Cashmere

ULAANBAATAR — Companies participating in the International Labour Organization’s (ILO) SCORE pilot programme for Mongolia’s wool and cashmere sector have made progress in increasing productivity, reducing product defects and cutting energy and other resource consumption. According to information published by the ILO in June 2026, factories involved in the 2025 pilot reported productivity gains of up to 40 percent, defect reductions of up to 40 percent and production cost savings of up to 20 percent.

These figures do not represent overall growth across Mongolia’s cashmere industry; they reflect results reported by the companies taking part in the programme. For example, results information published on October 29, 2026, presented productivity increases, defect reductions and energy savings at some factories as separate indicators.

Improving Production Processes Together with Employees

SCORE, which stands for “Sustaining Competitive and Responsible Enterprises,” is an ILO initiative designed to improve productivity, working conditions and competitiveness at small and medium-sized enterprises.

The programme does not focus solely on equipment or technological upgrades. It also seeks to strengthen cooperation between managers and employees, optimise workplace organisation, improve quality control and human resources management, and raise occupational safety standards. A key feature of SCORE is its combination of training with professional advice and practical implementation in factory settings.

In Mongolia, the programme began a pilot project in June 2025 involving five companies in the cashmere sector: Goyo Cashmere, Khanbogd Cashmere, Eveseg, Capra D’Oro Cashmere and Blue Sky Cashmere.

According to ILO information from October 2025, the participating factories improved workplace organisation and increased operational efficiency after the initial training. Some factories reorganised about 50 percent of their total workspace, improving workplace capacity and utilisation. They also introduced measures to incorporate employee feedback into management decisions and support communication with employees with disabilities.

Reported Results from Participating Factories

The programme results presented on October 29, 2026, included specific indicators reported by companies that took part in the 2025 pilot.

Blue Sky Cashmere reported a 179.4 percent increase in productivity, while Capra D’Oro Cashmere reported a 76.5 percent increase. Eveseg reported a 66.6 percent reduction in product defects during production, while Khanbogd Cashmere reduced its energy consumption by 17 percent.

These results concern different companies and different indicators. Productivity growth, lower product defects and energy savings therefore cannot be treated as a single comparable measure. Nevertheless, the results show that improving production organisation, employee participation and resource use can bring tangible efficiency gains to factories.

Programme Expanded to Five New Factories in 2026

Building on the results of the 2025 pilot, the SCORE programme was continued in 2026 at five companies: Uguuj Shim, Gobi-Erdene Cashmere, Saintumen Cashmere, Baigal Cashmere and Snowfields.

This phase places particular emphasis not only on productivity, product quality, human resources management and workplace cooperation, but also on creating youth-friendly working environments. Developing the skills of young employees, involving them in initiatives to improve production operations, and strengthening relations between employers and employees have become key areas of the programme.

Implementation in 2026 is based on a joint financing model involving the government, the private sector and international organisations. Funding is being provided by the participating companies, the Employment Promotion Fund and the ILO’s Youth Employment Promotion project, financed by the Government of the Republic of Korea.

Workforce Productivity Key to “White Gold” Movement Goals

Under Mongolia’s national “White Gold” movement, the country has set targets for 2024–2028 to increase the share of fully processed cashmere from 20 percent to 40 percent, raise export earnings from $398 million to $690 million and create more than 3,000 jobs.

These are policy targets that have been set for implementation and should not yet be understood as fully achieved results. Reaching them will require not only factory capacity, equipment and investment in technology, but also a skilled workforce, high product quality and greater labour productivity.

An ILO survey conducted in 2025, covering about 600 people, highlighted a labour shortage of 10–20 percent in the cashmere sector, as well as retention problems among employees during the early stages of employment. The survey found that opportunities to develop skills, supportive workplace relations and a low-stress environment were important factors for young people when choosing a job and remaining in employment.

As Mongolia’s cashmere industry seeks to move beyond its role as a supplier of raw materials on the global market and become a producer of higher-value products, the need to improve production efficiency, workforce skills and working conditions together is becoming increasingly urgent.

The SCORE pilot results offer one possible approach in this direction. However, its long-term impact on the sector’s competitiveness can only be assessed after results have been measured across more factories and over a sustained period.