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Natural Fibers

Italian Project Aims To Transform Mongolia's Cashmere Industry

• By  Textile Excellence
• May 31, 2026

As global demand for cashmere continues to rise, an ambitious Italy-led initiative is seeking to make the fibre fairer, more traceable and more sustainable.

The project, led by Italian textile entrepreneur Francesco Saldarini, aims to create the world's first geographically protected and blockchain-traceable cashmere supply chain in Mongolia, the source of around 40% of the world's cashmere. While exports reached nearly US$ 700 million in 2025, many Mongolian herders continue to struggle with low incomes, climate pressures and limited value addition.

At the heart of the initiative is the newly developed "Responsible Nomads" standard, which certifies cashmere produced with respect for animal welfare, the environment and herder livelihoods. The next step is securing European PGI (Protected Geographical Indication) status for Mongolian cashmere, a first for the fashion industry.

The project also envisions a €60 million textile hub in Mongolia, equipped with modern Italian machinery for washing, processing and spinning cashmere. By creating a direct supply chain between herders and European buyers, the initiative aims to improve transparency, ensure fairer returns for producers and reduce dependence on Chinese intermediaries that currently dominate global cashmere trade.

The project also envisions a €60 million textile hub in Mongolia, equipped with modern Italian machinery for washing, processing and spinning cashmere. By creating a direct supply chain between herders and European buyers, the initiative aims to improve transparency, ensure fairer returns for producers and reduce dependence on Chinese intermediaries that currently dominate global cashmere trade.