The Cashmere Supply Chain: From Mongolian Plateau to Italian Mills

The global cashmere trade represents one of the most fascinating supply chains in the textile industry. Understanding this journey from raw fiber to finished luxury product helps buyers make informed sourcing decisions.

The Source: Mongolia and Inner Mongolia

Mongolian Cashmere

Mongolia produces approximately 10,000 tonnes of raw cashmere annually, making it one of the world’s largest producers. The harsh continental climate of the Mongolian Plateau produces exceptionally fine undercoat fibers as goats develop thicker coats to survive temperatures dropping to -40°C.

Key producing regions:

• Arkhangai Province
• Khovd Province
• Övörkhangai Province
• Dornogovi Province

Chinese Inner Mongolia

China’s Inner Mongolia Autonomous Region is actually the world’s largest cashmere producer, with annual output exceeding 15,000 tonnes. The region has invested heavily in modern processing facilities while maintaining traditional herding practices.

The Harvest: Combing vs. Shearing

Traditional Combing

Most quality cashmere is harvested through combing:

1. Timing: Spring, when goats naturally shed their winter coats
2. Process: Hand-combing over 2-3 weeks
3. Yield: 150-250 grams per goat annually
4. Quality: Superior fiber length and minimal damage

Shearing (Less Common)

Some commercial operations shear goats, but this often results in:

• Mixed fiber quality (undercoat + guard hair)
• Higher contamination rates
• Shorter processing yields

Processing: From Raw to Refined

Primary Processing (Country of Origin)

After collection, raw cashmere undergoes initial processing:

1. Sorting: Manual separation by color and quality
2. Washing: Removal of surface dirt and lanolin
3. Drying: Controlled environment to prevent fiber damage
4. Dehairing: Mechanical removal of guard hairs

Secondary Processing (Typically China)

Most global cashmere processing happens in China due to:

• Lower labor costs
• Established expertise
• Modern equipment
• Economies of scale

Key processing centers include:

• Hohhot (Inner Mongolia)
• Dalian (Liaoning)
• Ningbo (Zhejiang)

The Trading Routes

Traditional Flow

Mongolia/China → Italy → Global Brands

Italy has long been the epicenter of luxury cashmere manufacturing. The Prato region in Tuscany alone hosts hundreds of textile mills specializing in high-end cashmere goods.

Modern Diversification

Today, the supply chain has evolved:

Mongolia/China → China Processing → Multiple Destinations
                          ↓
         ┌────────────────┼────────────────┐
         ↓                ↓                ↓
     Italy           Japan/Korea       Direct Export
     (Luxury)        (Quality)        (Volume)

Quality at Each Stage

What Affects Cashmere Quality

Factor	Impact on Quality
Goat diet	Fiber fineness
Climate	Undercoat thickness
Harvest timing	Fiber maturity
Dehairing precision	Softness, consistency
Storage conditions	Color stability

Certifications to Look For

• GCS (Good Cashmere Standard): Animal welfare certification
• RWS (Responsible Wool Standard): For broader fiber responsibility
• OCS (Organic Content Standard): Chemical-free production
• ISO certifications: Processing quality assurance

The European Market

Italy remains the premier destination for premium cashmere:

• Prato: The wool and cashmere capital
• Biella: Home to luxury spinning mills
• Carpi: Concentrated fabric production

Key importing countries:

1. Italy (40% of Chinese exports)
2. UK and Switzerland
3. Japan and South Korea
4. USA

Why Traceability Matters

Modern buyers increasingly demand supply chain transparency:

• Quality assurance: Verify processing standards
• Ethical sourcing: Confirm animal welfare practices
• Sustainability: Track environmental impact
• Authenticity: Prevent counterfeit claims

Golden Fleece’s Role

As a Singapore-based trading company, Golden Fleece bridges:

• Suppliers: Direct relationships with Mongolian and Chinese producers
• Buyers: European and Italian mills requiring consistent quality
• Logistics: Efficient shipping and customs handling
• Quality control: Pre-shipment inspection and certification

Conclusion

The cashmere supply chain represents a complex interplay of geography, tradition, and modern commerce. Understanding this journey helps buyers appreciate the value of premium cashmere and make informed purchasing decisions.

Golden Fleece Pte Ltd specializes in connecting quality-conscious buyers with the finest dehaired cashmere and cashmere tops from Mongolia and China.