked below Chinese and Mongolian
cashmere. Until 2001, the price for the dehaired cashmere coming from Iran and
Afghanistan was 20 USD, which is lower than the Mongolia one for every kilogram.
However, since April 2002, the difference had narrowed and became only 3 USD and in
November and December 2001 the price for that cashmere even increased and currently
valued just as Mongolian. According to international standards, fiber of cashmere never
exceeds 17.5 micron, if exceeds, it is no longer regarded as cashmere and shifts to
cashgora classification, which is priced one quarter of qualified cashmere. Flowchart of
Afghan and Mongolian cashmere price research is illustrated in Annex 7.
Wool
Mongolia produces in average 15 to 16 thousand tons of raw wool annually of which 93-95%
is coarse and semi coarse wool. Total supply of wool is broken down into 4 regions of which
Central and Western regions produce roughly 80% of the total output and considered to be
the high quality wool suppliers. Semi coarse, fine and semi fine wool resource allocation by
region is shown in Annex 8.
First class coarse and semi coarse wool are the most demanded types by Chinese traders
and other purchasers. Another factor generating demand is the quality of processing.
Wool Supply in Western Region
The Western region is the highest quality wool supplier. First and second ranked semi
coarse wool account for 50% of total production of the region. Gobi-Altai, Zavkhan, Uvs
aimags that belong to this region, manufacture more than 1000 tons of wool annually each.
Wool Supply in Central Region
The quality of wool produced by central region is relatively poorer than that in western
region. However, Huvsgul, Bayankhongor, Uvurkhangai aimags produce more than 1000
tons of fine wool annually. Taking the semi coarse wool alone, Govi-Altai and Bayanhongor
aimags produce each in average 150-200 tons annually and regarded as the best quality
and quantity supplier in the region. Arkhangai, Tuv, Dundgobi aimags each produce over
1000 tons of wool annually.
General overview of sheep wool quality produced in Mongolia
The structure of Mongolian sheep wool is regarded as not regular, consisting of 4 types of
hair: downy, medium hair, coarse hair and dead hair. To determine the quality rank of the
wool by first and second grades, a diameter of wool fiber (microns) and content of cashmere
(hair) are taken into consideration. The Mongolian wool is given first, second and third
grades for quality. Foreign and domestic traders usually never raise any issue related to the
length of Mongolian sheep wool, however complaints about coarseness, grease and impurity
levels cause some critics.
Camel hair
The Mongolian camel hair supply is divided into 4 regions depending on camel location,
camel number and quality of camel hair:
1. Western region: Bayan-ulgii, Bayanhongor, Govi-Altai, Zavhan, Uvs, Khovd aimags
(provinces) amount 39.2 per cent of total supply. The characteristic of hair is light4
colored, yellowish and white containing larger proportion of downy and fine-grained
hair.
2. Central region: Uvurkhangai, Arkhangai, Bulgan, Tov, Selenge, Hovsgol aimags
supply reddish, brown not downy hair which amounts 8.4 percent of total camel hair
supply.
3. Southern region: Dornogobi, Dundgobi, Omnogovi aimags supply reddish, brown,
not very downy and coarse hair which amounts 44.6 percent of total camel hair
supply.
4. Eastern region: Dornod, Sukhbaatar, Khentii aimags supply mixed color and average
grained camel hair, which amounts 7.8 percent of total supply.
Camel Hair Classification
Following is the classification of camel hair:
Classification
I
II
III
Classification Index
Soft hair of young
camel
Coarse wool of main
corpse
Hair taken from knee
and beard of adult
male camel
Tangled hair
IV
Note:
Description
Soft, downy, fine-grained hair with intermediate
fiber and coarse hair
The hair is coarse, long, less downy relative to
classification I and arid. Hair taken from shoulder,
side, belly and thigh of different age camels both
female and male.
Long, less downy, fine, coarse and grained hair
taken from neck, nape of the neck and knees.
Camel hair which is tangled in small parts.
-
Because camel hair gets less likely tangled, the hair of classification IV is hardly
found.
-
Hair taken from main part of body is sorted into white, whitish, and yellowish colors:
•
White: downy, tuft hair of yellowish and white shade
•
Whitish: downy, tuft hair of whitish yellow tone
•
Yellowish: brown, dark brown, reddish brown, orange etc various colors
2.2 Current situation of raw material utilization
Raw cashmere utilization:
1
2
3
4
Description
Total supply of cashmere /ton/
Total purchase by industries /ton/
Total export with custom duty /ton/
Difference in tons /1-2-3/
1998
1999
2000
2001
2002
3282.4
3000
3266
2800
2400
2552.7
1561
927
2145
1215
16.2
749.2
714
24.9
59
713.5
689.8
1625
630.1
1126
5
Raw wool utilization:
1
2
3
4
Description
Total supply of cashmere /ton/
Total purchase by industries /ton/
Total export with custom duty /ton/
Difference in tons /1-2-3/
1998
1999
2000
2001
2002
18300
17300 16000
14300
12600
4020
5610
5940
5200
4000
5421.5 8684.4 5216.3 10480.8 6634.7
8858.5 3005.6 4843.7
-1380.8 1965.3
III. Wool, Cashmere and Camel Hair Processing
3.1. Cashmere Processing
3.1.1. Establishment of the Cashmere Processing Industry
Although, Mongolia had been ranked as the world leading supplier of raw material resources
of goat and camel hair, the issue of industrial processing was raised only four decades ago,
i.e. since mid 1970s. With implementation of small pilot factory, fully equipped with world
leading technology for finished processing of raw cashmere, supplied by Japan with
assistance of UNIDO in 1976, the basis for industrial processing of raw cashmere has been
first established in Mongolia.
Later, with the capacity of processing over 100 tons of goat cashmere, 200 tons of camel
hair and manufacturing 68 tons of tops, 120 tons of yarn, over 400 thousand pieces of
knitwear, 120 thousand meters of blankets and thick woolen cloths annually, “Gobi” factory
was constructed by grant aid of the Government of Japan and put into operation in 1980 with
its full capacity. It has been years, since the cashmere goods labeled “Made in Mongolia”
and manufactured in modern equipped “Gobi” factory started to win popularity among many
consumers worldwide and hitherto represent Mongolia.
The successful launch of the first experimental factory and Gobi to process camel and goat
hair has created favorable environment to boost other industries in cashmere sector but due
to the ideological barriers that existed until 1990, no significant change and modernization in
sector has been introduced at that time. Total volume of export goods made of goat and
camel cashmere as of 1990 indicated in Annex 9
Initially cashmere-processing sector was launched to produce export-oriented goods to be
supplied to third world countries, thus managerial staff has been trained to work in open
markets, which became a significant asset to ensure smooth and steady operation,
especially in the primary raw material processing sector and attract the a large amount of
foreign and local investment during last 10 years of market transition.
Meanwhile, the so-called experimental pilot plant, regarded as country’s cashmere
processing basis has extended its operational capacity by 5 fold and became “Buyan”
company, utterly equipped with world leading Italian techniques and technologies. Moreover,
numbers of cashmere factories and workshops with foreign investments, such as ”MongolAmical” company with US investment, “Cashmere Fine Asia” with Italian investment,
“Monforte” with British investment and “Tuul Cashmere Co, Ltd” with Japanese investment
have been established and efficiently operating in the current market.
In other words, if there were only two cashmere-processing factories namely “experimental
pilot plant” and “Gobi” in 1990, presently the number of primary raw cashmere processing
factories reached 450, indicating a significant increase of primary processing (combed
cashmere) by 1.6 fold relative to total output of processed raw cashmere and finished
6
processing taking up 60% of total raw material. Industrial capacity of cashmere processing
as of 2003 illustrated in Annex 10.
Over 10% of those factories are started with Chinese investment and involved in primary
processing of raw cashmere. In parallel, there are numbers of knitting plants with Chinese
investment set up in Mongolia, which produce knitwear by imported yarns (threads) and
export to USA under “Made in Mongolia” labels. Although, the purpose of these plants is to
use up “quota” granted to Mongolia by USA, it is beneficial in terms of job creation and
contribution made to export and state budget. The titles and capacity of knitting plants
operating in Mongolia as of 2003 are shown in Annex 10.
Above-mentioned investment had lead to modification of the structure of cashmere
processing sector and affected the share of industry that has reached 48.8%.
3.1.2. Difficulties and Challenges Faced by Cashmere Processing Industry
1. While the cashmere processing industry is intensively developing and increasing its
capacity, since the September 11, the external market prices for combed cashmere, the
major output of industry, kept on steady decline and dropped to $42-45.0 per kg implying
a substantial decline by 2.5 times compared to 1998-1999 years when the combed
cashmere was priced at $90-100 per kg. Due to the falling market prices, plants and
companies with foreign and local investments operating in Mongolia has suffered losses
and are in difficult economical situations.
2. More than 90% of total population of goat in Mongolia is dark colored, and just 1.2% of
total population of camel is white colored. Recently, there are number of negative
tendencies occurring that affect the quality of raw materials as the fineness of goat yarn
has coarsened by 1.0-1.5 micrometers and proportion of intermediary hair that used to
be found occasionally, now makes up a significant portion and the portion of coarse hair
in different kinds of camel hair (down wool, coarse hair, top hair) tends to increase over
the past few years. Such tendencies not only hold up production but also impose
adverse effects on the external market prices for combed cashmere as well as the
income of manufacturers. For instance, the cost of Mongolian combed cashmere (goat's)
priced less than 10-20 USD per kg compared to Chinese in external market that caused
by a lack of processing technologies in manufacturing end products.
3. Factors such as poor retention of original form in the course of wear; weightiness, poor
pilling-resistance and bad design of currently manufactured cashmere garments destroy
competitiveness among similar articles in the world market. As a consequence, the
prices go down, and become difficult to secure market position. As far as the camel hair
articles are concerned, the market access remains restricted due to the low awareness
of global consumers.
4. Cashmere goods produced in Mongolia fail to enter global trade network, thus to access
it, involvement of third parties is sought, which in turn affects price decrease of
Mongolian cashmere articles and harms income of producers.
5. Enterprises with foreign and domestic investments operate on seasonal basis caused by
shortage of turnover asset as it comes to the issue of purchasing raw material. Various
factors contribute stated shortage: failure to accumulate funds as they have to trade their
goods at relatively low prices, high interest rates of Mongolian commercial banks, short
maturity dates, strategy of Chinese traders backed up by state financial supports that
artificially elevates price for raw material in the market (to hinder purchase of factories).
7
6. Chinese traders and brokers exploit current disorder and turmoil at the raw materials
market and the customs to export to China greasy cashmere purchased at high costs
without paying necessary taxes and fees. It is reported in the surveys, 700-1,000 tons of
greasy cashmere annually bypassed the customs and border without any taxes paid.
With aid of such “conspiracies”, about 40% of total greasy cashmere stored up in
Mongolia leaves the country through the customs and border, thereby creating a
shortage of raw materials.
7. The greasy cashmere produced in farms of herdsmen has to undergo numbers of steps
before it is finally delivered a factory, and the pricing tends to rise at each level so that
the present market price for greasy cashmere fluctuates $19-21 per kg. However, it is
considered to be rather high regardless the current price for combed cashmere at
external market, which is priced at $42-45. Literally, the enterprises that pay such price
will soon find themselves in a deadlock.
8. Primary processing factories with production capacities that exceed the stock of raw
materials by 1.6 fold have to fiercely compete with each other in the raw materials
market in order to acquire raw materials ahead of others. However every such move
worsens the situation and leads to a higher price of raw materials.
9. Low-level discipline, skills and productivity of employees within a company negatively
impacts the final outcome as well as the competitiveness of company overall.
Conclusion
1. Since 1990 as the country shifted to market relationships, the cashmere processing
industry has been operating smoothly, attracting much of foreign and domestic
investments, and intensively building up its production potential. As of today it has
adequate potential to afford 100% primary processing and 60% deep processing of a
total raw stock stored in Mongolia. More than 90% of all enterprises engaged in primary
processing are small factories with Chinese investment.
2. The substantial price decrease of combed cashmere in external market (which now
makes up just a half of its highest point recorded in 1999 - 2000) has placed the
cashmere processing industries in an economically hard situation.
3. Introduction of world leading techniques and technologies from Japan, Italy, Britain and
China into cashmere processing industry of Mongolian, created favorable condition to
produce articles according to the high preference of outside markets. For instance, the
quality of combed cashmere that has undergone the primary processing visibly meets
the world standards. However, competitiveness of end product on the global market is
low when it comes to such factors as pilling-resistance, loosening off the form, design
and style.
4. Due to its failure to acquire own segment in the world trade network, articles produced in
Mongolia are sold through the middle agents that affects price reduction by $10-20
against the same articles produced in China. As a consequence, it negatively affects the
economic capability of wool and cashmere processing industry of Mongolia.
5. The current disorder on the raw material market and conspiracy like operation at the
customs and border generate auspicious environment for Chinese merchants and their
companions impairing competitiveness of local manufacturers in obtaining essential
source of production.
8
3.1.3. Perspective Trends for Further Development
One. The substantial grounds for outlining the perspective trends with respect to the
cashmere processing industry
1. According to studies carried out by researchers, the world population of XXI century is
inclined to a simple consumption patterns.
2. People of upper to middle upper classes would mostly consume cashmere garments.
For such people color and design are of most significance than the quality.
3. The major part of income derived from the goat will likely be cashmere in the future. This
is why; regardless of the adverse impact of goats to pasture, herdsmen remain
interested in increasing its population.
4. USA and other developed countries of Europe are keen on transferring primary
processing enterprises away from their countries to less developed countries with rich
raw material resources.
5. Increased usage of household items of natural origin, such as cashmere and other raw
materials is estimated in countries with humid and chilly climate such as North America,
Canada, Norway, Finland, Sweden and Russia.
6. Because of high added value of cashmere products, there occurs no adverse impact in
rise of expenses by transportation and distribution throughout the world.
7. Because of the worldwide distribution and awareness among consumers, cashmere
products assured their market position even in the future.
Two. Development trends
1. The capacity of primary processing production is not expected to be upgraded and would
remain at the same level. However, priority will be given to the introduction and
adaptation of environmentally friendly technology.
2. Potential to produce yarns from different cashmere in Mongolia is broken down in two
stages
1st stage
within 2015
2nd stage
within 2025
In line with such implementation, knitting enterprises established in the countryside will
be supplied with yarns. Thus, a network connecting urban and rural regions will be set
up. For such purpose, two-phase credits to be granted from the Japanese Government
will be duly used.
3. Organize actions to carry out step-by-step arrangements: breeding and selection
activities focused at making whiter the color of Mongolian goat, thinner the fiber of
cashmere.
4. Measures will be taken to bring the quality of knitwear and textile products up to average
standards of developed countries of the world and to introduce the “International trade
mark”.
9
5. Provide with opportunities to introduce Mongolian cashmere products at European and
US markets gain access without any mediation.
6. Solve the issues associated with the technique and technologies to provide finished
processing of cashmere textile and knitted articles, improving design and styles as well
as training labor force in this field.
7. To slash increasing interest of exporting raw cashmere by various illegal means; provide
favorable condition for industries with reliable supply of raw material.
8. Discuss issues of providing mutual benefits and privileges in terms of custom tariffs with
the Russian Federation and China.
9. In the global market of cashmere products, China competes by its low prices, Italy by
leading design. Thus Mongolia should employ its “pure cashmere” image to secure own
segment and compete in the global market.
10. Under the scope of the project “wholesale trade network” establish a raw material “stock
exchange” and ensure its regular operation.
11. A central joined laboratory for wool and cashmere industries has to be established to
settle on scientific basis inadequacies between industries at the customs and border.
12. As a result of the project “2+2” implemented by German side, a wide-range campaign to
promote unique specifics of Mongolian goat cashmere in the other countries of the world
has to be launched. The cashmere industry is faced with necessity to expand its market
position worldwide.
3.2. Wool Processing Industry
3.2.1. Establishment of Basis for Wool Processing Industry
In conformity with the treaties and contracts concluded with the former USSR the first in
Mongolia enterprise, namely a wool-washing plant in Khatgal, was built and commissioned in
1931-1933.
In parallel with construction of a wool-washing plant in the countryside, industrialization
movements were made to set an industrial complex comprising about 10 units as skin, hides
and wool processing plants, a power station, communal services, and housing buildings in
Ulaanbaatar, and by March of 1934 the complex was commissioned to start its operation.
The industrial complex had the capacity of producing 100 thousand meters of cloth and 200
tons of felt annually provided they work in one shift. The establishment of wool washing plant
in Khatgal and felt & wool cloth plant in Ulaanbaatar laid down the basis of wool processing
industry of Mongolia.
The first production enterprise was set up in Mongolia it has been more than 250 years since
the first machinery production started its development in Britain. Another interesting fact is
that the world’s first machine processing plant as well as Mongolian is both built for wool
processing industry.
A period of sustained and increased growth of the wool processing industry, the basis of
which was laid down in the 1930s took place during the 1970, 1980s, apart from operational
launch of number of high capacity self-dependent plants such as a wool-washing plant and a
carpet plant in Dornod province; a high capacity carpet plant in Erdenet; the 2nd knitting
10
plant, a spinning plant, the 2nd felt&felt boots plant, and wool-washing plant in Ulaanbaatar.
Moreover, expansion and modernization of Ulaanbaatar city's carpet, woolen textile and 1st
knitting plants considerably increased their capacity.
As a consequence of such actions, at the end of 1980s the industry has been enabled to
produce 10 thousand tons of thermal washed wool, over 4.0 thousand tons of woolen yarn,
1.3 million pieces of knitwear, 850 thousand meters of felt, 600 thousand felt boots and 1.9
million square meters of carpets annually. In other words, capacity of 100% primary
processing and 60% finished processing of total sheep wool production has been facilitated.
3.2.2. Difficulties and Challenges Faced by Cashmere Processing Industry
The period of intensive development, modernization, achievements set up in wool
processing industry has failed to keep on accomplishing in 1990s. The quantity of production
to be produced in 1990 (i.e. before recession faced by the wool processing industry) and
products scheduled for export are shown in Annex 11. With the transition from the centrally
planned economy to market relationships and commencement of privatization process in the
country, the wool processing industry encountered a recession. The current state of
enterprises functioned back then is presented briefly in Annex12.
It is shown, just 3 enterprises hardly able to function at 10% of their capacity out of 14 that
launched their operation in full capacity before the year 1990 and the Erdenet carpet plant
operates at 40% of its capacity.
Reasons of such decay of enterprises established during the period of transition and
privatization of state property are different and specifics; there is a number of factors
affected the situation in general.
1. The wool processing enterprises except the Ulaanbaatar carpet were set up with
technical and economic assistance from the former USSR. It was agreed upon that the
production should be delivered directly to the USSR. Therefore, more than 90% of the
total products manufactured used to flow as export to the Soviet Union only. With the
collapse of USSR and formation of the Russian Federation, the policy to oppress and
keep down Mongolia economically has been pursued. The clear evidence of that policy
was the fact that over 40% import tax was imposed on the wool products exported from
Mongolia that in turn caused corrosion and even close down of wool processing industry
of Mongolia because of diminished access to northern neighbor's market.
2. While the access to northern neighbor’s market was closed, market of southern neighbor
remained open enabling Mongolian enterprises carry on their production. However, not
long before this market was closed down, as the policy to turn Mongolia into the countrysupplier of raw materials maintained from the PRC was implemented. Consequently,
30% import tax on the wool products of Mongolia was imposed.
3. During the period of centralized planned economy, enterprises operated in compliance
with plans approved, and exported their production to particular markets according to the
agendas agreed upon.
Enterprises had no need to compete in the market, it was sufficient enough to be involved in
production only. As the entire country shifted to market relationships, former planning
regulation mechanism had faded away besides the markets of two neighbors closed thus the
wool processing industry faced an urgent necessity to look for third markets.
Leaders and managers of the industry who lacked proper experience and skills failed to
meet challenges as they were required to perform dictated by the market rules. In other
11
words, the main factor that has led to the decline of enterprises was lack of skilled and
trained staff capable of managing the wool processing industry in market conditions.
4. The quality of products was not adequate, failing to satisfy the requirements of the third
world countries, which served as a decisive factor leading to a decline of the industry. If
the quality, appearance, packing were capable to compete up to the third world's market
requirements the wool industry's enterprises would have not fallen short in such great
quantities, some would have been functioning to some extent.
The major reasons why it was not understood during the 70 years of development of this
industry since its establishment that the quality of products of the industry was far from being
able to meet the requirements of the developed countries and no adequate measures for
remedying the situation were undertaken so far were as follows:
a)
With respect to its textile industry's technical and technological development, the former
Soviet Union was considered to be relatively out of dated as compared with the leading
countries of the world. Similarly, there were little chances for the wool industry
enterprises of Mongolia having been set up with the technical and economic assistance
of the country that was regarded as an obsolete one to be able to compete at the global
level. Obviously, it affected the situation gravely.
b)
The engineers and technical staff used to get education and training only in the former
USSR were not provided with opportunities to be conversant with the latest technical
and technological achievements. In addition, the knowledge of foreign languages was
restricted to the Russian language only, which later made it difficult to get a rapid startup
at the third world's markets and strengthen their positions.
c)
The wool of Mongolian sheep grazing on natural rangelands throughout four seasons of
the year under the country's harsh continental climatic conditions has some its specifics.
In comparison with other countries' sheep's wool, the Mongolian one is slightly coarse,
sometimes there can be found broken hairs, with much impurities, non-uniformly in
terms of its width and length.
So far the Mongolian sheep's wool is not graded according to its designation in keeping with
its specific characteristics (which kind of wool is most convenient and would be profitable for
producing what kind of production), which, of course, is not to the benefit of the production
quality.
d)
If we refer to the experience of such countries as Japan, Britain, Italy, Germany, China
leading in the world with respect to their textile industry's progress and achievements, it
can be seen quite clearly that there is a great gap between the development level of
their finished processing technique and technologies, expertise and professional level of
their engineers and technical staff employed in those countries and their Mongolian
counterparts.
The Mongolian enterprises are not only relatively obsolete in terms of their technology as
compared with other segments of production, but also no sufficient personnel and experts
have been prepared hitherto.
Some humiliating hearsay that can be heard sometimes that the Mongolian wool industry
enterprises practice turning out raw, semi-processed products seems to be rather close to
reality.
12
Conclusion
The policies pursued from the state for developing industries processing raw materials of an
animal origin are as follows:
a) Industries of strategically top priority having primary social economic significance; and
b) Industries due to be developed on self-dependent basis in consistence with the market
regularities.
While the wool processing industry of Mongolia is referred to the second one, i.e. industries
to be developed on self-supporting basis, but for the last period of over 10 years passed
since the transition of the country to market relations started in 1990, most of the enterprises
used to function back then now are standing idle or have to alter their profile not to mention
their development. With the exception of a number of small enterprises with Chinese
investments, dealing with finished processing operations, no investments either foreign or
Mongolian have been made for providing finished processing to manufacture finished
commodities. The capacities of enterprises with foreign and domestic investments
conducting their operation in Mongolia now are presented in Annex 13.
Proceeding from Annexes 11, 12, and 13 it can be concluded that:
1. As of today, the Mongolian wool processing industry's capacity to provide primary
processing of raw materials exceeds 1.2 fold the raw stock available and has raised by
145 per cent as compared with that of the period of planned economy (before the year of
1990). At the same time, the production of carpets has reduced by 70%, the felt boots
production by 60 and more percent, and the production of textile and woolen knitwear
virtually has ceased. It is stipulated by the following factors:
a) The Dornod carpet plant is practically impossible to be restored for carpet producing
purposes, and equipment and plants of other enterprises are mostly worn out, and there
are little possibilities to be able to apply their capacities to the full as well.
b) The "Eermel" joint-stock company's yarn producing line designed for producing fine
yarns and carpet threads has been dismantled, and actually, it has stopped producing
woolen yarns. The "Ulaanbaatar" carpet plant applies just 10% of its capacity, and the
"Erdenet" carpet plant, over 40% due to which the spinning room is not able to work at its
full capacity.
c) The "Suljee" joint-stock company has changed its profile turning into a sewing enterprise.
2. The quality of wool undergone primary processing has substantially improved, and is
able to meet the standard requirements with respect to its impurities content. Carpet
production has improved in terms of its designing and patterns, and its assortment
increased.
3. The quality of sheep wool being the major raw material has worsened. The portions of
campy hair, top hair, impurities, colored and tangled, yellowed/stained hair have been
increased.
4. As the import tax rates in both southern and northern neighbors have not been reduced,
a lack of marketing opportunities is a hard blow to the production being the major factor
owing to which the production output is ever reducing.
13
5. Due to a lack of circulating capital they have to compete with Chinese merchants and
changers at the market of raw materials, often failing to be supplied with the stock of raw
materials in sufficient quantities, accordingly, they can not ensure a smooth operation of
their enterprises, which acquires a seasonal character.
3.2.3.Perspective Trends
One. The grounds for outlining the wool processing industry's perspective trends:
1. The climate of the world has warmed up by 1 to 1.5 degrees centigrade, and the global
warming process is expected to further intensify.
2. The major yield obtained from the Mongolian sheep is its meat and skin. A number of
various projects and research studies are being carried on with the purpose of improving
the quality of wool of the Mongolian sheep that is likely to be raised as mutton sheep, but
there not much probability that they would be of any effect. The quality of wool of mutton
sheep is, as a rule, of inferior quality.
3. According to studies carried out by researchers, the global community is expected to
shift in the XXI century as much as possible to simple consumption patterns and it is
deemed that out of fibrous materials preference is likely to be given to polyesters. The
simple consumption trend means that from among other raw materials wool is to be
consumed much more.
4. The amount and distribution of timber around the world are reported to be persistently
reducing from year to year, while its consumption, on the contrary, ever growing. In view
of this, pilot studies are actively carried out in such countries as Britain, German for
applying "woolen fibrous" materials instead of timber for cold-proof insulation purposes in
buildings. If it proves to be effective the consumption of wool, especially low-grade its
kinds is likely to rise sharply.
5. While people around the world have accustomed to using clothing made of synthetic
fabrics, being cheap and durable, for the last few years there is a strong tendency
towards giving preference to products made of "natural" raw materials. And, definitely,
wool refers to those "natural" raw material kinds.
6. Densely populated European countries with restricted land resources, especially some
most developed ones seem to be desirous to drive out from their territories some
enterprises dealing with primary processing of raw materials by relocating them in
underdeveloped countries or countries with vast territorial resources. It is likely that it
might turn out to be beneficial to Mongolia as well.
7. Most of people around the world now prefer to use mats instead of carpets, and hang
paintings instead of carpets in their houses and hotels.
8. Developed countries leading in textile industry tend to avoid as much as possible
producing fabrics, blankets, carpets by using traditional weaving techniques, actively
seeking for more productive and cost-effective techniques and ways. One of such
examples is a non-woven fabric. At present, many products as cloth, blankets, shawls,
scarves, doormats are produced of such non-woven fabrics. Moreover, its production is
expected to be growing further.
9. As woolen products are of low value added, and relatively of heavy weight and bulky,
there is a high probability that delivering them from a great distance to sell at markets
would bring in no profit. Such being the case, the most profitable market for woolen
14
products seems to be that of our northern neighbor's. On the other hand, according to
surveys, for Russian consumers the most well acquainted and accustomed products of
such kinds are woolen products. In this sense, it is the Russian market that should be the
major market for Mongolian woolen products.
Two. Perspective Trends
Basing upon the above mentioned reasons, the industry's perspective trends are outlined as
follows:
1. The current potential of enterprises and workshops carrying out primary processing of
wool far exceeds the stock of raw materials available, advanced technique and
technologies of such leading in this industry countries as Britain, Japan and China are
widely introduced and applied, the quality of washed wool has reached the level
sufficient to meet any consumer's requirements. Considering all this, no measures are to
be taken for raising capacities in this sphere. However, it is required to introduce and
apply technologies that would help to reduce the content of impurities in washed wool to
the level of world's leading countries.
2. Take measures to raise the Mongolian breeds of sheep sorting them out according to the
designation of their wool as, for instance, wool to be used for carpets, that for blankets,
for cloth.
3. Raise producing capacities designated for the manufacture of carpets, blankets, and
fabrics to carry out finished processing of wool and turning out consumer goods. The
amount of tow appeared in the course of utilization of carpet products shall be in keeping
with the level of Belgian-made carpets of the same kinds.
The elasticity of blankets, fabrics shall be brought to the level of products made of fine
quality wool.
Take actions for exporting carpets and textile products to the USA and European
countries.
4. Introduce latest techniques and technologies for producing textile designated for
industrial applications (cold-proof insulation materials for construction, air filters, felt
pads, etc.) and solve the issue of ensuring a comprehensive utilization of low-grades of
wool.
5. Take measures to provide International Quality marks for the Mongolian carpets,
blankets, cloth, and fabrics.
6. There is a strong necessity to take efforts designed to reduce import taxes of the
Russian Federation and China so that Mongolian wool products could have a free
access to markets in those countries.
3.3. Camel's Hair Processing Industry.
3.3.1.The Establishment of the Basis of Camel's Hair Processing Industry
The task of producing export-oriented finished products by machine processing of raw
materials was put forth for the first time as early as in the beginning of the 1970s when over
3,000 tons of camel's hair used to be stored up per year.
15
Under the scope of achieving the objectives put forth, the "Gobi" plant was commissioned in
1981. As a result of it, the basis was laid down for machine processing of camel's hair in
Mongolia, producing high quality products to compete at external and domestic markets, and
extensively developing this industry.
The camel's hair processing industry thus established more than 20 years ago has been
intensively developed especially since the year of 2000 when policies designed to support
national business started being pursued on the part of the state, and now there producing
capabilities having been built up that allow to provide 100% primary processing of the raw
stock laid in in the country and more than 50% finished processing, producing a wide range
of knitwear made of camel's hair. The camel's hair processing capacities and processing
levels are shown in Annex 14.
The advancements made in the camel's hair processing industry are the result of extensive
introduction and application of techniques and technologies of such leading worldwide in this
sphere countries as the USA, Italy, Britain, China. Also, Mongolian engineers and technical
staff succeeded to gain proper expertise and skills to utilize the above technique and
technologies utmost have contributed to such a success.
A lot of issues necessarily required to be settled are being faced in the course of
development of this industry including raising the capacity built up in the processing industry,
expanding its positions at external and domestic markets, coping with the challenges and
difficulties experienced with respect to its technique and technologies, bringing the elasticity
and fineness characteristics of products manufactured to those of cashmere ones by
ensuring a simple structure and fineness of camel's hair.
3.3.2.Challenges Experienced in Camel's Hair Quality And Processing Technology
Whereas there are lots of factors influencing the quality of finished products such as the
particular technical and technological levels, labor force's skills and expertise, industrial
micro environments, however, of decisive importance is the raw material.
As to the processing industry's technological requirements, the major price-formation
parameter on which largely is dependent the quality of raw materials is fineness. The finer
raw materials' filaments, the higher size yarns (threads), lightweight, elastic, elegant
products are possible to be manufactured. Among the raw materials obtained from the five
sorts of livestock (horse, sheep, ox, camel, goat) Mongolian sheep's down can be regarded
as the most valuable, even "Master model", with respect to its characteristics up to the
industry's technological requirements. In the result we have now obtained nearly "pure
cashmere" with 0.08-0.3% hair content, i.e. almost without any impurities, producing up to 60
size yarns (threads) and further turning out as light-weight and elastic as silk "Super"
products for competing at the market.
At the present technical and technological level it is not possible to manufacture products
made of camel's hair that would be up to the level of goat cashmere’s and production of
goods with higher competitiveness would be possible if the following issues would be solved:
1. At present camel's hair fiber's mean fineness value exceeds that of goat's by 4 to 5
micrometers, which means that actually there are no opportunities to produce yarns
sized 45 and more, light-weight, elastic articles. The only way to solve this issue is to
intensify breeding and selection activities to be carried out throughout the country
designing to make camel's down fiber finer. If fineness of mature camel's down fibers will
be as that of yearling camel's it would be a genuine breakthrough in the camel's hair
processing industry.
16
2. Camel's hair consists of down, coarse hair and top hair. Of little difference in terms of
their weight, having much in common among them those three kinds of hair pose a
serious problem in reference to the technological operations for sorting out impurities
from down basing upon their weight differences, affecting thus their efficiency. In
addition, camel hair's coarse hair, especially its top hair's average length exceeds down's
length 1.5 to 2.0 times (cashmere hair is just 20-30 per cent longer than its down), and
relatively much stronger. As a result of all this, any business with even latest techniques
and technologies processing camel's combed down, fails not minimize the content of
impurities below 2.0 per cent. Making it less than 2.0 per cent means to suffer losses.
Thus obtained combed camel's down sorted out from hair including intermediate fiber
and coarse hair, which is as high as 7-10 fold in comparison with cashmere's turns out to
be thicker than pure cashmere, which, in its turn, would make ready-made articles
produced even tighter, coarser, non-elastic. For bringing camel's hair goods up to the
level of articles made of pure cashmere, it is needed that camel's hair consists at the
most of two fibers.
3. The technological operation for obtaining down from camel's hair is relatively expensive
as compared with cashmere. For example, processing camel's hair to obtain down with
2.0 per cent impurities, coarse hair content will require applying a lot of operations, as a
matter of fact, as many as nearly twice if compared with those used for processing
cashmere with just 0.3 per cent of impurities content. It shows that the camel's hair
processing industry is of higher cost per unit. Apart from this, another factor leading to an
increase in its cost is dash, sand and earth contained in camel's hair. The equipment
capable of processing cashmere for a period of 4 to 5 years wears out after 8 to 10
months of processing camel's hair. Due to such wear and tear of extremely expensive
equipment for the past few years, some companies and firms seem to have preferred to
concentrate their efforts only on working with goat's cashmere. While the camel's hair
processing industry has now been rapidly developing with improving its products' quality
and increasing its assortment, strengthening their position at domestic markets, due to
the above mentioned quality's non-uniformity it won’t be able to compete at markets of
the world's leading countries with well-developed cashmere industries and its
opportunities still would be restricted.
And even if camel's hair fiber will be made possible to be compared with that of goat's
cashmere, and processing technique and technologies will attain such a high level that
this problem will be settled, products made of camel's hair will never be perfect enough
to stand as high as products made of goat's cashmere regarding such its specifics as
elasticity, elegance and consumer's satisfaction.
Conclusion
The Mongolian population of camels used to number 895.0 thousand heads in 1954, by the
year of 2002 reduced to 250.0 thousand heads. This reduction in the population number of
the camel being one of the five sorts of livestock traditionally bred by the Mongolians is
explained by researchers and veterinary experts in connection with the cheap costs of its
hair, plenty of meat and fats. And that is the case. Estimates made according to the average
market prices show that an income yielded by a household from one camel (its hair) makes
up just 7,500 to 10,000 tugrugs per year.
The technique and technologies used for processing goat's cashmere are rather similar to
those used processing camel's hair. It is only non-uniformity of raw materials' quality that
makes the latter coarse, cheap and not as attractive and elegant. Regarding this, there are
no slightest possibilities to anticipate any rise in the market prices of camel's hair. Only if we
17
manage somehow to change the quality of camel's hair it would be possible to speak about
advancing its costs.
As experts view, the current market prices are quite in consistence with the quality of raw
materials.
Nowadays when the producing capacity to process camel's hair making consumer's finished
products is raising from year to year, their assortment ever increasing, the quality improving,
and marketing opportunities provided, manufacturers are faced with the necessity to
increase camel's hair raw stock, bringing its quality to that of goat's cashmere. And it is our
herdsmen and veterinary experts that are capable to solve this issue. As a matter of fact,
manufacturers always seek to be in the know of any changes for the better going on in the
quality of camel's hair, giving adequate extra pays.
3.3.3. Perspective Trends
Enterprises engaged in the processing of camel's hair and the manufacture of finished
products that conduct their operation in Mongolia usually export their production to Japan,
Russia, and the USA. However, none of the countries of the world has a developed network
of outputs for selling articles made of camel's hair so far. As could be seen during exhibitions
and fairs arranged by "Gobi", "Eermel", "Amical" companies in such Russian cities as
Moscow, Ulan-Ude, and Kemerovo, people seemed to be much interested in purchasing
camel's down products but were still hesitating as they did not get accustomed to use this
kind of products and had little knowledge about it. Also, the same state of things was
observed with respect to common people of the USA, Switzerland, Turkey, and Britain.
Therefore, in order to get familiarized with this production strengthening its positions at
markets it is required to use quite different ways and technologies launching a large-scale
promotion campaign and highlighting the specific characteristics of camel's hair that can not
be found in any other raw materials. For this:
1. A two-humped camel (Bactrian camel) referred to the rare species can be found only in
few countries, namely Mongolia, Inner Mongolia, and Kazakhstan. Basing on this, it is
necessary to accentuate that the products are made of raw materials of a rare species,
emphasizing such its advantages over goat's cashmere as not stretching out of form and
heat-retaining capacities, being pilling-resistant in the course of wear. In this manner,
consumers' confidence will be gained, and they will be attracted, which would make it
possible to expand our markets.
2. Scholars and researchers believe that the 21st century would be the century of shifting to
simple consumption patterns.
In this respect, the cost of products made of goat's cashmere is as high as 4 to 5 fold
compared to that of articles made of camel's down. If one manages to ensure duly
conjugating of its low costs with consumers' preference for simple, inexpensive
consumption then it will offer opportunities to expand the market with much more speed
than with respect to goat's cashmere articles.
3. Cooperation with the organizations engaged in the sphere of tourism by arranging such
actions with respect to foreign guests, official persons, and tourists visiting Mongolia as
inviting before their departure to the countryside as many of them as it would be possible
to get acquainted with the production's major operations with taking their photos near the
articles produced, and in some cases, even playing the role of a model, to present them
later as a souvenir; then, in the countryside, provide them with possibilities to look at
camels from a short distance, have them wore garments made of camel's hair and take
their photos near the camel to also to be presented as a souvenir, may turn out to be a
18
cost-effective but highly efficient promotion action, which being rationally applied could
provide another opportunity to expand the market.
Anyway, the global market's general trend inevitably will impel consumers to get using
articles made of camel's down whether desired or not. And any promotion arrangement
measures undertaken on the part of manufacturers would only help to intensify and
speed up this general trend.
IV. Wool, Cashmere articles export volume, structure, pricing
4.1.
Cashmere Export and Opportunities
Cashmere, and articles made thereof are the export items that deserve special attention with
regard to our country with its restricted number of export-oriented commodities. If we
consider Mongolia's competitiveness with respect to cashmere articles, which may be
regarded as the visiting card of Mongolia then:
China 284 mill. $
Mongolia 18 mill. $
Other country
426 mill.$
Dehaired
China 111 mill. $
Raw cashmere
Sectort’s Trend
Knitting wear
Situation in market competition
Mongolia 30 mill. $
Mongolia 17 mill.$
Not satiety
Satiety
Good
Indexes on Profitability and Trend
Out of the above one can conclude that Mongolia's combed cashmere and ready-made
clothing industry's competitiveness is moderate, and there is a growing tendency towards
searching for their own segment in the market. Meanwhile, China does not export any raw
materials. So, what kind of policies should be pursued by Mongolia completely shifted to
market relations with respect to those two powers not so much inclined to act in keeping with
the market laws?
The structure of Mongolia's exports as compared with the state in China being the major
supplier of cashmere is as follows:
19
Segment in the export per each of its items
100%
90%
28
80%
70%
67.7
60%
Knitting wear
50%
45.7
Dehaired
cashmere
Raw cashmere
40%
30%
20%
32.3
26.3
10%
0
0%
Mongolia
China
As can be seen from the above 67.7 per cent of China's exports constitutes knitting wear
designed for high category consumers. Chinese explain it as having been maintaining
foresighted strategies aimed at international markets and consumers, doing their best to
serve the consumers and markets gained avoiding losing them, and their market being
flexible enough in keeping with ever changing demands and interests of consumers. And, of
course, the ban to export raw cashmere has contributed as well.
Some 28.0 per cent of Mongolia's exports are comprised of ready-made clothing. It, on the
one hand, shows opportunities to raise the exports through increasing the production of
ready-made clothing. On the other hand, since 1996 when the ban to export cashmere was
cancelled and its trade liberalized, an interest in exporting raw cashmere raised and the
export of raw materials reached 600 to 700 tons. It had an adverse effect on the national
producers impairing their competitiveness. For example, the cashmere processing industry's
output dropped 50 per cent in 1999 as against that of 1995.
It is worth to note that in the result of actions implemented by the Government by 2001 the
raw stock procured by domestic enterprises has risen more than 30.0 per cent, and the
production, export of cashmere articles is growing. In 2001, the production of combed
cashmere has risen 34.9 as compared with that of 2000 and of textile goods by 87.7 per
cent, respectively. The volume of export of combed cashmere over the first 8 months of
2002 has risen by 21.9 per cent as compared with the previous year's one, and of textile
goods by 4.6 per cent.
Exports of cashmere and cashmere articles
1995
Raw cashmere
Scoured cashmere
Dehaired cashmere
Tops
Knitting wear
Blanket
Total
Average of
1996-1999
0,38
9,9
44,4
3,8
7,4
0,1
54,04
40,0
1,5
6,7
0,02
58,12
Average of
2000-2001
11,4
0,27
54,8
0,8
12,8
0,07
79,9
20
/mill.USD/
Comparison
1996-1999/
2000-2001/
1995 %
1996-1999
27.5 times
116
90,1
39,5
90,5
20,0
103,7
137
63
188
350
137
As is shown on the above table, during 1996 to 1999 the export of raw cashmere raised 27.5
fold, whereas the export of processed cashmere and finished products came down. If we
compare 2000-2001 with the previous four years it can be seen that the export of finished
products had risen, but due to the price reduction the 2001, 2002 years' export had not risen
in terms of real showings.
Concerning its structure, if in 2000, the share of the processing industry was 18.7 per cent,
then by 2002 it has reached 48.8 per cent, and some changes have taken place in the
industry's structure. In comparing the state of 2000 with that of 2002, the share of primary
processing production in the cashmere processing industry has dropped by 30.0 per cent,
and that of textile production risen by 24.8 per cent. Also changes have occurred with
respect to the cashmere processing industry's ratio of stock of raw materials and capacity.
The changes taken place over the first 8 months of 2002 are as follows:
Measu
-red in
Resoure or
raw cashmere
The processing
industry's capacity
Scouring
Dehairing
Spinning
ton
ton
ton
3200
2587
1200
8875
3889
660
The cashmere processing
industry's ratio of stock of raw
materials and capacity
2,1 times
1,5 times
1,8 times
Knitting
ton
2700
7000
2,8 times
According to the above table, if by the year 2000 the capacities were available in Mongolia to
produce annually 330 tons of yarns, 675 thousand pieces of textile, for the first 8 months of
2002 the capacities have been built in to produce 660 tons of yarns, 7 million pieces of
textile. In consistence with that, the washing capacity has risen in 2001 as compared to 2000
by 20.2, the combing capacity by 17.1 per cent, while the spinning capacity has raised 2
times, the weaving capacity 10.5 times, respectively.
Proceeding from the above, it is evident that the tasks set forth, and the actions implemented
have had due effect on the cashmere processing industry. It may be regarded as the result
of the policies pursued on the part of the Government for differentiating tax abatements and
exemptions with the aim of supporting the production of end products. In other words, the
industry's policy is being realized and it is shifting from the primary processing to the
manufacture of value added products
4.2.
Knitting industry's exports
The export volume and total sums are shown in Annex 15, the exports of wool and woolen
articles in Annex 16, the exports of camel's hair, articles made of camel's hair in Annex 17,
the exports of commodities per countries in Annex 18 respectively.
21
4.3. Prices and rates
Comparative study of combed and greasy cashmere prices
The price of dehaired
cashmere on foreign
market /USD/
The price of raw
cashmere on domestic
market /Tog/
1995
1996
1997
1998
1999
2000
2001
2002
2003
86
73
63
50
90
105
85
56
52
12.2
9
11.7
10
23
37
25
23
20
The price or raw cashmere and dehaired casmere
160
140
120
price
100
80
60
40
20
0
1995
1996
1997
1998
1999
2000
2001
2002
2003
year
The price of raw cashmere on domestic market /Tog/
The price of dehaired cashmere on foreign market /USD/
Home market prices for sheep wool and camel's hair (over the last decade)
/togrog/
Years
1
2
3
4
5
6
7
8
9
10
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Sheep wool
/price of per kg/
90
150
251
218
208
190
157
150-250
180-250
150-250
22
Camel hair
/price of per kg/
221
400
565
490
804
810
854
1000-1200
1000-1500
1000-1500
V. Production Capabilities of Darkhan Uul, Zavkan
5.1.
Darkhan Uul Province
In the year of 1961 appropriate decisions were issued and enforced for setting up the city of
Darkhan in the valley of Burkhantai. On its basis, an administrative-territorial unit called later
Darkhan-Selenge economic region has appeared.
The province of Darkhan Uul encompasses three its territorial units as Orkhon, Khongor and
Sharyn Gol. A total population number is about 70.0 thousand. It is located at a distance
over 200 km from the capital city of Ulaanbaatar.
The Mongolian railways pass by the province's territory. It is directly linked by railways and
motor ways with Erdenet and Ulaanbaatar. The city of Darkhan is the second largest
industrial, scientific, technical and cultural center of Mongolia. Darkhan city is an industrial
city, which was built up in the mid 1970s with the technical and economic assistance from
the countries of so called socialist system as Russia, Czechoslovakia, Poland, Bulgaria and
with the involvement of experts from said countries.
Prevailingly located in the city of Darkhan are enterprises and plants referring to heavy and
construction industries. There are lots of production and services centers covering all
spheres of social life as the Haydite, mineral cotton plant established with the assistance
from the former Czechoslovakia, the Lime-sand-brick plant built with the assistance from
Poland, the Sheepskin enterprise founded with the assistance from Bulgaria, the Meat
packing plant set up with the Hungarian assistance, Food enterprises, the Mining plant,
power stations, the House-building plant erected with the assistance from the former Soviet
Union, the Ferrous metallurgical plant, the Mining complex set up with Japanese assistance,
the Technical University's branch, research establishments. Employed at those enterprises
are more than 3,000 people. The province of Darkhan Uul with reference to its livestock
populations including goats and sheep is referred to a number of provinces with the least
livestock resources. The province's capacity will let to procure just 75.0 tons of sheep's wool
and 13 tons of goat's cashmere. As its livestock population is a blend of livestock of different
breeds it is hardly possible to provide a general assessment of its quality. As it is a part of
Selenge province being the major granary of the country with comparatively low populations
of sheep and goats, there are not so much possibilities to be supplied with raw materials of
wool and cashmere from the immediately adjacent regions.
While the city has a well-developed system of engineering structures, with heavy
concentrations of industrial enterprises, adequate resources of labor force, a developed
network of motor ways and connections, being close to the markets, but it is viewed that
there are some certain factors to be of adverse effects with regard to businesses dealing
with processing of raw materials of an animal origin intended to be established and
developed there, which is associated with its geographical location close to Erdenet and
Ulaanbaatar where there are lots of businesses engaged in the wool and cashmere
industries.
According to surveys, for a total number of herdsmen and households of Mongolia living in
gers about 2.5 million meters of coarse calico and around 5.0 million meters of drilling cloth
are estimated to be used. For satisfying some of their demands, it is necessarily required to
set up in Mongolia and develop cotton manufacture. The most convenient place for
establishing such production is the city of Darkhan. Now there are "MGL Golden Eagle
Cashmere Product" Co. Ltd. with Chinese investment and "Mongol Winner" Co. Ltd. carrying
out down knitting production. They employ more than 300 Mongolians.
23
Such a reliable operation of Chinese enterprises shows that there are proper opportunities to
set up and further develop a cotton manufacture business there. The business is projected
to import necessary cotton yarns from China manufacturing cotton knitwear and textile to
satisfy consumers' demands.
5.2.
Zavkhan Province
Zavkhan province refers to Western development region. Its capital Uliastai is considered as
a cornerstone of western region. Administratively, it is composed of 24 soums and 113 bags.
The province of Zavkhan occupies an area of 82.4 thousand km2; with most of its territory
covered by Otgon Tenger or Khangai mountains range and spurs with its peak Bogd
Ochirvaan. Some 6.0% of the area is occupied by forest, Gobi desert and steppe scenery.
There are over 200 torrential streams, rivers with fresh water and almost 100 large and small
lakes.
As of 2002, its population reached 83.5 thousand. The population has been reduced by
32,214 during the last decade. Throughout the past four years, the whole territory of the
province was affected by droughts and severe winter conditions as a result n the result of
which local herdsmen's livestock being their major source of earnings was substantially
reduced. For instance, out of 1,353.7 thousand head of sheep recorded in 1998, by 2002
there were just 703.6 thousand head left, whereas 650.0 thousand head lost and, similarly,
218.3 thousand head of goat lost as well. On account of this, the process of migrating local
dwellers to Ulaanbaatar, Erdenet, Darkhan, Khovsgol and Bulgan provinces has intensified
and the province's population keeps on reducing.
Regarding that there are plenty of places of natural beauty, historical monuments,
complexes, sightseeing to visit in the province of Zavkhan, there are ample opportunities for
developing international tourism. There are food, power, building, sewing, and timber plants
making due contributions to the province's economy. Of especial importance is Bogd river's
power plant which commissioning created preconditions for coping with a power crisis taken
place of late. It is scheduled to hook up before long to the western region's united power
grid.
The Millennium road is to pass by an area located at 40 km from Uliastai. There operate
airlines connecting Ulaanbaatar, Uliastai and Khovd, mobile telephone communications are
to be put into operation within the year 2003. With accomplishing of upgrading repairs of
Solongos pass being a part of the Millennium road, a motor way connecting Ulaanbaatar and
Zavkhan province with its length over 1,000 km will let to travel by car without difficulty.
Because of the above measures undertaken for promoting the development of remote
regions, relevant opportunities are made available in Zavkhan province to establish and
efficiently run any kinds of production and service businesses.
And one of such opportunities is setting up the production for processing raw materials of an
animal origin.
The province's governor's program provides for establishing and commissioning of wool
washing plant, a felt and felt boots plant. At present, it is at the stage of the big "push",
preparing the project drawings and securing financing. The population number of "Sartuul"
breed of sheep with rather coarse wool being raised in majority of the province's soums
makes up 714.0 thousand of head and annually it can be obtained over 1,000 tons of wool
composed of down, zav and top hairs. It is one of the high quality sheep breeds yielding
wool intended for carpets. It is very popular among merchants and Ulaanbaatar's companies
and firms try to catch merchants from Zavkhan by waiting around the western crossroads to
quickly buy it up. Local changers, trade and commercial firms, companies export about 30%
24
of the wool procured at the province's level through Gobi-Altai's Burgastai port to China and
purchase there consumer goods and materials as flour, cereals, tea, sugar, fabrics, drilling
cloth, candles, matches, hard drinks, tobacco to supply their consumers. Sometimes they
cross the northern border for barter trade with Tuva residents. And only if they have no
opportunity to take the wool out of the country through its northern or southern borderline,
they have to dispatch it to Ulaanbaatar. However, the situation with regard to cashmere is
quite different. "Cashmere Khaltar" breed goats are raised in Zavkhan being one of the
breeds with most qualitative cashmere. Its cashmere fiber fineness is 14.5 to 16.5
micrometers, and length from 50 to 60 mm. The amounts and quantities of cashmere, wool
and camel's hair stored up in the province per year are shown in Annexes 3, 4, and 5. Most
of the wool procured is exported by local residents to China via Gobi-Altai's Burgastai port
upon allegedly being washed in Khovd, Gobi-Altai to be sold for consumer goods. Its 30 to
40 per cent are delivered to Ulaanbaatar. Zavkhan province not only has abundant wool and
cashmere stock but also its neighboring provinces of Khovsgol, Gobi-Altai and Uvs, are the
provinces with largest resources of raw materials, so one can conclude that if any business
would be established in the province of Zavkhan, certainly, it would not be short of supply,
anyway. It would be possible in keeping with the state policies and decisions for ensuring a
steady development of remote regions, and making use of the source of raw materials
available in the province to set up, parallel with the construction of the wool washing, felt and
felt boots plants reflected in the governor's program, an enterprise to deal with cashmere
processing to be built in Zavkhan's Uliastai city. It does not seem to be profitable to establish
spinning industry in the countryside (lack of required expertise, skills, engineering, etc.), so
only a textile enterprise is feasible to be set up there. The raw material, i.e. yarn, to be
needed for this period shall be supplied from Ulaanbaatar. The local enterprise may
purchase the required amount of yarn in exchange for raw materials.
25
VI. Annexes
Annex 1
Total number of livestock /for the last 5 years/
Livestock
1998
1999
2000
/thous.heads/
2001
2002
Camel
356.5
355.6
322.9
285.2
252.2
Horse
3059.1
3163.4
2660.7
2190.8
1970.3
Cattle
3725.8
3824.6
3097.6
2069.6
1869.5
Sheep
14694.2
15191.3
13876.4
11928.1
10536.6
Goat
11061.9
11033.8
10269.8
9584.6
9055.9
Total
32897.5
33568.7
30227.4
26058.3
23684.5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
Aldarkhaan
Bayantes
Bayanhairhan
Dorvoljin
Zavkhanmandal
Ider
Ih Uul
Nomrog
Otgon
Santmargats
Songino
Tosontsengel Bulnai
Tydebtei
Tes
Telmen
Urgamal
Uliastai
Tsagaanhaihan
Tsagaanchuluut
Tsetsen Uul
Shilyystei
Erdenehairhan
Yaruu
Asgat
Total
Zavkhan
Darhkan
Khongor
Orkhon
Shariin gol
Total
Darhkan Uul
sheep
75.1
40.4
20.1
58.5
50.5
44.2
56.4
56.2
65.9
68.1
64.0
65.0
47.2
37.1
80.9
52.4
47.2
36.7
50.1
70.4
49.9
79.7
93.0
14.7
1324
sheep
28.4
23.6
11.7
20.4
84.1
1998
goat
59.5
36.8
20.1
78.7
42.8
17.7
23.7
15.4
36.7
42.2
64
29.9
13.7
30.3
27.2
49.9
30.6
21.0
29.8
31.7
27.9
33.4
24
8.2
795.2
camel sheep
0.6
71.9
0.41
28.1
0.15
43.7
1.82
58.9
0.39
53.1
0.14
45.7
0.12
55.1
0.22
49.1
0.91
68.6
0.62
59.4
0.05
59.7
0.076
62.2
0.051
45.5
0.14
28.5
0.74
77.7
1.08
45.3
0.02
41.7
0.04
37.2
0.78
49.4
0.58
66.0
0.85
48.8
0.73
75.2
0.53
80.7
0.056
12.4
11.1 1264
/thous.heads/
1999
2000
2001
2002
goat
camel sheep goat
camel sheep goat
camel sheep goat
55.7
0.6
58.9
46.7
0.6
47.9
45.7
0.6
46.9
50.4
25.9
0.3
30.9
26
0.2
29.8
26.2
0.2
32.1
29.6
18.1
0.1
39.2
15.8
0.1
28.9
13.3
0.1
31.3
15.8
79.2
1.9
53.1
68
1.7
46
60.8
1.4
34.0
44.8
40.9
0.4
35.7
28.9
0.3
35.9
32.9
0.2
37.7
34.9
18.1
0.2
40.7
17.8
0.1
25.4
14.0
0.1
20.0
15.5
22.8
0.1
48.9
20
0.1
29.8
13.2
0.1
29.1
14.8
14.4
0.2
36.4
11.4
0.1
15.6
7.4
0.1
15.0
9.8
36.0
0.9
59.5
29.3
0.8
48.3
27.4
0.8
44.0
28
37.6
0.7
48.7
31.4
0.5
45.6
32.6
0.5
49.4
33.6
18.8
0.1
51.7
16.3
0
33.8
14.0
0.0
37.6
18.6
29.0
0.1
50.5
26.7
0.1
20.3
13.2
0.0
19.4
16.7
13.7
0.1
35.6
11.4
0.1
18.2
7.9
0.0
19.5
10.6
24.6
0.1
28.1
23
0.1
28.5
23.2
0.1
29.8
26.5
25.1
0.7
64.9
22.8
0.6
28.8
11.3
0.5
29.3
15.4
42.0
1.0
36.8
31.1
0.8
43.8
38.5
0.8
26.9
28
26.3
0.0
39.8
26.6
0
25.6
24.7
0.0
21.8
26.5
20.6
0.0
37
20.5
0.1
26.9
19.4
0.0
23.4
19.8
28.9
0.8
44.8
27.4
0.7
37.1
27.0
0.6
30.4
24.8
31.4
0.5
44
22
0.4
31.7
20.5
0.4
34.1
22.7
26.5
0.8
43.9
22.6
0.7
38.6
23.4
0.6
28.9
19.6
30.2
0.7
54.6
19.5
0.5
38.5
17.7
0.4
39.0
20.1
21.5
0.5
55.2
13.7
0.4
25.2
10.3
0.3
25.8
12.8
6.5
0.0
11.7
6
0
7.9
5.7
0.0
9.5
5.9
693.8
10.8 1051 584.9
9 758.1 530.3
7.8 714.9 545.2
camel
0.6
0.2
0.06
1.1
0.2
0.06
0.07
0.06
0.7
0.5
0.04
0.03
0.02
0.08
0.5
0.7
0.025
0.05
0.6
0.3
0.5
0.4
0.2
0.024
7.019
/thous.heads/
1998
1999
2000
2001
2002
goat
camel sheep goat
camel sheep goat
camel sheep goat
camel sheep goat
camel
13.5
0
29.1
13.3
0
33.8
19.7
0.1
29
19.2
0
21
15.6
0
10.5
0
24.9
12.2
0
25
13.7
0
24.5
14.5
0
23.9
16.5
0
7.6
0
15.8
9
0
17.4
10.4
0
14.8
9.9
0
15.3
11.2
0
8.7
0
20.3
8.6
0
20.4
9.8
0
16.4
9.2
0
16.9
10.3
0
40.3
0.1
90.1
43.1
0.1
96.6
53.6
0.2
84.7
52.8
0.1
77.1
53.6
0.1
Number of sheep,goat and camel
Annex 2
Total
5 Ulaanbaatar
Total
Total by
country
4 East
Total
3 Tov
Total
2 Hanggai
Total
1 West
Development'
No
s area
Dornod
Syhbaatar
Hentii
Total
Ulaanbaatar
Gobi symber
Darhan Uul
Dkrnogobi
Dundgobi
Omnogobi
Selenge
Tov
Arhanggai
Bayanhongor
Bulgan
Orhon
Ovorhanggai
Hovsgol
Bayan Olgii
Uvs
Hovd
Gobi Altai
Zavhkan
Aimags
14694.1 18270.0 14840.8 17329.4 13876.3 16990.4 11928.1 14313.7 10537.2 12801.7
1998
1999
2000
2001
2002
Sheep
Sheep
Sheep
Sheep
Sheep
/thous. wool's
/thous. wool's
/thous. wool's
/thous. wool's
/thous. wool's
heads/ stock /tn/ heads/ stock /tn/ heads/ stock /tn/ heads/ stock /tn/ heads/ stock /tn/
650.6
780.7
644.7
773.6
617.1
740.5
589.9 707.88
537.5
645
983.2 1474.8
114.5
171.8
858.6 1287.9
831 1246.5
761.3 1141.95
748.8
898.6
788.3
946.0
782.0
938.4
629.7 755.64
512.1 614.52
857.1 1285.7
867.0 1300.5
847.6 1271.4
692.7 1039.05
355
532.5
1353.7 2030.6 1263.8 1895.7 1050.5 1575.8
757.9 1136.85
703.7 1055.55
4593.4 6470.3 4183.4 5087.6 4155.8 5814.0 3501.2 4885.92 2869.6 3989.52
914.2
914.2 1021.2 1021.2
970.6
970.6
831.6
831.6
769.9
769.9
866.0 1039.2
878.2 1053.8
848.6 1018.3
556.5
667.8
294.1 352.92
710.6
781.7
798.2
878.0
764.5
841.0
745.6 820.16
683.6 751.96
63.4
69.7
82.2
90.4
80.4
88.4
79.1
87.01
45.6
50.16
1387.9 1665.5 1423.0 1707.6 1059.0 1270.8
905
1086
796.8 956.16
934.0 1120.8 1000.1 1200.1
944.9 1133.9
747.3 896.76
768.9 922.68
4876.1 5591.1 5202.9 5951.2 4668.0 5323.0 3865.1 4389.33 3358.9 3803.78
66.7
66.7
64.1
64.1
51.3
51.3
28.6
28.6
32.5
32.5
84.3
84.3
90.1
90.1
96.5
96.5
84.7
84.7
75.5
75.5
439.6
483.6
477.4
525.1
453.9
499.3
365.6 402.16
337.5 371.25
971.5 1068.7
966.5 1063.2
663.8
730.2
685
753.5
685.6 754.16
427.2
469.9
444.0
488.4
405.1
445.6
312.4 343.64
227.7 250.47
302.5
605.0
327.9
655.8
333.5
667.0
314.4
628.8
310.7
621.4
1172.6 1289.9 1175.1 1292.6 1101.2 1211.3
894.6 984.06
806.3 886.93
3464.4 4068.0 3545.1 4179.3 3105.3 3701.2 2685.3 3225.46 2475.8 2992.21
385.2
423.7
432.1
475.3
438.5
482.4
425.7 468.27
400.9 440.99
605.6
666.2
689.8
758.8
717.3
789.0
708
778.8
711
782.1
626.9
689.6
677.9
745.7
688.6
757.5
648
712.8
626.2 688.82
1617.7 1779.5 1799.8 1979.8 1844.4 2028.8 1781.7 1959.87 1738.1 1911.91
301.0
361.2
109.6
131.5
102.8
123.4
94.8 113.76
94.8 104.28
142.5
361.2
109.6
131.5
102.8
123.4
94.8 113.76
94.8
104.3
Number of sheep and wool's stock /by development's area/
Annex 3
Total
5 Ulaanbaatar
Total
Total by
country
4 East
Total
3 Tov
Total
2 Hanggai
Total
1 West
Development
regions
Dornod
Syhbaatar
Hentii
Total
Ulaanbaatar
Gobi symber
Darhan Uul
Dkrnogobi
Dundgobi
Omnogobi
Selenge
Tov
Arhanggai
Bayanhongor
Bulgan
Orhon
Ovorhanggai
Hovsgol
Bayan Olgii
Uvs
Hovd
Gobi Altai
Zavhkan
Aimags
123.1
155.4
192.7
257.3
188.0
916.4
126.2
313.1
76.2
8.5
238.2
165.6
927.6
10.4
10.1
86.1
214.1
230.9
29.8
123.9
705.3
29.1
79.1
88.6
196.8
19.4
361.2
3107.3
492.2
621.7
770.9
1029.0
751.9
3665.7
504.6
1252.3
304.6
33.9
952.6
662.3
3710.3
41.7
40.5
344.3
856.5
923.7
119.0
495.6
2821.3
116.2
316.4
354.4
787.0
77.4
142.5
11126.8
1998
wool's
goat
/thous. stock /tn/
heads/
11033.8
513.3
609.8
795.9
1029.0
693.6
3453.6
551.1
1199.3
335.7
44.6
930.3
678.9
3739.9
42.1
43.2
368.1
473.9
907.5
138.4
494.0
2467.2
123.5
348.7
353.7
825.9
55.3
55.3
2758.5
128.3
152.5
199.0
257.3
173.4
910.4
137.8
299.8
83.9
11.2
232.6
169.7
935.0
10.5
10.8
92.0
118.5
226.9
34.6
123.5
616.8
30.9
87.2
88.4
206.5
13.8
13.8
1999
wool's
goat
/thous. stock /tn/
heads/
10269.4
521.2
521.8
794.3
1003.7
585.0
3426.0
542.8
1190.0
341.5
50.3
730.6
674.2
3529.4
37.9
53.6
344.6
441.4
868.7
165.8
483.6
2395.6
133.5
361.1
364.7
859.3
59.1
59.1
2567.4
130.3
130.5
198.6
250.9
146.3
856.5
135.7
297.5
85.4
12.6
182.7
168.6
882.4
9.5
13.4
86.2
110.4
217.2
41.5
120.9
598.9
33.4
90.3
91.2
214.8
14.8
14.8
2000
wool's
goat
/thous. stock /tn/
heads/
9584.6
543.0
570.9
689.1
878.8
530.3
3212.1
509.9
802.7
376.6
55.8
700.5
615.1
3060.6
26.8
52.8
152.7
550.9
736.8
185.9
457.8
2163.7
318.8
388.2
377.7
1084.7
63.5
63.5
2456.5
135.8
142.7
172.3
219.7
132.6
803.0
127.5
200.7
94.2
14.0
175.1
153.8
765.2
6.7
13.2
38.2
137.7
184.2
46.5
114.5
540.9
79.7
97.1
94.4
271.2
15.9
76.2
2001
wool's
goat
/thous. stock /tn/
heads/
9056.1
540
536.7
657.7
577.4
533.6
2845.4
527.1
412.1
397.8
37.5
652
725
2751.5
37.2
53
182
622.6
560.5
222.5
493.4
2171.2
343.9
463.5
403.3
1210.7
77.3
77.3
2264.0
135
134.175
164.425
144.35
133.4
711.35
131.775
103.025
99.45
9.375
163
181.25
687.875
9.3
13.25
45.5
155.65
140.125
55.625
123.35
542.8
85.975
115.875
100.825
302.675
19.325
19.3
2002
wool's
goat
/thous. stock /tn/
heads/
Number of goat and raw cashmere's stock /by development regions/
Annex 4
Development
regions
Total by
country
Total
5 Ulaanbaatar
Total
4 East
Total
3 Tov
Total
2 Hanggai
Total
1 West
¹
Dornod
Syhbaatar
Hentii
Total
Ulaanbaatar
Gobi symber
Darhan Uul
Dkrnogobi
Dundgobi
Omnogobi
Selenge
Tov
Arhanggai
Bayanhongor
Bulgan
Orhon
Ovorhanggai
Hovsgol
Bayan Olgii
Uvs
Hovd
Gobi Altai
Zavhkan
Aimags
356.6
8.2
24.3
24.9
35.3
11.1
103.8
0.8
38.7
1.0
0.1
19.5
5.4
65.5
0.5
0.1
29.5
29.4
97.7
0.4
4.1
161.7
6.1
12.1
7.3
25.5
0.1
0.1
camel /
1999
2000
2001
/thous. heads/
2002
1965.5 370.9
36.9
7.9
109.4 22.7
112.1 24.9
158.9 34.4
50.0 10.8
467.1 116.2
3.6
0.9
174.2 39.5
4.5
1.0
0.5
0.1
87.8 19.3
24.3
5.3
294.8 66.0
2.3
0.6
0.5
0.2
132.8 30.4
132.3 28.4
439.7 98.7
1.8
0.4
18.5
4.2
727.7 162.7
27.5
6.0
54.5 12.4
32.9
7.4
114.8 25.8
0.5
0.1
361.2
0.1
1599.3 322.8
35.7
6.9
102.2 18.2
112.1 23.0
154.8 31.8
48.6
8.7
453.3 88.6
3.9
0.8
177.8 37.1
4.3
0.9
0.4
0.1
86.9 16.5
23.9
4.6
297.2 60.0
2.5
0.5
0.7
0.2
136.7 29.8
127.8 21.1
444.2 92.8
1.8
0.7
18.7
3.6
732.4 148.7
26.9
5.9
55.9 12.2
33.2
7.3
116.1 25.4
0.4
0.1
0.4
0.1
1452.6 285.3
31.1
6.3
81.9 16.8
103.5 19.6
143.1 28.3
39.2
7.9
398.7 78.9
3.6
0.6
167.0 28.2
4.1
0.9
0.5
0.1
74.3 14.7
20.7
3.4
270.0 47.9
2.3
0.4
0.9
0.1
134.1
6
95.0 19.4
417.6 82.3
3.2
0.7
16.2
2.9
669.2 111.8
26.6 28.1
54.9 12.1
32.9
6.4
114.3 46.6
0.5
0.1
0.5
0.1
1283.5 252.4
28.4
5.8
75.6 14.8
88.2 16.8
127.4 22.1
35.6
7.0
355.1 66.5
2.7
0.7
126.9 19.4
4.1
0.7
0.5
0.1
66.2 13.3
15.3
3.2
215.6 37.4
1.8
0.4
0.5
0.1
27.0
6.1
87.3 19.7
370.4
72
3.2
0.8
13.1
2.7
503.1 101.8
126.5 28.1
54.5 12.4
28.8
6.1
209.7 46.6
0.5
0.1
0.1
0.1
1135.8
26.1
66.6
75.6
99.45
31.5
299.25
3.15
87.3
3.15
0.45
59.85
14.4
168.3
1.8
0.45
27.45
88.65
324
3.6
12.15
458.1
126.45
55.8
27.45
209.7
0.45
0.5
camel / camel
camel
camel /
camel camel / camel camel /
camel
hair's
hair's stock
hair's
hair's
hair's stock
stock /tn/
/tn/
stock /tn/
stock /tn/
/tn/
1998
Number of camel and camel hair's stock /by development regions/
Annex 5
Mongol
Onjyyl
Uuliin Bor
Gobi Gurban
Saikhan
Zalaa jinstiin
tsagaan
Olgiin-Ulaan
Erchim
Bayandelger
Buural
Name of Strain and
Breed
Age,sex
Zabkhan province
Dorvoljin soum
Male goat
Female goat
One year old goat
Male goat
Sykhbaatar province
Female goat
Bayandelger soum
One year old goat
Male goat
Khovsgol province
Female goat
Tomorbulag soum
One year old goat
Male goat
Uvs province Olgii soum Female goat
One year old goat
Male goat
Bayankhongor province
Female goat
Shinejinst soum
One year old goat
Male goat
Omnogobi province
Female goat
Bulgan soum
One year old goat
Bayan-Olgii province Male goat
Bayannuur,Delyyn and Female goat
Bulgan soum
One year old goat
Male goat
Tov province Bayan
Female goat
Onjyyl soum
One year old goat
Male goat
Our country wide
Female goat
One year old goat
Location
15.1-16.0
17.0-20.0
14.1-15.5
16.0-16.5
14.5-15.5
13.0-14.5
18.0-20.0
17.5-18.5
15.5-17.5
13,9-14,7
16.5-17.5
14.0-15.5
13.0-14.5
16.5-17.5
14.0-15.5
13.0-14.5
Fineness of
cashmere /mkm/
Traits of cashmere / by breeds and strains/
378
287
263
600-800
400-500
320-350
740
500
340
1500-2000
1100
600
250-350
240-270
200-230
330-350
350
230-240
300-330
300-340
240-250
350
285
230-250
350-450
320-360
Cashmere yield of one
goat /g/
Annex 6
-10
0
10
20
30
40
1997
YI.
II
1998
III YI-Y YI- YIII- XYII IX XII
I
-3
-2
XII
1999
I
2
3
III
3
4
IY
2000
Brown
years
II-IY Y- YIII- I-IY
YII XII
2002
I
II
-1
2
0
3
Y
1
3
YI
2001
YII YIII
IX
X
XI
Y-YII YIII IX-X XI-XII
2
5
3
4
3
9
11
10
XII
I
2000
IY-YI YII
YIII IX-X XI-XII I
II-IY Y-YII YIII-XII
3
7
12
20
20
22
30
35
25
30
1
3
10
18
17
21
23
26
25
25
IY- YII YIII IX-X XIYI
XII
Light grey
III
3
5
XI
1999
1998
III
YI-Y YI-YII YIII-IXX-XII I
III
7
5
4
1
-1
0
-2
7
5
0
-2
-3
-3
-4
Fluctuation of difference Mongolian and Afghan cashmere price
2001
I-IY Y
YI
YII
YIII IX
X
Light grey
30
18
16
12
5
2
Brown
25
12
10
13
7
6
1997
YI.
II
Light grey
6
Brown
5
price
II
III
Annex 7
Y- YIII IX-X XIYII
XII
2002
IY
Annex 8
Resources of semi coarse wool by aimags
Area of wool
supply
1. Western
2. Central
3. Eastern
4. Southern
Province
Cobi-Altai
Zavkhan
Uvs
Khobd
Bayankhongor
Khobsgol
Ovorkhangai
Tov
Selenge
Bulgan
Khentii
Sukhbaatar
Dornod
Dornogobi
Omnogobi
Gobisymber
Quantity of wool
province
area
200
100
550
100
150
200
150
80
830
150
150
100
60
140
30
50
1520
Total
Resources of fine and semi fine wool by aimags
Area of wool
supply
1. Central
2. Eastern
Province
1. Selenge
2. Tov
3. Ovorkhangai
4. Bulgan
1. Khentii
2. Sukhbaatar
3. Dornod
Quantity of wool
province
area
90
45
175
25
15
20
45
10
15
220
Annex 9
Total Exports of Cashmere Products, 1990
Products
1
2
3
4
5
Dehaired cashmere
Tops
Blanket of camel's hair
Cashmere knitting wear
Camel's hair knitting wear
measurem
ent unit
thous.u
ton
thous.u
thous.u
thous.u
quantity
231.0
68.0
90.2
300.0
25.4
Annex 10
Survey of cashmere processing industry's capacity
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Company name
Deliin Bulag
Han Bogd casmere
Cobi
Oddin
Mongol Amical
Osin
Sunshiro
Monforte
M&X
Tebkhen Edelibais
Sor cashmere
MX cashmere
Cashmerefine Azia
Mon Italicashmere
Khoh Monkh
Khantuul cashmere
Loro Piana Mongol
T&I
Altai cashmere
Mongol cashmere
Rohg ba
Noi cashmere
A-Yils
Eermel
Tuya
Byan Holdinnig
Mongol Biishin nekhmel
Noba nooluur
Khosgol
Khaan bog
Istkacashmere
Jei Jei Khobsdol
Selenge niting
Trost &Glori
Sotoma Mongol
Erdos Mongolia
cashmere products
Effort Mongolia nitber
Star azia Mongol
MGL golden eagle
cashmere product
Mongol winner
Total
The processing industry's
Knitting
Scouring Dehairing
wear
/thous.u/
25
80
1200
1200
200
200
400
400
22
30
1000
160
40
540
80
90
60
84
720
150
550
70
180
48
75
72
240
100
50
80
40
40
150
75
500
90
450
500
15
20
6705
200
60
30
15
90
65
3781
96
50
Usage per cent of capacity
Scouring Dehairing
100
40
91.3
80
80
Knitting
wear
20
100
40
91.3
100
80
55
70
50
10
85
80
10
76.7
100
60
25
62
96
93
50
16
72
100
53.6
100
10
53.3
100
15
50
70
80
15
50
80
80
50
100
1000
5400
140
1680
70
89
70
29
270
120
580
55
35
53
180
200
9716
100
80
60.9
67.5
70.8
Annex 11
Export products of wool processing factories, 1990
Factory name
Scoured wool
Scoured wool
tons
1900,0
437,0
Scoured wool
tons
2180,0
960,6
thous.m
430,0
35,0
492,0
460,0
6.
Ulaanbaatar wool
cleaning factory
Dornod wool cleaning
factory
Bayan-Ulgii wool
cleaning factory
Ulaanbaatar wool
knitting mill
Ulaanbaatar carpet
factory
Erdenet carpet factory
Measure
ment
unit
tons
1320,0
1282,0
7.
Dornod carpet factory
Carpet
8.
Ulaanbaatar spinning
factory
Ulaanbaatar unweaving
cotton factory
Ulaanbaatar knitting
factory1
Ulaanbaatar spooling
factory 2
Ulaanbaatar felt boot
and felt factory 1
1.
2.
3.
4.
5.
9.
10.
11.
12
13
14
Main items of
production
Fin spun
“Sewiod”
Carpet
Carpet
thous.m 2
thous.m 2
Total
produced
products
5900,0
Exported
products
1036,2
thous.m 2
tons
466,0
415,0
3000,0
480,0
tons
710,0
360,0
Tricot for adults
and children
Lining
thous.u
1000,0
220,0
thous.u
540,0
=
Felt for dwelling
and felt boot
thous.m
thous.u
630,0
=
420,0
360,0
Ulaanbaatar felt boot
and felt factory 2
Felt for dwelling
and felt boot
thous.m
thous.u
510,0
=
500,0
=
Ulaanbaatar, Mongol
handmade carpet
factory
Carpet
Number of kind
spin
Fetro
thous.m 2
=
Annex 12
Location of factories operated in 90’s
1.
Name of Factory
Ulaanbaatar wool scouring
factory
2.
Dornod wool scouring factory
3.
4.
Bayan-Olgii wool scouring
factory
Ulaanbaatar wool textile industry
5.
Ulaanbaatar carpet factory
6.
Erdenet carpet factory
7.
Dornod carpet factory
8.
Ulaanbaatar spinning mill
9.
11.
Ulaanbaatar unweaving cotton
factory
Ulaanbaatar Mongol handmade
carpet factory
Ulaanbaatar knitting factory 1
12.
Ulaanbaatar knitting factory 2
13.
Ulaanbaatar felt and felt boot
factory 1
14.
Ulaanbaatar felt and felt boot
factory 2
15.
Khatgal wool scouring center
10.
Current Location
Privatized, operated till the end of 2002 under
the name of “Monnoos” Co.Ltd., Closed in
2003 from the economic crisis
Privatized. Closed in 1996 due to no turnover
assets
Privatized. Closed from 1990
Privatized, named as “Monnekhmel” Co.Ltd,
Closed temporary between 1995-2002.
Privatized, operating under the name of
“Ulaanbaatar hivs” Co.Ltd., Uses 30 percent
of total capacity. It has a number of unsolved
debts.
Privatized, operating under the name of
“Erdenet hivs” Co.Ltd., Using 40 percent of its
total capacity. Became one of the sustainable
companies working in the field of woolen
products in the market. It has a number of
unsolved debts.
Privatized, operated till 1996 under the name
of “Dornod hivs” Co.Ltd., Due to the situation
of debts, the company was brought to bank
authority. There is no possibility to rebuild its
operation. There is a need to change its
operation
Privatized, has operated under the name of
“Eermel” Co.Ltd., Extending its operation in
textile and knitting. It has not enough
turnovers.
Privatized, has been operating. Using 10-15
percent of its capacity.
Privatized, Closed its operation. Renting its
building. Changed its operation.
Privatized, operating sustainable under the
name of “Suljee” Co.Ltd. Became sewing
factory.
Privatized, changed its operation. Operates
renting its building and trade
Privatized, operated as “Esgii &Esgii gutal” till
2001. Bought by new stockholder and
changed its operation in 2002. Now operating
as a trade center.
Privatized, operated as “Esgii gutal” till 1998.
Closed from not enough turnovers. It can be
reconstructed if there is capital investment.
However changed its operation in soft tailing
in 1987, bankrupted in 1994.
Annex 13
The capacity of wool processing factory
for export /by scoured wool/
/ton/
Name of factory
Capacity
(1 year a shift)
cashmere
wool
Address
1 Monnoos
1600
1600
Ulaanbaatar
Oborkhangai province
2 Kharhorin scouring
factory
450
450
Oborkhangai
3
Monforte cashmere
factory
350
200
150
Ulaanbaatar
4
Mon Itali cashmere
factory
450
250
200
Ulaanbaatar
5
"Altai cashmere"
cashmere factory
450
150
300
Ulaanbaatar
6
"Khoh monkh" cashmere
factory
450
100
350
Ulaanbaatar
7 "Tuya" cashmere factory
300
200
100
Ulaanbaatar
8
UB-building company
scouring factory
650
650
Ulaanbaatar
9
Bayan Ooldii scouring
factory
550
550
Ulaanbaatar
10 Khobd scouring factory
350
50
300
Ulaanbaatar
11 Erdenet cashmere factory
650
350
300
Erdenet
Gobi Altai camel hair's
factory
350
50
300
Gobi Altai
850
Dornod
350
Omnogobi
12
13 Dornod scouring factory
850
Omnogobi cashmere
factory
450
14
100
15 Ih Mogol
300
300
Tob province
Bayantsogt
soum
16 Mongol Hekhmel
600
600
Ulaanbaatar
Total
8800
1450
7350
Annex 14
Capacity of camel hair processing factories and
their level of processing
Company name
Capacity
Level of
processing
FSP, spinning and
knitting
FSP spinning and
knitting
1.
Gobi Co. Ltd.
200
2.
Mongol- Amikal
250
3.
Monforte Co. Ltd.
150
FSP
4.
Altai- cashmere Co. Ltd.
300
FSP
5.
Tuya Co. Ltd.
100
FSP
6.
Erdenet cashmere Co. Ltd.
300
FSP
7.
Mon-Italy Co. Ltd
200
FSP
8.
Blue eternity Co. Ltd
350
FSP
9.
Khovd cashmere’s factory
300
FSP
10.
Umnu-Godi cashmere’s factory
350
FSP
11.
Spinning Co. Ltd
100
FSP spinning and
knitting
12.
Altain camel Co. Ltd
13.
Badmaarag Co. Ltd
knitting
14.
Iher Co.Ltd
knitting
15.
Uujin Co. Ltd
knitting
Total
100
2700
FSP
ton
thous.u
Dehaired cashmere
Cashmere knitting
wear
Total
Export of Mongolia
Per cent of cashmere
product's export on
total export of Mongolia
3
4
5
6
7
%
ton
Tops
2
ton
Raw cashmere
1
Name of product
meas.
unit
394.8
306.6
166.5
11.6
316847
36643.1
5170.9
789.2 53770.8
7.8
16.2
1998
quantity
price
thous.$
1771.7
1379.1
294.8
12.4
505669
6270.3
7243.1
1051.8 39885.1
36.43
749.2
1999
quantity
price
thous.$
639.8
22.1
46610
102994
2843 25943.6
770.1 54528.8
7.1
717.2 21881.4
2000
quantity
price
thous.$
Export of cashmere products /1998-2002/
291.4
702.2
14.9
38520
57528.4
4324.1 16982.1
577.5 39552.7
2..8
24.9
2001
quantity
price
thous.$
486.3
622.1
15.4
58.9
27.3
500917.4
45001.5
13008.7
30109.2
910.7
972.9
2002
quantity
price
thous.$
Annex 15
Annex 16
Export of wool and woolen products
/ last 5 years/
Name of goods
1
Wool
Total cost
2
Dehaired wool
Total cost
3
Felt
Total cost
4
Carpet
Total cost
Measurem
ent. unit
ton
1998
5421,5
1999
8684,5
2000
5216,3
2001
10480,8
2002
6634,7
thous.$
4224,0
6012,1
2950,4
3905,6
4656,6
ton
18,1
thous.$
12,7
m2
52
thous.$
0,2
ton
18,4
28851,67
67998,3
84801,0
82739,2
thous.$
1,5
927,1
1347,1
855,5
884,3
Annex 17
Export of camel hair products and camel hair
/last 5years/
1
Name of goods
Male camel hair /raw/
Total cost
2
Female camel hair
Total cost
3
Baby camel hair
Total cost
4
Dehaired camel hair
Total cost
5
Camel hair tops
Total cost
6
Measurement. unit
Ton
1998
449,58
1999
594,6
2000
464,0
2001
573,46
2002
293,2
Thous.$
857,5
970,6
847,5
1153,3
583,9
Ton
214,67
297,35
347,9
390,55
42,3
Thous.$
510,6
648,4
767,9
1057,8
116,9
Ton
1,34
Thous.$
25,5
Ton
64,77
65,66
19,28
47,68
55,09
Thous.$
511,2
511,9
149,0
287,1
467,4
Ton
12,93
27,65
3,33
Thous.$
130,3
261,0
83,3
Camel hair blanket
and clothes
Total cost
3539
2880
9803
1851
1805
157,9
86,6
324,5
80,5
74,2
U
Thous.$
Annex 18
Export of textile's main products /by country/
Raw cashmere /ton/
Name of country
1
2
3
4
5
China
Italy
Japan
Germany
Total
1998
1999
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
9.08
133.8
742.3 13601.4
707.88
21398
22.3
567.8
58.9
972.8
1
21.2
9.3
483.4
6.15
151.6
7.33
196.3
2.63
134.4
0.1
16.23
306.6
749.63 13797.7
717.2 21881.4
24.93
702.2
58.9
972.9
Cashmere tops /ton/
Name of country
1
2
3
4
5
6
7
8
9
10
China
Columbia
En gland
Italy
Japan
Nepal/Balba/
Korea
India
Netherland
Nepal
íèéò ä¿í
1998
quantity thous.$
6.88
0.82
1.89
9.59
1999
quantity thous.$
320.4
32.8
111.4
18.34
9.48
0.49
464.6
1.89
1.19
3.03
2.02
36.44
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
1.1
93.2
0.2
17.9
670.9
0.97
98.1
2.41
243.5
526.2
2.1
130.4
36.6
2.61
286.4
0.42
47.8
0.15
13.8
122.4
99.5
139.3
182.8
1777.7
7.13
639.8
2.83
291.3
Dehaired cashmere /ton/
Name of country
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Switzerland
Chine
Germany
England
Hong Kong
Italy
Japan
Arab
Belgium
Ireland
Korea
Aomine
Netherland
Nepal
USA
Mexico
Total
1998
1999
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
6.66
326.4
15.29
554
5.73
384.7
8.79
297.1
11.7
590.8
110.38
4725.4
336 11634.5
386.79
24244
119.84
8304.9
215.6
10475
0.04
4
1
85.1
317.64 11587.5
252.04 10605.1
114.04 10004.3
82.01
5386.8
97.7
4664.6
29.48
2358.2
67.52
4863
68
3087.4
242.1
9573
258.79
9872
163.12 12850.6
161.07 10928.7
151
7708.4
45.73
1699.8
131.4
5238.7
49.79
3615
111.66
8703.4
53.5
2482.2
1.25
53.5
1.26
54.1
44.61
1857.8
17.04
735.7
0.17
8.9
3
113
21.74
746.4
15.8
672.5
14.69
508.7
0.38
18.8
0.2
11.4
26.26
988.5
21.7
703
17.65
590.5
849.76 32994.2 1052.02
39885
748.99 53460.8
551.89
38569
597.5 29008.4
Scoured wool /ton/
Name of country
1
2
3
4
5
6
7
8
9
10
11
12
Chine
England
India
Kazakhstan
Pakistan
Russia
Belgium
Switzerland
Korea
Czech
Japan
USA
Total
1998
1999
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
4773.2
3664.9 6035.96
4346.1 2461.02
1676.9
1884.4
3034.2
2538.2
458
399.8
661.04
478.1
869.27
569.2
150.05
122.8
260.36
229.1
56.41
65.9
40
12
19.48
6.8
1770.12
529.6
17.31
10.6
31.92
30.3
84.9
80.6
200.52
165.4
18.71
23.8
4.24
2.1
12
2.4
19.03
17.8
5421.51
4224 6988.39
5073.5
5216.3
2860.4
232.44
2080.1
3119.1
2618.8
Cashmere dress /u /
Name of country
1
2
3
4
5
6
1998
quantity thous.$
Japan
USA
Korea
Italy
Canada
Russia
Total
1999
quantity thous.$
6
6
2000
2001
quantity thous.$
quantity thous.$
70
3.3
143
8.5
0.2
0.2
213
11.8
628
32.5
2002
quantity thous.$
288
7
43
129
11.6
0.3
2.2
4.7
467
18.8
Cashmere short skirt /u/
Name of country
1
2
3
4
5
6
7
Belgium
Russia
USA
Canada
England
Japan
Korea
Total
1998
1999
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
17
0.2
34
1.5
8
0.3
5
0.3
39
0.7
2
0
148
7.3
3871
147.9
19
0.9
85
5.8
2741
118.3
15
0.8
663
14.7
0
0
0
0
221
6.6
24
0.5
39
0.7
3027
133.8
23
1.1
4895
174.7
Cashmere trousers /u/
Name of country
1
2
3
4
5
6
7
Belgium
Russia
USA
Canada
Japan
Luxembourg
China
Total
1998
1999
quantity thous.$
quantity thous.$
74
2.2
7
0.3
1
0
82
2.5
0
2000
2001
quantity thous.$
quantity thous.$
32
1.7
0
563
15
902
53
30.4
0.8
37.8
2.6
1565
73.3
988
84
180
45.9
1.6
6.5
2976
4228
20.8
74.8
2002
quantity thous.$
680
28.8
680
28.8
Cashmere overcoat /u/
Name of country
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Austria
Belgium
Canada
Switzerland
China
Germany
Denmark
Egypt
Spanish
France
England
Italia
Japan
Ëþêñåìáóðã
Sweden
Russia
USA
Korea
Total
1998
quantity thous.$
0
1999
quantity thous.$
0
0
2000
2001
quantity thous.$
quantity thous.$
67
1.4
28337
1123
6451
253
30
1.3
68048
1508
29517
1202.1
186
8
498
15.4
990
61.7
58040
1756.1
2934
233
4081
159
72029
2569
335
17.4
250
11.3
723
25.6
156015
4061.5
0
428531
13007.1
0
2002
quantity thous.$
0
1
0.3
217
6.5
12726
6
12950
348.8
1
356.6
Cashmere sweater and jumper /u/
Name of country
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Austia
Belgium
Canada
Germany
Denmark
France
Syangan
Italia
Japan
Norwey
Nepal
Sweden
Russia
Turkey
USA
Australia
Swirzerland
Korea
China
Egypt
Spanish
england
luxembourg
Poland
Total
1998
1999
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
130
1.2
67
1.4
40787
1541.2
24987
741.7
28337
1123
17263
746
4038
143.9
1379
55
2488
56.9
16483
208
4547
209.8
6331
221.7
261
11.1
32431
1227.7
29517
1202.1
20749
883.3
87358
2099.2
986
43.6
59
3.7
186
8
49
1.8
153
6.6
17455
503.5
58040
1756.1
170
5.7
389
11.5
30665
1379.5
57934
1020
114072
46.3
2851
140.3
12453
387
4081
139
10573
307.1
15718
418.2
38267
1065.5
65868
1799.1
73560
2608.2
61370
2364.5
88094
2164.6
68
2.1
100
3.5
227
10.5
318
13
250
11.3
248
11.3
183
6.6
229
9.4
1618
45
723
25.6
1474
50
933
21.7
251
8.5
35797
710.4
77454
1404.5 2482828 16663.7 4116656 11890.4 5065593
9224.9
25
1
65112
27.1
605
21.8
30
1.3
439
16.9
201
6.9
98
2.5
14863
59.2
7522
272.1
143252
1720.6
4320
148.1
560311
1634.6
498
15.4
990
61.7
11420
228.4
3844
289
5934
233.8
34866
784.7
335
17.4
460
27.1
616
13.1
152151
4988.4
293793
7228.7 2843021 25943.6 4324137 16982.1 6008543 17550.9
Cashmere blanket /u/
Name of country
1
2
3
4
5
6
7
8
9
Bulgaria
China
Germany
Italy
Sweden
USA
Russia
Autria
Japan
Total
1998
1999
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
quantity thous.$
30
4.4
930
13.8
4
0.9
52
13.4
45
12
2
0.3
3
0.2
19
1.5
3
0.5
49
12.7
20
4.7
321
54.7
1021
33
113
26.2
344
60
99
7.1
879
31.7
Other cahmere wear /u/
Name of country
1
2
3
4
5
USA
Belgium
Canada
Korea
Germany
Total
1998
quantity thous.$
0
1999
quantity thous.$
0
0
2000
2001
2002
quantity thous.$
quantity thous.$
quantity thous.$
8022
237.5
7293
248.7
20
1.9
122
11.5
1
0.2
9
1.2
10
1.3
0
8022
237.5
142
13.4
7330
262.2
VII. References
1. Customs report 1998-2002
2. Statistics report 1998-2002
3.
The wool record weekly market 1998-2002
4. “Talk on cashmere” article by Ch.Ganzorig, Minister for Industry &Trade
“Onoodor” newspaper. 2003
5. “Introduction to Wool Supply and Products of First Process”
by G.Yondonsambuu, B.Jambal 1999.
6. “Survey on Mongolian sheep and its wool quality”
by B.Jambal, D.Batbayar. 2001.
7. Introduction book of Darkhan–Uul aimag
8. Introduction book of Zavkhan aimag
9. Websites:
http://www.style.com
http://www.google.com
http://www.hdawson.com
http://www.world-textile.net
48