Suppliers of about 40 per cent of the world’s raw cashmere Mongolia, hopes to increase profit trading in the wool used in some of the world’s priciest luxury fashions by opening up a new online platform for global buying via China’s Bohai exchange.

According to the Mongolian Commodity Exchange (MCE) the platform will begin trading in mid-April. Trading in agricultural products and also coal and copper could follow at a later date. But cashmere currently accounts for around 90 per cent of the exchange’s total trade: In 2017, 7,000 tonnes of washed cashmere were sold on the MCE with a total value of 521 billion tugrik ($217.99 million).

Chuluunbaatar Bayar, GM, MCE stated that cooperation with the Bohai Commodity Exchange is opening up a market for Mongolian commodities not only in China but to other countries as well. He further added Italian buyers would be able to buy Mongolian cashmere via the Bohai exchange. The cashmere launch follows the signing of a strategic cooperation agreement with the Bohai Commodity Exchange (BOCE) in January. BOCE already trades a variety of textile products including cotton, cashmere, goose feathers and eiderdown.

Mongolia has maximized profit from its cashmere industry, by processing cheaply across the border in China. The Mongolian government launched a four-year program to boost the industry in February, with the aim of increasing exports more than fivefold, providing financial support to help domestic firms improve technology and boosting the country’s processing capacity.

Mongolia has an estimated total of 27 million goats, and an annual cashmere production capacity of 9,400 tonnes.