The combination of smuggling, mixing, and crossbreeding, led to a swell in the supply of Mongolian cashmere – both pure and mixed – by the late 1990s and early 2000s. However, due to economic instability in some of Gobi’s major international markets, demand for the luxury item decreased and the company’s stability was put at risk. Furthermore, because the increase in domestic supply made Mongolian cashmere command a lower premium, producers such as Gobi became more vulnerable to competition from abroad. With the government of Mongolia’s objectives to develop the cashmere industry so it would make a significant and lasting contribution to economic growth and poverty alleviation, the final approval to completely privatize Gobi in 2003 came at a fortuitous time.