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It travels all the way from Mongolia to the Scottish Borders - and from the Scottish Borders it is exported around the world.
Last year 1.4 million pounds worth of cashmere came to the country, and such is its importance that today the region was visited by the Mongolian ambassador and the Central Orchestra of the Mongolian Armed Forces.
Watch the full report from Andy Burn below.
The ambassador of Mongolia, Narkhuu Tulga, has been speaking of the hard work behind today's visit to Hawick ahead of the delegation's arrival:
The Mongolian Ambassador will lead a delegation to Hawick to explore opportunities in textile manufacturing.
The Borders MP Michael Moore will host the visit by Ambassador Tulga - who is looking at cashmere manufacturing.
There will also be a performance in Hawick by the 70 strong Central Orchestra of the Mongolian Armed Forces.
It is the first official visit by Mongolian officials to the town.
Borders MP Michael Moore is hosting the first Mongolian visit to Hawick to explore opportunities for those specialising in the textile industry.
They will be looking particularly at the manufacture of cashmere goods and touring local manufacturers.