Why 76.9% of Mongolia Is Degrading, and What the Wool Sector Could Do About It

Mongolia is a country built around its land.

For thousands of years, Mongolian herders have depended on vast grasslands to raise livestock, produce food and support their families. Today, however, those same rangelands are under increasing pressure.

According to the United Nations Convention to Combat Desertification (UNCCD), approximately 76.9% of Mongolia's land is experiencing degradation. Mongolia's 1.56 million square kilometres of land are dominated by rangelands, making the condition of these ecosystems inseparable from the country's economy, culture and way of life.

But why is this happening, and what can one of Mongolia's most important industries — the wool and cashmere sector — do about it?

A problem bigger than livestock

It would be easy to blame livestock alone. The reality is more complicated. Mongolian rangelands are affected by a combination of overgrazing, drought, changing rainfall patterns, rising temperatures and extreme weather events. Climate change makes vegetation recovery more difficult, while growing livestock numbers can put additional pressure on already vulnerable pastures.

The problem becomes especially important when we look at goats. Cashmere comes from the soft undercoat of cashmere goats, making goats an essential part of Mongolia's rural economy. International demand for cashmere has encouraged the growth of goat herds, changing the traditional balance between sheep and goats.

UNDP reports that Mongolia's total livestock population has doubled to around 70 million animals since 2000, with livestock numbers exceeding the carrying capacity of the land in some areas. It also notes that goat numbers rose dramatically after restrictions on herd growth were lifted in 1990. This creates a difficult paradox: cashmere provides income for hundreds of thousands of Mongolian herders, but producing more cashmere can also increase pressure on the land that those same herders depend on.

As a 2026 FAO discussion during UNCCD COP17 put it, the question is whether "cashmere can become a part of the solution rather than part of the problem." That is the question the wool sector needs to answer.

Why goats matter

Goats are not inherently destructive animals. They are extremely well adapted to Mongolia's environment and are an important part of the country's pastoral heritage. The problem occurs when livestock numbers become too high for the available pasture.

UNDP has reported that traditional Mongolian grazing systems maintained a ratio of approximately three sheep for every goat, partly because goats can place greater pressure on the vegetation. Increasing demand for cashmere has shifted this balance, with sheep and goats becoming much closer in number in some areas.

When pasture is repeatedly grazed before vegetation has time to recover, plants become less abundant and less productive. Combined with drought and rising temperatures, this can accelerate deterioration of rangelands. Degraded land can mean less food for livestock, less water retention, reduced biodiversity, weaker soil, lower livestock productivity, greater vulnerability to drought and dzud, and declining livelihoods for herder families. In other words, the health of the land is directly connected to the health of Mongolia's livestock economy.

The answer isn't to abandon cashmere

Cashmere is too important for Mongolia. The sector provides a major source of income for herding communities, and Mongolia is one of the world's leading sources of raw cashmere. The challenge is to create more value from the animals and fibre Mongolia already produces without continually increasing pressure on the land. There are already examples of this approach: sustainable cashmere initiatives supported by UNDP and other organizations are working on better livestock management, traceability, community pasture management and improved fibre quality.

Better goats + healthier pastures + higher quality fibre = greater value per kilogram.

If herders can earn more from a smaller, healthier herd, the economic incentive to continually increase livestock numbers becomes weaker.

Quality over quantity

This is where the wool sector can make a major difference. Instead of rewarding the production of the largest possible quantity of raw cashmere, brands and consumers can place greater value on quality, sustainability and traceability. UNDP has highlighted the potential for sustainably sourced, higher-value cashmere to reduce herd sizes and pressure on land without necessarily reducing herder incomes.

The industry can also invest more in processing fibre inside Mongolia. UNDP has noted that much of Mongolia's cashmere is exported as raw material rather than being processed into higher-value finished products domestically. Increasing local processing could create more jobs and economic value without requiring more animals.

What about yak wool?

There is another possibility that deserves more attention: diversification. Mongolia does not have to depend on one luxury animal fibre.

Yak fibre is already produced by Mongolian herders and has properties that make it suitable for high-value textiles. Yaks are also naturally adapted to Mongolia's high-altitude environments. Expanding the yak fibre sector could provide another source of income while reducing the industry's dependence on continually expanding goat populations.

This does not mean replacing every goat with a yak — yaks can also overgraze if their numbers exceed the carrying capacity of their pasture. The goal should instead be to use the animals best suited to each landscape and maintain livestock numbers within sustainable limits. Yak fibre therefore represents an opportunity for diversification, not a replacement.

From cashmere to a more diverse fibre economy

Imagine a Mongolian wool sector where economic success isn't measured by the number of animals. Instead, success could be measured by the health of the pasture, the quality of the fibre, the income of the herder and the long-term productivity of the land. Cashmere could remain an important part of Mongolia's economy while yak fibre, sheep wool and other natural fibres provide additional opportunities. This would also make Mongolia's fibre industry more resilient — if one market falls, herders would not necessarily have to increase livestock numbers to compensate. More diversified products and stronger domestic processing could allow more value to be created from the animals already present.

A different future for Mongolian fibre

The question facing Mongolia is therefore not simply "how much cashmere can we produce?" It's "how much value can we create while keeping the land healthy for the next generation?"

And with Mongolia hosting UNCCD COP17 under the theme "Restoring Land. Restoring Hope," the country's wool sector has an opportunity to show that restoration isn't only an environmental goal. It can be an economic one too.