Biology of Business

Dundgovi

TL;DR

Cashmere capital of the Gobi—Mongolia's second-largest export. Goats now outnumber all other livestock combined. 70% of grazing land degraded. The tragedy of the commons in slow motion.

province in Mongolia

By Alex Denne

The global appetite for cashmere is turning Dundgovi to dust. This Middle Gobi province sits at the heart of Mongolia's second-largest export industry—cashmere wool from the undercoat of goats that graze the semi-arid steppe. Mongolia now ranks as the world's second-largest cashmere producer after China, and much of that production flows from the herds around Mandalgovi, the provincial capital. The math seemed favorable: goats produce cashmere worth more per kilogram than other livestock products. Herders responded rationally, expanding goat numbers until goats now comprise more than half of all grazing animals on Mongolian grassland.

The steppe cannot sustain this. Goats are more destructive grazers than sheep—they uproot plants rather than trimming them, and their sharp hooves compact soil that wind then strips away. An estimated 70% of Mongolia's grazing lands are now degraded to some degree. Studies over the past decade show the once-lush Mongolian steppe slowly converting to desert. Dundgovi, positioned in the transition zone between steppe and Gobi, shows the symptoms early: sandstorms more frequent, springs drying up, pastures requiring longer recovery between grazing cycles.

The provincial capital Mandalgovi functions as a commercial hub where herding families sell cashmere and dairy products before moving south for winter pastures. A paved road to Ulaanbaatar, completed in 2013, shortened the journey to 300 kilometers. Proximity to markets accelerated herd growth; degradation accelerated in parallel.

By 2026, Dundgovi faces the classic tragedy of the commons: individual herders benefit from adding goats while the collective cost—grassland destruction—spreads across everyone.

Related Mechanisms for Dundgovi

Related Organisms for Dundgovi