The city of Ordos in North China's Inner Mongolia autonomous region will receive 25 million yuan ($3.75 million) per year from the central government to develop its cashmere goat industry over a three-year period.

The plan was recently jointly announced by the Ministry of Agriculture and Rural Affairs and the Ministry of Finance.

After years of development, Ordos has formed an industrial chain consisting of cashmere goat breed selection, large-scale breeding, product research and development, processing and sales.

According to the plan, the Otog Front Banner, Hanggin Banner, Otog Banner, Dalad Banner, Ejin Horoo Banner, Otog Banner and Dongsheng district in the jurisdiction of Ordos will use the funds to build cashmere goat industry clusters covering production, processing, circulation, technology and services.

Meanwhile, Ordos will build a cashmere goat science and technology innovation center, a cashmere trading center, a cashmere industry center, and a high-quality cashmere goat breeding base.

The building of such centers is intended to overcome problems such as the degradation of cashmere goat quality, low output of high-quality cashmere, lack of scientific and technological support, insufficient mutton deep processing capacity and weak cashmere brand influence.

By 2024, Ordos is expected to build itself into a high-quality cashmere goat breeding center and a world center for cashmere distribution, and build Aerbasi into a world-famous cashmere brand.