volatile prices

NOMGON SOUM, MONGOLIA—A massive sandstorm is crashing in over South Gobi province, darkening afternoon skies over the village meeting house where dozens of chattering herders from far-

Herders face income instability and uncertainty and are often indebted to intermediaries for cash advances

The nomadic community is one of immense pride but one with a volatile and unstable income,” said Convergence.tech CEO Chami Akmeemana. “Leveraging blockchain technology within the transformation of the cashmere industry can provide numerous benefits for Mongolian herders, buyers, and sellers alike.”

The company selected cashmere herders for its pilot, as herders face income instability and are oftenindebted to intermediaries for cash advances. There is also a lack of agreement on sustainability and chain of custody processes, and grazing lands are threatening the viability of the industry.

The cashmere market has always been volatile, but we’ve never seen anything like this before and there really is no way of predicting how it is going to develop.

volatile prices Instability of cashmere prices contributes to herders' inability to produce cashmere at stable, sustainable levels. A sudden drop in commodity prices may wipe out much of a household's projected annual income. Price fluctuations may be related to the activity of private traders and intermediaries, #chenj. Large herd sizes are a response to uncertainty.