Mongolian cashmere producers have reason to be optimistic. In the past decade, recovered global demand offset weak domestic economic conditions and garment companies like Gobi established international beachheads. Cashmere production levels are breaking records. And government programs, international financial institutions, and domestic companies are promoting in-country value-add cashmere processing. However, the industry’s rapid growth has degraded the average fiber quality and made the industry more susceptible to a catastrophic supply-chain shock.