Mongolia’s Cashmere and Food Businesses Get $30 M Boost to Create New Jobs

Tavan Bogd Foods LLC will receive $10 million, and Tavan Bogd Foods Pizza LLC will receive $5 million to expand food service operations inside and outside Ulaanbaatar.

Mongolia's nomadic herders, cashmere factory workers and restaurant employees stand to benefit from a $30 million financing agreement signed by the Asian Development Bank (ADB), connecting support for a major export industry with new employment opportunities in food services. The loans, provided in the equivalent amount of Mongolia's currency, the togrog, will help three companies strengthen their operations, with the project expected to create 367 jobs, including at least 220 for women.

Keeping More Cashmere Value in Mongolia

Gobi Joint Stock Company, Mongolia's leading cashmere manufacturer, will receive $15 million to support sustainable purchases of raw cashmere from nomadic herders and its processing into higher-value products. Mongolia produces approximately 45% of the world's raw cashmere, according to ADB, but only 10% of that output is processed domestically into higher-value goods, leaving considerable room for local businesses and workers to earn more from the country's natural resources.

The financing will support sourcing, processing and garment manufacturing, strengthening connections between herders, local factories and export markets. For households that depend on selling cashmere, stronger relationships with buyers and herder cooperatives can provide an important connection to the wider industry, giving rural producers a place in a supply chain that reaches international customers.

New Jobs Beyond the Capital

Tavan Bogd Foods LLC will receive $10 million, and Tavan Bogd Foods Pizza LLC will receive $5 million to expand food service operations inside and outside Ulaanbaatar. The investment is expected to broaden access to formal employment in a growing sector, with particular attention to opportunities for women and young workers, including those seeking work beyond the capital.

The three companies currently employ about 3,244 people, making the planned 367 additional positions a meaningful expansion of their combined workforce. Women are expected to take at least 220 of the new jobs, representing roughly 60% of the total. ADB Country Director for Mongolia John Juhyun Jeong described the project as an example of how private investment can support rural livelihoods and quality employment, linking Gobi's relationships with herder cooperatives to the food businesses' expansion.

Stronger Supply Chains for Rural Livelihoods

Extreme weather remains a serious threat to Mongolia's livestock and the families who depend on them, exposing the cashmere industry to disruptions that can affect raw material supplies and household earnings. ADB expects stronger market connections and greater domestic processing to improve the sector's resilience and expand income opportunities across the supply chain, from herding communities to manufacturing businesses.

Gobi Chief Executive Officer Amarsaikhan Baatarsaikhan said the financing would help secure raw cashmere supplies through continued sourcing from local herders, supporting existing jobs and the company's ability to compete in export markets. The agreement forms part of ADB's broader support for agribusiness and food systems across Asia and the Pacific, with priorities including stronger supply chains, greater local value creation and more opportunities for women. Tavan Bogd Group's wider businesses span cashmere, restaurants, food production, trade, machinery, property, finance and tourism, reflecting the range of private enterprises involved in Mongolia's economic development.