To Facilitate Cashmere Cross Border Trade, Mongolia Commodity Exchange Launched The Global Online Procurement Platform.

This Friday, the Mongolian Commodity Exchange (hereinafter referred to as MCE) announced that it will start a new global online procurement platform from the middle of April to join the Bohai China Commodity Exchange (China) s Bohai Commodity Exchange (hereinafter referred to as BOCE) to facilitate the cross border paction of cashmere products in Mongolia.

MCE and BOCE signed relevant strategic cooperation agreements in January this year.

In addition, BOCE has started trading all kinds of textile fiber materials, including cotton,

Goose down and feather down.

The platform will open for 5 days a week, which will help Mongolia's agricultural products more easily enter China.

In particular, it can increase the profit of wool and cashmere for the production of luxury fashion.

The main suppliers of cashmere fiber in the world are Mongolia, China, India,

Afghanistan and Russia.

Cashmere fiber accounts for 40% of the world's total output per year in Mongolia.

But so far, traders and their representatives who want to buy cashmere have to go to Mongolia's only MCE, who is allowed to trade cashmere, to purchase.

Chuluunbaatar Bayar, general manager of MCE, said: "the global online purchasing platform allows manufacturers to buy cashmere in Mongolia directly through BOCE," so there is no need to send representatives to Mongolia for further trading.

MCE CEO Kh. Baatar said: "as commodity trading will be directly linked, herdsmen can sell their products to end customers at a higher price."

He added: "large manufacturers have expressed willingness to buy wool and cashmere through China's commodity exchanges.

Our goal is not only to export wool and cashmere to China, but also to other countries such as Italy and Japan, and we hope to export directly to Europe in the future.

MCE said that online trading of agricultural products and coal and copper may take place later.

Cashmere accounts for about 90% of the total paction volume of the exchange.

In 2017, MCE sold 7000 tons of water washed cashmere with a total value of 521 billion tug g (about $218 million).

In recent years, Mongolia has been trying to maximize the income of the cashmere industry, and most of the processing is done in the Chinese border area, where the production cost is cheaper.

In February this year, the Mongolia government launched a four year plan to promote the development of cashmere industry, aiming to increase export volume by more than five times, and provide financial support to help domestic enterprises improve technology and improve processing capacity.

In addition, the Mongolia Development Bank and the Ministry of food and agriculture light industry also set up a total of 5000 billion gross ($209 million) cashmere Development Fund.

It is reported that Mongolia estimates that there are 27 million goats in total, and the annual output of cashmere is 9400 tons.