WORLD BANK
Case Study
The Semi-Intensive Dairy Sector in Mongolia
Scanagri CPRSweden Mongolia
November 2003
East Asia and Pacific Region, 1818 H Street NW, Washington DC 20433
This report was prepared for the World Bank. A Joint Report for studies related to the semi-intensivedairy sector in Mongolia.
TABLE OF CONTENT
Preface 1
Summary & Conclusions 2
1. Introduction 6
2. Diary Sector Background 7
3. The Dairy Farm Survey 9
3.1 Principal Conclusions from the Financial Survey and Focus
Group Discussions 9
3.2 Farm Development Prospects 16
4. Milk Processing and Marketing 19
5. The “White Revolution” 24
6. Long Term Impact of the Danida Support for the Dairy Sector 25
7. Relevance of the sector experience to Government Policy on
Regional, Rural and Agricultural Development 29
Appendix 1: Survey Questionnaire 34
Appendix 2: The Survey Results 38
Appendix 3: The Financial Survey Questionnaire 39
Appendix 4: The Results of Financial Analysis 42
Appendix 5: Stakeholder workshop 43
Appendix 6: Information on the dairy processors 65
Appendix 7: Some policy recommendations in the light of the
implementation of the Government’s key policy directions 90
Map of dairy farms covered by study 96
Preface
This report combines the results of two contracts for studies related to the semi-intensive dairy sector. The work was undertaken in response to a request from Ministry of Food and Agriculture (MoFA) for support, as part of the preparations forthe Donor meeting in Tokyo, and extends the analyses undertaken during the production of the draft of the Rural Development Strategy. A single report is presented because both contracts involved discussions with MoFA and other organizations concerned with the sub sector and this final document incorporates theresults of all those discussions.
The foci of the two contracts were different. The international consultancy by Dr McNeill, for Scanagri Sweden and financed by Swedish trust funds, concentrated on the preparation of the case study, drawing conclusions from the experience of the Danida project support for the sub-sector. The Mongolian consultancy, Center for Policy Research (CPR) financed by Danish trust funds, concentrated on farm surveys. The organization of a stakeholder participative workshop was led by CPR and separately financed by the World Bank. The workshop was followed by a period of consultation with MoFA. This was undertaken primarily by CPR, with support fromthe international consultant. The approach of maximizing the Mongolian input and stakeholder participation follows the procedures adopted in the preparation of the Rural Development Strategy and this report is part of the continuing process of assisting Government in developing its rural and regional development strategy. The drafting of the report has been a collaborative process but, in essence, the case studywas written originally in English while the other material is a translation from the Mongolian original.
The authors would like to thank the participating farmers and all others whosupported the work and provided information. Particular thanks are due to the Dairy Farmers Association and the Dairy Processors Association, which were established with support from the Danida project, and to the specialist staff of MoFA.
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Summary and Conclusions
Government has proposed an ambitious programme for promoting intensive livestockproduction as part of its rural and regional development policy. Ensuring funding and building adequate capacities are key issues to be resolved for the successful implementation of such a programme: in Mongolia, both are in relatively short supply. This case study has highlighted “bottom-up” development initiatives, which could provide a cost effective contribution to the achievement of Governmentobjectives.
The most recent Government agriculture and regional development policy documents,are the Resolution of the Ikh Hural, No 29, of the 15th June 2003 and the Resolution of the Government of Mongolia, No 160, of the 24th June 2003: these emphasize the “need to develop intensified livestock production, coordinated with the marketdemands”. In these documents, stress is placed on promoting greater integration of crop and livestock production.
The semi-intensive dairy sector, primarily concerned with the production of milk for the urban markets, is a good example of livestock production which relies upon supplementary feed and fodder and which has a potential for further development and intensification.
One other reason for choosing this sector was that the development of family dairyfarms, following the collapse of the large scale mechanized dairy farms, had beensupported by a Danida project and the study provided an opportunity to involve the Monitoring and Evaluation Unit of MoFA in drawing conclusions concerning the long term impact of the donor assistance. For both domestic and donor supported programmes, this is expected to be an increasingly important function for MoFA.
The preparation of the case study started with farmer surveys and focus groupdiscussions. In parallel, discussions were undertaken with a wide range of otherstakeholder representatives, including MoFA, local government, the processing sector and the Dairy Council. This was followed by a workshop, with extensive stakeholder participation, at which the initial findings were discussed and stakeholder comments and recommendations were prepared by working groups. The survey results and the proceedings of the workshop are included in this paper as reference documents. After the workshop and the initial translation of key elements of the case study into Mongolian, a series of discussions were held with MoFA and the Dairy Farmers’Association. These were undertaken almost entirely by CPR personnel and this final version of the case study incorporates the results of the discussions, as agreed with MoFA.
The methodology outlined above is the same as that used in the preparation of the Rural Development Strategy. By considering one agricultural sub-sector as a case study, it has been possible to continue the RDS process by highlighting practical applications of many of the RDS principles, which have already been initiated by Mongolian farmers. Thus, many of the findings and recommendations of the case study have far wider application than this specific sector. This is particularly relevant at a time when MoFA is engaged in preparing more detailed investment proposalsrelated to the policy documents cited above.
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As an example, the surveys have shown that there are profitable and innovative farmsin the sector and that their approaches are being followed by neighboring farms. Existing progressive farms should therefore be used as the basis for Governmentsupport for any model farm development programme in this sector. An importantpoint is that the farmers, on their own initiative, are starting to undertakedevelopments consistent with Government objectives and, as with the vegetableproduction development programme, such a trend increases the probability of asuccessful programme.
A Government objective is to reverse the trend of increasing imports of dairy products. The main increase in imports is of long life products to meet the shortageswhich occur, particularly in urban areas, during winter and spring. Practical solutions to this problem are:
Improve the quality control of raw milk to permit the local manufacture of UHT products and
Increase winter milk production by improving the winter feeding and by controlling the calving season.
The trend towards the use of artificial insemination, in order both to control the calving season and to upgrade the genetic potential, should be supported by MoFA.Within the sub-sector which has been studied, it is a cost effective way of meeting theobjective of starting to upgrade the national herd. Some farmers have expressed concern at the lack of reasonable quality bulls: expansion of the AI service could be a rapid method of reducing the number of bulls necessary. Support for the developmentof the AI system, as far as possible on a commercial basis, should be a priority. Initial emphasis should be on serving those farms and districts where there is a demonstrateddesire for the service and an ability to pay.
These farmers are interested in improving the feeding standards of their cows. This will become even more important with increased winter milk production from cows ofhigher genetic potential. It is likely, therefore, that these farmers will co-operate infeeding trials and in the production of fodder crops, which is another importantGovernment objective.
Fodder crop production and improved facilities for cattle with higher potential will require increased capital investment. The financial survey has indicated that the returns from peri-urban dairy production can be high by Mongolian farmingstandards. Banks and finance institutions are seeking viable farm lending opportunities but may not be aware of the potential of this sub sector. Reportedly, some banks are concerned at the high risk of cow mortality, due to dzud, but the survey indications are that, because of the relatively good cattle feeding and housing, mortality is in fact low. In effect, many of these farmers are already applying, with success, the sort of risk mitigation measures recommended in the RDS. The need forcattle insurance was also an issue raised by farmers and this links directly to the workbeing undertaken by the World Bank, related to the Sustainable Livelihoods Programme. A programme of informing the banks and assisting farmers in preparing loan applications should be undertaken.
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The workshop and the farmer surveys showed that the farmers’ principal concern waswith land issues – for the winter housing and cattle yards, for access to land for hayand other possible fodder crops and for control of the use of summer pastures. Resolution of these issues is important for all livestock production in Mongolia. Appendix 7 of this report contains a number of specific suggestions relating to the land laws. For example, in article 52.5 the inclusion of “fencing” as a condition of pasture possession is considered too restrictive for this type of farming. Making amendments to the land law is a complicated and time consuming process. Empowering farmers and local administrations to apply effectively the existing law,through improving their understanding, is, however, a good short term measure. Formal proposals should be prepared by MoFA, both for changes in the laws and for application of existing laws by local authorities. This will be a vital element in achieving the Government objective of “ensuring a favorable legal environment, for
entities and citizens engaged in intensive and semi-intensive meat and milk producing farmsto possess pastureland and hayfields and to invest in improving them”.
Many of the farmers have learnt, through experience, the benefits of co-operation. This applies to hay making, marketing and to the maintenance of water supplies.Significant benefits have been achieved through informal arrangements and this hasdemonstrated that the primary requirements are the development of trust and good management practices, which do not necessarily require a formal legal structure. It istherefore recommended that in policy documents the emphasis should be changed from “supporting co-operatives” to “supporting co-operation”. These successfulexperiences of co-operation, including co-operation with processors and in the collection and transport systems, should be publicized in other sectors, with Government support.
There is increasing concern over the deterioration of the water supply situation at the summer pastures. Sustainable management of livestock water supply facilities is a major problem in Mongolia but at least one village, the Nariin am, has developed an effective system for managing and maintaining a well, originally provided by theDanida project. Improving livestock water supply is a Government priority. Existing Government and Donor programme managers should be informed of the case study and survey conclusions. Application of the experience of these farmers may be usefulfor existing water supply projects and may highlight additional areas where water wellprovision could produce good economic benefits, with an effective well managementsystem as a model for other areas.
Successful approaches, developed initially for the main urban markets, should be applied to urban markets across the country. This was demonstrated by the successful extension of the Danida support from the environs of Ulaanbaatar to the western aimags. This approach is consistent with Government regional development policy.
The survey has shown that the farmers are hungry for information. Some of the information, such as on winter cattle housing design and construction, is readily available within the Dairy Farmers Association. This association has a developmentpotential but has severe financial constraints, which limit its activities. With carefullytargeted support, it could become more of a specialized extension service, working with MoFA and the Agricultural University, providing a business “benchmarking”
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service to identify farm weaknesses and to assist in raising performance towards thatof the best farms.
Major weaknesses of the current urban milk supply system are the fragmentation of the dairy processing sector and the lack of milk testing facilities. A strengthening ofthe testing facilities, with Government support, should be justifiable on the grounds of public health. Government should also support co-operative developments to strengthen the milk marketing, transportation and storage systems, with improvementsin the infrastructure and the involvement of both farmers and processors.
The problems of the dairy processing sector are exacerbated by the operation of the VAT (value added tax) system, which disadvantages processors using local milkcompared with importers of finished products or of milk powder for recombination.For the sector, this is an important policy issue, which requires further representationsto Ministry of Finance and Economy (MoFE). This could be a good example of thewider role that MoFA can play in promoting tax policies which stimulate agriculturalsector development.
Most of the measures proposed as a result of the case study do not require substantialcapital investment by Government. Most of the capital requirements should beprovided by the private sector and bank lending but Government has a key role to play, particularly in improving the relevant legal environment and in supporting trials,demonstrations and information transfer.
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1. Introduction
MoFA had requested assistance from the World Bank in producing material, relating to the livestock sector, as part of the MoFA preparations for the donor meeting in Tokyo. This took place in November 2003.
The most recent Government agriculture policy documents lay emphasis on the intensification of parts of the livestock sector and on promoting greater integration of crop and livestock production. The semi-intensive dairy sector, primarily concerned with the production of milk for the urban markets, is a good example of livestock production which relies upon supplementary feed and fodder and which has a potential for further intensification. An analysis of the sub-sector therefore providesan opportunity to assess both the economics of integration/intensification and, by interviews and survey, to assess the likely response of farmers towards such development.
Such information would provide MoFA with a basis for reviewing existing programmes, such as the “white revolution”, in order to provide donors with a clearer understanding of the resources, policies and economic/market conditions necessary to improve their effectiveness. This is an important function of Ministries of Agriculture in developed social democracies: an enhanced capacity for systematic project andprogramme review would make a significant contribution to the institutionaldevelopment of MoFA. One objective of the case study was, therefore, to involve the Monitoring and Evaluation unit as much as possible, within the resource constraints of the Unit.
The preparation of the case study started with farmer surveys and focus groupdiscussions. This was followed by a workshop, with extensive stakeholderparticipation, at which the initial findings were discussed and stakeholder comments and recommendations were prepared by working groups. This was followed by a series of discussions with MoFA, undertaken almost entirely by CPR personnel and following the preparation of an initial Mongolian translation which concentrated on the elements of this note which are highlighted in bold type. This final version of the case study incorporates the results of the discussions as agreed with MoFA.
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2. Dairy Sector Background
The dairy sector was, and remains, a key economic sector. The majority of cattle are within the extensive livestock sector and the milk produced from grazing the summerpastures is a major component of the Mongolian diet. Particularly in the rural areas, the milk is both consumed directly and is converted to a wide range of traditionalproducts. Many of these have a long life and are stored for consumption in the winter and spring.
Particularly during the command economy period, large scale intensive mechanizeddairy units were established with the principal objective of providing the urban populations with dairy products and an emphasis on milk production in the winter and spring. In those seasons, the milk production from the extensive herd falls sharply. These farms were stocked primarily with “black and white” dairy cattle bred fromeither Russian or former East German stock. Breeding on these farms was by artificial insemination and one objective was to control the breeding season in order to ensuresupplies of winter milk. Fodder crops were grown for feeding these cattle and silagemaking was practiced.
One of the conclusions of the 1992/93 Danida study of the livestock sector was that these large scale units were suffering from severe management and financialproblems, which made it likely that most would collapse within a few years. Danida therefore agreed with MoFA a programme to support a development model of smallerscale, semi-intensive family dairy farms. The model emphasized co-operation between farms and between farmers and the processing sector. At that time, the processing sector in Ulaanbaatar was dominated by the Suu company and one of theobjectives was to stimulate competition in the dairy products market.
Despite the efforts of MoFA to support the intensive dairy sector, the farms proved to be non sustainable and the dairy cattle were distributed to other farms and to individuals. The recipients were unable or unwilling to maintain the breedingprogramme and there appears to have been a decline in the genetic potential, at leastof this section of the national herd.
Primarily as a result of the fall in milk production during the winter and spring, there has been an increase in the import of dairy products for the consumption during the lean season. The clearest example of rapid growth is in the import of UHT packaged milk, primarily from Russia. Imports of milk powder have also increased but the trend is less clear because the volumes are influenced by the domestic production of powder and by the amount of recombination undertaken by dairy processors. Statistics on imports of milk and dairy products are given in Table 2.1 below.
Table 2.1 Imports of Dairy Products
2000 2001 2002Producttonnes USD ‘000 tonnes USD ‘000 tonnes USD ‘000
Milk* 2322.6 541.7 4420.4 1280.3 5769.5 2021.5
Condensed Milk 707.7 567.6 1875.4 2270.7 1876.9 1288.8
Milk Powder 345.6 1385.1 1385.1 1958.0 835.2 772.5
Yogurt 130.3 110.8 293.4 311.1 467.4 526.7
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Butter 54.9 65.2 62.4 78.5 18.6 48.3
Cheese, quark 11.3 31.6 159.9 34.1 18.7 40.8
* Packaged UHT Source: Food security programme
Partially as a response to the increasing imports of dairy products, within the Special Programme for Food Security, the “white revolution” programme to “increase the supply of dairy foods in Mongolia by reducing post harvest losses and restocking” was launched by Government. Thus far, the resources applied by Government have been very limited and the impact has been small.
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3. The Dairy Farm Survey
A survey was undertaken of 100 semi intensive dairy farms, providing milk to Ulaanbaatar and to Darkhan. The survey included as many farms as possible, which had received support from the Danida project, in order to assess whether these were significantly different from other dairy farms. An English translation of thequestionnaire is shown in Appendix 1.
Before producing the final version, a draft questionnaire was tested in the Nariin am village. This village, close to the site of the now defunct intensive dairy farm ofJargalant soum, was one of the foci of the Danida support and is considered by theDairy Farmers Association to include some of the most progressive farmers. The results of the survey are in Appendix 2.
In addition to the socio-economic survey, a smaller number of farmers were asked to provide detailed information on the financial aspects of their dairy activities. The primary questions are given in Appendix 3, and the resulting financial analysis is given in Appendix 4. For reasons of confidentiality, the names of the participatingfarmers have been withheld.
The analysis of the survey responses was presented at the stakeholder workshop, held in the Agricultural University. The report on the workshop, which includes the stakeholder recommendations resulting from the working group discussions, is in Appendix 5. The following note concentrates, therefore, on the market, technical, andeconomic findings of the case study and their relevance to Government regional and agricultural development policy.
3.1 Principal Conclusions from the Financial Survey and Focus
Group Discussions
General
The farmers are responding rationally to the market and economic situation in which they operate. Their business is primarily to serve a, cash paying, urban market and the subsistence production element of their business, is relatively small.
A particular feature of the market is that the demand for milk in the winter and springexceeds the supply from the traditional cattle grazing system so that prices for “off season” milk rise sharply. It should also be noted that, by world standards, producer milk prices in areas readily accessible to UB are high. As a result, farmers are able to make profits even though the productivity per cow is low by international standards.
Primarily because of the profitability and cash generation, the farmers have beenprepared to make investments, using their own money, in order to increase the scale of their operations and to increase their margins. The more progressive of thesefarmers provide, therefore, a good demonstration of techniques and innovations, which can be taken up by other farmers. By Mongolian standards, their operations are relatively intensive and, by relatively good supplementary feeding of the cattle, by traditional Mongolian standards, they do link the crop and livestock sub-sectors. Astudy of the farm operations does, therefore, provide an indication of the likely rate of
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change in farming systems. Based on this limited survey, the indications are that therate of change of this sub sector will be progressive, but relatively slow unless thereare dramatic changes in either the market or the pasture carrying capacity.
Fodder
The only supplementary fodder provided for the cattle, of the farms in this survey, is natural hay. Hay making areas may be more than 100 km from the dairy farm and theresponses to the questionnaire indicate that the major cost of hay making is transport. From nearby (eg 5 km) hay making areas, the hay may be transported loose but from greater distances the practice is to prepare 25kg bales in order to reduce transport costs.
Initial survey result indicate substantial variations between farms in the cost of obtaining hay. Precise calculation is made difficult for a number of reasons:
The current hay making season is not yet complete so that full, up to date costs for this season are not yet available;
There is a well established practice of co-operation in hay making, including the use of machinery on a barter basis. The barter negotiations include a number of factors, including the amount of labor provided by each farm family. The cost of food consumed while farm family members are away haymaking is a significant item but it is not clear how much of thisincremental to the normal family food consumption.
There may be differences in the quality of hay obtained by different farms and hence in its feeding value;
Much of the machinery used is very old: its value and expected life aretherefore uncertain.
Because hay is a major cost element in dairy production, better information on the cost of hay, as a “benchmarking”, should be helpful in improving cost control.
As a check on the reliability of the survey data, the total supply of hay to a farm is compared with the estimated requirement, based on the claimed daily supplementaryrations. This check indicated some inconsistencies in the figures and some farmsappeared to obtain significantly less hay than is claimed to be required to feed the herd. This prompted a further check with the farmers on some of the survey figures, which were then amended. This demonstrates that the use of a simple computermodel, with internal checks, can improve the quality of survey data. The results could then be used for further analysis of the practical relationship between supplementaryfeeding and milk output in order to help individual farmers to improve output and farm profitability.
An important point from the financial survey is that the cost of access to the standingcrop of hay is a small part of the total cost. Dairy farmers, therefore, would require to be convinced by demonstration that paying a substantially higher price for purpose grown higher quality fodder or investing in their own fodder production would produce increased profits.
The Agricultural University and farmers in other areas have mentioned the possibility of silage production, including sunflowers, and also the possibilities of fodder crop
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production. Arrangements were being made for the survey team to visit one farm, which has been identified as using silage. It was found that this family farm had attempted silage production last year but had abandoned the experiment – reportedly because of a lack of suitable machinery. Only one large company farm is reported tobe using silage and it was not possible to visit this farm in the time available. At this time there is no indication that the farmers surveyed are aware of any demonstration,which clearly shows that fodder crop production would increase the profitability of dairy production.
At the start of the Danida project, us$ 25,000 was provided to grow fodder, close to the village of Nariin am, for the neighboring intensive dairy farm. No subsequent funding was available under the Danida project and the fodder growing was not repeated because, for financial reasons, the large scale intensive dairy farm collapsed and the cows were distributed to other farms.
Feed
The only reported supplementary feed is bran from the flour mills of UB. Concernover the apparently poor quality of the available bran has led one farmer to contract for the production of barley, as an alternative.
Approximately 50% of the bran from Altan Taria is still exported to China, mainly forpig feeding. This indicates that expansion of the domestic use of bran should not beinhibited by supply shortages. There is no indication that the demand for bran is increasing significantly, such as would be the case if herders were generally increasing the winter feed provision for their flocks. Animal feed production statisticsare given in Table 3.1 below.
Most of the dairy farmers do provide salt for the cattle but there is no indication of theuse of mineral licks and other supplements, which could improve the health of the herd. If these were used in some of these dairy farms the potential results of a successful trial could be:
Increased output and profit for the trial farms;
A rapid transfer of the technique to other dairy farms in the area;
Development of a market for enterprises producing such blocks
Practical demonstration of the benefits of such blocks, for introduction to the herding population. (Effectively, the dairy farmers already practice recommended dzud mitigation techniques since their animals have access togood winter housing, reliable water supply and relatively good supplies of supplementary feed for winter and spring)
Table 3.1 Bran & Animal Feed Production
Bran (tonnes)
Mill 1997 1998 1999 2000 2001 2002
Altan Taria 6497 6625 8880 6541 3789 4691
UB 677 5459
Total 15947 17904 17293 9915 7391 15059
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Feed (tonnes)
1997 1998 1999 2000 2001 2002
Palletized 4794 1262 206 1095 4021 947
Total 6652 1716 312 1095 4021 1188
The farmers are aware of the benefits of improved cattle feeding: the knowledge wasobtained from:
previous experience of working on the state dairy farm;
information provided by the Danida project, including study tours to Denmark;
information provided by the Dairy Farmers Association and by MoFA.
In practice, it appears likely that the winter and spring feeding is insufficient to maintain the weight and condition of lactating animals but the farmers’ experience is that the cows will regain condition during the summer grazing season. At least one farmer commented that she had experimented with increased winter feeding but that the increase in milk yield had not justified the extra cost.
Herd Development and Cattle Breeding
The information provided by farmers concerning the development of the number of animals in their herds is often questionable. One reason is that few farmers keep records of the number and classification of their stock. Without more reliable and detailed information, it is impossible to assess, for example, trend towards summer/autumn calving and the impact that this has on calving rates and total milkproduction.
In order to increase profitability, farmers have started to adopt the following strategies:
1. control of the calving season, with increased late summer to winter calving in order to increase milk production in the winter and spring. Milk prices are substantially higher at that time and the processors are unable to obtain sufficient raw milk to meet the market demand.
2. the use of artificial insemination, using semen from animals with a muchhigher percentage of the blood of internationally recognized dairy breeds, particularly Holstein Friesian (“black and white”) or Simmental. This crossbreeding results in cows with higher genetic potential but which are still relatively hardy and able to survive Mongolian conditions.
3. keeping their cows for as many lactations as possible: figures of nine or ten lactations have been quoted but there are no record books to confirm this. This maximizes the rate of growth of the dairy herd and the common practice is for the farmer to breed replacement stock rather than buying in replacement stock. The male cattle are usually sold or eaten at between one and two years of age.
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Financially, this is realistic since good quality young cows may be sold at prices of up to Tg 330,000, while a two year old animal normally commands a price of Tg 20,000 to Tg 40,000. The direct cost to a farmer of rearing and feeding and feeding female cattle, until the first calving at the age of 3 to 4years, is significantly less than the market price. There is some market forhigher producing dairy cows but it seems to be limited. One reason is thedifficulty of obtaining bank loans and the high interest charges, normally at 3% per month.
It may be also that the older cows have a higher genetic potential than their offspring but this would require further investigation.
Despite the high number of lactations per cow and the rather primitive supplementaryfeeding, the reported mortality rates, with the exception of one farmer in the financial survey, are not exceptionally high. Because of the relatively high milk prices and thelow meat prices, together with the declining genetic standards, the high age of cullcows is probably a realistic response to the market situation.
There is some indication from discussions that, primarily for management and financial reasons, farms with 5 to 10 cows will increase their herd sizes while largerfarms will start to stabilize numbers at around 30 cows.
It should be noted that, if beef cattle and heifers graze the same pastures as the cows,this is unlikely to be the most effective use of the more accessible pastures. With a system of completely open access to summer pastures, there is no incentive for established dairy farmers to control their own use of the pastures.
The genetic quality of the dairy herd is declining. When the large scale intensive mechanized dairy farms were broken up, their cattle were distributed to a variety of owners and the breeding system largely collapsed because there was no profitable market for higher productivity stock. These intensive farms were designed primarilyto provide milk for the urban populations so that, in economic terms, the problem is concentrated in limited areas rather than being a national problem of significance to herders using more remote summer pastures.
A positive development, supported by the Farmers Association, has been theextension during the past year of the provision of AI services to Jargalant soum. Thetotal number of inseminations to date, in that soum, is only approximately 40 but interest is growing. The AI service provides both a means of gradually upgrading the cattle quality and a means of controlling the time of breeding, in order to increase the “off season” milk production.
The AI service is provided by the Veterinary Institute using their stocks of frozensemen, which are now approximately 8 years old. The regular charge for the AIservice is Tg 10,000 but the Dairy Farmers Association has negotiated a special fee for members of Tg 5,000 with a repeat service fee of Tg 2,5000 if pregnancy is not achieved as a result of the first insemination.
The need for expansion of the AI service is recognized by a number of farmersparticipating in the survey, who have complained that the service is not available in
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their area. In the case of one dairy farm, outside the survey area, which had been managed by an American as a model farm, the American had reportedly returned for a visit, bringing frozen semen to upgrade the genetic quality of that herd. Theindications are that there is a demand for a commercial AI service serving this particular sub-sector.
Other Direct Costs
Compared with the supplementary feeding costs, these are relatively small. The majoritem is for veterinary services, which include both the statutory vaccinations and callsfor any necessary treatment for sick animals.
In discussions, the farmers were generally satisfied with the veterinary services provision and reported few problems with mastitis and few pregnancy problems. A more comprehensive survey, by a technical specialist, would be necessary to determine the actual incidence of such problems. The reported mortality is also relatively low – particularly considering the high number of lactations per cow. Sincethe survey was undertaken towards the end of the summer grazing season, when thecattle would be expected to be in peak condition, it would be advisable to follow up any study of cattle health in spring, when any problems should be more readily apparent.
Veterinary services in Jargalant soum are provided by three qualified staff employedby the soum company. There is no stock of medicines and, for each case, purchasesare made in UB – on a sale or return basis. In summary, the service is designed to support a relatively hardy cattle population and would require upgrading if the genetic potential of the herd were to increase rapidly.
There are few reports of the use of straw for winter bedding. The normal practice is to use dried manure on the earthen floors of the cattle houses.
Depending on the family size and competing activities, hired labor may be used for haymaking, for milking, for cattle tending and for maintenance work.
Financial Returns
The financial survey results show that this type of farming activity has a high potential income, particularly when compared with the standards of other livestockfarming activities in Mongolia. In the best case, the survey indicated a net income in excess of TG 13 million. The main reason is the relatively high price of raw milk,particularly in winter and spring. The principal fodder is still the summer pastures, which is the cheapest farm of feeding.
The income figures from the survey should be fairly realistic because at least some of the farmers continue to maintain the milk sales record books, which were introduced by the Danida project. . What are not shown are the full costs, the technical andfinancial picture of cattle breeding and rearing and the returns from beef production.
Despite the high returns, dairy farming is recognized as hard work and at least one farmer in the survey (a retired army officer) had recently sold most of his cattle in order to generate cash to finance a trading business.
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This survey concentrated on determining the financial returns per cow in herd, ratherthan on attempting to evaluate the standard of living of the farm families. Previoussurvey work in this sector has been undertaken by the Agricultural University. This concentrated more on assessing the standards of living of the farmers, taking into account personal expenditure patterns, and those results were presented at the workshop. For the future development planning, a data base of surveys undertaken by different projects and organizations would help in the assessment of developmenttrends. One step towards this was made by the collection of papers undertaken as part of the work for the preparation of the draft Rural Development Strategy.
Credit Worthiness
The survey has shown that only a few of the dairy farmers have succeeded in obtaining bank loans. Discussions with farmers have indicated that, apart from their difficulties in completing the necessary documentation, there is a reluctance of banks to lend to the sub sector for reasons including:
The risk of cow mortality is considered too high, unless there is insuranceand
The size of the cow herds, when converted to sheep unit equivalents do not meet the minimum required for herder loans.
The survey data indicates that the risk of mortality due to dzud is low. This seems realistic because the owners have already adopted major recommended dzud
mitigation measures, recommended for herders – such as good winter housing,adequate stocks of feed and fodder and preparedness to use, and pay for, the available veterinary services. The size of the dairy units may be low but the profitability percow is very much higher than that from herding. The business also provides a regular cash flow without the need to sell assets.
The calculated return on capital investment for established herds is more than sufficient to afford loans, even at current interest rates. Even if the cows were valued at current market prices for young cows, rather than the depreciated price for olderanimals used in the calculations, the net revenues should more than cover loan repayments.
If further intensification is contemplated, with fencing and the growing of fodder crops, access to capital loans could become much more important for the sector. It is therefore important that the banks should be made more aware of the sector profitability and that the farmers should have sources of assistance for completing the administrative procedures of loan applications.
Farmer Co-operation
Government policy is to encourage greater co-operative activity among farmers and herders in order to improve, particularly for small farmers, their access to market and their standards of living. This was also an objective of the Danida support for the dairy sector.
Initially in the Danida project there was some lack of trust between farmers and no clear realization of the benefits of co-operation. However, as the farms have
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developed, the benefits of co-operation have become more apparent to the farmers.Positive developments have included:
Building on the tradition of co-operation during hay making. Farmers share equipment so that they no not each require to invest in a full set and they also share leases of hay making areas. Labor is also pooled and included in the negotiations of how the crop should be shared.
Many farmers have established contracts or good working relationships with processors. Specialist enterprises have been established for the transport of milk, in churns, to the smaller processors. These transporters carry the milkfrom several farms and the practice is for one of the farmers, in rotation, to accompany the milk in order to check that no adulteration takes place duringtransport and to collect the payment. It may be noted that this marketing co-operation is facilitated by village kinship ties.
A noteworthy development is the system for operating and maintaining the pump, originally supplied by the Danida project, in the Nariin am village. The water payment system was established independently by the dairy farmers of the village. Although the circumstances are special because of the crucial importance of a reliable water supply, this might serve as a model for other well rehabilitation programmes.
3.2 Farm Development Prospects
At first sight, there appears to be a possible contradiction between the very high profitability per cow, reported in the financial survey, and the relatively slow growthin the dairy sector. In practice, there are a number of practical constraints to dairy development, some of which have been noted in the preceding sections and may be summarized:
1. Dairy Farming is hard work
One interviewee, a retired colonel, had recently sold his four dairy cows (plusfollowers). His explanation was that, although the cows had permitted him to make some money, the cash he had obtained from selling the cattle had enabled him to establish a small trading business. His view was that tradingcould provide a similar income than dairying – with far less effort.
2. A market is needed for all the milk
There is a surplus of milk during the summer grazing season. Most processorsare particularly interested in winter and spring milk and would be expected to buy milk only from year round suppliers. In UB, only the Suu company can convert summer milk to powder. This company has had severe managementand financial problems, which have limited its milk purchases.
New entrants to the dairy business, therefore, need to establish credibility withprocessors and this takes time.
3. The milk collection system is undeveloped
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There has to be a sufficient number of milking cows in a particular accessiblearea to justify the cost of establishing and operating a collection system.Collecting the milk from a herd of one or two cows is unlikely to be economicwith current systems. Co-operation between small farmers is a way of overcoming such problems but this is not easy to organize in Mongolia.
4. There is a shortage of reasonable quality dairy cows
Few of the farmers in the survey have sold dairy cows: the heifers have mainlybeen kept to increase the herd. The relatively high prices quoted for reasonablequality dairy cows indicate that there is a shortage of such stock, which would slow the establishment of new herds.
5. Dairy Farming is a long term business
It takes at least three years for a calf to become a milking cow. During that time there are only costs and no revenues. The only alternative is to buy older cattle but, unless one can obtain milking cows, which are in short supply, purchase of heifers will still result in a significant delay before revenues are generated. Also, banks are reluctant to lend for cattle purchase and the interest rates are high.
6. Economies of scale
Although the reported financial returns per cow are high, a significant number of cows is necessary to provide an adequate family income. The system ofdairy farming, relying heavily on the grazing of summer pastures to minimizefeeding costs, is not easy to combine with, for example, vegetable production. Developing a herd from 3 or 4 cows to a viable number is, therefore, not easy.
7. Management
Control of the calving season, organization of marketing, supplementary fodder and provision of facilities such as housing and veterinary services require a relatively high standard of management – particularly when compared with that of the average herder. Management skills, both technicaland business, are still lacking and the emphasis on the need for better information, highlighted in the survey, indicates that farmers already involved in the sector are well aware of the needs. Most, however, have not taken steps to seek out information which already exists in UB and among the mostsuccessful farmers. Successful farming, as with any other business doesdepend upon the participants having a strong motivation to solve their own problems rather than relying upon government.
The opportunity for profit is a necessary but not sufficient condition for thedevelopment of a sector. The indications are that the number of dairy farms is growing but the rate of expansion of “off season” milk production is limited by theconstraints highlighted above. It is also probable that, until this financial survey was undertaken, there was no clear indication of just how financially attractive could be well managed medium scale off season milk production.
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The financial survey was undertaken in possibly the most progressive dairy village. The sample size was small and included some of the best farmers. The results should, therefore, be considered not as typical of the sub-sector but as being achievable with good management.
Based on the above analysis, it seems reasonable to expect that there will be a steady development, following existing trends, rather than some dramatic changes in practices. The greatest risks are judged to be:
A deterioration of the pastures as a result of unrestricted access of increasing numbers of animals:
Deterioration of the water supply situation in some of the summerpastures, such as near the Nariin am village. This could reportedly be solved by investment in wells – if appropriate security of tenure were arranged; and
A decrease in the milk price, particularly in winter and spring, as a resultof increased milk production or the introduction by processors of wider and more effective collection systems.
Most of the farmers surveyed were specialized in dairy production and did not undertake crop production, such as vegetables. The reason generally given was that the summer pastures, where the family would move to tend and milk the cows, did nothave access to irrigation water. It is also possible that, because of the daily marketcontact and the cash generated from milk sales, it is more convenient to obtain vegetables from the market.
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4. Milk Processing and Marketing
4.1 The Dairy Products Market
There are no recent comprehensive market surveys of dairy products in Ulaanbaatar and the unit of municipal government responsible for dairy sector planning is stillreliant on the demand estimates from the start of the economic transition.
All the indications are that there has been a substantial fall in demand since the 1980s. The main reasons are believed to be higher prices and a reduction of the tendency of the younger members of the population to consume dairy products. This is related to the general change in the food consumption of the young, with a greater tendency to consume vegetables and a lower preference for animal products.
The raw milk supply has a far greater seasonality than the demand. There appears to be little recent information on the seasonality of total demand and even the pattern of supply is not clearly documented.
The purpose of this note is not to present market estimates but “back of the envelope” calculations indicate that, even if per capita demand had halved from that in the command economy period, the average daily milk and milk products consumptionwould still exceed 140 tonnes. This far exceeds the daily sales by the processors of Mongolian milk. For example, by far the largest of these processors was only able to achieve sales of 8 tonnes per day during the past summer, despite having a milk intake of some 35 tonnes.
The only reasonable conclusion is that, even in Ulaanbaatar, sales of unprocessed milk dominate the market, particularly in the summer.
The direct sale of unprocessed milk in the street is illegal. However, it is clear from discussions with consumers that, particularly in the areas relatively far from the city center or in those close to major transport routes, such as near the main railwaystation, such sales are a major component of the supply. There also appears to be a significant subsistence supply of milk to urban residents by relatives owning cows and living fairly close to the city. Processed and packaged dairy products are relatively expensive and are unlikely to be bought, unless no alternative is available, by the poorer sections of the community.
There is a rapidly growing import of long life (UHT) dairy products from Russia. The most recent national statistics show imports of some 5600 tonnes, with a more than doubling over a three year period. The market for processed milk and dairy productsin UB is highly seasonal. The main demand is in the winter and spring, when production from most farms is lowest. Using the not unreasonable assumption that at least 60% of the imported UHT milk is consumed in Ulaanbaatar during the fivemonths of winter and spring would produce a daily sales estimate of a little more than 20 tonnes. To this sale of imported product must be added the sales of milk and dairy products, reconstituted from imported milk powder. From this, it must be concluded that imported products take a large share of the market during winter and spring, when raw milk is in short supply.
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There clearly is a functioning market for raw milk throughout the year because of theseasonal price changes, which are freely negotiated between producing farms and processors. The price, delivered to processor, ranges from some Tg 220/litre, or less, during the summer milk production peak, rising by Tg 50 steps to as much as Tg 500 during late winter and spring. This clearly provides a marketing opportunity for localfarmers, both because of the preference by many consumers for “fresh” milk andbecause of the relatively high costs of packaging and taxation of processed milk.
4.2 Milk Processing
The dairy processing sub sector is not well developed. The principal, long established company is the Suu company, whose equipment and operations are derived from theformer milk combinant. Operations and equipment have been greatly scaled down so that only a small part of the original site and buildings are used. The UB municipality still has a 51% shareholding and, because of substantial losses and unrepaid loans from the mid 1990s, the company is unable to obtain new bank loans either for working capital or for re-equipment. Under new management, the situation isimproving but overdue loans are still approximately Tg 1 billion (recently reduced from Tg 1.4 billion). This company has four collection centers and is by far the majorpurchaser of raw milk from farmers. At the summer peak, the daily raw milk intake is some 35 tonnes, which is small for a city of this size and very small by internationalstandards.
All other processors of Mongolian milk are much smaller with daily throughputs ranging from around a hundred kg to a few tonnes. Most operate in rented premises,which makes it difficult for them to meet the hygiene standards.
Information on the dairy processors is given in Appendix 6.
One company, GUM, which was originally established with Danida support, has invested in a new building but has insufficient capital to upgrade and expand the processing line. The company is negotiating with international finance organizationsfor investment funding.
The only significant modern processing plant is that of the newly established NZ Foods. This has a UHT plant which, because of the unreliable quality of raw milkreaching Ulaanbaatar, recombines imported New Zealand powder. In order toimprove the plant utilization, the line is also used to package fruit juice from importedconcentrate.
Working with Mercy Corps, NZ Foods is investigating the feasibility of establishingnew farms, with 500 cows on a single block of leased pasture land. The concept is that the cattle would be owned by selected Mongolian families but the grazing control andoverall management would be under the control of the processing works through a resident (expatriate) manager. The purpose is to ensure control of the quality of the milk reaching the plant. Intensification would be limited and all milk productionwould be based on the summer pastures. This proposal should benefit Mongolian farmers but it should be noted that the future of the processing works does not depend
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on the implementation of such a project since the plant can continue to operate with imported raw material.
None of the dairy processors have more than relatively primitive testing facilities.Reportedly, there is, for example, no equipment in Mongolia for testing the protein content of the milk and dairy products. The small operating scale of most of the processing companies would make it very difficult to justify the investment desirablein testing facilities. The small scale also makes it difficult to obtain, at reasonable prices, the types of packaging which would be attractive to more affluent consumers,who are accustomed to purchasing imported products.
4.3 Processing Policy Issues
VAT
An important policy issue is that, because farmers are not registered for VAT, the VAT paid by the processors of local milk is effectively a tax on turnover rather than on value added. As a result, processors of local milk are at a disadvantage comparedwith importers of finished products or with enterprises recombining imported milkpowder.
Another effect of the VAT anomaly is to make the selling price of packaged pasteurized milk more expensive for the consumers. This increases the financialincentive for consumers to buy unprocessed milk. As a result, consumers are at increased health risk and development of the processing sector is inhibited.
This issue has been raised a number of times by the processors and through the Dairy Council but the response from the Ministry of Finance and Economics has been negative. Although farmers already supplying milk to Ulaanbaatar are probably not suffering now as a result of this VAT problem, milk collection systems able to reachmore distant farmers will be slower to develop and this may damage MoFA plans forlivestock intensification and integration in the main crop growing areas.
Promotion of small scale processing enterprises
As has been noted above, the processing sector in Ulaanbaatar is already fragmented.The plants generally work only a very few hours per day and this is an inefficient use of capital resources. In order to justify the investment, the international norm is forplants to operate for up to 20 hours per day.
MoFA has a policy of promoting small scale agricultural product processingenterprises. Because it is such a perishable product, small dairy processing operationsintroduce relatively high consumer health risks and further fragmentation of the processing sector within UB is considered to be undesirable.
In the view of the consultant, any special support for small scale dairy processing should be contingent upon there being a local market for the products. The concept of processing at soum level, with the intention, for example, of transporting and selling the finished products in the capital city, is likely to weaken the development of thedairy system and to increase the risks to consumers.
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Working capital
Because the seasonality of milk production is much greater than the seasonality of the demand, the domestic operators require significant seasonal working capital in order to balance the seasonality. Possible approaches to balancing the seasonality are:
1. Farmers invest in more supplementary feed and fodder as part of a package ofmeasures, including changing the calving season, in order to increase winter and spring milk production. As long as the winter milk prices remain high, the financial survey indicates that this is financially viable and is starting tohappen.
2. Surplus summer milk is converted to milk powder, which is recombined in winter. This is the approach adopted by the Suu company. As a result, the seasonal working capital requirement is substantial and the company is oftenunable to pay farmers on the due date.
3. Summer milk is converted into long life UHT products, which are stored forsale in winter and spring. Currently this is not feasible because of the inadequate quality controls on raw milk quality and transport. If this approachbecomes technically feasible, the finance costs of stockholding, at current domestic interest rates, would be substantial.
In summary, the high domestic real rates of interest act against seasonal storage ofdairy products and favor the import of finished products during winter and spring, for immediate sale.
4.3 Milk Testing
None of the processors have fully equipped milk testing facilities and nearly all of the factories are of too small a scale to justify international standard testing equipment.The quality of the raw milk is generally considered to be of too low a quality to permit its use in UHT plants.
Testing is undertaken either at the collection centers of the Suu company or on reception at the processing plants. Pricing is, apparently, not dependent on the fat content of the milk but milk would be rejected if the fat content were below 3.2%.With this pricing and testing system, there is no financial incentive for producers to provide milk of more than the minimum standards. This shows some parallel with theearlier grading arrangements for cashmere purchases from producers. Unless this situation is changed, the quality of milk reaching Mongolian processors and urban consumers will not meet international standards.
With this testing system, the potential for adulteration and spoilage is high.
4.4 Transport and Collection
With some of the smaller processors, farms have supply contracts. Delivery is normally in 40 liter churns. Farmers may deliver directly to the plants or they may use
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a transporter with a small truck to collect and carry the milk of several farmers. Cost per churn is normally Tg 10,000, irrespective of the quantity of milk. The milk of each farmer is kept separately until it reaches the processing works, where it is tested.
The largest purchaser, the Suu company, has four collection centers and transports milk from these centers by tanker. Staff from the company accompany the tankers andtest the milk before it is accepted.
Milk is only transported once per day, or sometimes every other day in winter, and evening milk has to be stored overnight on farm or at the Suu company collection centers. Farm storage is usually by the traditional method of placing churns in wells.
To minimize raw milk quality deterioration during collection and transport, someemphasis is being placed on increasing the refrigerated storage capacity in rural areas.Use of an additive has also been proposed although there are differences of opinion among Mongolian specialists concerning the desirability of this.
An alternative, which might be investigated, is to consider the approach used by Operation Flood in India. There, the strategy was to minimize the time between milking and delivery to the processing works by tight control of the collection times,by a rapid testing system and by strict control of the timing of collection and delivery by the transport contractors. A detailed analysis would be necessary to determinewhether this approach would be feasible in particular areas of Mongolia.
4.5 Powder Production
It has been noted above that the powder production facilities of the Suu company areold and inefficient. Unconfirmed reports are that there is only one other powder plant, in Selenge, which is experiencing difficulties. If the Suu plant were to ceaseoperating, an important market for milk from more distant summer pastures would be lost. This could damage the prospects for successful implementation of governmentpolicies for more integrated crop and livestock farming in the main crop growing areas.
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5. The “White Revolution”
The Ministry programme for dairy sector development, “the White Revolution” has had only very limited success to date. One possible reason is that the marketinformation is very limited and the programme does not have a clear emphasis on identifying local market opportunities which could provide a stimulus to production in specific areas. The UB peri-urban dairy survey shows clearly that producers will respond to such opportunities. It is also clear that the greater the profit makingopportunities the more rapid the likely response.
The dairy farmer survey has shown that, although Darkhan is a much smaller marketthat UB, it also has severe seasonal shortages and that the peak prices for raw milk are similar to those in UB. Hence, this should be another area of potential for dairy system development.
An FAO project, which is expected to start soon, will provide support to the dairy sector. The main focus will be on investment support for the milk collection andtransport system and for the processing sector.
Using the information provided in this case study, and taking into account the FAO proposals, this could be an appropriate time to review the “white revolution” proposals and objectives, using a systems approach to highlight specific activities where Government or donor support could bring short term economic and social benefits.
In terms of upgrading the quality of cattle and the provision of services, such as AI and veterinary care for cattle, it would be more cost effective to concentrate initialsupport on areas of greatest demand and then to expand the coverage rather than trying to establish a more thinly spread national coverage from the outset.
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6. Long Term Impact of the Danida Support for the Dairy Sector
The reasons and primary objectives for the Danida support for the semi-intensivedairy sector were given in the section describing the background.
In total, support was provided for 99 farms in 7 villages. Of these farms, 60 are reported to be still operating in the dairy sector. In view of the problems that theagriculture sector has experienced in the past nine years, this outcome must be considered creditable.
The main elements of the support were the provision of:
10 dairy cows for each farm
cattle housing and fencing
hay making equipment
milk churns
collective facilities, such as village well rehabilitation
technical advice and support, including study tours to Denmark
Danida support was also given for the establishment/development of ten dairy enterprises. Only one of those enterprises (GUM Company) is still in operation. Theimportant principle of linking farmers and processors has been maintained, both with GUM and other processors. The relatively high processor failure rate reflects the moredifficult market and financial situation of the processors and problems with the selection of the entrepreneurs who received the loans.
In both sub-sectors, the generally held view is that the major reasons for enterprisefailure were in the selection of candidates for the model enterprises. This appliedparticularly to the processing sector, where some of the loan money was said to have been misapplied to finance general trading, rather than concentrating on the dairysector. For the farms, the problems were more related to a lack of motivation and preparedness to devote the time and effort necessary to run a successful farmingbusiness.
In addition to the direct enterprise support, two representative organizations were established (NGOs) – The Dairy Farmers Association and the Dairy Processors Association. Representatives of each associations are members of the Dairy Council. The Council also has two representatives of MoFA, one of whom is chairman. The prime responsibility of the Council is to act as a channel of information from stakeholders and to advise MoFA on issues affecting the dairy sector.
The Processors Association now has only one member. None of the other processingenterprises have joined the Association, or seem likely so to do. Although the General Director of GUM is very active, this severely weakens the credibility of theAssociation as a representative body.
In contrast, the Dairy Farmers Association has continued to expand its membership,which has now reached 1000 farmers.
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6.1 The Dairy Council
The Council provides advice to MoFA and Government concerning dairy policy and development. The Council originally included stakeholder representatives, through the Dairy Farmers Association (4 members) and the Dairy Processors Association (2 members) in addition to the 2 members from MoFA.
The Council is not a particularly active body, with only two meetings being held last year. Since the Dairy Processors Association has now only one member, an additional processing representative, from the Suu Company, sits on the Council. As a “pressuregroup” the Council is not effective. The processors have an obvious problem with the VAT regulations but the major processor of raw milk, the Suu Company, is 51% owned by the Municipality and still has substantial outstanding debts. Compared withother groups, such as the flour millers and cashmere processors, the dairy processorsare operating on too small a scale for protests to MoFA to carry much weight.
The MoFA representatives on the Council are the head of the Foreign Relations Department and a senior official from the Extension Service. This is reasonable in that one of the MoFA roles is to attract donor interest in support for the sector and, with limited resources, The Farmers Association is involved in the provision of advice to dairy farmers.
The Council made some input into the preparation of the “White Revolution” programme but that programme is the responsibility of another MoFA department.
6.2 The Dairy Farmers Association
Originally established as part of the Danida project support, the membership has expanded substantially to include many farmers who were not involved with Danida. The Association is supported by MoFA in that their office, in the MoFA building, has a subsidized rent of Tg 78,000 per month. The Association is also a major recognized source of information and expertise concerning developments in the sector.
Although membership of the Association has expanded substantially to approximately1000 members, there is an increasing problem in collecting the annual membershipfee of Tg 12,000. Currently, the number of fully paid subscriptions for 2003 is only 8. This is not a sustainable situation. A major difficulty is that the membership is spread over a wide area and direct contact with headquarters is limited by the cost of transport. Without new sources of income, and greater activity, the Association islikely to decline in importance.
The Dairy Farmers Association has introduced valuable initiatives, such as the introduction of artificial insemination in Jargalant soum, where the Association financed the training of the inseminators. Within its limited resources, it has organizedfarmer training and demonstrations. As a general principle, dairy farmers appear to value information and training and to be prepared to contribute to the cost: they do not yet appear to be prepared to pay the full cost.
The Association has the potential to become a specialized service provider to the Extension Service of MoFA. It already possesses information commonly requested by
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less experienced farmers, such as the design and costs of cattle housing. By co-operating with, for example, the Agriculture University it could regular informationon technical developments and on business aspects of dairy farming – which would be useful both to participating farmers and to MoFA. In the short term, however, it seemsunlikely that the Association can survive as an active body without some external support.
6.3 The Reasons for Success of Elements of the Danida Support
Starting in 1994 with ten cows and relatively intensive support from Danida, the mostprogressive of the farms have developed into successful family units with incomeswhich, by Mongolian farm standards, are relatively high.
Elements in the success of the programme are considered to be:
concentration of the support on a specific sector;
addressing the complete system, from producer, through processors to the market;
a strong market demand for the product, with attractive producer prices;
use of farming systems which had already been tested in Mongolia;
technically simple, but effective, techniques;
relatively long term technical support to a limited number of units;
investments which are affordable from the resources of family farms;
a recognition, developing over time, of the benefits of co-operation;
The promotion of the Dairy Farmers Association, as an NGO, tomaintain and disseminate information on the sector and individualfarmer initiatives.
As a result, the best of these farms have acted as an effective demonstration where other farmers can see and copy, with confidence, a model which can provide a good income.
The western aimags component of the project was started more than one year after the start of the central region project. It was only started once there were clear indicationsthat the farm model was effective.
Implementation of the work in the western aimags was largely the responsibility of the aimag authorities and the Mongolian staff of the PMU. The western aimag component also had a clear market, replacing milk supplies from the failing intensivemechanized farms. The fact that as high a percentage of the project farms in the west as in the central region are still operating indicates that the transfer of the farm model,to other areas with clearly defined market opportunities, was successful on a longterm basis. This was achieved with a much less foreign technical assistance.
6.4 Monitoring and Evaluation
This case study has drawn upon the experience gained as a result of the experience of the earlier Danida support for the semi-intensive dairy sector. In no sense was this a
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formal evaluation of the project but it has demonstrated the benefits of longer term impact assessment in development planning.
The Monitoring and Evaluation unit of MoFA has, potentially, an important role to play in strengthening the Ministry’s planning functions. Longer term impactassessment is particularly important because, although a large number of trials has been supported by various donors, evaluation has generally been soon after trialscompletion. This is often too early to provide reliable information on sustainability.
Within the resources available, the M&E Unit has been involved as much as possiblein the case study. However, at the time of the study the resources of the Unit werealmost fully engaged in the monitoring of current projects and programmes. If this is typical of the work load, it seems clear that there is a need to strengthen the resourcesof the Unit, in order to permit it to undertake the full range of functions normallyundertaken by a Monitoring and Evaluation Department.
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7. Relevance of the sector experience to Government Policy on
Regional, Rural and Agricultural Development
The most recent agriculture policy documents emphasize the desirability of an intensification of livestock production and of a greater integration of crop and livestock production. As part of the regional development policy, the programmeenvisages the establishment of demonstration farms in specified areas.
A major objective is to “ensure a favorable legal environment for entities and citizensengaged in intensive and semi-intensive meat and milk producing farms” including the possession of pasture lands and hay lands and encouragement for investment in improving them.
The following notes highlight elements of the approved documents and give comments, based on the information derived from this case study. The English translation of the Government Resolutions are given in italics and the consultant’s notes follow in normal text. Before and during the discussions with MoFA, CPR hasmade more detailed suggestions for consideration of changes to legislation, particularly the land law. These are given in Appendix 7.
7.1 Resolution of Government of Mongolia, 160, 24th
June 2003
Intensified Livestock Development Programme
Below are quoted selected elements of the resolution, considered particularly relevant to the dairy sector serving urban markets:
Background: “There is a need to develop intensified livestock production coordinated with the market demands” The semi-intensive dairy sector is relevant because it isresponding effectively to market demands
Objectives: 3.2.1. improve the economic & legal environment3.2.2. support regional development & establishment of model farms3.2.3. support capacity building
The experience of the Danida support for model farms provides valuable informationfor programme design.
Actions re objective 3.2.1:5.1.1. Amend the Land Act From the survey and the workshop, this is a vital concern for the dairy farmers,particularly for the winter quarters and for the summer grazing areas.
5.1.2. Reduce pasture rent for entities engaged in intensified livestock production The financial survey shows that pasture rent is not a major cost element and rentreductions might send the wrong economic signals concerning the value of easily accessible pastures
It should be noted that the keeping of significant numbers of male cattle and young female stock is not the most effective use of dairy pastures accessible to UB. In the
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medium to longer term, if further measures to control the use and access to these pastures are introduced, beef and dairy rearing units would be expected to develop in less accessible areas.
5.1.3 Clarify legal framework for farms
The workshop discussions did not indicate that this was a priority for the participating farmers
5.1.4 Study the feasibility of exemption from VAT and import duties on high
productivity livestock, semen, equipment & tools for breeding and related services At least in the short term, non-project imports are likely to be limited and the financial survey indicates that such items are not major elements of the total milk production cost.
5.1.5 Study the feasibility of income tax exemption for the first 3 years Currently, income tax on dairy farmers does not appear to be a major issue. For newlyestablished farms, profit in the first three years would be limited if the capital investment were financed by bank loans at current rates of interest.
5.1.6 Clarify the zones of development of intensified livestock production and
establish control of those zones This may be particularly related to the control of accessible pastures for dairy cowgrazing
Actions re objective 3.2.2
Conduct policy re forms of intensified farms
5.3.1 Organize training, demonstrations and education Consider a role and possible support for the Dairy Farmers Association.
5.3.2 (a) support work in artificial insemination The case study indicates that this is important for the development of the sector
(e) research and experiments to increase fodder productionFarmers have shown a clear interest in improved fodder production. The involvementof progressive farmers in trials and experiments would speed the adoption of trials which show clear financial benefits.
5.3.3 create conditions for the supply of quality fodder, tenure of land necessary for
production
(f) support fencing and protection of agricultural lands Fodder production trials should include a financial evaluation, which includes the costs of protection, including fencing, and the returns on capital investment.Experience has shown that the trials and the evaluation must be undertaken for several years on the same farms.
5.3.4 support co-operation of intensive livestock farmers
(c) co-operative pasture tending, fodder preparation, irrigated fodder
production and expansion of sales
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Some of the farms in the survey have shown clearly the benefits of co-operation. They should be encouraged, and supported, in publicizing the benefits that they have experienced. The Dairy Farmers Association and the Extension Service of MoFA could play an important role in this.
7.2 Resolution of Ikh Hural, 29, 15 June 2003
Implementation stages
Initial (2003-2008)
Legal framework and economic conditions for sustainable growth of livestock
will be created
Preparations for the improvement of livestock breeds and health will be
undertaken
There will be the beginnings of rehabilitation of intensified livestock
production
Model farms will be establishedAs a first step, the analysis has shown that it would be more cost effective to develop and use some of the existing, progressive farms as models. In practice, they are already fulfilling this role on an unofficial and unsupported basis.
Food production policy
Establish in rural areas milk reception, primary processing and storage facilities for further processing in towns, in addition to production of traditional dairy products. Milk reception facilities are a necessity but experience in other countries has shown that, without very strict management and control, two stage processing can result in major quality control problems.
Improve the food quality and hygiene safety control system and elevate laboratoryinspections to international standard. The brief review of the market and processing systems has shown that the testing
function is weak and requires strengthening. A practical problem of raising the quality, to the highest international standards, of all milk sold is that packaged milkand dairy products are expensive and difficult to afford for the poorer sections of the community.
Establishment of Model Farms
The experience of establishing model farms in the semi-intensive dairy sector hashighlighted a number of factors critical to the likely success of this developmentapproach.
The most important is that there must be an accessible remunerative market for theproducts.
Demonstrations often have two main purposes:
Demonstration of technical innovations, such as the promotion of fodder crops and silage and
Demonstration in more remote area of a proven successful business model, after checking carefully that the market conditions are favorable.
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In the first case, it is normally more effective to use as a pilot an established,successful farm, where the farmer is accustomed to maintaining records and is prepared to co-operate in the necessary financial evaluation. Such farms exist in thesemi-intensive dairy sector.
Fodder Crops
Government policy is to “provide support to intensive and semi-intensive dairy and meat farms in increasing outputs through increase production and use of supplementary feed and fodder, including concentrates, silage and mineralsupplements”.
For fodder crop production, a main thrust has been the inclusion of fodder crops in therotation of cereal farms. The location of such farms is generally not ideal for the establishment of dairy enterprises and it is likely that much of the fodder crop will have to be sold to herders and other livestock owners. The analysis of hay production costs has shown that the major component is the cost of transport and that the value of the standing crop, represented by the land fee, is relatively small. An unanswered question is “what premium will livestock owners be prepared to pay for higher qualityfodder? Quality is a consideration in price negotiations but a herder education and demonstration programme is likely to be required to achieve price premia sufficient tojustify the costs of fodder production.1
This suggests that two initial sets of trials would be useful for the dairy sector. One could be based near an established dairy farm in the peri-urban area, with theinclusion of a limited fodder crop area, specifically for the farm livestock. The other could be based on a cereal farm in the main crop growing area and would follow up trials which have been undertaken on crop farming systems and cultivation practices, such as minimum tillage.
Replication of the models to other areas should follow when a careful evaluation hasshown that the models have good prospects of long term financial viability. At thistime there are few, if any, clearly successful units integrating livestock and fodder crop production on a significant scale. The widespread introduction of units to demonstrate a financially untried system runs the risk of damaging farmer confidenceand this risk should be taken into account in any programme design.
Dairy Cattle Breeding
The Government Support Programme lays stress on animal breeding to improve the genetic potential and productivity of the herd. The dairy farm survey indicates that themarket for higher quality dairy animals is developing - but relatively slowly. Many dairy farmers around UB have concentrated on expanding their herds by maintainingas many as possible of the cows in production. The indication is that the size of the
1 It should be noted that the dairy survey did not include any fattening of male animalsfor beef production. No comment can be made, therefore, on the fodder market for livestock fattening or on the economics of fattening.
32
larger herds is beginning to stabilize, which will mean that higher quality cows will become available for sale.
An objective should be to progressively upgrade the herd potential, at a rate which is within the increasing management capability of the farmers and of the support system – particularly veterinary services and feed quality. Specifically for the dairy sector,this does not require special farms in the short term – providing that the AI service continues to function and expand.
For most of the specialized dairy units, it seems likely that the factor currentlylimiting output is the feeding rather than the genetic potential. The “fat cow” problem raised during the workshop does indicate, however, that genetic potential may be alimiting factor on some farms. Salt is commonly used in the supplementary feeding. The use of mineral nutrition blocks should also be beneficial. If these were used in some of these dairy farms the potential results of a successful trial could be:
Increased output and profit for the trial farms;
A rapid transfer of the technique to other dairy farms in the area;
Development of a market for enterprises producing such blocks
Practical demonstration of the benefits of such blocks, for introduction to the herding population. (Effectively, the dairy farmers already practice recommended dzud mitigation techniques since their animals have access togood winter housing, reliable water supply and relatively good supplies of supplementary feed for winter and spring)
The quoted national average milk production per cow is only 394.1 liters. The average production per cow in the herds of the farmers surveyed is already far greater than the national figure and, reportedly, is continuing to increase. If the national figure were to rise significantly, there would probably be marketing difficulties in the less accessibleareas unless the number of cattle milked were to fall significantly.
33
Appendix 1: Survey Questionnaire
Did your farm receive direct support from Danida?If yes, what was provided?Cattle housing equipment (specify) other (specify)Do you still have these facilities?What changes/improvements have you made subsequently? ……….
Does your farming include non-dairy activities?Please specify ……………….. (eg sheep, beef cattle, crops such as vegetables, other)
Is there any family member separated from the family?
If Yes, How many animals were given?
Does separated member/family engage in non-dairy activities?Please specify ………………..
How important for your family income is the dairy business? ……..
Is income from the dairy enough for sustaining family’s livelihood?
In which year did you start the dairy business here?
Is this your traditional family area or has your family migrated?
If migration, from which aimag?
If migration, did you bring cattle with you?If yes, how many?
Dairy herd structure
Number of cows …………….Number of heifers …………….Number of female calves …………….Number of bulls ……………Number of other male cattle older than 6 months ………How many calves were born in the past year? Male …. Female……..Which is the main month for calving? ………………What do you do with the male calves? ………………
What dairy animals were bought in the past year?Cows …… Heifers ….. Other ……….
What animals were sold in the past year?Productive cows … Cull cows …. Other (specify) ………..
What were the prices?
34
What animals died in the past year?
Do you know of any sellers of higher grade dairy animals?
Milk production and marketing
Estimated annual milk production per cow (litres) ……….Milk production yesterday (litres) …………Milk sales yesterday (litres) …………Family consumption yesterday (litres) …………Milk used for calf feeding yesterday (litres) ………….How many cows gave milk yesterday ………….In which months did the cows calve …………..
Where do you sell the milk ……………………To whom do you sell (eg trader, processor, direct to market) …………….How long before you receive the cash ………….Is your milk tested for quality yes … no ….Are you satisfied with the testing system yes …. no ….Where is it tested Price per litre Tg summer ….. winter ………..If your farm produced more milk, could you sell it?Is there any co-operative activity in milk selling
Cattle Feeding and Management
In addition to grazing, what is the normal daily supplementary feeding:
Winter/spring Summer hay bran other hay bran otherCowsHeifersCalves
Do you have possession/use certificate for pastures, camps?
Do you use pastures for purposes other than grazing?Please specify ……… How are you going to use pasture in future
How do you obtain hay? Make …….. Buy ……If buy, what is the price? How has the hay price changed since last year? How far away is your hay making area?What legal rights do you have for hay making areas?Do you pay for the use of hayfields, If Yes, how much was it last year, this year ?
Can you obtain as much hay as you wish?
35
Where do you buy bran?How has the bran price changed since last year? Can you obtain as much bran as you wish?Do you have haymaking equipment?
Do you cultivate any fodder crops?
Is there any co-operation in haymaking or feed and fodder purchase?
Where are the cattle housed winter summerWhere are the cows milked winter summerIs milking by hand or by machine?
What veterinary services do you use?How difficult is it to obtain all desired veterinary services?Did you have experience to get artificial insemination for dairy cattle?
How many lactations do you expect for a cow? ………Do you feel any need for technical advice?If you need information, how and where do you get it?Where do you get information in need?
Problems and constraints
Are there any major problems for your dairy business? Please rank:
Availability and quality of pastures
Animal quality
Availability and quality of fodder
Animal shelters
Haymaking equipment
Veterinary services
Marketing of products
Finances
Availability of information
Others, specify
Have you sought credit to develop the business? If yes, from where?If yes, what was the result?
Future plans
How would you like to develop your dairy business
Increase cow numbers
36
Upgrade cow quality How?Improve feeding How?Mechanise milkingMore effective milk selling How?Grow fodder crops Other
Dairy Cattle Association
Are you a member of the Dairy Cattle Association?Did you pay a subscription this year?
What benefits do receive from Association membership?Are there other services which you would like to receive from the Association?(specify) ……………….. Would you be prepared to pay directly for such services?
Danida supported Dairy Farmers
Please specify and rank the benefits you obtained from the Danida project
Have any other dairy farmers learnt from your experience with Danida?How useful was the training provided by Danida?Did it cover the most important topics for you?
37
Total 0-7 8.-18 18-60 Over 60Cattle
housing
Equipment
(specify)
Other
(specify)
Do you still have
these facilities?
What
changes/improvements
have you made
subsequently?
1 Ch.Amgalan Nariinii am 3 1 2 - - - - -
2 B.Khishigburen Nariinii am 6 1 3 2 + + + + developed
3 B.Byambadorj Nariinii am 10 4 4 2 - - - - -
4 Sh.Radnaabazar Nariinii am 10 1 7 2 - - - - -
5 B.Togsbayar Nariinii am 3 1 2 - - - - -
6 R.Myagmarsuren Nariinii am 3 2 1 - - - - -
7 Sh.Gungaadorj Nariinii am 3 1 1 1 - - - - -
8 D.Byambasuren Nariinii am 5 1 2 2 + + + + developed
9 Sh.Khurelchuluun Nariinii am 5 3 2 + + + + developed
10 B.Togs-erdene Nariinii am 3 1 2 - - - - -
11 Ts.Tomorbaatar Nariinii am 5 2 2 1 - - - - -
12 Ts.Purevdorj Nariinii am 6 4 2 - - - - -
13 O.Tsogtsaikhan Nariinii am 5 2 1 2 - - - - -
14 J.Dolgor Nariinii am 3 1 1 1 - - - - -
15 D.Davaasuren Nariinii am 5 1 2 2 - - - - -
16 D.Sharavjamts Nariinii am 6 2 2 2 - - - - -
17 D.Monkh Nariinii am 6 2 4 - - - - -
18 Sh.Batsukh Nariinii am 4 2 1 1 - - - - -
19 Z.Gendensuren Nariinii am 5 1 3 1 + + + + developed
20 D.Monkhchuluun Sumber somon 4 1 2 1 - - - - -
21 M.Tanchiv Sumber somon 8 2 5 1 - - - - -
22 Ch.Daajamba Sumber somon 5 1 2 2 + + + + developed
23 B.Damdinpurev Sumber somon 7 6 1 - - - - -
24 Ya.Battulga Sumber somon 8 6 2 - - - - -
25 T.Gayabazar Sanzai 5 2 1 2 - - - - -
26 Ts.Dari Sanzai 1 1 - - - - -
27 B.Demid Sanzai 3 3 - - - - -
28 Ts.Tseren Sanzai 2 2 - - - - -
29 B.Bataa Sanzai 2 2 - - - - -
30 Ts.Zorigtbaatar Jargalant 2 2 - - - - -
31 Ch.Purevjav Jargalant 7 5 2 - - - - -
32 B.Baatarjargal Shar khad 3 2 1 - - - - -
33 S.Tsogtbayar Shar khad 4 2 2 - - - - -
34 Ch.Ishdorj Shar khad 6 1 3 2 - - - - -
35 Sh.Ganbat Shar khad 7 2 5 - - - - -
36 D.Natsagdorj Jargalant 8 2 6 - - - - -
37 M.Buyantor Khandgait 5 1 4 - - - - -
38 S.Myagmardorj Khandgait 4 1 1 2 - - - - -
39 M.Jantsandorj Khandgait 4 1 1 2 - - - - -
40 R.Baljinnyam Khandgait 3 2 1 - - - - -
41 N.Sukhbaatar Khandgait 5 2 3 + + + + developed
42 D.Sed-ochir Khandgait 3 2 1 - - - - -
43 D.Nergui Sumber somon 5 3 2 - - - - -
44 B.Gurragchaa Sumber somon 6 3 3 - - - - -
45 M.Batjargal Sumber somon 2 2 - - - - -
46 B.Batsaikhan Sumber somon 4 4 - - - - -
47 G.Shirbazar Jargalant 6 4 2 - - - - -
48 G.Jaamaa Jargalant 5 1 4 - - - - -
49 Sh.Batpurev Jargalant 5 1 2 2 - - - - - 31
Appendix 2: The Results of the Survey for 100 Farmers
0. Farmer's Background 1. Danida Support
No Farmer's name Name of the place
Family size Did your farm receive direct support from Danida? If yes, what was provided?
50 D.Batsaikhan Shar khad 4 1 3 - - - - -
51 D.Chuluunbat Shar khad 5 2 3 - - - - -
52 Ch.Davaadorj Shar khad 4 2 2 - - - - -
53 J.Yanjindulam Shar khad 8 4 4 - - - - -
54 V.Chultemnamdag Shar khad 5 1 4 - - - - -
55 Kh.Batsuuri Shar khad 4 1 3 - - - - -
56 S.Lkhagvaa Nariinii am 5 1 3 1 - - - - -
57 T.Terbish Nariinii am 3 1 2 - - - - -
58 S.Ochir Nariinii am 5 1 2 2 - - - - -
59 B.Jargalsaikhan Nariinii am 5 5 - - - - -
60 Sh.Erkhembayar Nariinii am 4 4 - - - - -
61 G.Ulaankhuu Nariinii am 6 1 3 2 - - - - -
62 E.Chuluunbaatar Nariinii am 4 1 1 2 - - - - -
63 R.Amarsaikhan Nariinii am 4 2 2 - - - - -
64 G.Sumya Nariinii am 4 1 1 2 + + - + developed
65 B.Tumendemberel Nariinii am 4 1 3 - - - - -
66 B.Jargalsuren Nariinii am 4 1 3 - - - - -
67 M.Bayartsogt Nariinii am 4 4 - - - - -
68 S.Batsukh Nariinii am 7 1 2 4 + + - + not developed
69 A.Batbayar Nariinii am 5 1 1 3 + + - + developed
70 D.Jamyan Nariinii am 5 3 2 + + + + developed
71 B.Ayagaa Gachuurt 4 4 - - - - -
72 L.Lkhagvadorj Gachuurt 5 1 2 2 - - - - -
73 N.Byambatsogt Bayantokhom 5 1 2 2 - - - - -
74 S.Dorjsuren Shar khooloi 5 2 3 - - - - -
75 B.Lkhagvaa Shar khooloi 6 1 3 2 - - - - -
76 Ts.Demberel Shar khooloi 6 1 3 2 - - - - -
77 Kh.Tsendsuren Shar khooloi 5 1 2 2 - - - - -
78 Z.Yadmaa Shar khooloi 5 3 2 + + + + developed
79 S.Damiran Shar khooloi 5 3 2 + + + + developed
80 D.Jargalsaikhan Baruun mukhar 4 2 2 - - - - -
81 T.Enkhtaivan Bayanchandmani 6 1 5 - - - - -
82 B.Enkhbayar Onjin 5 1 2 2 - - - - -
83 G.Bat-ochir Bulagt 4 2 2 - - - - -
84 G.Lkhagvaa Choirgiin khudag 5 1 2 2 + + + + developed
85 B.Erdenebileg Khavtsal 3 1 2 - - - - -
86 B.Tumenbayar Khavtsal 5 1 2 2 - - - - -
87 Ch.Batbaatar Choirgiin khudag 4 2 2 + + + + developed
88 S.Dugar Choirgiin khudag 4 2 2 + + + + developed
89 P.Ochirdorj Shiree bulag 4 1 1 2 + + + + developed
90 D.Erdenebat Khavtsal 4 2 2 - - - - -
91 B.Enkhbold Nomgon 4 1 1 2 - - - - -
92 B.Chantuu Nomgon 5 1 2 2 - + - + developed
93 S.Batbayar Orkhon 5 1 2 2 - - - - -
94 N.Khishigdorj Khavtsal 6 1 3 2 - - - - -
95 T.Erdenebileg Khavtsal 3 1 2 - - - - -
96 Ts.Nyamdorj Khavtsal 4 2 2 - - - - -
97 L.Zorigtbaatar Khavtsal 6 2 2 2 - - - - -
98 D.Khishigbayar Khavtsal 5 1 2 2 - - - - -
99 L.Erdenee Khavtsal 6 1 2 2 1 - - - - -
100 N.Khishigbuyan Khavtsal 3 1 2 - - - - -
SUM 16 17 13 17 Improved- 16
AVERAGE 4.75 1.33 2.05 2.46 1.50 No improved- 1
Not answered -83
32
No
Please specify (eg sheep,
beef cattle, crops such as
vegetables, other)
No Yes Over 60Please
specifyEnough Middle
Not
enoughNo
Yes
migrated
If migration,
from which
aimag?
1 Ch.Amgalan - - - - - - - essential + 1998 + - - -
2 B.Khishigburen - - - - - - - Middle + 1995 - + Ulaanbaatar 10
3 B.Byambadorj - - + 2 2 - - essential + 1995 + - - -
4 Sh.Radnaabazar - - + 2 - - - Middle + 2000 - + Ulaanbaatar 7
5 B.Togsbayar - - - - - - - essential + 1999 + - - -
6 R.Myagmarsuren - - + 2 4 - - essential + 2002 - + Tov -
7 Sh.Gungaadorj - - - - - - - Middle + 1995 - + Tov 5
8 D.Byambasuren - - - - - - - essential + 1995 + - - -
9 Sh.Khurelchuluun - - - - - - - Middle + 1995 - + Tov 10
10 B.Togs-erdene - - - - - - - essential + 1999 - + Sumber -
11 Ts.Tomorbaatar - - - - - - - essential + 1998 + - - -
12 Ts.Purevdorj - - - - - - - Middle + 1995 + - - -
13 O.Tsogtsaikhan - - - - - - - Middle + 1998 + - - -
14 J.Dolgor - - - - - - - Middle + 1998 + - - -
15 D.Davaasuren - - - - - - - Middle + 1999 + - - -
16 D.Sharavjamts - - - - - - - essential + 1998 + - - -
17 D.Monkh - - - - - - - essential + 1999 + - - -
18 Sh.Batsukh - - - - - - - Middle + 2001 + - - -
19 Z.Gendensuren - - - - - - - essential + 2000 + - - -
20 D.Monkhchuluun + vegetable - - - - - essential + 2000 + - - -
21 M.Tanchiv - - + 1 3 - - essential + 1999 + - - -
22 Ch.Daajamba + sheep and goat - - - - - essential + 1995 + - - -
23 B.Damdinpurev - - - - - - - essential + 2000 + - - -
24 Ya.Battulga - - - - - - - essential + 2002 + - - -
25 T.Gayabazar + vegetable + 2 9 - - essential + 1985 - + Shuvuu 3
26 Ts.Dari - - + 3 3 - - essential + 1992 + - - -
27 B.Demid + vegetable + 5 5 - - essential + 1997 - + Ulaanbaatar -
28 Ts.Tseren + vegetable + 6 1 - - essential + 1993 - + Sumber -
29 B.Bataa - - + 6 - - - Middle + 1997 - + Ulaanbaatar -
30 Ts.Zorigtbaatar - - - - - - - essential + 1996 + - - -
31 Ch.Purevjav - - + 4 4 - - essential + 1998 + - - -
32 B.Baatarjargal - - + 1 4 - - essential + 1998 + - - -
33 S.Tsogtbayar - - - - - - - essential + 1999 + - - -
34 Ch.Ishdorj - - - - - - - essential + 2001 + Centre somon-
35 Sh.Ganbat - - - - - - - essential + 1996 + - - -
36 D.Natsagdorj - - - - - - - essential + 1996 + - - -
37 M.Buyantor - - + 2 3 - - essential + 1992 + Uvs -
38 S.Myagmardorj - - - - - - - essential + 1994 + Partizan 6
39 M.Jantsandorj - - - - - - - essential + 1995 + Ulaanbaatar 2
40 R.Baljinnyam - - + 5 - - - essential + 2000 + Uvs 4
41 N.Sukhbaatar + mare milk + 4 10 + vegetable essential + 1992 + Partizan 8
42 D.Sed-ochir - - + 5 - - - essential + 1987 + Partizan 22
43 D.Nergui - - - - - - - essential + 1995 + - - -
44 B.Gurragchaa - - + 1 - - - essential + 2000 + - - -
45 M.Batjargal + vegetable + 4 - - - essential + 2000 + - - -
46 B.Batsaikhan + vegetable - - - - - essential + 2000 + -
47 G.Shirbazar - - + 1 5 - - Middle + 1998 + - 33
48 G.Jaamaa - - + 2 10 - - essential + 1994 + -
Is this your traditional family
area or has your family
migrated?
Farmer's nameNo
Appendix 2: The Results of Survey for 100 Farmers2. Activities
Does your farming include non-dairy
activities?
Is there any family
member separated
from the family?
If Y
es, H
ow
man
y
anim
als
wer
e g
iven
? Does separated
member/family
engage in non-
dairy activities?
How important
for your family
income is the
dairy business?
In which
year did
you start
the dairy
business
here?
If
migration,
did you
bring cattle
with you?
If yes, how
many?
Is income from the dairy
enough for sustaining
family’s livelihood?
49 Sh.Batpurev - - - - - - - essential + 1999 + -
50 D.Batsaikhan - - - - - - - essential + 1991 + -
51 D.Chuluunbat - - - - - - - essential + 1995 + -
52 Ch.Davaadorj - - - - - - - essential + 1997 + -
53 J.Yanjindulam - - - - - - - essential + 1996 + -
54 V.Chultemnamdag - - + 2 5 - - essential + 1995 + -
55 Kh.Batsuuri - - - - - - - essential + 1995 + -
56 S.Lkhagvaa - - + 3 - - - essential + 1997 + -
57 T.Terbish - - - - - - - Middle + 1997 + Selenge 2
58 S.Ochir - - - - - - - essential + 1997 + -
59 B.Jargalsaikhan - - - - - - - essential + 1998 + -
60 Sh.Erkhembayar - - - - - - - essential + 1999 + -
61 G.Ulaankhuu - - - - - - - essential + 1997 + -
62 E.Chuluunbaatar - - - - - - - essential + 1996 + -
63 R.Amarsaikhan - - - - - - - essential + 1996 + -
64 G.Sumya - - - - - - - essential + 1999 + -
65 B.Tumendemberel - - - - - - - essential + 1998 + -
66 B.Jargalsuren - - - - - - - essential + 1997 + -
67 M.Bayartsogt - - - - - - - essential + 1998 + -
68 S.Batsukh - - + 1 - - - essential 1995 + -
69 A.Batbayar - - - - - - - Middle 1995 + -
70 D.Jamyan - - + 1 5 - - essential + 1994 + -
71 B.Ayagaa - - - - - - - essential + 1995 + Uvurkhangai -
72 L.Lkhagvadorj - - - - - - - Middle + 1999 + - - -
73 N.Byambatsogt - - - - - - - essential + 2003 + - - -
74 S.Dorjsuren + sheep and horse - - - - - Middle + 1990 + - - -
75 B.Lkhagvaa + sheep and horse - - - - - Middle + 1990 + - - -
76 Ts.Demberel + sheep and horse - - - - - essential + 1998 + - - -
77 Kh.Tsendsuren + sheep and horse - - - - - Middle + 1993 + - - -
78 Z.Yadmaa - - - - - - - essential + 1990 + - - -
79 S.Damiran - - - - - - - essential + 1990 + - - -
80 D.Jargalsaikhan - - - - - - - essential + 2000 + - - -
81 T.Enkhtaivan - - - - - - - essential + 2000 + - - -
82 B.Enkhbayar + crops - - - - - essential + 1993 + - - -
83 G.Bat-ochir + vegetable - - - - - essential + 2000 + - - -
84 G.Lkhagvaa - - - - - - - essential + 1994 + - - -
85 B.Erdenebileg + sheep, goat and horse - - - - - Middle + 1996 + - - -
86 B.Tumenbayar + sheep, goat and horse - - - - - Middle + 1978 + - - -
87 Ch.Batbaatar - - - - - - - essential + 1994 + - - -
88 S.Dugar + crops and haymaking - - - - - Middle + 1994 + - - -
89 P.Ochirdorj - - - - - - - essential + 1994 + - - -
90 D.Erdenebat + sheep and horse - - - - - Middle + 1977 + - - -
91 B.Enkhbold + crops and vegetable - - - - - essential + 1994 + - - -
92 B.Chantuu + crops and vegetable - - - - - essential + 1995 + - - -
93 S.Batbayar + sheep and horse - - - - - Middle + 1990 + - - -
94 N.Khishigdorj + sheep, goat and horse - - - - - Middle + 1990 + - - -
95 T.Erdenebileg + sheep, goat and horse - - - - - Middle + 1996 + - - -
96 Ts.Nyamdorj + sheep and horse - - - - - Middle + 1996 + - - -
97 L.Zorigtbaatar + sheep, goat and horse - - - - - Middle + 1990 + - - -
98 D.Khishigbayar + sheep and horse - - - - - Middle + 1993 + - - -
99 L.Erdenee + sheep and horse - - - - - Middle + 1994 + - - -
100 N.Khishigbuyan + sheep, goat and horse - - - - - Middle + 1996 + - - -
- No 72 77 99 Middle-28 20 79
+ Yes 28 23 65 73 1 Vegetable essential-72 31 43 26 80
Livestock 18
Vegetable 5
Others 5 34
Cows Heifers OtherProductive
cows
Cull
cows
Other
(specify)
1 Ch.Amgalan 8 2 - - 1 - 2 4 food - - - 1 - - 250000 - +
2 B.Khishigburen 17 2 4 - - 6 4 5 food - - - - - - - - +
3 B.Byambadorj 10 5 5 - 3 6 5 10 sell - - - - 1 - 250000 - +
4 Sh.Radnaabazar 15 3 7 1 2 6 7 9--2 food - - - - - - - - +
5 B.Togsbayar 3 1 - - - 1 1 11 food 5 3 - - - - - - +
6 R.Myagmarsuren 4 2 2 - 1 2 2 3--4 food - - - - - - - - +
7 Sh.Gungaadorj 8 2 3 - 4 2 3 7--10 food - - - - - - - - +
8 D.Byambasuren 11 10 6 - 3 1 6 11--12 sell - - - - - 5 150000 - +
9 Sh.Khurelchuluun 15 2 6 - 7 3 6 9--12 food - - - - - - - - +
10 B.Togs-erdene 9 3 3 - 3 1 6 10--11 sell - - - 4 - - 200000 - +
11 Ts.Tomorbaatar 1800 1 1 1 4 food - - - - - - - - +
12 Ts.Purevdorj 17 3 6 1 5 5 6 10--2 food - - - 2 - - 300000 - +
13 O.Tsogtsaikhan 5 4 1 - 3 3 1 10--11 food - - - - - - - - +
14 J.Dolgor 8 2 2 - 5 6 2 3--4 food - - - - - - - - +
15 D.Davaasuren 8 6 2 - 5 2 2 9--12 sell - - - - - - - - +
16 D.Sharavjamts 6 4 2 - 6 2 2--3 sell - - - - - - - - +
17 D.Monkh 6 3 1 13 1 1 3--4 sell - - - - - - - - +
18 Sh.Batsukh 11 4 4 4 4 3--4 sell - - - - - - - - +
19 Z.Gendensuren 6 4 3 1 4 3--4 sell - - - - - - - - +
20 D.Monkhchuluun 12 4 4 2 2 4 3--5 sell - - - - 2 - 200000 - -
21 M.Tanchiv 24 7 12 1 12 6 5 3--5 food - - - - 1 - 200000 8 cow, 2 horse -
22 Ch.Daajamba 16 4 6 1 18 4 4 3--4 sell - - - 3 250000 sheep and goat +
23 B.Damdinpurev 4 1 3 1 1 1 6 food - - - - - - - - -
24 Ya.Battulga 5 1 1 1 1 3--5 food - - - - - - - - -
25 T.Gayabazar 5 2 3 2 4 3--4 food - - - - - - - - +
26 Ts.Dari 3 1 1 3--4 food 1 - - 1 - - 250000 - -
27 B.Demid 4 2 3 1 2 3--5 food - - - 3 - - 180000 - +
28 Ts.Tseren 4 1 1 2 2 1 2 food - - - 1 - - 250000 - -
29 B.Bataa 2 1 5 1 2 3--4 food - - - 4 - - 250000 1 calves -
30 Ts.Zorigtbaatar 20 4 6 8 6 3--4 sell 2 - - - - - - - -
31 Ch.Purevjav 7 2 3 1 3 3--4 food 1 - - - - - - - -
32 B.Baatarjargal 6 3 2 4 2 2--3 sell - - - - - - - - +
33 S.Tsogtbayar 6 3 2 4 3 2 3--4 food - - - - - - - - -
34 Ch.Ishdorj 7 2 4 1 1 4 2--3 food - - - - - - - - +
35 Sh.Ganbat 10 8 5 1 2 2 6 12--4 food - - - - - - - - +
36 D.Natsagdorj 14 4 4 1 10 4 10--3 food - - +
37 M.Buyantor 10 3 4 2 3 6 4 1--3 food 2 1 200000 - -
38 S.Myagmardorj 10 2 2 1 3 2 4--5 food - 1 calves -
39 M.Jantsandorj 9 1 4 4 2--3 food 1 1 1 250000 - -
40 R.Baljinnyam 7 1 2 1 2 2 4--5 food 2 2 calves -
41 N.Sukhbaatar 16 8 10 1 3 6 5 4--5 food 2 280000 1 calves +
42 D.Sed-ochir 22 10 8 2 6 9 8 11--12 food 5 270000 - -
43 D.Nergui 3 1 1 1 5--6 food 3 150000 1 calves +
44 B.Gurragchaa 7 2 4 4 5 4--5 food 2 50000 2 cows 1 calves -
45 M.Batjargal 12 2 4 1 19 16 3 2--3 food 1 10 6 150000 - +
46 B.Batsaikhan 10 2 4 1 6 4 2 4--5 food 2 calves +
47 G.Shirbazar 20 5 6 1 1 6 10--12 food +
48 G.Jaamaa 7 4 3 3 4 9--12 sell 2 280000 - +
49 Sh.Batpurev 8 2 1 3 4 9--12 food + 35
50 D.Batsaikhan 15 4 6 2 5 8 12 4--9 food 6 300000 2 calves -
3. Cattle structure
How many
male calves
were born
in the past
year?
How many
female
calves were
born in the
past year?
No Farmer's nameNumber
of
heifers
Number of
female
calves
Number
of bulls
Number of
other male
cattle older
than 6
months
Appendix 2: The Results of the Survey for 100 Farmers
What animals were sold in the
past year?What
were the
prices?
What animals
died in the past
year?
Do you know
of any sellers
of higher
grade dairy
animals?
Dairy herd structureWhich is
the main
month
for
calving?
What do
you do
with the
male
calves?
What dairy animals were
bought in the past year?
Number
of cows
51 D.Chuluunbat 20 4 10 2 6 9 11 8--1 sell 3 280000 - +
52 Ch.Davaadorj 11 4 3 4 10--1 food +
53 J.Yanjindulam 14 8 6 8 12--6 sell +
54 V.Chultemnamdag 13 2 5 1 5 5 9--4 sell +
55 Kh.Batsuuri 19 4 10 4 10 9--1 sell 2 5 270000 +
56 S.Lkhagvaa 6 1 2 1 3 2 2--5 food 1 +
57 T.Terbish 12 1 1 4 3 1 10--1 food 5 300000 +
58 S.Ochir 15 5 8 6 5 8 2--9 food 1 250000 +
59 B.Jargalsaikhan 15 5 5 2 5 5 2--9 food +
60 Sh.Erkhembayar 6 3 3 7 3 2--9 sell 2 210000 1 calves +
61 G.Ulaankhuu 13 1 4 7 7 4 2--9 sell 1 1 bull +
62 E.Chuluunbaatar 12 2 3 4 3 2--9 sell 1 2 270000 +
63 R.Amarsaikhan 20 3 8 2 8 11--3 sell +
64 G.Sumya 16 9 4 11 5 9--3 sell 3 220000 1 cow +
65 B.Tumendemberel 3 1 3 3 2--3 sell +
66 B.Jargalsuren 12 1 3 1 7 3 12--6 sell 1 290000 1 cow +
67 M.Bayartsogt 12 2 3 2 3 3 9--2 sell 2 230000 +
68 S.Batsukh 8 2 3 1 1 3 3 1--5 food 2 1 heifer -
69 A.Batbayar 8 1 1 1 2 1 8--11 food 8 1 +
70 D.Jamyan 34 4 6 1 17 14 10--2 food 5 300000 +
71 B.Ayagaa 60 2 1,2,4,5 sell - - - - - - - cull cow -
72 L.Lkhagvadorj 10 3 5 1 - 5 4 3,4 food - - - - 1 1 170000 cow -
73 N.Byambatsogt 28 2 12 1 1 3 5 1,2,4,5 sell 18 - - - - - 250000 - +
74 S.Dorjsuren 15 4 5 1 3 6 7 4,5 food - - - - 1 - 100000 calves -
75 B.Lkhagvaa 12 4 3 1 2 5 5 4,5 food - - - - 1 - 130000 calves -
76 Ts.Demberel 18 5 6 1 3 8 6 4,5 food - - - - 1 - 170000 - +
77 Kh.Tsendsuren 16 4 5 1 3 7 6 4,5 food - - - - - - - - +
78 Z.Yadmaa 25 5 6 1 - 5 7 1,2,3,4 sell - - - - 2 - 140000 calves +
79 S.Damiran 24 6 5 1 - 8 12 1,2,4,5 sell - - - - 4 - 80000 - -
80 D.Jargalsaikhan 6 2 6 1 - 2 3 4,5 food - - - - - - - - +
81 T.Enkhtaivan 6 2 3 - 1 1 2 4,5 food - - - 3 - - - - +
82 B.Enkhbayar 25 8 12 1 - 4 6 3,4 sell - - - 5 - - 350000 - +
83 G.Bat-ochir 24 6 6 1 5 3 5 4,5 sell - - - 5 - - 290000 - +
84 G.Lkhagvaa 6 - 2 - 1 1 2 4,5 food - - - - - - - 1 cow, 1 calves +
85 B.Erdenebileg 7 3 3 1 1 1 1 5,6 food - - - - - - - - +
86 B.Tumenbayar 18 5 4 1 5 10 8 4,5 food - - - 2 - - 150000 1 cow +
87 Ch.Batbaatar 8 1 3 2 - 5 2 3,4 sell - - - - 1 - 50000 - +
88 S.Dugar 8 3 1 - 4 4 4 3,4,5 food - - - - - - - - +
89 P.Ochirdorj 10 4 4 1 2 2 1 3,4,5 sell - - - 2 - - 180000 - +
90 D.Erdenebat 13 4 3 - 6 5 2 3,4 food - - - - - - - - -
91 B.Enkhbold 20 5 4 1 2 5 5 3,4,5 sell - - - - - - - - -
92 B.Chantuu 12 2 2 1 1 4 4 2,3 sell - - - - - - - - +
93 S.Batbayar 15 3 5 1 4 5 7 4,5 food - - - - - - - - -
94 N.Khishigdorj 10 2 2 1 2 2 3 4,5 food - - - - - - - - -
95 T.Erdenebileg 7 3 3 1 1 1 1 5,6 food - - - - - - - - -
96 Ts.Nyamdorj 12 3 3 1 2 3 4 4,5,6 food - - - - - - - - -
97 L.Zorigtbaatar 8 2 3 1 2 2 2 4,5 food - - - - - - - - -
98 D.Khishigbayar 20 5 4 1 3 5 6 4,5 sell - - - - 2 - 100000 - -
99 L.Erdenee 14 3 3 1 3 4 4 4,5 food - - - - - - - - -
100 N.Khishigbuyan 5 2 2 - 1 2 2 4,5 food - - - - - - - 1 cow -
SUM winter-8 sell-35 43 4 1 85 30 14 39 know -73
AVERAGE 30.03 3.33 4.16 1.14 3.59 4.24 4.16 spring-59 food-65 203182 Of which: don't know -27
summer-13 12 family3 family 1 family29 family 16 family5 family cow-18
autumn-20 horse-2
sheep-1
goat-1
calves-16 bull-1 36
1 Ch.Amgalan 1500 60 58 2 1 6 -
2 B.Khishigburen 2350 126 110 10 6 14 -
3 B.Byambadorj 2300 40 38 2 2 4 -
4 Sh.Radnaabazar 2140 130 120 5 5 15 -
5 B.Togsbayar 2100 21 20 1 1 3 -
6 R.Myagmarsuren 1900 24 22 2 2 4 -
7 Sh.Gungaadorj 1900 70 60 5 65 7 -
8 D.Byambasuren 2400 30 28 2 2 5 -
9 Sh.Khurelchuluun 2200 90 80 5 5 15 -
10 B.Togs-erdene 2400 40 35 5 1 5 -
11 Ts.Tomorbaatar 1800 24 24 - 0.5 3 -
12 Ts.Purevdorj 2550 180 160 15 5 20 -
13 O.Tsogtsaikhan 2100 40 35 3 2 5 -
14 J.Dolgor 1800 45 40 5 2 5 -
15 D.Davaasuren 2100 60 55 - 5 7 -
16 D.Sharavjamts 2200 48 45 3 0.5 6 -
17 D.Monkh 1850 36 33 3 0.5 6 -
18 Sh.Batsukh 1800 70 68 2 1 11 -
19 Z.Gendensuren 1900 36 34 2 1 6 -
20 D.Monkhchuluun 1900 60 50 10 1 10 -
21 M.Tanchiv 600 75 72 3 0.5 24 -
22 Ch.Daajamba 2600 35 32 3 0.5 11 -
23 B.Damdinpurev 900 20 15 5 - 4 -
24 Ya.Battulga 1200 20.5 10 10 0.5 5 -
25 T.Gayabazar 1020 10 - 10 0.3 4 -
26 Ts.Dari 2340 10 18 2 0.5 3 -
27 B.Demid 1500 20 18 2 0.5 4 -
28 Ts.Tseren 1400 20 18 2 0.5 4 -
29 B.Bataa 1400 12 10 2 0.5 2 -
30 Ts.Zorigtbaatar 1800 155 150 5 2 15 -
31 Ch.Purevjav 1500 40 30 5 5 5 -
32 B.Baatarjargal 2100 48 45 3 1 6 -
33 S.Tsogtbayar 1900 36 35 1 1 6 -
34 Ch.Ishdorj 2200 40 35 5 1 5 -
35 Sh.Ganbat 2300 65 60 5 2 10 -
36 D.Natsagdorj 2300 160 150 10 15 14 -
37 M.Buyantor 1800 50 40 10 10 11 -
38 S.Myagmardorj 2600 30 28 2 3 7 -
39 M.Jantsandorj 2000 110 105 5 9 9 -
40 R.Baljinnyam 2000 30 18 12 7 7 -
41 N.Sukhbaatar 3100 70 65 5 30 16 -
42 D.Sed-ochir 2200 110 105 5 17 22 -
43 D.Nergui 1500 12 10 2 3 3 -
44 B.Gurragchaa 1900 30 28 2 7 7 -
45 M.Batjargal 1900 50 48 2 6 12 -
46 B.Batsaikhan 900 38 - 38 40 10 -
47 G.Shirbazar 2150 89 80 4 5 13 -
48 G.Jaamaa 2400 100 90 10 10 7 - 37
Appendix 2: The Results of the Survey for 100 Farmers
Do you deliver milk to local
receiver/dealerNo Farmer's name
4. Milk production and marketing
Estimated annual
milk production per
cow (liters)
Milk production
yesterday (liters)
Milk sales yesterday
(liters)
Family consumption
yesterday (liters)
Milk used for calf
feeding yesterday
(liters)
How many cows gave
milk yesterday
49 Sh.Batpurev 2100 90 80 10 9 8 -
50 D.Batsaikhan 2400 96 78 6 12 11 +
51 D.Chuluunbat 2350 200 190 10 20 20 -
52 Ch.Davaadorj 2400 120 100 10 10 12 -
53 J.Yanjindulam 2400 160 150 10 15 14 -
54 V.Chultemnamdag 2300 130 120 10 15 13 -
55 Kh.Batsuuri 2250 170 160 20 20 19 -
56 S.Lkhagvaa 2000 40 38 2 5 6 -
57 T.Terbish 2000 120 10 15 5 12 -
58 S.Ochir 2200 180 170 10 18 15 -
59 B.Jargalsaikhan 2100 200 190 10 15 15 -
60 Sh.Erkhembayar 1900 70 70 - 7 6 -
61 G.Ulaankhuu 2300 160 150 10 15 13 -
62 E.Chuluunbaatar 2400 160 150 10 12 12 -
63 R.Amarsaikhan 2350 190 185 5 10 20 -
64 G.Sumya 2300 190 180 10 18 16 -
65 B.Tumendemberel 1900 40 35 5 4 3 -
66 B.Jargalsuren 2300 150 140 10 12 12 -
67 M.Bayartsogt 2100 150 140 10 13 12 -
68 S.Batsukh 2250 90 70 20 10 8 -
69 A.Batbayar 1950 50 40 5 5 6 -
70 D.Jamyan 2650 235 220 10 5 17 -
71 B.Ayagaa 1400 420 400 20 - 60 -
72 L.Lkhagvadorj 1300 80 75 5 5 10 -
73 N.Byambatsogt 1400 176 170 6 20 22 +
74 S.Dorjsuren 400 45 40 5 15 15 -
75 B.Lkhagvaa 1900 150 140 10 12 12 -
76 Ts.Demberel 1200 170 160 10 9 18 -
77 Kh.Tsendsuren 1200 150 120 12 9 18 -
78 Z.Yadmaa 1800 200 190 10 20 20 -
79 S.Damiran 1800 200 190 10 15 20 -
80 D.Jargalsaikhan 1200 45 40 5 6 6 -
81 T.Enkhtaivan 1000 42 30 12 6 6 -
82 B.Enkhbayar 1500 250 240 10 - 25 -
83 G.Bat-ochir 2400 230 200 30 - 18 -
84 G.Lkhagvaa 400 18 15 3 4 5 -
85 B.Erdenebileg 400 20 15 5 5 7 -
86 B.Tumenbayar 380 45 40 5 10 18 -
87 Ch.Batbaatar 1100 25 20 5 6 5 -
88 S.Dugar 1000 50 40 10 6 8 -
89 P.Ochirdorj 750 40 35 5 6 8 -
90 D.Erdenebat 300 25 20 5 10 13 -
91 B.Enkhbold 1000 105 100 5 10 15 -
92 B.Chantuu 900 44 30 14 12 8 +
93 S.Batbayar 400 45 40 5 10 15 -
94 N.Khishigdorj 400 30 20 10 10 10 -
95 T.Erdenebileg 400 20 15 5 5 7 -
96 Ts.Nyamdorj 400 36 30 6 10 12 -
97 L.Zorigtbaatar 400 24 20 4 6 8 -
98 D.Khishigbayar 400 50 40 10 10 20 -
99 L.Erdenee 400 36 30 6 10 12 -
100 N.Khishigbuyan 370 12 10 2 5 5 -
AVERAGE 1695 84.895 77.66326531 7.319587629 8.263541667 10.99 (yes) +3
(no) - 97 38
No Yes Yes No Summer Winter1 Ch.Amgalan Ulaanbaatar processor - + processor + 200 450 + +
2 B.Khishigburen Ulaanbaatar processor - + processor + 250 450 + +
3 B.Byambadorj Ulaanbaatar trader - + trader + 200 350 + +
4 Sh.Radnaabazar Ulaanbaatar trader - + trader + 200 450 + +
5 B.Togsbayar Ulaanbaatar trader - + trader + 200 400 + +
6 R.Myagmarsuren Ulaanbaatar trader - + trader + 200 400 + +
7 Sh.Gungaadorj Ulaanbaatar trader - + trader + 200 450 + +
8 D.Byambasuren Ulaanbaatar trader - + trader + 200 450 + +
9 Sh.Khurelchuluun Ulaanbaatar trader - + trader + 200 450 + +
10 B.Togs-erdene Ulaanbaatar trader - + trader + 200 450 + +
11 Ts.Tomorbaatar Ulaanbaatar processor - + processor + 180 400 + +
12 Ts.Purevdorj Ulaanbaatar processor - + processor + 200 500 + +
13 O.Tsogtsaikhan Ulaanbaatar processor - + processor + 200 450 + +
14 J.Dolgor Ulaanbaatar processor - + processor + 200 450 + +
15 D.Davaasuren Ulaanbaatar processor - + processor + 200 450 + +
16 D.Sharavjamts Ulaanbaatar processor - + processor + 200 450 + +
17 D.Monkh Ulaanbaatar processor - + processor + 200 350 + +
18 Sh.Batsukh Ulaanbaatar processor - + processor + 200 400 + +
19 Z.Gendensuren Ulaanbaatar processor - + processor + 200 450 + +
20 D.Monkhchuluun Ulaanbaatar processor - + processor + 100 350 - -
21 M.Tanchiv Ulaanbaatar processor - + processor + 100 250 - -
22 Ch.Daajamba Ulaanbaatar processor - + processor + 130 250 + -
23 B.Damdinpurev Ulaanbaatar processor - + processor + 170 300 - +
24 Ya.Battulga Ulaanbaatar processor - + processor + 100 250 + +
25 T.Gayabazar Ulaanbaatar processor - + processor + 250 450 - -
26 Ts.Dari Ulaanbaatar trader - + trader + 200 400 - -
27 B.Demid Ulaanbaatar trader - + trader + 300 300 - -
28 Ts.Tseren Ulaanbaatar processor - + processor + 200 400 - -
29 B.Bataa Ulaanbaatar trader - + trader + 200 400 - -
30 Ts.Zorigtbaatar Ulaanbaatar trader - + trader + 200 500 - -
31 Ch.Purevjav Ulaanbaatar trader - + trader + 200 450 - -
32 B.Baatarjargal Ulaanbaatar processor - + processor + 200 450 + +
33 S.Tsogtbayar Ulaanbaatar processor - + processor + 200 450 + +
34 Ch.Ishdorj Ulaanbaatar processor - + processor + 200 450 + +
35 Sh.Ganbat Ulaanbaatar processor - + processor + 180 450 + +
36 D.Natsagdorj Ulaanbaatar processor - + processor + 150 450 + +
37 M.Buyantor Ulaanbaatar trader + + trader + 150 450 + -
38 S.Myagmardorj Ulaanbaatar processor - + processor + 150 350 + +
39 M.Jantsandorj Ulaanbaatar trader - + trader + 150 300 + -
40 R.Baljinnyam Ulaanbaatar processor - + processor + 150 300 + -
41 N.Sukhbaatar Ulaanbaatar processor - + processor + 150 350 + +
42 D.Sed-ochir Ulaanbaatar processor + + processor + 200 450 + -
43 D.Nergui Ulaanbaatar processor - + processor + 130 250 + -
44 B.Gurragchaa Ulaanbaatar processor - + processor + 130 350 + -
45 M.Batjargal Ulaanbaatar processor - + processor + 130 250 + -
46 B.Batsaikhan Ulaanbaatar processor - + processor + 130 350 + -
47 G.Shirbazar Ulaanbaatar processor - + processor + 130 350 + +
48 G.Jaamaa Ulaanbaatar processor - + processor + 150 450 - +
49 Sh.Batpurev Ulaanbaatar processor - + processor + 150 450 + +
50 D.Batsaikhan Ulaanbaatar processor - + processor + 175 450 + +
51 D.Chuluunbat Ulaanbaatar processor - + processor + 150 400 + + 39
52 Ch.Davaadorj Ulaanbaatar processor - + processor + 200 450 + +
If your farm produced
more milk, could you
sell it?
Where is it tested
Is there any co-
operative activity
in milk selling
Appendix 2: The Results of the Survey for 100 Farmers
No Farmer's name
5. Milk production and marketing
Where do you sell
the milk
To whom do you sell (eg
trader, processor, direct to
market)
How long
before you
receive the
cash
Is your milk tested
for quality
Are you satisfied
with the testing
system
Price per liter Tg
53 J.Yanjindulam Ulaanbaatar processor - + processor + 200 450 + +
54 V.Chultemnamdag Ulaanbaatar processor - + processor + 150 400 - +
55 Kh.Batsuuri Ulaanbaatar processor - + processor + 150 350 + +
56 S.Lkhagvaa Ulaanbaatar processor - + processor + 200 450 + +
57 T.Terbish Ulaanbaatar processor - + processor + 200 450 + +
58 S.Ochir Ulaanbaatar processor - + processor + 300 500 + +
59 B.Jargalsaikhan Ulaanbaatar processor - + processor + 200 450 + +
60 Sh.Erkhembayar Ulaanbaatar processor - + processor + 150 300 - +
61 G.Ulaankhuu Ulaanbaatar processor - + processor + 200 350 + +
62 E.Chuluunbaatar Ulaanbaatar processor - + processor + 200 500 - +
63 R.Amarsaikhan Ulaanbaatar processor - + processor + 200 450 + +
64 G.Sumya Ulaanbaatar processor - + processor + 200 500 + +
65 B.Tumendemberel Ulaanbaatar processor - + processor + 200 450 + +
66 B.Jargalsuren Ulaanbaatar processor - + processor + 200 450 + +
67 M.Bayartsogt Ulaanbaatar processor - + processor + 150 400 - +
68 S.Batsukh Ulaanbaatar processor - + processor + 190 430 + +
69 A.Batbayar Ulaanbaatar processor - + processor + 200 450 + +
70 D.Jamyan Ulaanbaatar processor - + processor + 200 500 + +
71 B.Ayagaa Ulaanbaatar direct to market - + direct to market + 250 500 + +
72 L.Lkhagvadorj Ulaanbaatar processor - + processor + 200 400 + -
73 N.Byambatsogt Ulaanbaatar trader - + trader + 250 400 + -
74 S.Dorjsuren Ulaanbaatar direct to market - + direct to market + 250 500 + +
75 B.Lkhagvaa Ulaanbaatar processor - + processor + 250 500 + +
76 Ts.Demberel Ulaanbaatar direct to market - + direct to market + 200 450 + +
77 Kh.Tsendsuren Ulaanbaatar direct to market - + direct to market + 250 450 + +
78 Z.Yadmaa Ulaanbaatar direct to market - + direct to market + 250 500 + +
79 S.Damiran Ulaanbaatar direct to market - + direct to market + 250 500 + +
80 D.Jargalsaikhan Ulaanbaatar trader - + trader + 200 500 + +
81 T.Enkhtaivan Ulaanbaatar direct to market - + direct to market + 200 500 + -
82 B.Enkhbayar Ulaanbaatar processor - + processor + 220 350 + +
83 G.Bat-ochir Ulaanbaatar direct to market - + direct to market + 250 500 + -
84 G.Lkhagvaa Darkhan direct to market - + direct to market + 250 500 + +
85 B.Erdenebileg Darkhan processor - + processor + 200 500 + +
86 B.Tumenbayar Darkhan processor - + processor + 200 400 + +
87 Ch.Batbaatar Darkhan direct to market - + direct to market + 250 500 + +
88 S.Dugar Darkhan processor - + processor + 200 500 + +
89 P.Ochirdorj Darkhan trader - + trader + 150 400 + +
90 D.Erdenebat Darkhan trader - + trader + 180 300 + -
91 B.Enkhbold Darkhan direct to market - + direct to market + 250 500 + +
92 B.Chantuu Darkhan trader - + trader + 120 360 + +
93 S.Batbayar Darkhan trader - + trader + 200 400 + -
94 N.Khishigdorj Darkhan trader - + trader + 200 500 + +
95 T.Erdenebileg Darkhan trader - + trader + 200 500 + +
96 Ts.Nyamdorj Darkhan trader - + trader + 200 500 + +
97 L.Zorigtbaatar Darkhan trader - + trader + 200 500 + +
98 D.Khishigbayar Darkhan trader - + trader + 200 500 + +
99 L.Erdenee Darkhan trader - + trader + 200 500 + +
100 N.Khishigbuyan Darkhan trader - + trader + 200 400 + +
SUM 94 6 94 6 19245 42340 (yes) + 85 (yes) + 77
AVERAGE 192.45 423.4 (no) - 15 (no) - 23
Ulaanbaatar-83 trader-29 Takes long 2 trader-29
Darkhan-17 direct to market-11 Paid immediately 98 direct to market-11
processor-60 processor-60
40
Hay Bran Other Hay Bran Other Hay Bran Other Hay Bran Other Hay Bran Other Hay Bran Other1 Ch.Amgalan 10 4 - 8 2 - 2 1 - - - - - - - - - -
2 B.Khishigburen 10 5 + 5 3 + 3 2 + - - - - - - - - -
3 B.Byambadorj 8 3 - 5 2 - 2 1 - - - - - - - - - -
4 Sh.Radnaabazar 10 5 - 5 3 - 3 2 - - - - - - - - - -
5 B.Togsbayar 8 3 - 5 2 - 2 1 - - - - - - - - - -
6 R.Myagmarsuren 10 4 - 5 2 - 3 2 - - - - - - - - - -
7 Sh.Gungaadorj 8 4 - 6 2 - 2 1 - - - - - - - - - -
8 D.Byambasuren 10 5 - 5 2 - 2 1 - - - - - - - - - -
9 Sh.Khurelchuluun 10 5 + 5 3 + 3 2 + - - - - - - - - -
10 B.Togs-erdene 8 4 - 4 2 - 2 1 - - - - - - - - - -
11 Ts.Tomorbaatar 6 3 - 2 1 - 2 1 - - - - - - - - - -
12 Ts.Purevdorj 12 7 + 8 3 + 3 2 + - - - - - - - - -
13 O.Tsogtsaikhan 10 4 - 5 2 - 3 1 - - - - - - - - - -
14 J.Dolgor 10 3 - 5 1 - 3 1 - - - - - - - - - -
15 D.Davaasuren 8 5 - 4 3 - 2 1 - - - - - - - - - -
16 D.Sharavjamts 8 5 - 3 2 - 2 2 - - - - - - - - - -
17 D.Monkh 8 3 - 4 2 - 2 1 - - - - - - - - - -
18 Sh.Batsukh 8 3 - 3 2 - 2 1 - - - - - - - - - -
19 Z.Gendensuren 8 3 - 5 2 - 3 1 - - - - - - - - - -
20 D.Monkhchuluun 10 5 - 5 3 - 2 1 - - - - - - - - - -
21 M.Tanchiv 4 1 - 2 1 - 1 - - - - - - - - - -
22 Ch.Daajamba 25 5 - 10 2 - 5 1 - - - - - - - - - -
23 B.Damdinpurev 12 1 - 6 1 - 4 1 - - - - - - - - - -
24 Ya.Battulga 5 1 - 3 0.5 - 2 0.5 - - - - - - - - - -
25 T.Gayabazar 5 4 - 3 - - 3 0.5 - - - - - - - - - -
26 Ts.Dari 25 14 - 10 3 - 6 2 - - 4 - - - - - - -
27 B.Demid 8 5 + 5 4 - 3 4 - - - - - - - - - -
28 Ts.Tseren 10 4 - 4 2 - 3 1 - - - - - - - - - -
29 B.Bataa 10 4 - 4 2 - 3 1 - - - - - - - - - -
30 Ts.Zorigtbaatar 10 5 - 5 3 - 3 2 - - - - - - - - - -
31 Ch.Purevjav 8 4 - 3 2 - 1 1 - - - - - - - - - -
32 B.Baatarjargal 10 4 - 5 2 - 2 1 - - - - - - - - - -
33 S.Tsogtbayar 8 3 - 5 2 - 2 1 - - - - - - - - - -
34 Ch.Ishdorj 8 4 - 5 2 - 2 1 - - - - - - - - - -
35 Sh.Ganbat 8 4 - 5 2 - 2 2 - - - - - - - - - -
36 D.Natsagdorj 9 7 + 5 4 + 3 2 + - - - - - - - - -
37 M.Buyantor 7 6 + 3 2 + 2 2 + - - - - - - - - -
38 S.Myagmardorj 8 2 10 6 1 5 4 1 4 - 3 - - 2 - - 1 -
39 M.Jantsandorj 8 3 6 1 3 1 - - 3 - - 1 - - 1 -
40 R.Baljinnyam 8 2 6 1 4 1 - - 1.5 - - 0.5 - - 0.5 -
41 N.Sukhbaatar 8 2 10 6 1 5 4 1 4 - - - - - - - - -
42 D.Sed-ochir 9 3 0.3 6 2 0.1 5 1 0.1 - 4 - - 3 2 2 1
43 D.Nergui 6 2 0.5 4 1 0.3 3 1 0.2 - - - - - - - - -
44 B.Gurragchaa 6 5 3 2 1 1 - - - - - - - - -
45 M.Batjargal 7 6 3 2 3 2 - - - - - - - - -
46 B.Batsaikhan 5 0.8 0.001 3 0.5 0.001 2 0.3 0.001 - - - - - - - - -
47 G.Shirbazar 8 5 + 5 3 + 3 2 + - - - - - - - - -
48 G.Jaamaa 10 9 + 5 4 + 3 2 + - - - - - - - - -
49 Sh.Batpurev 9 7 + 4 3 + 2 1 + - - - - - - - - -
50 D.Batsaikhan 10 5 3 1 2 1 - - - - - - - - -
51 D.Chuluunbat 10 9 5 4 3 2 - - - - - - - - - 41
52 Ch.Davaadorj 10 5 + 6 3 + 2 2 + - - - - - - - - -
53 J.Yanjindulam 4 9 4 5 3 2 - - - - - - - - -
Cows Heifers Calves Cows Heifers
Appendix 2: The Results of the Survey for 100 Farmers
CalvesNo Farmer's name
6. Cattle Feeding and Management /In addition to grazing, what is the normal daily supplementary feeding/ k.g. per daywinter/spring summer
54 V.Chultemnamdag 9 8 4 5 2 3 - - - - - - - - -
55 Kh.Batsuuri 10 8 5 4 3 2 - - - - - - - - -
56 S.Lkhagvaa 10 6 5 3 3 2 - - - - - - - - -
57 T.Terbish 8 5 5 3 3 2 - - - - - - - - -
58 S.Ochir 8 6 3 3 2 2 - - - - - - - - -
59 B.Jargalsaikhan 8 7 3 3 2 1 - - - - - - - - -
60 Sh.Erkhembayar 8 6 2 3 1 2 - - - - - - - - -
61 G.Ulaankhuu 9 7 3 3 2 2 - - - - - - - - -
62 E.Chuluunbaatar 10 7 + 6 4 + 4 2 + - - - - - - - - -
63 R.Amarsaikhan 11 8 6 5 3 3 - - - - - - - - -
64 G.Sumya 10 7 5 4 3 2 - - - - - - - - -
65 B.Tumendemberel 9 7 5 4 2 3 - - - - - - - - -
66 B.Jargalsuren 10 7 5 4 3 2 - - - - - - - - -
67 M.Bayartsogt 9 8 4 5 2 2 - - - - - - - - -
68 S.Batsukh 12 10 5 6 3 3 - - - - - - - - -
69 A.Batbayar 8 5 5 3 2 2 - - - - - - - - -
70 D.Jamyan 12 7 + 8 4 + 5 2 + - - - - - - - - -
71 B.Ayagaa 10 4 4 - - - - - - - 2 - - - - - - -
72 L.Lkhagvadorj 6 5 2 4 3 1 2 2 1 - - - - - - - - -
73 N.Byambatsogt 8 4 2 4 2 1 4 1 1 - - - - - - - - -
74 S.Dorjsuren 4 2 1 3 1 1 3 1 1 - - - - - - - - -
75 B.Lkhagvaa 5 2 1 4 1 1 3 1 1 - 2 - - - - - - -
76 Ts.Demberel 7 4 2 3 2 1 1 1 1 - - - - - - - - -
77 Kh.Tsendsuren 7 5 2 2 3 1 1 1 1 - - - - - - - - -
78 Z.Yadmaa 8 4 2 5 3 1 4 2 1 - 2 - - - - - - -
79 S.Damiran 10 5 2 6 3 1 5 2 1 - 2 - - - - - - -
80 D.Jargalsaikhan 8 3 2 4 1 1 3 1 1 - - - - - - - - -
81 T.Enkhtaivan 10 2 1 5 1 1 3 1 1 - - - - - - - - -
82 B.Enkhbayar 10 4 5 6 2 2 4 1 1 - 2 - - - - - - -
83 G.Bat-ochir 14 5 5 8 3 2 4 1 1 - 2 - - - - - - -
84 G.Lkhagvaa 6 2 1 4 1 1 4 1 1 - - - - - - - - -
85 B.Erdenebileg 5 3 2 3 1 1 3 1 1 - - - - - - - - -
86 B.Tumenbayar 5 2 1 3 1 1 3 1 1 - - - - - - - - -
87 Ch.Batbaatar 7 4 2 4 3 1 3 2 1 - - - - - - - - -
88 S.Dugar 10 4 2 6 2 1 4 2 1 - - - - - - - - -
89 P.Ochirdorj 8 3 2 4 2 1 4 1 1 - - - - - - - - -
90 D.Erdenebat 2 1 1 1 1 1 1 1 1 - - - - - - - - -
91 B.Enkhbold 8 4 2 4 2 1 4 2 1 - - - - - - - - -
92 B.Chantuu 12 4 2 8 2 1 5 1 1 - - - - - - - - -
93 S.Batbayar 5 3 1 3 1 1 3 1 1 - - - - - - - - -
94 N.Khishigdorj 5 2 1 3 1 1 3 1 1 - - - - - - - - -
95 T.Erdenebileg 5 2 1 3 1 1 3 1 1 - - - - - - - - -
96 Ts.Nyamdorj 5 2 1 3 2 1 3 2 1 - - - - - - - - -
97 L.Zorigtbaatar 6 3 2 3 1 1 2 1 1 - - - - - - - - -
98 D.Khishigbayar 6 3 1 4 2 1 3 1 1 - - - - - - - - -
99 L.Erdenee 8 4 2 5 2 1 4 1 1 - - - - - - - - -
100 N.Khishigbuyan 3 2 1 2 1 1 2 1 1 - - - - - - - - -
SUM 852 449.8 76.801 451 230 41.401 278 143.3 37.301 0 27.5 0 0 6.5 2 0 4.5 1
AVERAGE 8.52 4.498 0.76801 4.51 2.3 0.41401 2.78 1.433 0.37301 0 0.275 0 0 0.065 0.02 0 0.045 0.01
42
Yes No Yes No Prepare by
own Buy
If buy, what
is the price?
1 Ch.Amgalan + + - - + + 1000 + 140 + 500 500 + processor
2 B.Khishigburen + + - - + + 120 + 60000 65000 - processor
3 B.Byambadorj + + - - + 1000 - - - - - - processor
4 Sh.Radnaabazar + + - - + - 84 + 80000 85000 - processor
5 B.Togsbayar + + - - + 900 - - - - - - processor
6 R.Myagmarsuren + + - - + 1000 + - - - - - processor
7 Sh.Gungaadorj + + - - + - 20 + - 20000 + processor
8 D.Byambasuren + + - - + + 1000 - 150 + 250 500 + processor
9 Sh.Khurelchuluun + + - - + + 60 + - 45000 + market
10 B.Togs-erdene + + - - + 1000 - - - - - - market
11 Ts.Tomorbaatar + + - - + - 50 + 200 200 + market
12 Ts.Purevdorj + + - - + + - + 60000 70000 + processor
13 O.Tsogtsaikhan + + - - + 900 - - - - - - market
14 J.Dolgor + + - - + 1000 - - - - - - market
15 D.Davaasuren + + - - + + 80 + 350 500 - market
16 D.Sharavjamts + + - - + 1100 + - - - - - market
17 D.Monkh + + - - + 1000 - - - - - - market
18 Sh.Batsukh + + - - + - 150 + 300 500 + market
19 Z.Gendensuren + + - - + 1000 + - - - - - market
20 D.Monkhchuluun + + - - + - 15 + 250 500 + market
21 M.Tanchiv + + - - + - 2 - 35000 35000 - market
22 Ch.Daajamba + + - - + - 15 + 250 490 + market
23 B.Damdinpurev + + - - + - 15 + 2250 5000 + market
24 Ya.Battulga + + - - + 1000 - 18 - - - - processor
25 T.Gayabazar + + - - + + 1100 - 10 + 2000 2000 + market
26 Ts.Dari + + - - + 1300 - - - - - - processor
27 B.Demid + + - - + + 1200 - 10 + 2000 2000 - processor
28 Ts.Tseren + + - - + 1200 + - - - - - processor
29 B.Bataa + + - - + 1200 + - - - - - processor
30 Ts.Zorigtbaatar + + - - + + 1000 + 50 + 500 500 - market
31 Ch.Purevjav + + - - + - 45 + 500 500 + market
32 B.Baatarjargal + + - - + 1000 + 150 + 300 500 + market
33 S.Tsogtbayar + + - - + 1000 + - - - - + market
34 Ch.Ishdorj + + - - + 1000 + - - - - + market
35 Sh.Ganbat + + - - + + 700 - - - - - - processor
36 D.Natsagdorj + + - - + 1700 + 140 - - - - processor
37 M.Buyantor + + - - + 1300 + 20 - - - - processor
38 S.Myagmardorj + + - - + 1900 + 200 - - - - processor
39 M.Jantsandorj + + - - + + 1600 + 130 + - 500 - processor
40 R.Baljinnyam + + - - + 1900 + 200 - - - - processor
41 N.Sukhbaatar + + - - + 1900 + 200 - - - - processor
42 D.Sed-ochir + + - - + 1000 + 170 - - - + processor
43 D.Nergui + + - - + + 10 + 500 900 - market
44 B.Gurragchaa + + - - + + 8 + - 7500 + market
45 M.Batjargal + + - - + + 1 + - - + market
46 B.Batsaikhan + + - - + + 10 + 2450 49000 + processor
47 G.Shirbazar + + - - + 4000 + - - - - + processor
48 G.Jaamaa + + - - + 1700 + 60 - - - - processor
49 Sh.Batpurev + + - - + 1700 + 140 - - - - market
50 D.Batsaikhan + + - - + 600 + 180 - - - - processor 43
No Farmer's name
Wh
ere
do
yo
u b
uy
bra
n?
Do
yo
u h
ave
leg
al r
igh
ts
for
hay
mak
ing
are
as?
Do
yo
u p
ay f
or
the
use
of
hay
fiel
ds,
If
Yes
, h
ow
mu
ch w
as i
t la
st y
ear,
this
yea
r ?
Can
yo
u o
bta
in a
s m
uch
hay
as
yo
u w
ish
?
Appendix 2: The Results of the Survey for 100 Farmers
How do you obtain hay?
7. Pasture
Do you have
possession/use
certificate for
pastures, camps?
Do you use pastures for
purposes other than
grazing?
Ple
ase
spec
ify
Ho
w a
re y
ou
go
ing
to
use
pas
ture
in
fu
ture
Has
th
e h
ay p
rice
chan
ged
sin
ce l
ast
yea
r?
Ho
w f
ar a
way
is
yo
ur
hay
mak
ing
are
a?/k
m/
51 D.Chuluunbat + + - - + 1900 + 140 - - - + processor
52 Ch.Davaadorj + + - - + + 130 + 80000 90000 + processor
53 J.Yanjindulam + + - - + 1700 + 150 - - - - processor
54 V.Chultemnamdag + + - - + 1900 + 60 - - - - processor
55 Kh.Batsuuri + + - - + 1800 + 140 - - - - processor
56 S.Lkhagvaa + + - - + 1600 + 180 - - - - market
57 T.Terbish + + - - + 1000 + 130 + - - - market
58 S.Ochir + + - - + 1300 + 140 - - - - processor
59 B.Jargalsaikhan + + - - + + 130 + - 24000 - processor
60 Sh.Erkhembayar + + - - + + 130 + - 20000 + processor
61 G.Ulaankhuu + + - - + 1700 + 30 - - - - market
62 E.Chuluunbaatar + + - - + + 140 + 80000 90000 + processor
63 R.Amarsaikhan + + - - + 1500 + 20 - - - + processor
64 G.Sumya + + - - + 1900 + 150 - - - - processor
65 B.Tumendemberel + + - - + - 60 + - 1000 + processor
66 B.Jargalsuren + + - - + 1600 - 20 - - - + processor
67 M.Bayartsogt + + - - + 1500 - 20 - - - + processor
68 S.Batsukh + + - - + + 60 + - 10000 - processor
69 A.Batbayar + + - - + + 110 + 45000 50000 - processor
70 D.Jamyan + + - - + + 140 + 80000 90000 + processor
71 B.Ayagaa + + - - + + 1000 + 140 + 500 500 + processor
72 L.Lkhagvadorj + + - - + + 120 + 60000 65000 - processor
73 N.Byambatsogt + + - - + 1000 - - - - - - processor
74 S.Dorjsuren + + - - + - 84 + 80000 85000 - processor
75 B.Lkhagvaa + + - - + 900 - - - - - - processor
76 Ts.Demberel + + - - + 1000 + - - - - - processor
77 Kh.Tsendsuren + + - - + - 20 + - 20000 + processor
78 Z.Yadmaa + + - - + + 1000 - 150 + 250 500 + market
79 S.Damiran + + - - + + 60 + - 45000 + market
80 D.Jargalsaikhan + + - - + 1000 - - - - - - market
81 T.Enkhtaivan + + - - + - 50 + 200 200 + market
82 B.Enkhbayar + + - - + + - + 60000 70000 + processor
83 G.Bat-ochir + + - - + 900 - - - - - - market
84 G.Lkhagvaa + + - - + 1000 - - - - - - market
85 B.Erdenebileg + + - - + + 80 + 350 500 - market
86 B.Tumenbayar + + - - + 1100 + - - - - - market
87 Ch.Batbaatar + + - - + 1000 - - - - - - market
88 S.Dugar + + - - + - 150 + 300 500 + market
89 P.Ochirdorj + + - - + 1000 + - - - - - market
90 D.Erdenebat + + - - + - 15 + 250 500 + processor
91 B.Enkhbold + + - - + - 2 - 700 700 - market
92 B.Chantuu + + - - + - 15 + 250 490 + market
93 S.Batbayar + + - - + - 15 + 2250 5000 + processor
94 N.Khishigdorj + + - - + 1000 - 18 - - - - processor
95 T.Erdenebileg + + - - + + 1100 - 10 + 2000 2000 + market
96 Ts.Nyamdorj + + - - + 1300 - - - - - - processor
97 L.Zorigtbaatar + + - - + + 1200 - 10 + 2000 2000 - processor
98 D.Khishigbayar + + - - + 1200 + - - - - - processor
99 L.Erdenee + + - - + 1200 + - - - - - processor
100 N.Khishigbuyan + + - - + + 1000 + 50 + 500 500 - market
SUM 100 100 100 48 64 80200 Yes 57 5722 Yes 47 Up to 700 Tg per ha
AVERAGE Don't know 100 No 43 95.37 No 53 Bigger sums indicate total amount
1253.13 Tg per 22 kg pack (yes)-40 market-42
(no)-60 processor-58
44
- + haymaking by hand - + shelter shelter by hand satisfied - + 8 + veternary training
- - haymaking by machine - + shelter shelter by hand satisfied - + 12 + market TV
- + - - + shelter shelter by hand satisfied - + 7 + veternary DPA
- - haymaking by machine - + shelter shelter by hand satisfied - + 12 + market DPA
- + - - + shelter shelter by hand satisfied - + 8 + market DPA
- - - - + shelter shelter by hand satisfied - - 7 + market news
- + haymaking by machine - + shelter shelter by hand satisfied - + 13 + market DPA
- + haymaking by machine - + shelter shelter by hand satisfied - + 8 - - news
- + haymaking by machine - + shelter shelter by hand satisfied - - 15 + market DPA
- + - - + shelter shelter by hand satisfied - + 10 + market TV
- + haymaking by hand - - shelter shelter by hand satisfied - - 5 + veternary DPA
- + - - - shelter shelter by hand satisfied - + 12 + market DPA
- - - - + shelter shelter by hand satisfied - + 8 + veternary DPA
- + - - + shelter shelter by hand satisfied - + 9 - - TV
+ + - - + shelter shelter by hand satisfied - + 13 + market DPA
+ + - - + shelter shelter by hand satisfied - - 9 + feeding DPA
- + - - + shelter shelter by hand satisfied - + 10 + feeding TV
- + haymaking by machine - + shelter shelter by hand satisfied - + 10 + feeding DPA
+ + - - + shelter shelter by hand satisfied - + 10 + feeding DPA
- + haymaking by machine - + shelter shelter by hand satisfied - - 10 - - TV
- - haymaking by machine - - shelter shelter by hand middle + - 6 + feeding TV
- + haymaking by machine - + shelter shelter by hand middle + - 8 + farmer news
+ - haymaking by hand - + shelter shelter by hand satisfied - - 8 + feeding TV
- - haymaking by hand - - shelter shelter by hand satisfied - - 7 + farmer news
- - haymaking by hand - - shelter shelter by hand satisfied - - 8 + veternary TV
+ + - - - shelter shelter by hand satisfied - - 8 + farming news
- + haymaking by hand - - shelter shelter by hand satisfied - + 7 + farming TV
- + haymaking by machine - - shelter shelter by hand satisfied - - 10 - - news
+ haymaking by hand - - shelter shelter by hand middle + - 9 - - news
- - - - - shelter shelter by hand satisfied - - 10 + market TV
+ + haymaking by machine - + shelter shelter by hand satisfied - - 12 - - news
+ + haymaking by machine - + shelter shelter by hand satisfied - - 12 - - news
- + - - - shelter shelter by hand satisfied - - 10 - - news
- + - - - shelter shelter by hand satisfied - - 10 - - news
+ + haymaking by hand - + shelter shelter by hand satisfied - - 12 + veterinary TV
+ - - - + shelter shelter by hand satisfied - + 9 + feeding DPA
+ - - - - shelter shelter by hand satisfied - - 10 + feeding TV
+ - haymaking by machine - + shelter shelter by hand satisfied - - 10 + farming TV
+ - haymaking by hand - - shelter shelter by hand satisfied - - 9 + farming TV
+ - haymaking by hand - + shelter shelter by hand satisfied - + 9 + farming TV
+ - - - + shelter shelter by hand satisfied - - 8 + training DPA
+ + - - - shelter shelter by hand satisfied - - 10 + training TV
+ - haymaking by machine - + shelter shelter by hand satisfied - - 6 + training TV
+ - haymaking by machine - + shelter shelter by hand satisfied - - 8 + training TV
+ - haymaking by machine - - shelter shelter by hand middle + - 11 + farming TV
+ + haymaking by machine - + shelter shelter by hand satisfied - - 10 + farming TV
- + - + shelter shelter by hand satisfied - + 12 + market DPA
+ - haymaking by machine - + shelter shelter by hand satisfied - + 10 + farming DPA
+ - - - + shelter shelter by hand satisfied - + 9 + training DPA
+ - - - + shelter shelter by hand middle + - 10 + training TV 45
If y
ou
nee
d i
nfo
rmat
ion
,
wh
at i
nfo
rmat
ion
do
yo
u
nee
d ?
Wh
ere
do
yo
u g
et
info
rmat
ion
in
nee
d?
Ho
w d
iffi
cult
is
it t
o
ob
tain
all
des
ired
vet
erin
ary
ser
vic
es?
Did
yo
u h
ave
exp
erie
nce
to g
et a
rtif
icia
l
inse
min
atio
n f
or
dai
ry
catt
le?
Ho
w m
any
lac
tati
on
s d
o
yo
u e
xp
ect
for
a co
w?
Do
yo
u f
eel
any
nee
d f
or
tech
nic
al a
dv
ice?
Wh
ere
are
the
catt
le
ho
use
d
Wh
ere
are
the
cow
s
mil
ked
Has
th
e b
ran
pri
ce
chan
ged
sin
ce l
ast
yea
r?
Is m
ilk
ing
by
han
d o
r b
y
mac
hin
e?
Wh
at v
eter
inar
y s
erv
ices
do
yo
u u
se?
Are
yo
u
sati
sfie
d?
Can
yo
u o
bta
in a
s m
uch
bra
n a
s y
ou
wis
h?
Do
yo
u h
ave
hay
mak
ing
equ
ipm
ent?
Do
yo
u c
ult
ivat
e an
y
fod
der
cro
ps?
Is t
her
e an
y c
o-o
per
atio
n
in h
aym
akin
g o
r fe
ed
and
fo
dd
er p
urc
has
e?
Appendix 2: The Results of the Survey for 100 Farmers
+ + - - + shelter shelter by hand satisfied - + 13 + training TV
+ + haymaking by hand - + shelter shelter by hand satisfied - + 13 + market DPA
+ - - - + shelter shelter by hand satisfied - + 13 + market DPA
+ - - - + shelter shelter by hand satisfied - + 12 + training DPA
+ - - - + shelter shelter by hand satisfied - + 12 + market DPA
+ - - - + shelter shelter by hand satisfied - - 9 + farming DPA
+ + - - + shelter shelter by hand satisfied - + 13 + market DPA
+ - haymaking by hand - + shelter shelter by hand satisfied - + 9 + training TV
+ - haymaking by machine - + shelter shelter by hand satisfied - + 8 + farming DPA
+ - haymaking by machine - + shelter shelter by hand satisfied - + 8 + market DPA
+ - - - + shelter shelter by hand satisfied - - 7 + farming DPA
+ + haymaking by machine - + shelter shelter by hand satisfied - + 10 + farming DPA
+ + - - + shelter shelter by hand satisfied - - 11 + training DPA
+ - - - + shelter shelter by hand satisfied - - 11 + training DPA
- - haymaking by machine - - shelter shelter by hand satisfied - - 8 + farming DPA
- + - - + shelter shelter by hand satisfied - + 9 + farming DPA
- + - - + shelter shelter by hand satisfied - - 9 + farming DPA
- - haymaking by machine - + shelter shelter by hand satisfied - + 13 + farming DPA
- - haymaking by machine - + shelter shelter by hand satisfied - + 13 + farming DPA
+ + haymaking by machine + + shelter shelter by hand satisfied - + 14 + training TV
- + haymaking by hand - + shelter shelter by hand satisfied - + 8 + market training
- - haymaking by machine - + shelter shelter by hand satisfied - + 12 + market news
- + - - + shelter shelter by hand satisfied - + 7 + veternary TV
- - haymaking by machine - + shelter shelter by hand satisfied - + 12 + training TV
- + - - + shelter shelter by hand satisfied - + 8 + feeding TV
- - - - + shelter shelter by hand satisfied - - 7 + training TV
- + haymaking by machine - + shelter shelter by hand satisfied - + 13 + market DPA
- + haymaking by machine - + shelter shelter by hand satisfied - + 8 - - news
- + haymaking by machine - + shelter shelter by hand satisfied - - 15 + market DPA
- + - - + shelter shelter by hand satisfied - + 10 + market TV
- + haymaking by hand - - shelter shelter by hand satisfied - - 5 + feeding DPA
- + - - - shelter shelter by hand satisfied - + 12 + market DPA
- - - - + shelter shelter by hand satisfied - + 8 + farming DPA
- + - - + shelter shelter by hand satisfied - + 9 - - TV
+ + - - + shelter shelter by hand satisfied - + 13 + market DPA
+ + - - + shelter shelter by hand satisfied - - 9 + feeding TV
- + - - + shelter shelter by hand satisfied - + 10 + feeding TV
- + haymaking by machine - + shelter shelter by hand satisfied - + 10 + feeding DPA
+ + - - + shelter shelter by hand satisfied - + 10 + veternary DPA
- + haymaking by machine - + shelter shelter by hand satisfied - - 10 - - TV
- - haymaking by machine - - shelter shelter by hand middle + - 6 + veternary TV
- + haymaking by machine - + shelter shelter by hand middle + - 8 + market news
+ - haymaking by hand - + shelter shelter by hand satisfied - - 8 + feeding training
- - haymaking by hand - - shelter shelter by hand satisfied - - 7 + training TV
- - haymaking by hand - - shelter shelter by hand satisfied - - 8 + veternary news
+ + - - - shelter shelter by hand satisfied - - 8 + farming news
- + haymaking by hand - - shelter shelter by hand satisfied - + 7 + farming news
- + haymaking by machine - - shelter shelter by hand satisfied - - 10 - - news
+ haymaking by hand - - shelter shelter by hand middle + - 9 - - news
- - - - - shelter shelter by hand satisfied - - 10 + market TV
(yes)-43 (yes)-58 by machine-35 966
(no)-57 (no)-42 by hand-19 9.66 Of which: Of which:
(yes)-1 (yes)-74 In shelter-100 In shelter-100 by hand-100 middle-8 Yes 8 (yes)-49 (yes)-86 market-25 training-3
(no)-99 (no)-26 satisfied-92 Not 92 (no)-51 (no)-14 veternary-9 TV-36
feeding-14 DPA-42
farming-22 news-19
training-15
no-15
DPA -Dairy Producers' Association
46
Av
aila
bil
ity
an
d
qu
alit
y o
f
pas
ture
s
An
imal
qu
alit
y
Av
aila
bil
ity
an
d
qu
alit
y o
f fo
dd
er
An
imal
sh
elte
rs
Hay
mak
ing
equ
ipm
ent
Vet
erin
ary
serv
ices
Mar
ket
ing
of
pro
du
cts
Fin
ance
s
Av
aila
bil
ity
of
info
rmat
ion
Oth
ers,
sp
ecif
y
1 Ch.Amgalan 2 5 4 8 1 9 6 3 7 - - -
2 B.Khishigburen 6 3 5 9 2 8 7 1 4 - - -
3 B.Byambadorj 3 6 2 7 5 8 4 1 9 - - -
4 Sh.Radnaabazar 2 7 3 8 4 9 6 1 5 - - -
5 B.Togsbayar 2 5 3 8 4 9 6 1 7 - - -
6 R.Myagmarsuren 4 5 6 9 3 8 1 2 7 - - -
7 Sh.Gungaadorj 3 4 2 7 5 9 6 1 8 - - -
8 D.Byambasuren 1 5 2 6 9 8 4 3 7 - - -
9 Sh.Khurelchuluun 2 4 3 5 8 7 6 1 9 - - -
10 B.Togs-erdene 1 8 3 7 5 9 2 4 6 - - -
11 Ts.Tomorbaatar 7 8 5 6 1 9 3 4 2 - - -
12 Ts.Purevdorj 4 5 3 9 2 8 7 1 6 - - -
13 O.Tsogtsaikhan 3 5 6 7 1 9 2 4 8 - - -
14 J.Dolgor 3 9 4 7 5 6 1 2 8 - - -
15 D.Davaasuren 3 5 2 9 4 8 6 1 7 - - -
16 D.Sharavjamts 4 5 1 8 7 6 3 2 9 - - -
17 D.Monkh 3 8 1 9 5 7 2 4 6 - - -
18 Sh.Batsukh 1 5 2 4 7 6 8 3 9 - - -
19 Z.Gendensuren 1 5 7 6 2 9 4 3 8 - - -
20 D.Monkhchuluun 3 4 2 8 7 9 1 5 6 - - -
21 M.Tanchiv 5 4 8 7 9 3 2 6 10 1 - - -
22 Ch.Daajamba 3 10 7 6 9 8 1 2 5 4 - - -
23 B.Damdinpurev 5 4 10 9 6 8 1 3 7 2 - - -
24 Ya.Battulga 4 7 3 8 2 9 1 6 5 - - -
25 T.Gayabazar 7 6 5 4 9 10 8 2 3 1 - - -
26 Ts.Dari 2 4 5 3 9 6 1 8 7 - - -
27 B.Demid 3 4 6 7 2 8 10 9 5 1 - - -
28 Ts.Tseren 2 7 6 5 4 8 1 3 9 - - -
29 B.Bataa 1 3 4 5 9 2 6 8 7 - - -
30 Ts.Zorigtbaatar 3 9 8 4 7 5 1 2 6 - - -
31 Ch.Purevjav 4 1 7 8 2 9 3 5 6 - - -
32 B.Baatarjargal 2 9 1 8 4 7 3 6 5 - - -
33 S.Tsogtbayar 2 7 1 8 6 9 3 4 5 - - -
34 Ch.Ishdorj 2 8 1 7 5 9 4 3 6 - - -
35 Sh.Ganbat 5 4 3 8 6 7 1 2 9 - - -
36 D.Natsagdorj 4 3 5 6 2 9 8 1 7 - - -
37 M.Buyantor 2 6 3 9 7 10 4 5 8 1 - - -
38 S.Myagmardorj 3 5 6 9 7 8 4 1 2 + MAB haymaking
39 M.Jantsandorj 2 3 7 8 6 9 4 1 5 - - -
40 R.Baljinnyam 1 4 6 9 8 7 5 2 3 - - -
41 N.Sukhbaatar 1 7 6 5 2 8 9 3 4 + MAB haymaking
42 D.Sed-ochir 2 4 8 10 7 9 3 6 5 1 - - -
43 D.Nergui 4 5 6 2 3 8 7 1 9 - - -
44 B.Gurragchaa 2 4 6 10 8 9 1 3 7 5 - - -
45 M.Batjargal 6 5 3 9 7 8 4 1 2 - - -
46 B.Batsaikhan 1 3 8 9 6 7 4 5 2 - - -
47 G.Shirbazar 3 5 2 9 4 6 8 1 7 - - -
48 G.Jaamaa 3 5 8 4 6 9 1 2 7 - - - 47
49 Sh.Batpurev 3 6 4 8 5 9 1 2 7 - - -
Appendix 2: The Results of the Survey for 100 Farmers8. Problems in a dairy business
If y
es, fr
om
wh
ere?
If y
es, w
hat
was
th
e
resu
lt?
No Farmer's name
Are there any major problems for your dairy business? Please rank:
Hav
e y
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50 D.Batsaikhan 4 5 3 9 8 6 7 2 10 1 + Anod haymaking
51 D.Chuluunbat 2 4 9 8 5 10 6 1 7 3 - - -
52 Ch.Davaadorj 5 4 2 7 3 8 5 1 6 - - -
53 J.Yanjindulam 4 2 5 9 3 8 6 1 7 - - -
54 V.Chultemnamdag 3 7 4 8 5 9 6 2 10 1 - - -
55 Kh.Batsuuri 3 7 4 9 5 10 6 2 8 1 - - -
56 S.Lkhagvaa 2 4 6 7 5 8 3 1 9 - - -
57 T.Terbish 5 6 3 7 4 8 2 1 9 - - -
58 S.Ochir 1 7 6 4 3 9 5 2 8 - - -
59 B.Jargalsaikhan 1 3 5 8 6 9 4 2 7 - - -
60 Sh.Erkhembayar 2 5 4 9 3 8 6 1 7 - - -
61 G.Ulaankhuu 5 4 6 7 2 8 3 1 9 - - -
62 E.Chuluunbaatar 4 6 2 7 3 9 5 1 8 - - -
63 R.Amarsaikhan 2 4 1 8 5 9 6 3 7 - - -
64 G.Sumya 2 7 4 8 3 9 5 1 6 - - -
65 B.Tumendemberel 2 5 4 9 3 8 6 1 7 - - -
66 B.Jargalsuren 2 6 5 7 1 9 3 4 8 - - -
67 M.Bayartsogt 4 6 3 7 1 9 5 2 8 - - -
68 S.Batsukh 5 2 4 9 3 8 6 1 7 - - -
69 A.Batbayar 3 8 2 7 4 9 5 1 6 - - -
70 D.Jamyan 3 7 1 8 4 9 5 2 6 - - -
71 B.Ayagaa 3 5 1 7 2 8 6 4 9 - - -
72 L.Lkhagvadorj 6 1 4 7 5 9 2 3 8 - - -
73 N.Byambatsogt 5 3 1 8 2 9 6 7 10 4 - - -
74 S.Dorjsuren 3 1 2 7 6 9 5 4 8 - - -
75 B.Lkhagvaa 3 1 2 7 6 9 5 4 8 - - -
76 Ts.Demberel 1 2 3 8 5 9 6 4 7 - - -
77 Kh.Tsendsuren 3 1 4 8 5 9 6 2 7 - - -
78 Z.Yadmaa 4 2 3 8 5 9 6 1 7 - - -
79 S.Damiran 3 2 4 7 8 9 5 1 6 - - -
80 D.Jargalsaikhan 4 1 2 9 3 7 8 5 6 - - -
81 T.Enkhtaivan 4 1 2 5 3 6 7 8 9 - - -
82 B.Enkhbayar 2 4 3 6 5 9 7 8 10 1 - - -
83 G.Bat-ochir 5 4 2 7 6 8 3 1 9 - - -
84 G.Lkhagvaa 4 1 2 5 3 8 7 6 9 - - -
85 B.Erdenebileg 1 2 3 6 7 8 5 4 9 - - -
86 B.Tumenbayar 1 2 3 4 8 9 5 6 7 - - -87 Ch.Batbaatar 5 1 4 6 2 7 9 3 8 + Danida general
88 S.Dugar 2 1 3 6 7 8 5 4 9 - - -
89 P.Ochirdorj 2 5 4 6 3 7 8 9 10 1 - - -
90 D.Erdenebat 5 1 3 2 4 8 6 7 9 - - -
91 B.Enkhbold 3 1 2 9 4 8 5 6 7 - - -
92 B.Chantuu 2 1 7 7 4 10 9 4 6 3 - - -
93 S.Batbayar 1 2 3 4 6 9 5 7 8 - - -
94 N.Khishigdorj 2 1 3 7 4 9 5 6 8 - - -
95 T.Erdenebileg 1 2 3 6 7 8 5 4 9 - - -
96 Ts.Nyamdorj 1 2 3 6 7 8 5 4 9 - - -
97 L.Zorigtbaatar 2 1 5 6 7 9 4 3 8 - - -
98 D.Khishigbayar 2 1 3 6 7 9 5 4 8 - - -
99 L.Erdenee 2 1 3 7 8 9 5 4 6 - - -
100 N.Khishigbuyan 1 2 3 6 5 8 7 4 9 - - -
SUM (no) - 96 Danida 1 haymaking-3
AVERAGE 2.92 4.27 3.92 7.06 4.87 8.17 4.71 3.20 7.11 1.94 (yes) +4 Anod 1 general-1
Ag bank-2
48
The lowest score refrs to the hardsest problem, eg, 2.92 on pastures
No Farmer's name
How would you like
to develop your dairy
business
Increase cow
numbersUpgrade cow quality? Improve feeding? Mechanize milking
More effective milk
selling How?Grow fodder crops Other
1 Ch.Amgalan high price + + + - consumer +
2 B.Khishigburen own car + + - + small interprise -
3 B.Byambadorj decrease fodder cost + + + - high price +
4 Sh.Radnaabazar consumer + + + + own car +
5 B.Togsbayar consumer + + + - consumer +
6 R.Myagmarsuren high price + + + - high price +
7 Sh.Gungaadorj decrease fodder cost + + + + small interprise +
8 D.Byambasuren own car - - + - small interprise +
9 Sh.Khurelchuluun decrease fodder cost + + + + own car +
10 B.Togs-erdene high price + + + - consumer +
11 Ts.Tomorbaatar own car + + - - high price -
12 Ts.Purevdorj consumer + + + + own car +
13 O.Tsogtsaikhan decrease fodder cost + + + - consumer +
14 J.Dolgor high price + + + - consumer +
15 D.Davaasuren consumer + + + + high price +
16 D.Sharavjamts decrease fodder cost + + + - small interprise +
17 D.Monkh high price + + + + consumer +
18 Sh.Batsukh own car + + + + small interprise +
19 Z.Gendensuren consumer + + + + own car +
20 D.Monkhchuluun consumer + + + - small interprise +
21 M.Tanchiv high price - - - - consumer -
22 Ch.Daajamba high price + + + - high price +
23 B.Damdinpurev decrease fodder cost - - - - small interprise -
24 Ya.Battulga own car + + + + small interprise +
25 T.Gayabazar high price + + - - consumer -
26 Ts.Dari own car + + - - high price -
27 B.Demid decrease fodder cost - - - - small interprise -
28 Ts.Tseren high price + + - - own car -
29 B.Bataa consumer - - - - high price -
30 Ts.Zorigtbaatar own car - - + - small interprise +
31 Ch.Purevjav decrease fodder cost + + - - small interprise -
32 B.Baatarjargal consumer + + + - high price +
33 S.Tsogtbayar high price + + + - own car +
34 Ch.Ishdorj own car + + + - consumer +
35 Sh.Ganbat consumer + + - - high price -
36 D.Natsagdorj consumer + + - + small interprise -
37 M.Buyantor high price - - - - own car -
38 S.Myagmardorj consumer + + + + high price +
39 M.Jantsandorj decrease fodder cost + + - + consumer -
40 R.Baljinnyam own car + + + - small interprise +
41 N.Sukhbaatar consumer - - - + high price -
42 D.Sed-ochir decrease fodder cost + + - - consumer -
43 D.Nergui consumer + + + + high price +
44 B.Gurragchaa own car + + + + small interprise +
45 M.Batjargal consumer - - - + own car -
46 B.Batsaikhan decrease fodder cost - - + + high price +
47 G.Shirbazar high price + + + + consumer +
48 G.Jaamaa consumer + + + + small interprise +
49 Sh.Batpurev own car + + - + small interprise -
50 D.Batsaikhan decrease fodder cost - - + - high price + 49
51 D.Chuluunbat consumer - - - - own car -
52 Ch.Davaadorj high price + + + + high price +
9.Future plans
Appendix 2: The Results of the Survey for 100 Farmers
53 J.Yanjindulam own car + + - - consumer -
54 V.Chultemnamdag decrease fodder cost + + + - small interprise +
55 Kh.Batsuuri consumer + + - + high price -
56 S.Lkhagvaa consumer + + - - consumer -
57 T.Terbish decrease fodder cost + + + + high price +
58 S.Ochir own car + + - - small interprise -
59 B.Jargalsaikhan high price - - - + consumer -
60 Sh.Erkhembayar consumer + + + - own car +
61 G.Ulaankhuu decrease fodder cost - - - - high price -
62 E.Chuluunbaatar own car - - + + high price +
63 R.Amarsaikhan high price - - - + small interprise -
64 G.Sumya decrease fodder cost + + - + consumer -
65 B.Tumendemberel high price + + - - small interprise -
66 B.Jargalsuren own car + + + + small interprise +
67 M.Bayartsogt consumer + + + + high price +
68 S.Batsukh high price + + - + consumer -
69 A.Batbayar consumer + + + + high price +
70 D.Jamyan decrease fodder cost - - + + own car +
71 B.Ayagaa consumer - - + + small interprise +
72 L.Lkhagvadorj high price - - - - high price -
73 N.Byambatsogt own car - - + + consumer +
74 S.Dorjsuren decrease fodder cost + + - - high price -
75 B.Lkhagvaa consumer + + + - own car +
76 Ts.Demberel high price - - - - consumer -
77 Kh.Tsendsuren own car + + - - small interprise -
78 Z.Yadmaa decrease fodder cost - - + - high price +
79 S.Damiran high price - - + + own car +
80 D.Jargalsaikhan high price + + + + consumer +
81 T.Enkhtaivan consumer + + + + high price +
82 B.Enkhbayar consumer - - + + own car +
83 G.Bat-ochir decrease fodder cost - - + + own car +
84 G.Lkhagvaa own car + + + + high price +
85 B.Erdenebileg consumer + + + + own car +
86 B.Tumenbayar high price - - - - consumer -
87 Ch.Batbaatar consumer + + + - small interprise +
88 S.Dugar own car + + + + high price +
89 P.Ochirdorj high price + + + - own car +
90 D.Erdenebat consumer + + + - own car +
91 B.Enkhbold high price - - + + consumer +
92 B.Chantuu own car + + + + high price +
93 S.Batbayar high price + + + - own car +
94 N.Khishigdorj consumer + + + - small interprise +
95 T.Erdenebileg decrease fodder cost + + + - high price +
96 Ts.Nyamdorj high price + + + - consumer +
97 L.Zorigtbaatar consumer + + + - small interprise +
98 D.Khishigbayar decrease fodder cost - - + - own car +
99 L.Erdenee high price + + + - high price +
100 N.Khishigbuyan own car + + - - consumer -
SUM 100 (yes)-73 (yes)-73 (yes)-66 (yes)-42 100 (yes)-66 No answer
AVERAGE Of which: (no)-27 (no)-27 (no)-34 (no)-58 Of which: (no)-34
high price-30
have own car-21 consumer-24own car-20
reach consumer-31 small interprise-26
50
increase price-26
decrease fodder cost-22
No Farmer's nameAre you a member of the Dairy
Cattle Association?
Did you pay a subscription this
year?
What benefits do receive from
Association membership?
Are there other services which
you would like to receive
from the Association?
Would you be prepared to pay
directly for such services?
1 Ch.Amgalan + + co-operation finance +
2 B.Khishigburen - - - information +
3 B.Byambadorj + - information training +
4 Sh.Radnaabazar + - co-operation training +
5 B.Togsbayar + - veternary technology -
6 R.Myagmarsuren + + information finance +
7 Sh.Gungaadorj + - co-operation training +
8 D.Byambasuren + + veternary technology +
9 Sh.Khurelchuluun + + co-operation training +
10 B.Togs-erdene + + veternary technology -
11 Ts.Tomorbaatar + - co-operation finance -
12 Ts.Purevdorj + + information technology +
13 O.Tsogtsaikhan + - co-operation training -
14 J.Dolgor + + veternary technology +
15 D.Davaasuren + + information finance +
16 D.Sharavjamts + - co-operation technology -
17 D.Monkh - - - co-operation -
18 Sh.Batsukh + + veternary finance +
19 Z.Gendensuren + - information training +
20 D.Monkhchuluun - - - veternary -
21 M.Tanchiv - - - information -
22 Ch.Daajamba + - veternary finance +
23 B.Damdinpurev - - - veternary -
24 Ya.Battulga + - co-operation training +
25 T.Gayabazar - - - co-operation -
26 Ts.Dari - - - training -
27 B.Demid - - - co-operation -
28 Ts.Tseren - - - information -
29 B.Bataa - - - training -
30 Ts.Zorigtbaatar - - - co-operation -
31 Ch.Purevjav - - - finance -
32 B.Baatarjargal - - - veternary -
33 S.Tsogtbayar - - - information -
34 Ch.Ishdorj - - - co-operation -
35 Sh.Ganbat + - co-operation finance +
36 D.Natsagdorj + + information technology -
37 M.Buyantor - - - finance -
38 S.Myagmardorj - - - veternary -
39 M.Jantsandorj - - - information -
40 R.Baljinnyam - - - co-operation -
41 N.Sukhbaatar + - co-operation technology -
42 D.Sed-ochir + - veternary finance -
43 D.Nergui - - - co-operation -
44 B.Gurragchaa - - - information -
45 M.Batjargal - - - co-operation -
46 B.Batsaikhan - - - finance -
47 G.Shirbazar + + co-operation training +
48 G.Jaamaa + + co-operation finance -
49 Sh.Batpurev - - - information -
50 D.Batsaikhan + + information training -
51 D.Chuluunbat + - veternary finance - 51
52 Ch.Davaadorj + + veternary technology +
10.Dairy Cattle Association
Appendix 2: The Results of the Survey for 100 Farmers
53 J.Yanjindulam + + co-operation training -
54 V.Chultemnamdag + - co-operation finance -
55 Kh.Batsuuri + - veternary technology -
56 S.Lkhagvaa + + co-operation technology -
57 T.Terbish + + information finance +
58 S.Ochir + + information technology -
59 B.Jargalsaikhan + + co-operation technology -
60 Sh.Erkhembayar + + veternary training +
61 G.Ulaankhuu + + co-operation technology -
62 E.Chuluunbaatar + + information finance +
63 R.Amarsaikhan + + co-operation training +
64 G.Sumya + + veternary technology +
65 B.Tumendemberel + - co-operation finance -
66 B.Jargalsuren + - veternary finance -
67 M.Bayartsogt + + information finance +
68 S.Batsukh + - co-operation finance -
69 A.Batbayar + + veternary technology +
70 D.Jamyan + + co-operation training +
71 B.Ayagaa + + information finance +
72 L.Lkhagvadorj - - - veternary -
73 N.Byambatsogt - - - information +
74 S.Dorjsuren - - - co-operation +
75 B.Lkhagvaa - - - finance -
76 Ts.Demberel - - - information -
77 Kh.Tsendsuren - - - finance -
78 Z.Yadmaa + - information technology +
79 S.Damiran + - co-operation finance +
80 D.Jargalsaikhan - - - veternary +
81 T.Enkhtaivan - - veternary technology +
82 B.Enkhbayar - - information finance +
83 G.Bat-ochir - - - information +
84 G.Lkhagvaa + - co-operation finance +
85 B.Erdenebileg - - - co-operation +
86 B.Tumenbayar - - - finance +
87 Ch.Batbaatar + - information technology +
88 S.Dugar + - co-operation training +
89 P.Ochirdorj + - veternary technology +
90 D.Erdenebat - - - co-operation +
91 B.Enkhbold - - - information +
92 B.Chantuu + - information finance +
93 S.Batbayar - - - veternary +
94 N.Khishigdorj - - - finance +
95 T.Erdenebileg - - - co-operation -
96 Ts.Nyamdorj - - - information -
97 L.Zorigtbaatar - - - finance -
98 D.Khishigbayar - - - finance +
99 L.Erdenee - - - co-operation +
100 N.Khishigbuyan - - - information +
SUM (yes)+54 (yes)+28 (yes)+54 yes 100 of which: (yes)+49
AVERAGE (no)-46 (no)-72 (no)-46 finance-31 (no)-51
(yes)-54 which: information-13
information-15 technology-20
co-operation-24 training-16
veternary-15 veternary-7
co-operation-13
52
No Farmer's namePlease specify and rank the benefits you
obtained from the Danida project
Have any other dairy farmers learnt
from your experience with Danida?
How useful was the training provided
by Danida?
Did it cover the most important
topics for you?
1 Ch.Amgalan - - - -
2 B.Khishigburen - - - -
3 B.Byambadorj - - - -
4 Sh.Radnaabazar - - - -
5 B.Togsbayar - - - -
6 R.Myagmarsuren - - - -
7 Sh.Gungaadorj - - - -
8 D.Byambasuren - - - -
9 Sh.Khurelchuluun + + + +
10 B.Togs-erdene - - - -
11 Ts.Tomorbaatar - - - -
12 Ts.Purevdorj - - - -
13 O.Tsogtsaikhan - - - -
14 J.Dolgor - - - -
15 D.Davaasuren - - - -
16 D.Sharavjamts - - - -
17 D.Monkh - - - -
18 Sh.Batsukh - - - -
19 Z.Gendensuren - - - -
20 D.Monkhchuluun - - - -
21 M.Tanchiv - - - -
22 Ch.Daajamba + - + +
23 B.Damdinpurev - - - -
24 Ya.Battulga - - - +
25 T.Gayabazar - - - -
26 Ts.Dari - - - -
27 B.Demid - - - -
28 Ts.Tseren - - - -
29 B.Bataa - - - -
30 Ts.Zorigtbaatar - - - -
31 Ch.Purevjav - - - -
32 B.Baatarjargal - - - -
33 S.Tsogtbayar - - - -
34 Ch.Ishdorj - - - -
35 Sh.Ganbat - - - -
36 D.Natsagdorj - - - -
37 M.Buyantor - - - -
38 S.Myagmardorj - - - -
39 M.Jantsandorj - - - -
40 R.Baljinnyam - - - -
41 N.Sukhbaatar + + + +
42 D.Sed-ochir - - - -
43 D.Nergui - - - -
44 B.Gurragchaa - - - -
45 M.Batjargal - - - -
46 B.Batsaikhan - - - -
47 G.Shirbazar - - - -
48 G.Jaamaa - - - - 53
49 Sh.Batpurev - - - -
11. Danida supported Dairy Farmers
Appendix 2: The Results of the Survey for 100 Farmers
50 D.Batsaikhan - - - -
51 D.Chuluunbat - - - -
52 Ch.Davaadorj - - - -
53 J.Yanjindulam - - - -
54 V.Chultemnamdag - - - -
55 Kh.Batsuuri - - - -
56 S.Lkhagvaa - - - -
57 T.Terbish - - - -
58 S.Ochir - - - -
59 B.Jargalsaikhan - - - -
60 Sh.Erkhembayar - - - -
61 G.Ulaankhuu - - - -
62 E.Chuluunbaatar - - - -
63 R.Amarsaikhan - - - -
64 G.Sumya + + + -
65 B.Tumendemberel - - - -
66 B.Jargalsuren - - - -
67 M.Bayartsogt - - - -
68 S.Batsukh + + + +
69 A.Batbayar + + + +
70 D.Jamyan + + + +
71 B.Ayagaa - - - -
72 L.Lkhagvadorj - - - -
73 N.Byambatsogt - - - -
74 S.Dorjsuren - - - -
75 B.Lkhagvaa - - - -
76 Ts.Demberel - - - -
77 Kh.Tsendsuren - - - -
78 Z.Yadmaa + + + +
79 S.Damiran + + + +
80 D.Jargalsaikhan - - - -
81 T.Enkhtaivan - - - -
82 B.Enkhbayar - - - -
83 G.Bat-ochir - - - -
84 G.Lkhagvaa + + + -
85 B.Erdenebileg - - - -
86 B.Tumenbayar - - - -
87 Ch.Batbaatar + + + -
88 S.Dugar + + + -
89 P.Ochirdorj + + + +
90 D.Erdenebat - - - -
91 B.Enkhbold - - - -
92 B.Chantuu + + + +
93 S.Batbayar - - - -
94 N.Khishigdorj - - - -
95 T.Erdenebileg - - - -
96 Ts.Nyamdorj - - - -
97 L.Zorigtbaatar - - - -
98 D.Khishigbayar - - - -
99 L.Erdenee - - - -
100 N.Khishigbuyan - - - -
Useful +14 Yes +13 Useful +11 Yes +9
Not much -86 No -87 Not much -89 No -91
54
Appendix 3: Financial Analysis Survey Questionnaire
This questionnaire is designed for independent dairy farms or for, perhaps, dairy units of crop farms. If there is any commercial or subsistence vegetable production undertaken on the farm,please note this fact.
Value of Milk Output
Month Output(l)
Domesticuse
Sales (l) Price/l (Tg) Deliverycost
Farm gate revenue Tg
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Total
How is your milk delivered to the customer?By transport contractor to processor ………By yourself to processor ………….By yourself to market ……………Sold to milk trader …………..
Does your milk have a veterinary certificate of quality yes/no
Herd Structure
No.now
No.lastyear
Births Purchases Deaths Eaten Sales PriceTg/animal
Revenues
Cows
Heifers
Calves(F)
Calves(M)
Steers
Bulls
Total
Is there a price premium for higher yielding dairy cattle?
39
What is the preferred breed?How big, in general, is the price premium ……………………. (Tg or %)
Cattle Feed (Purchases)
Type Quantity (kg) Price/kg Cost
Bran
Hay
Other
Total
How much supplementary feed/cow/day (kg)
Bran Hay Other
Summer, giving milk
Winter, giving milk
Winter, dry
Does your farm produce any fodder crops for the dairy cattle? Yes/noHave you contracted with any farm to produce fodder or feed ingredients? Yes/no Are you considering starting fodder crop production? Yes/noIf yes, what crop? …………………………………………
Hay Making
Quantity of hay made ………………. Kg
Land Fee: ……….ha @ …………….Tg/haTravel to hay lands, …………km away, …………….Cost (Tg) Use of hay making machinery own……… hired………Hire cost …………….. (Tg) Repair cost …………….. (Tg)
What hay making equipment do you own?
Type Horse drawn Tractor drawn
Tractor
Mower
Rake
Other
How old is your hay making equipment ……… years When will you replace it ……….Cost of replacement equipment ………. Tg
Own/farm labour ………………………………. Person days Hired labour ……………………….person daysDaily labour hire cost ………………. Tg/person day
Hay transport cost ……………….. Tg/tonne
40
Other haymaking costs …………………… cost …………..Tg
…………………… cost …………..Tg…………………… cost …………..Tg…………………… cost …………..Tg
Do you co-operate with other farmers in making hay? Yes/no How many weeks do you spend making hay? ………….
Other Direct Operating Costs
Water for cattle ………………..TgVeterinary services ………………..TgCattle tax ………………..Tg Detergents & cleaning materials Tg Artificial Insemination …….. cows @ …………..Tg/cow = …………..Tg Repair of buildings ………………...TgStraw for cattle? ………………………………Dairy Association membership fee? ……………….TgHired labour: number of people ……. Daily or monthly wage ………..
How many family members work most of their time on the dairy activities (specify)Person ……………………………. Approx % of timePerson ……………………………. Approx % of timePerson ……………………………. Approx % of timePerson ……………………………. Approx % of time
Other operating costs …………………… cost …………..Tg
…………………… cost …………..Tg…………………… cost …………..Tg…………………… cost …………..Tg
How is the manure used/disposed of? ………………
Non Livestock Capital Investment
Winter housing for cattle ……………..Tg40 litre milk churns ………churns @ ………Tg/churn = ………..Tg Fencing and cattle yard …………….. Tg Hay making equipment …………….. Tg WellOther equipment …………………… cost …………..Tg
…………………… cost …………..Tg…………………… cost …………..Tg…………………… cost …………..Tg
41
Farm Farm F Farm F
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price Deaths Lost/ Eaten Sales Price Rev-nes Unit value Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Tg'000 Stolen Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 5 9 200 1000 1800 800
Heifers (1 - 3 years) 6 4 180 1080 720 -360
Calves (F) (0 -12 months) 2 2 2 30 60 60 0
Calves (M) (0 -12 months) 2 2 3 1 2 30 60 25 50 50 0
Males (1 - 3 years) 0 0 0 40 0 0 0
Bulls 0 0 0 0 0
Total 15 17 5 0 0 1 2 60 2190 2630 440 50 75 300 1500 42 1967
Cattle revenues + value gain Value Gain 500
Total Investment 4597
Check 0
Farm Farm B Farm B
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price TgDeaths Lost/ Eaten Sales Price TgRevenues Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Stolen Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 15 16 3000 3200 200
Heifers (1 - 3 years) 3 4 540 720 180
Calves (F) (0 -12 months) 8 9 9 240 270 30
Calves (M) (0 -12 months) 7 7 7 175 175 0
Males (1 - 3 years) 0 7 6 1 30 30 0 280 280
Bulls 1 0 0 0
Total 33 44 16 0 0 6 1 30 3955 4645 690 1000 245 500 226 48 2019
Cattle revenues + value gain Value Gain 720
Total Investment 6664
Check -2
Farm Farm E Farm E
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price TgDeaths Lost/ Eaten Sales Price TgRevenues Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Stolen Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 6 9 3 200 0 0 2 315 630 1200 1800 600
Heifers (1 - 3 years) 2 3 2 40 360 540 180
Calves (F) (0 -12 months) 1 2 2 30 60 30
Calves (M) (0 -12 months) 3 4 4 75 100 25
Males (1 - 3 years) 0 3 0 0 0 0 0 120 120
Bulls 0 0 0 0 0
Total 12 21 6 5 0 0 2 630 1665 2620 955 0 18 300 400 718
Cattle revenues + value gain Value Gain 1585
Total Investment 3338
Check 0
Farm Farm D Farm D
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price TgDeaths Lost/ Eaten Sales Price TgRevenues Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Stolen Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 22 20 2 4400 4000 -400
Heifers (1 - 3 years) 3 6 2 200 400 540 1080 540
Appendix 4: Farm Financial Survey Results, Herd Structure
Calves (F) (0 -12 months) 7 3 6 4 1 210 90 -120
Calves (M) (0 -12 months) 10 7 9 3 1 0 1 50 50 250 175 -75
Males (1 - 3 years) 1 8 0 40 320 280
Bulls 0 0 0 0 0
Total 43 44 15 0 9 2 0 3 450 5440 5665 225 1500 150 400 0 120 2170
Cattle revenues + value gain Value Gain 675
Total Investment 7835
Check 0
Farm Farm G Farm G
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price TgDeaths Lost/ Eaten Sales Price TgRevenues Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Stolen Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 2 5 2 3E+05 400 1000 600
Heifers (1 - 3 years) 1 1 180 180 0
Calves (F) (0 -12 months) 1 1 1 30 30 0
Calves (M) (0 -12 months) 1 1 0 0 25 25
Males (1 - 3 years) 1 1 0 40 40 0
Bulls 0 0 0 0 0
Total 5 9 2 2 0 0 0 0 650 1275 625 1000 32 0 8 0 1040
Cattle revenues + value gain Value Gain 625
Total Investment 2315
Check 0
Farm Farm C Farm C
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price TgDeaths Lost/ Eaten Sales Price TgRevenues Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Stolen Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 31 33 0 6200 6600 400
Heifers (1 - 3 years) 4 6 720 1080 360
Calves (F) (0 -12 months) 6 11 11 180 330 150
Calves (M) (0 -12 months) 7 5 20 5 17 15 255 175 125 -50
Males (1 - 3 years) 0 0 0 0 0 0
Bulls 1 1 0 0 0
Total 49 56 31 0 0 5 17 255 7275 8135 860 7500 270 640 1500 0 9910
Cattle revenues + value gain Value Gain 1115
Total Investment 18045
Check 2
Farm Farm A Farm A
2002 2003 Events in past twelve months Capital Investment
Births Purchases Price TgDeaths Lost/ Eaten Sales Price TgRevenues Herd 2002 Herd 2003 Increase Cow House Churns Fence etc Hay equip Other Total
Stolen & Gifts Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000 Tg'000
Cows 11 9 0 3 32.5 97.5 2200 1800 -400
Heifers (1 - 3 years) 3 6 3 2E+05 2 540 1080 540
Calves (F) (0 -12 months) 2 3 4 1 60 90 30
Calves (M) (0 -12 months) 4 1 1 3 0 100 25 -75
Males (1 - 3 years) 0 2 0 0 80 80
Bulls 1 1 0 0 0
Total 21 22 5 4 0 2 3 3 97.5 2900 3075 175 1000 40 0 400 0 1440
Cattle revenues + value gain Value Gain 272.5
Total Investment 4515
Check 0
Note: If the information provided is consistent, the "check" figure should be zero
Farm name Farm A Farm B Farm C Farm D Farm E Farm F Farm G
Quantity prepared (tn) 8 14 75 0 25 8 10
Quantity bought (tn) 8 34 0 75 0 0 0
Total hay 16 48 75 75 25 8 10
Land cost 26,000 20,000 80,000 0 20,000 83,000 1,950
Transportation cost 45,500 70,000 750,000 0 360,000 85,000 75,000
Machinery cost 70,000 0 400,000 0 22,500 0 0
Baling wire 0 0 150,000 0 0 0 0
Fuel 0 0 350,000 0 0 0 0
Other 0 0 100,000 0 0 0 0
Labour cost/own 0 0 0 0 0 0 0
Labour cost/hired 0 280,000 0 0 0 0 0
Food 138,300 200,000 200,000 0 47,800 45,000 90,000
Total cost of prepared hay 279,800 570,000 2,030,000 0 450,300 213,000 166,950
Cost tug/tn 34,975 40,714 27,067 0 18,012 26,625 16,695
Purchase per tn 32,000 0 0
Delivery transport 10,000 0 0
Delivered price per tn 50,000 40,000 42,000 0 0
Total cost of purchased hay 400,000 1,360,000 0 3,150,000 0 0 0
Total cost of hay 679,800 1,930,000 2,030,000 3,150,000 450,300 213,000 166,950
Average cost per ton 42,488 40,208 27,067 42,000 18,012 26,625 16,695
Hay per day/kg 7 7 7 7 7 8 4.5
Herd size 22 38 50 54 17 15 7
Check 23.1 39.9 52.5 56.7 17.85 18 4.725
Appendix 4: Farm Financial Survey Results, Hay Making
Farm name Farm A Farm B Farm C Farm D Farm E Farm F Farm G Mean
Annual milk sales (l) 16,336 22,200 58,580 38,530 14,410 17,033 7840
Sales revenue (tug) 5,345,000 7,245,000 20,216,000 12,666,600 4,404,000 4,973,125 2159750
Transport cost 408,400 540,000 1,478,000 863,000 360,250 486,667 197,000
Net revenue 4,936,600 6,705,000 18,738,000 11,803,600 4,043,750 4,486,458 1,962,750
Average price/l (tug) 327 326 345 329 306 292 275 326
Average No. of cows 10 16 32 23 7 7 4
Milk sales per cow (l) 1,634 1,388 1,831 1,675 2,059 2,433 2,240 1,776
Milk revenue per cow 493,660 419,063 585,563 513,200 577,679 640,923 560,786
Total cost of hay 679,800 1,930,000 2,030,000 3,150,000 450,300 213,000 166,950
Total cost of bran 511,000 2,053,996 2,117,000 2,304,000 310,000 441,000 195,000
Other feed cost 12,500 0 125,000 21,000 9,000 2,500 10,000
Total feeding cost 1,203,300 3,983,996 4,272,000 5,475,000 769,300 656,500 371,950
Feeding cost per cow 120,330 249,000 133,500 238,043 109,900 93,786 106,271
Gross margin 3,733,300 2,721,004 14,466,000 6,328,600 3,274,450 3,829,958 1,590,800
Other Direct Costs
Farm name Farm A Farm B Farm C Farm D Farm E Farm F Farm G
Water 25,200 84,000 60,000 36,000 90,000 24,000 20000
Detergents & cleaning materials 4,000 5,000 10,000 20,000 4,000 - 4,000
Cattle tax 18,100 58,000 20,500 12,000 1,500 - -
Repair of building - 500,000 100,000 - - - 100,000
Straw for cattle - - - - 6,500 -
DA membership fee - 12,000 - - - 12,000
Hired labour - 552,000 360,000 720,000 - - -
Artificial insemination - - 65,000 10,000 - - -
Veterinary services 126,000 71,500 185,000 300,000 102,000 50,000 45,000
Sub-total other direct cost 173,300 1,270,500 812,500 1,098,000 197,500 80,500 181,000
Other direct cost/cow 17,330 79,406 25,391 47,739 28,214 11,500 51,714
Net margin 3,560,000 1,450,504 13,653,500 5,230,600 3,076,950 3,749,458 1,409,800
Cattle sales + herd value change 272500 720000 1,115,000 675,000 1,585,000 500,000 625,000
Net margin per cow 356,000 90,657 426,672 227,417 439,564 535,637 402,800
Capital Investment Tg '000 4515 6664 18045 7835 3338 4597 2315
Return on Investment (%) 85 33 82 75 140 92 88
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Appendix 4: Farm Financial Survey Results, Income
Appendix 5: Stakeholder workshop
The workshop was organized by CPR on October 1st at the Mongolian State AgriculturalUniversity (MSAU).
The workshop agenda and list of participants are attached in Attachments 1 and 2respectively. The plenary session of the workshop discussed presentations by relevantGovernment, non-government and private sector representatives on pressing issues of dairyactivities in Mongolia.
Mr. Zandanshatar, Vice Minister for Food and Agriculture opened the workshop. Officials from the Ministry of Food and Agriculture presented on current policies and actions by the central Government in the area of dairy production and development of specialized dairy farming in Mongolia. Special attention was paid to the implementation status of the national program “White Revolution” aimed at supporting, among others, dairy farming. The presentation also touched upon the implementation of other programmes, such as “Food Safety” and “Superior Dams”.According to the presentations both central and local government bodies arecommitted to providing support to dairy development through creating favourable legal and business environments and linking up to international programmes and projects where feasible. The draft Farmer’s Law was introduced as a priority policydevelopment in building a conducive environment for the development of livestock production, especially intensive and semi-intensive farming. The presentationsattracted a large interest among the participants. Presentation on the currentimplementation status of the national programme “White Revolution” touched upon arange of organizational and management issues of improving dairy production. Theprogramme provided training and seminars to farmers engaged in dairy production and processing.
The Executive Director of a dairy processing company “GUM”, Co Ltd presented on the current advances in the dairy processing business in terms of the overall volume of milk processed and diversification of assortments along with existing problems the company faces. Addresses were made to the farmers on needs and challenges toimprove the farm gate quality of milk through proper cooling and primary quality assurance. The processors seemed to be deeply committed to improve both quality and nutritional standards of their products, if quality milk can be supplied in sufficient quantities. Issues of technological advancement and technical innovation were also critically stressed.
NGOs involved in milk production were represented by the Secretary of the Dairy Producers Association /DFA/, whose presentation focused on its policies and actionstowards efficient dairy farming and dairy production. It appealed to its memberfarmers and international donors to invest in the improvement of dairy herds and dairy infrastructure. It has remarked that best production options for dairy farmers are to improve the quality of dairy cattle through wider application of AI and other relevant techniques instead of efforts to increase animal numbers. Farmers were called upon to introduce better cooperation and coordination of their activities on major seasonal and strategic issues such as haymaking, range improvement and processing.
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Representatives of survey team members presented on the current financial situation of dairy farmers and on the farming efficiency of dairy production in Mongolia. An important conclusion made was that the efficiency of dairy farming in Mongolia is correlated with the number of cows and their productivity. It was concluded that farmers who keep over 20 cows, but not many than 40, can generate sufficient incometo maintain the farming operations while providing a reasonable standard of living forthe family. It was also stressed that the major focus of the future business andoperations of dairy farmers, under current circumstances, should be:
1. Reducing costs of haymaking and fodder by trying to avoid long distance transport and rejecting poor quality roughages;
2. A shift from strong seasonal calving to a year around calving in order to make better use of seasonal fluctuations in milk prices;
Key presentations are in Attachment 3. Dr. Peter McNeill, the Word Bank expert, who participated fully in the workshop and surveys, made the following remarks:
1. The dairy farmers participating in the financial survey showed very high profitability, expressed as a return on capital investment. The primary reason for this is that, particularly in winter and spring, farm gate prices for milk are very high by international standards.
2. As competition increases, price pressure is likely to increase and farmerswill need to improve herd quality, feeding and management in order to maintainprofitability.
3. Research and trials relating to the dairy sector will be important. Particular emphasis should be placed on undertaking trials on existing progressive farms and on ensuring that the results of the trials are communicated effectively to other farmers.No farmer will be efficient if he/she does not have access to professional advice.
4. The dairy-processing sector is fragmented and the raw milk testingsystems are below international standards.
5. The economic viability of any livestock farming is crucially linked with the market through the processing sector. Unless collection and testing systems are upgraded to improve the quality of the milk reaching the processors, the production of UHT long life products will be impossible and imports will continue to take a majorshare of the market, which otherwise would be served by Mongolian production.
Presentations of Working Groups
After the presentations by key speakers, the workshop participants split into thefollowing four working groups: 1. Land and fodder production 2. Breeding and milk production 3. Dairy processing and marketing 4. Support services (veterinary, banking, cooperative development and others)
The working groups, supported by facilitators, had extensive discussions on the subjects. During the work, farmers from different aimags and districts shared their experiences and skills to solve difficulties and problems they face. Groups offered touse the same format to prepare their presentations, which allowed them to compareacross groups outstanding problems, reasons and consequences, ways of solving and responsible organizations and persons. The working groups presentations are in Attachment 4.
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Attachment 1
Workshop Agenda
Title: Semi-intensive Dairy ProductionOrganizers: Ministry of Food and Agriculture and Centre of Policy Research /CPR/ Data: 01 October 2003 Venue: Academic Hall, Mongolian State University of Agriculture, Ulaanbaatar
Programme:
9.00-9.30 Registration 9.30-9.40. Opening, Dr.Zandanshatar, Vice Minister of Food and Agriculture
Key Presentations:
9.40-10.00. “Challenges and rationale for improving legal environment for farmingbusinesses” – Dr. Byne, Head, Policy Planning Division, MoFA 10.0-10.10 Questions and Answers 10.10-10.30. “Current situations of dairy production in township areas” – Mr. Donzoi, Secretary, Dairy Producers Association10.30-10.40 Questions and Answers10.40-11.0. Implementation of the National Programme “White Revolution” – Mrs. Tsetsgee, Head, Food Production Division, MoFA11.00-11.10 Questions and Answers11.10-11.30 Tea break11.30-11.50. “Agriculture development strategy and dairy production” – Dr. Enkh-Amgalan, Founding Director, CPR & Dr. Badarch, Director, School of Economicsand Business, MSUA 11.50-12.00. Questions and Answers 12.00-12.20. “Dairy Processing” – Mrs. Giimaa, Executive Director, “GUM” Co Ltd 12.20-12.30. Questions and Answers 12.30-12.50. “Economic indicators of dairy production” – Dr.Khandsuren, lecturer, MSUA12.50-13.0 Questions and Answers 13.00-13.10. Introduction of working group sessions 13.10-14.10. Lunch 14.10-15.30. Sessions by Working Groups 15.30-15.50. Tea break 15.50-16.40. Presentations of working groups 16.40-17.00. Wrap up & Closing
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Attachment 2: List of participants
No Name of participants Residence (sum/aimag) Occupation
1 Mr. Batsaikhan Sumber, Tuv Farmer
2 Mr. Enkhamgalan Sumber, Tuv Farmer
3 Mr. Montor Sumber, Tuv Farmer
4 Mrs. Tanchiv Sumber, Tuv Farmer
5 Mrs. Bayalag Saikhan, Selenge Farmer
6 Mrs. Altantsetseg Saikhan, Selenge Farmer
7 Mr. Nayamtseren Saikhan, Selenge Farmer
8 Mr. Batbaatar Saikhan, Selenge Farmer
9 Mrs. Altantsetseg Saikhan, Selenge Farmer
10 Mr. Lkhagvaa Saikhan, Selenge Farmer
11 Mr. Radnaabazar Jargalant, Ulaanbaatar Farmer
12 Mr. Ochir Jargalant, Ulaanbaatar Farmer
13 Mrs. Bolor Jargalant, Ulaanbaatar Farmer
14 Mrs. Ouyundulam Jargalant, Ulaanbaatar Farmer
15 Mr. Ulaankhuu Jargalant, Ulaanbaatar Farmer
16 Mrs. Zayat Jargalant, Ulaanbaatar Farmer
17 Mrs. Bulangerel Jargalant, Ulaanbaatar Farmer
18 Mr. Altansukh Jargalant, Ulaanbaatar Farmer
19 Mr. Jargalsuren Jargalant, Ulaanbaatar Farmer
20 Mr. Yadam Jargalant, Ulaanbaatar Farmer
21 Mrs. Chimgee Jargalant, Ulaanbaatar Farmer
22 Mr. Shoonon Jargalant, Ulaanbaatar Farmer
23 Mr. Lkhagvasuren Jargalant, Ulaanbaatar Farmer
24 Mrs. Ouyunchimeg Jargalant, Ulaanbaatar Farmer
25 Mrs. Suvdaa Jargalant, Ulaanbaatar Farmer
26 Mr. Jamyan Jargalant, Ulaanbaatar Farmer
27 Mrs. Uyanga Jargalant, Ulaanbaatar Farmer
28 Mrs. Ihtamir, Arhangai Farmer
29 Mr. Zandanshatar MoFA Vice Minister
30 Mr. Biney MoFA Division Head
31 Mrs. Tsetsgee MoFA Division Head
32 Mr. Donzoi Dairy Producers Association/DPA/
Secretary
33 Mr. Otgon UB City Municipality Officer
34 Mr. Otgonbold Free-lance consultant, surveyteam member
35 Mrs. Indra MSAU Lecturer
36 Mr. Badarch MSAU, survey team member Director of School
37 Mrs. Khishigdavaa MSAU Lecturer
38 Mrs. Khandsuren MUAU, survey team member Lecturer
39 Mrs. Indra MSAU Lecturer
40 Mrs. Giimaa “GUM” Co Ltd, dairy processing company and Association of Dairy Processors
ExecutiveDirectorPresident
41 Mr. Nyamdavaa Mong. State Univ. Lecturer
42 Mrs. Enkhjargal Mong. State Univ. Lecturer
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43 Mr. Peter McNeill World Bank Consultant
44 Mr. Erdenebaatar CPR Consultant
45 Mr. Enkh-Amgalan CPR Founding Director
46 Mr. Ganbayar CPR Consultant
47 Mr. Shombodon Mongolian BusinessDevelopment Agency
Consultant
Attachment 3
Key Presentations:
Rationale for developing ‘Farmers’ Law’Dr. Biney, Division Head, Ministry of Food and Agriculture
Practical rationale
1. Because of climatic changes and other challenges the traditional livestockhusbandry cannot be run effectively in the old ways.
2. Therefore there is a need for shifting to intensified/farmers form ofdevelopment and appropriate legal environment is crucial for achieving this objective.
3. There are grassroots level development initiatives that demonstrates the feasibility of such strategy shift, however, such initiatives are constrained by unfavorable legal environment.
Legal rationale
The ‘Key Directions for improving the legislation in Mongolia up to 2004’, the Parliament Resolution No 44, 2001 decided to clarify the legal environment regarding farmers by developing a new law .
‘Food and agricultural policies of the state’, approved by the Parliament in 2003 pointed out ‘to improve the legal environment especially with regard to the development of intensified livestock production’
Structure, relations to regulate and scope of the draft law
The law purpose is to regulate relations between state, citizens and legal bodies with regard to farmer’s husbandry
It has 6 chapters.
Chapter 1: General
It contains the purpose, terminology used and scope of relations to regulate. Terms‘farmer’, ‘farmer’s husbandry’, ‘family farmers’ husbandry’, ‘collective farmer’shusbandry’ was interpreted to give uniform understanding of these terms.
Chapter 2: Requirements for farmer’s husbandry and registration
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It contains information on eligibility criteria, documents required for registration and conditions for disqualification.
Chapter 3: Farmers’ husbandry
Farmers’ husbandry is a profit organization permanently engaged in agricultural production by the use of own asset, land possessed and/or used under contract but notregistered as a legal body. Farmers’ husbandry can be specialized in livestock or cropfarming or mixed involving both.
Chapter 4: Asset of the farmer’s husbandry
The chapter regulates relations on the registration of common asset of members of the farmer’s husbandry and rights and responsibilities of involved parties with regard to its utilization and inheritance.
Chapter 5: Plenary rights and responsibilities of state and local government
organizations with regard to farmer’s husbandry
The chapter deals with plenary rights and responsibilities of the Parliament,Government, local hurals and governors with regard to farmer’s husbandry
Chapter 6: Others
The chapter provides opportunities for farmers to engage in organizing own societies and NGOs and other formal entities thus protect own interests. In such cases the relevant laws shall applied in order to regulate the relations arisen.
Expected outcomes
1/ Conditions for better economic growth through fostering intensified livestock production shall be created
2/ Interests of citizens to transform their husbandry to the farmer’s husbandry shall be promoted and thus intensify agricultural production
3/ Number of taxpayers shall increase as the number of farmer’s husbandry increases
4/ Possibilities for supplying the domestic market with ecologically clean agricultural products shall be created
5/ Incomes of herders and crop producers shall increase
Compatibility with other laws
The draft law is being made compatible with the Constitution and the Civil Code and relevant changes shall be made to the Land Law, General Taxation Law and the Law on Taxation of Citizens’ Income.
Information on the implementation of “White Revolution” program for the seminar on “Semi-intensified milk production”
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Implementation of the National Programme “White Revolution” Mrs. Tsetsgee, Head of Food Department, Ministry of Food and Agriculture
Let me extend the best greetings to the participants of seminar,
First of all I’d like to thank you for enabling me to exchange my ideas and information on the topic, which is just on, time.
The Mongolian Government, while making the evaluation of production of milk and dairy products during the stage of transition to the market economic conditions and in order to set the ground for overcoming the problems facing in the production and supply of milk and dairy products of Mongolia, have adopted the National program on“White revolution” by the Decree No. 105, 1995.
The main purpose of this program was to improve the supply of milk and dairy products to the population through the means of recovering the traditions of milk and dairy production by employing the internal resources of animal husbandry, intensive development of milk production farms in the surroundings of bigger settlements,support of small processing plants and improvement of milk and dairy product’sdistribution system.
The National Committee on the coordination and control of program’simplementation was headed until year 2000 by the Minister of Agriculture. Inconnection with the changes in Government’s structure and composition, the membership of National committee was newly approved in 2001. Since 2003, all the councils and committees of programs being implemented in food industry were merged under one National committee by the Decree of the Minister of Food and Agriculture. At the side of the united National committee there have been appointed and is acting a task group consisting of representatives of NGOs, Governmentorganizations, research and training institutions with an objective of coordination of a program “White Revolution”. There are also the branch councils in capital city and aimags operating in accordance with approved annual plan and report according to approved forms.
The following is the brief review of certain achievements of past:
Our scientists consider that in the case if Mongolia uses 65% of milk resources, it will become possible to process every year the 330.0 million liters of cow milk, 75.0million liters of mare milk, 6.0 million liters of camel milk, 15.0 million liters ofsheep milk and 60.0 million liters of goat milk totaling 500.0 million liters of milkand to fully satisfy the average human requirement.
In the milk and dairy production Mongolians use milk coming from 5 different types of livestock and the traditions of making the Mongolian dairy products have been inherited from the very old times and being kept until present days. This is why, the production level of milk and dairy products is directly related to the situation with theanimal husbandry.
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During the 5-6 years after the privatization of livestock in 1992-1993, the number of livestock was increasing bringing in also the increase of milked livestock thus having affected the production of dairy products.
For instance, milk production in 1990 was 315.7 thousand tons and it was increased up to 369.6 thousand tons in 1995 and up to 375.6 thousand tons in 2000. However, in 2001 milk and dairy production was reduced almost by 20% to 290.6 thousand tons. The main reasons of such reduction in milk production is the fact that the animalhusbandry in our country is very much dependent on natural conditions, the level of intensification of husbandry is low and there were lost over 9.0 million of livestockduring the last 2 year’s natural disasters.
Because of particularities of livestock technologies, milk and dairy production has seasonal character thus making impossible to evenly supply the dairy products throughout the year. This is another problem facing us. For instance, almost 90% of milk and dairy production is produced during the spring and summer periods and only 10% in the wintertime.
There is significant difference in the consumption of milk and dairy products between cities and rural areas.
In accordance with sample requirement of human being, the are required on average 138.7 kg of milk and dairy products per year per person. In case of our country, average citizen consumed 118 kg of milk and dairy products in 1990, 125.5 kg in1995 and 100.8 kg in 2001. The average countryside person consumes 153.6 kg whereas in cities only 50.1 kg and these figures show that average rural person consumes 3 times more of milk and dairy products compared with people in cities.
Due to the fact that in accordance with complicated situation created by the transition to market economic conditions, normal operations of mechanized dairy farms have been stagnated thus causing the significant reduction of milk supplied for centralized use as well as the amount of processed milk. While there was supplied for centralizeduse to cities and settlements and for public use 61.5 thousand tons of milk in 1990 this figure was reduced to 1.8 thousand tons in 1995, 1.5 thousand tons in 2000, 1.1 thousand tons in 2001 and 3.4 thousand tons in 2002 and if compare milk production of 2001 with 1990, it was reduced by 55.9 times and if compare with 1995, reduced by 1.6 times and by 1.3 times if compared with 2000. However production started to grow since 2002 and reached 3.1 thousand tons as of first 8 months in 2003.
Imports of milk and dairy products are continuously increasing. There were importedin 1990 1223.8 thousand tons of milk and dairy products amounting US$ 1068.8 thousand, in 1995 were imported 3572.1 thousand tons amounting US$ 1730.4 thousand and in 2001 the 6752.8 thousand tons of dairy products amounting US$ 4318.9 thousand. If compare the amounts of imports in 2002 with 1995, there were imported 5414.2 thousand tons of dairy products more for the sum of US$ 2968.2 thousand.Mongolia used to produce every year the 4.0-5.0 thousand tons of butter and export the exceeding amounts of butter, whereas the butter production during the last 10 years period was reduced by 10 times and there were produced only 494.7 thousand tons of butter in 2002.
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This is why the Government is paying attention to the intensification of animalhusbandry, improvement of national capability of overcoming the negative impacts of nature and introduction of settled intensified animal husbandry based on intensive technologies at the economically and ecologically appropriate locations. There were approved the important policy documents such as “State policies on food and agriculture” by the Decree No. 29 of the Parliament in June 2003 and “Program on the development of intensified animal husbandry” by the Decree No. 160 of theMongolian Government.
However, there were not made significant improvements in this matter. The reason is in the fact that due to weak financial capability intensified and specialized milkproducing facilities can’t be established and there have not been established yet the efficient system for production, distribution, delivery and sales of milk and dairy products as well have not been set the market environment giving incentives to increase production.
There is a challenge for this industry to further increase production of milk and dairy products, satisfy the local demand, enhance the processing level to meet the export requirements and introduce new products. Such issues like the expansion of research activities on milk and dairy production, introduction of industrial production based on traditional methods and technologies as well as the introduction of results of scientificand research activities in production are getting of utmost importance.
It is necessary to develop the intensified dairy farms, increase the investments in theappropriate conditions for establishing the small and medium sized milk-processingplants in rural areas and to train the experts and skilled employees and the certainactivities have been performed.
White Revolution Program Objectives for 2002-2004
- to pay the primary attention to supporting the establishment of small and medium sized milk processing plants and farms in the surroundings of cities and settlements through the means of credit and financial policies and involvement in domestic and foreign programs and projects,
- to elaborate the sample project on the establishment of milk processing plants for children in aimags and sums and on the establishment of small milkprocessing plants at hot ail and family levels.
- to improve the information system on production and increase the quantities ofprocessed milk products by 10 times compared with the base year.
The present level of milk and dairy products manufacturing, pending problems
and the ways to overcome them
H. Giimaa, Director of “GUM” Co. Ltd
Despite milk and dairy products play an important role in the food of Mongolians they differ depending on geographical locations, economic zones, production level, and settlement pattern of the population and particularities of use.
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Until 1990, during the centrally planned economic conditions there were operatingmany dairy farms with milk cooling systems which used to collect and process morethan 50 million liters of milk each year for supply to the cities and settlements and public consumption.
The main reason of a reduction of milk processed by industrial method is in the fact that mechanized dairy farms became unable to operate in market economicconditions, the veterinary system collapsed, the number and productivity of cows has been reduced and the appropriate system on the delivery of raw milk to the centralizedmarkets, collection, quality protection and transportation is missing thus causingserious problems for milk processing plants.
Despite the number of small milk processing plants tend to increase since 1991, their production face limitations due to the lack of working capital. It can be said that thepresent situation with milk processing industry in the Ulaanbaatar city defines the tendencies of the development of milk production throughout the Mongolia.
In accordance with our information, there are operating besides of milk processingplants of Ulaanbaatar city a few small capacity milk plants in Selenge and Tuv aimagsand the Erdenet city and it is evident that they are highly dependent on the marketconditions.
Given the continuously increasing population of Ulaanbaatar city year by year, there is emerging requirement to increase the milk and dairy products’ supply to the city and to intensify the development of processing plants.
Requirements for milk and dairy products in Ulaanbaatar city
Content Averagerequirementperson/day(grams)
Totalrequiredper year (kg)
Populationof UB city ‘000
Coefficientof transfer of averagerequirement
Totalconsumptionrequirementin UB city (000’ tons)
Milk anddairyproducts
380 138.7 812.5 0.917 103.3
If based on average requirement for milk and dairy products per person, theUlaanbaatar city would require 103.3 thousand tons of milk and dairy products per year. But in accordance with statistical data from 2001, the milk production was only1.2 thousand tons, which means that the domestic production is 86 times less than the requirement for milk and dairy products. The following Table shows the requirementsfor milk and dairy products in the Ulaanbaatar city.
Milk and dairy products to UB city is delivered from 3 sources:
1. Products from local milk producers The small plants for milk processing operating in UB city processes over 10 tons of milk per day in average, produces from the milk the purified milk, different types of
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yogurt, cream, sour milk, curds and butter and sell their products occupying around 50% of the market. These plants distribute their retail packed products in 100-1000 grams in paper, plastic bags and cups suitable for human consumption and this is one of successes achieved in last 3-4 years. They import the packing materials from Russia, China and Korea according to their own design and here they face thenumerous problems. The problems related are the high transportation and customduties for importation of packing materials due to the lack of production locally, impossibility to place orders for small quantities of packing materials and the shortageof cash to pay. The hand labor is prevailing in the technological process of milk and dairy production. Another problem is that the main technological process of heating and cooling of milk is being done on outdated equipment produced in Russia in 1970-80’s.
There were established over 100 farms in Ulaanbaatar, Tuv, Selenge, Uvs and Bayan-Ulgii aimags under the “Reorganization of milk industry” project by the Danida of Denmark in the period of 1992-1994 and many of these farms process milk or deliver their products to small and medium milk processing plants which makes certain contribution to the supply of milk to UB city.
Due to the fact that sales of milk and dairy products decrease in the summer time due to the increased supply of milk and the prices increase in winter and spring times due to reduced supply and the suppliers request to pay every time by cash for supplied milk, the processing plants always have the shortage of working capital to buy raw materials and packing materials.
It should be noted hereby that the cow milk is exempt from the Value added tax as the primary agricultural product in accordance with the Law on Value Added Taxes. However, even with the purchase of tax-exempt raw materials for cheaper price, it isstill being difficult to become economically sustainable due to the continuous lack of working capital.
2. The private sellers of milk (this is the group of people living in the suburbs of
city, having livestock and selling their milk and dairy products on the food
markets, apartment districts and on the streets without being involved in any
sanitary control).
Due to the fact that there are being sold milk and milk products from animals affectedby different infectious deceases which can be transferred to the people, the number of people affected by brucellosis is increasing year by year and if compare 1995 with 2001, the number of affected people increased by 2 times.
3. The imported milk and dairy products. Dried and condensed milk, different types of cheese, yogurt, ice cream are being imported by economic entities and individuals making obstacles in the recovery and development of domesticproduction. If compare the imports of 2001 with 1995, the amounts of imported milk and dairy products increased by 5.5 times.
The following activities are proposed to be implemented for the development of milkproduction.
53
There is a need for the policy and regulations from the Government forestablishing the market oriented system on the supply of milk and dairy products to the people by appropriate use of existing resources (different types of taxes)
To set the nucleus herd of pure milk breed cows. Improve the quality and productivity of milk breed cows (insemination through the means of advanced methods)
To set the foundations of fodder supply system. (growing of juicy fodder, preparation of silage and forage and haymaking).
To organize the transportation of milk during the milk production period in special vehicles equipped with cooling and preservation equipment.
To introduce the advanced techniques and technologies for heating, purification, cooling and packing of milk and dairy products at processing plants.
To provide the milk producers and processors with the possibility of having the reserves of working capital
The present situation of financial capabilities of dairy farms S. Khandsuren, a CPR team member
A. Demand for milk and supply
The biggest demand for milk and dairy products in our country is in the bigger cities and particularly in Ulaanbaatar city.
From among the residents of capital city, there are around 70 thousand children in the age of 0-5 and 70 thousand retired person who need to consume milk every day plus if we add to this number the over 150 thousand people whose working conditionsrequire the daily usage of milk, the total number of 300 thousand people require the and dairy products on a daily basis.
This is equal to 40% of capital city’s population. Besides, in accordance withincomplete information, there have been registered around 18 thousand half orphans, 3500 infants who are fed by milk due to the lack of maternity milk and 4000 infants are suffering from low weight.
In accordance with the study conducted by the Food Research Center of the Ministryof Health and Social Protection and the Ministry of Labor and Social Welfare, among70 thousand children of age 0-5 who need the milk on daily basis, 10% are weakened due to the shortage of dairy feed and the 13% are receiving the feed below norms.According to the study 40% out of 20 thousand infants below the age of 3, who areunder the control of doctors were affected by the fundamental diseases due to theshortage of proteins and caloric food.
Out of 70 thousand retired people living in the capital city, almost 60% suffer from the chronic stomach, intestines, liver and gallbladder diseases. It can be seen from these figures that there is the serious need among infants and retired people for nutritious and caloric food and particularly for milk and dairy products.
54
However, the “Suu” company of Ulaanbaatar city, the plant for processing of milkand dairy products for children and other smaller dairy plants all together process theonly 2 million liters of milk per year meaning the reduction by 30 times compared to 1989.
If consider that an average person needs 130 liters of milk per year, it will be necessary just for Ulaanbaatar city 97.5 million liters of milk every year which meansthere should be supplied 267 thousand liters of milk every day. It is necessary to secure the major part of this requirement from local producers and reduce the importsof packed, condensed and dried milk as well as of other dairy products.
Originally, in 1953 there were received from the former Soviet Union bulls of yellowspotted, black-white and steppe red milk breeds and grew the cross-breeds from them for the purpose of milk production. Then, in 1970’s were brought many of three year old milk breed cows and grew them as pure breed.
In 1964, operations were started in the mechanized farms for milk production, supplying their produce to Ulaanbaatar, Darkhan, Erdenet and Choibalsan cities. In 1986 -1989 49 dairy farms operated with around 18.4 thousand cows supplying milkto these 4 cities. 39 farms operated with total of 12800 cows supplying 50-55 millionliters of milk per year to Ulaanbaatar city alone.
As the result of the strict following of technological norms on the maintenance,feeding and pasturing of milk cows, there were received every year the 2600-3200 liters of milk from each black-white cow on average, 1900-2000 from yellow spotted and 2200-2400 liters from steppe red breeds averaging in total 2546 liters from each cow.
In the process of privatization of mechanized dairy farms and restructuring them into joint stock and private companies the number of dairy cows has significantly reduced, all the technological norms and rules disregarded and cows were kept in almostpastoral conditions thus suffering from significant losses and due to the freezing of the supply of silage and other fodder, the milk outputs were significantly reduced.
In general, in accordance with the statistical data, there are remaining around 1700milk oriented cows in Ulaanbaatar city, 500 in Selenge aimag, and 20-300 each in Darkhan Uul, Sukhbaatar and Bayanulgii aimags totaling 2500.
B. The financial situation of milk farms
There have been emerging in recent years small farms with the smaller number of cows, shelters made of wood, without special heating, preparing forage and fodder by own means and supplying milk to certain places under agreement.
For instance, there are operating the 28 family farms in surroundings of the formerNariin farm, the Batsumber sum of Tuv aimag. There are in total operating around 150 the same kind of small farms in the Gachuurt and Jargalant districts of the Ulaanbaatar city and elsewhere.
55
Some of them are interested in primary processing activities such as milk cooling andproduction of ice cream and trying to introduce this practice.
In our study we have divided the farms into 2 groups based on the number of cows.The 1st group is the farmer families with less than 15 cows and 2nd group are with more than 15 milk cows. There were involved 4 family farms in 1st group and 3 family farms in 2nd group.
These farms have increased the number of cows in 2003 by 16.7% and number of milking female cows by 9.7% and the number of breeding age cows accounts for 48.3% of total animals.
This shows the tendency of strengthening of milk oriented entities and businesses.The following shows the assets structure of dairy farms.
Table 1: Asset structure of dairy farms
Number of cows per farm Indicator
< 15 15 >
Average per farmer family
Number of families involved in study 4 3
Number of cows, average 22 49
- out of this: number of milking cows 7 24 16
Livestock 2267.5 7183.3 4725.4
Other 2342.4 4699.7 3521.0
Total assets (000’ Tug)
Total 4609.9 11883 8246.5
Livestock 49.2 60.5 57.3
Livestockproduction
50.8 39.5 42.7
Total assets (%)
Total 100 100 100
In average, one farmer family has 4725.4 thousand tugrug of assets, 57.3% of totalassets occupy livestock and 42.7% - the fences and buildings for livestock related production.
Table 2: Production of milk by family farmers
Number of cows per farm
Indicator
< 15 15 >
Average per farmer family
Number of families involved in study 4 3
No. of cows, average 22 49 36
Out of this: No. of milking cows 7 24 16
Milk, 000’ liters 15.4 41.3 28.4
- own consumption 1.5 1.5 1.5
- sold 13.9 39.8 26.9
- ratio of sales 91.1 96.4 94.7
Productionand sales
3-year-old cows. heads 3 2 2.5
From milk 4220.5 13375.7 8798.1
From meat 50.0 345.0 197.5
Revenues‘000 tug
Total 4272.5 13720.7 8976.6
56
The family farms engaged in milk production are getting 99.5% of total revenues from the sales of milk
Around 70% of expenditures of dairy farms are the fodder related expenses.
70% of total fodder is hay and 30% - bran. The main source of feed for milk cows isnatural hay and the 60.1% of total hay is prepared by farmers themselves. The cost of preparing 1 ton of hay by own means is 26,826 Tug whereas buying 1 ton of hey would cost 45,757 Tug meaning 18,931 Tug more.
This is why it is important to prepare the hay by own means. Main problems facing the preparation of hay is lack of hayfields and lack of necessary equipment. 37.4% of total costs related to the preparation of hey falls under the transportation costs.
14.3-24.4% of total expenses of farmers are transportation related costs. Once day milk should be delivered to customers or contracted processors by using the UAZ van. Artificial insemination and veterinary service related costs occupy 3.9% of expenses, whereas the tax, fee and other expenses occupy the negligible part.
The table below shows that family farms with smaller number of cows get more profitfrom each cow whereas farms with higher number get less profit. It would be possibleto assume that this is related to the ability and skills of farmers and their age, becausethe farmers with fewer cows are usually young families.
Table 3: Operational expenses of dairy farms
Number of cows per farm
Indicator
< 15 15 >
Average per farmer family
Fodder 641.8 4679.3 2660.55
- silage
- hay 277.5 2472.3 1374.9
- bran 364.3 2207 1285.65
Veterinary service, insemination
114 210.5 162.25
Taxes and fees 9.8 30.2 20
Salaries and wages - 544 272
Transportation 384.8 960.3 672.35
Misc. 11.6 275.7 143.65
Expenditures
TOTAL 1161.6 6700 3930.8
Animal fodder 66.9 69.8 69.3
Veterinary service, insemination
7.2 3.1 3.9
Taxes and fees 0.6 0.5 0.5
Salaries and wages 0 8.1 6.6
Transportation 24.4 14.3 16.3
Misc. 0.7 4.1 3.5
%
TOTAL 100 100 100
57
The following table shows the productivity of one cow
Table 4: Per cow productivity
Number of cows per farm
Indicator
< 15 15 >
Average per farmer family
Number of families involved in study 4 3
Number of cows, average 22 49 36
Out of this: number of milking cows 7 24 16
Milk yield per cow, liter 2091 1631 1916.5
Revenues per cow, ‘000 tug 610.4 559.2 570.4
Expenses per cow, ‘000 tug 165.9 279.2 253.6
Profit per cow, ‘000 tug 444.4 280.0 317.1
Also the fact that the farmers with 15 and more cows are usually buying fodder from outside increasing total expenditures and reducing the profit from each cow.
The fact that cows are at present milked by hand makes it difficult to handle for bigger farms. Based on above study, there was defined the financial capability offarmer husbandries.
While assessing the financial capability the level of satisfaction of family’s livingstandard was also considered.
Table 5: The economic capability of family farms engaged in milk production,
‘000 tug
Grading AverageNo. of cows
Revenues Expenses Profit Evaluation ofeconomiccapability
< 15 cows 8 4220.5 1161.6 3058.9 Weak
15 > cows 24 13375.7 6700.0 6675.7 Good
The main reason of evaluating of smaller farms as ‘Weak’ is in the fact that the profit from the farm with less than 15 cows can cover only the consumer expenses and thereare limited possibilities to make the accumulation of capital and expand the scope of production.
Te following matters is proposed based on the results of the study: 1. Every farm should keep the records of family’s revenues and expenses on a
monthly basis and make calculations 2. It is necessary for farms with big number of cows to use the electric milking
equipment in order to lighten their work 3. The bank and financial institutions should review policies on loan collateral
for farms. The reason is that for instance the KHAAN bank imposes requirement to mortgage at least 350 sheep-units in order to release a loan, the
58
Mongol Shuudan bank – at least 150 sheep-units which offers the limitedpossibilities to get the loan by farmers with less animals.
4. It becomes necessary to give into possession or ownership of farmers pastures and hayfields
59
Attachment 4
Working group presentations
1. Working group I - Land and fodder production
No Outstandingproblems
andchallenges
Reasons andconsequences
Ways of solving Organizations
and responsible
1 Lack ofcampingland(holding)
Limited sizeand distant location of properhayland
Lack ofproductivepastures,degradation
Lack ofcrop fieldsto growfodder
No opportunitiesfor the farmers toextend their holdings on the land theypossess.
Farmers can pay for additional landobtained
Land becomes a limiting factor forbetter herddiversification andgrowth
No opportunities of making wells due to limited size of land
High costs offodder utilized
Animals cannot get enough feed
Declined milkyield
Lack of water for irrigation
No fencingmaterials
Lack of seed for fodder growing
Make entries to new law on farmers to make sure that farmershave access to proper size and quality land for campsite, hay and fodder growing
Make amendmentsto the existing landlaw to make itcompatible with thereviewed law on farmers
Improve legal environment for dairy farming
Soums need to properly use the existing potentials of land
Make sure that farmers can possess hayland
Set up inter-farmcooperative on haymaking
Make sure thatfarmers can possess pastureland
Rehabilitate/makewells
Provide good seeds of fodder crops
Fencing fodder crop fields
Farmers
MoFA
Farmers/DPA
Sum/districtadministration
Localstakeholders
60
2 Fodderproduction
Not enoughhayland for farmers
Poor yield andproductivity ofhaylands
Lack of goodquality of fodder crop seeds
Less/lack ofproperly-sizedirrigation and working machineries
Lack of appropriate technology of high quality feed
Soft loans andproject loans
Set up fodder fund at DPA
Cost sharingmechanisms 80% by donors/projects and 20% by farmers and other contributors
Donors/aidproviders
Commercialbanks
Farmers
3 Loans Long-term softloans not available for farmers
Study and adoptInner Mongolianexperiences on soft loans to farmers
DonorsLocal
governmentDPA/Farmers
2. Working group II - Breeding and milk production
No Outstandingproblemsanddifficulties
Reasons andconsequences
Ways of solving Organizations andpersons responsible
1 Poorquality andlessnumbers of good dairy bulls
Inferior herdbreed andproductive quality
Poor semenquality and notmeeting standards
Depleted dairyyield
Improve cow herd Re-establish
national semen pool Set up inter-farm
farm for raisingsires/dams
Farmers
MoFA
Farmers/DPA
2 Insufficientfeed for breedingstock
Not possible to raise good pedigreestockDepletedmilkproductionFrequent fat cowsyndrome
Supply of silage cropseedSupply of efficientsilagemachineriesDevelop/testnew feedformulas
Farmers/MoFA
Mongolian State Univ. of Agriculture(MSUA)/Extension center, MoFA
61
3 Poorfunctioningof breeding service at aimag and sum level
NoregulatoryandorganizationalmechanismsPoorprofessionalassistanceandguidelines
Improvefunctions of aimag and sumextensionservices toserve farmersFarmers to runcooperativeservicesRe-establishdairy zones (at aimaglevels)
StateVeterinary/Breeding Authority FarmersMoFA
4 Increasedmilkproduction
ImproperhousingConstrainingwater supply Strongseasonalityinproduction/business
Developdairy housing Rehabilitationof existing non-operationalwellsShift to yeararoundcalving
Farmers/DPAMoFA/farmersFarmers/DPA
5 Poortraining and informationnetworking
No proper technological innovation in place Poormanagerialand business performanceof farmersWeakmarketingand breed improvement practices
Increasedtraining on technologyadvancementand business managementTrainbusiness/technologyadvisers for dairy farmers
MSUA/ExtensionCentre, MoFAFarmers/DPA
3. Working group III - Dairy processing and marketing
No Reasons andconsequences
Ways of solving Organizations andpersons responsible
Outstandingproblems and difficulties
62
1 Poor packingand labeling
Noguaranteedquality
No adequate materialsavailable
Low price of unpackedproducts
Lowquality of unpackedproducts
Build up diary pack plant
Establish dairyquality laboratory
Increasedadvertisement
Extended training and demonstration
Farmers
Farmers
Farmers/DairyProducers Association(DPA)
Farmers/DPA
2 Inferior andoutdated dairy processingmachinery
No good productsDepletedqualityofproductsPoormarketing
Improved input supplyMaintenanceservice
Farmers/MoFA
Businessdelivers
3 Transportation Poorquality of raw milk
Poorhygiene and quality
Supply of dairy transportation lorries
Strict timing and routes
Suppliers
Farmers/shops
4 Advertisement Poormarketability
Poordurability ofproducts
TVNewspapersRadioProducers/processors
Farmers/DPoA/DPA
5 Improperfunctioning of sell points andprocessingplants
Not enoughliquid milkbought
Not manyconsumers
Build up plants and selling points
Owners of plants DPA
6 Training Poor skills Poor quality
of products No proper
informationflow
Training andseminars
DemonstrationsManual and
publishedmaterials/hand-outs
DPoAFarmers
4. Working group IV - Support services
No Outstandingproblems anddifficulties
Reasons andconsequences
Ways of solving Organizations andpersonsresponsible
63
1 Poor watersupply in certain dairy farmingareas
Suffering fromlow quality water
Long distancewalking forproductive animalsto get water
Lack of water for other use such as crop irrigation and drinking
Conductgeological survey to discover deep water sources (MNT 15m is needed)
Re-establishnational semen pool
Set up inter-farmfarm for raisingsire/dams
Shared by farmers (10%) anddonors/government (90%)
2 Poor and lessmanageablebanking service(short-term, high interest rate, etc)
Difficulties inmaking enoughhigh quality feed
Lack of sourcesto buy new and improved machines and facilities
Central/localgovernment/donorcontributions
Long-term softloans (15-20%annual interest, 3and more years)
New loan products for farmers
Central and local government
Internationaldonors/aidproviders
Commercialbanks
3 Poor quality of commercialveterinaryservices
No timelyservices
Poor efficiencyin preventingparasite andinfectious diseases
Improve qualityand outreach of sum and districtveterinary service
Better cooperation with privateveterinary services
Sum and district veterinary services
Farmers
4 Poor and lesssustainablecooperationbetween farmers
Lack ofoperational andefficientcooperation onmain activities suchas haymaking and dairy processing
Set up inter-farmhaymaking team/s(MNT 6 m isneeded)
Set up inter-farmmilk processingplant/s (MNT 10 mis needed)
Provide loans to farmers tosolve these on their own
5 Input supply Lack of farminput supply
No facilities,equipment readilyavailable
Set up farm input supply
Farmers with assistance from donors/government
64
Ap
pen
dix
6:
LIS
T O
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SS
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uild
ing
of
“Ard
yn E
rkh”
ne
wspaper
Re
nt
Ba
ya
rma
gn
ai
Ta
x-
Su
kh
ba
ata
rd
istr
ict
353745
Sta
tistics-
Su
kh
ba
ata
rd
istr
ict
2“Z
EC
H”
Co.,Ltd
2000
Pa
ste
uri
ze
dm
ilkC
ream
Yogu
rt:
4
typ
es
Dry
milk
: R
ussia
“S
uu
sh
im”
Co
.,L
td
Ra
w m
ilk:
Gachuurt
Ye
ast:
Ha
nse
n
50
0-6
00
ltr
N
o t
ech
no
log
ist
6 w
ork
ers
10
th h
oro
o,
Bu
ildin
g o
f “K
ha
ng
al
bugat”
Co
.,Ltd
10
0 m
2 –
re
nt
M.E
rde
nch
ime
g91919901
353947
Ta
x-
Su
kh
ba
ata
rd
istr
ict
Sta
tistics-
Su
kh
ba
ata
rd
istr
ict
3“U
laanbaata
r suu
” C
o.,Ltd
M
arc
h 2
00
2
Pa
ste
uri
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dm
ilkY
ogu
rt:
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mily
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ity
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tura
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ussia
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aw
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achuurt
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orn
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ast:
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ssia
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ug
ar:
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ssia
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acka
ge
: R
ussia
4 t
n /
1.5
tn
3
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ch
no
log
ists
T
se
tse
gm
aa
6 w
ork
ers
1st h
oro
o,
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ildin
g o
f “B
olo
r O
ch
”C
o.,
Ltd
80 m
2 -
rent
B.T
sere
n99116526
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Ta
x-
Su
kh
ba
ata
rd
istr
ict
Sta
tistics-
Su
kh
ba
ata
rd
istr
ict
4“M
on
tara
g”
Co
.,ltd
2000
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rt300
ltr
3rd
horo
o,
5th
mic
rod
istr
ict,
Blo
ck 6
4
35
m2
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wn
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.Zo
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al
315237
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tistics-
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.,L
tdJa
nu
ary
20
03
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ogu
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am
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ste
uri
ze
dm
ilk
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milk
: R
ussia
2
tn
/ 3
00
ltr
T
ech
no
log
ist
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img
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ork
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10
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o,
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ildin
g o
f “C
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o.,
Ltd
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en
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ran
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Ta
x-
Sta
tistics-
66
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me
ofco
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an
y/d
ate
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ent/
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rodu
cts
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teria
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pp
lyC
apacity
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ay
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fessio
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rkers
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ss
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ne
Tax,
sta
tistics
CH
ING
EL
TE
I D
IST
RIC
T
1“M
on
ge
ra”
Co
.,ltd
1998
Ice
cre
am
D
ry m
ilk:
Ru
ssia
S
ug
ar,
vita
min
, va
nill
a,
ca
ca
o,
co
ca
s,
ch
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late
fla
vo
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gs.
10
00
pcs
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ork
ers
2
nd h
oro
o,
B-
21
, A
pp
-2
87
m2
- o
wn
B.A
ma
rja
rga
l99113721
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Ta
x-c
ity
Sta
tistics-
Ch
ing
elte
id
istr
ict
2“B
old
sa
ikh
an
”C
o.,
ltd
2001
Yogu
rtfr
uity
Dry
milk
: R
ussia
S
ug
ar,
esse
nce
, ye
ast,
fru
it s
yru
p
23
0 ltr
5
wo
rke
rs
3rd
horo
o,
bu
ildin
g o
f “M
an
du
kh
ai”
ho
tel
ren
tC
h.T
se
nd
jav
Ta
x-C
hin
ge
lte
id
istr
ict
325637
99186917
Sta
tistics-
Ch
ing
elte
id
istr
ict
BA
YA
NZ
UR
KH
DIS
TR
ICT
1“K
hash-U
nd
ur”
Co.,ltd
2000
Yogu
rtF
ruity
Dry
milk
: R
ussia
S
ugar
Te
ch
no
log
ist
G.O
yun
delg
er
4 w
ork
ers
16
th h
oro
o,
next
to T
sT
P-
2
45 m
2 -
ow
nD
aribazar
Oyu
nd
elg
er
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56987
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x-
Ba
tan
zu
rkh
dis
tric
tS
tatistics-
Ba
ya
nzu
rkh
dis
tric
t
2“T
senguun E
rde
ne”
Co.,Ltd
1998
Yo
gu
rtD
rym
ilk1
3th
mic
rod
istr
ict,
bu
ildin
g o
f sch
oo
l n
o.8
4
ren
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dg
ere
lE
nkh
ba
t99187957
324136
Ta
x-
Sta
tistics-
3“S
uu
Vit”
Co
.,ltd
1998
Yogu
rtP
aste
uri
ze
dm
ilk
5 t
n /
1 t
n
12
th
mic
rod
istr
ict,
Se
rvic
e c
en
ter
ren
tS
.En
kh
bo
ldT
ax-
99117373
95958374
Sta
tistics-
4“A
lta
n k
hu
nd
ag
a –
Och
”2001
Ferm
ente
dm
ilk o
f co
w13
th h
oro
o,
bu
ildin
g o
f sch
oo
l n
o.5
5
ren
tO
yu
nch
ime
gT
ax-
45
01
51
Sta
tistics-
5B
.Ayu
sh
jav-p
riva
teentr
epre
neur
Ap
ril 2
00
3
Yo
gu
rtD
ry m
ilk:
Ru
ssia
2
5 k
g
1 w
ork
er
16
th h
oro
o,
72
nd v
illa
ge
, no.1
03
ren
tB
.Ayu
sh
jav
Ta
x-
95
15
17
38
Sta
tistics-
6“N
& R
” /
“Khat
Khule
g”
Yogu
rt25 k
g
16
th h
oro
o,
72
nd v
illa
ge
, no.1
03
ren
tE
nkh
ba
t99148691
Ta
x-
Sta
tistics-
67
No
Na
me
ofco
mp
an
y/d
ate
of
esta
blis
hm
ent/
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f p
rodu
cts
Raw
ma
teria
lsu
pp
lyC
apacity
pe
r d
ay
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fessio
nal
wo
rkers
Ad
dre
ss
Siz
e,
pro
pert
yty
pe
Dire
cto
r,p
ho
ne
Tax, sta
tistics
SO
NG
INO
KH
AIR
KH
AN
DIS
TR
ICT
1“S
UU
” S
ha
reh
old
ing
Co
. 1985
Dri
ed
cu
rds
Cu
rds f
rom
so
ur
milk
C
ream
,yo
gu
rt,
milk
/d
ry,
pa
ste
uri
ze
d,
with
ho
ne
y,
ch
oco
late
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d
nu
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us/
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lostr
um
s
Ra
w m
ilk:
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n,
Alta
nb
ula
g,
Ba
ya
nch
an
dm
an
i,B
ats
um
be
r
Dry
milk
: R
ussia
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on
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it
co
nce
ntr
ate
,Y
ea
st:
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ssia
flo
ur
20
0 t
n /
10
tn
T
ech
no
log
ist
B.U
su
kh
jarg
al
La
bo
ur
Un
ion
str
eet
- 37
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njid
ma
aT
ax-
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ng
ino
kh
air
kh
an
dis
tric
t99116833
631901
631954
2“S
uu
Sh
im T
rad
e”
Co
.,ltd
Ju
ne
20
02
Y
ogu
rtW
ith
ho
ne
yD
ry m
ilk:
Ru
ssia
hone
y2
5 k
g
Te
ch
no
log
ist,
2
wo
rke
rs1
st
mic
rod
istr
ict,
blo
ck n
o.2
ren
tD
.Su
kh
ba
ata
rT
ax-B
aya
ng
ol
dis
tric
t99167780
3“N
ZM
-Fo
od
” Jo
int
Sto
ck
Co.
2003
Pa
ste
uri
ze
dm
ilk /
tetr
a
pa
ck/
Dry
milk
: N
ew
Ze
lan
d1
5.0
Te
ch
no
log
ist
S.T
se
tse
eh
en
Blu
e S
ky
str
eet-
5,
Ula
anbaata
r -
49
rent
631401
91113101
Ta
x-
Sta
tistics-
KH
AN
-UU
L D
IST
RIC
T
1“B
at-
Oyu
”C
o.,
ltd
2002
Ferm
ente
dm
ilkp
acka
gin
g
“Tenge
r”U
niv
ers
ity,
1144 m
2 -
rent
st
flo
or
Tsere
nn
yam
342815
Ta
x-K
ha
n-U
ul
dis
tric
tS
tatistics-K
ha
n-
Uu
l d
istr
ict
2“K
ha
an
kh
un
s”
Co
.,ltd
Octo
ber
2002
Yogu
rtP
aste
uri
ze
dm
ilk
Ra
w m
ilk /
ow
nfa
rm/
Ye
ast:
Ha
nse
n
20
0-4
00
ltr
T
ech
no
log
ist
–
Ga
nch
ime
g3
wo
rke
rs
Bu
ildin
g “
5erd
ene
” co.
1st f
loo
r
144 m
2 -
rent
Ganta
ivan
342236
Ta
x-
Sta
tistics-
68
Appendix 7: Some policy recommendations in the light of the
implementation of the Government’s key policy directions2
Making amendments to the existing land law to make it compatible with the reviewedlaw on farmers
The findings of the survey and the workshop found that dairy farmers lack an access to adequate size and quality land for undertaking their businesses. This reflects (i) weaknesses of the existing land legislation; (ii) lack of the understanding of the new land law and subsequent incapability of both farmers and local administrations to fully realizeits potentials.
The Program for Promoting Intensive Livestock Production /PPILP/ aims to ‘makeamendments to the land law to ensure individuals and entities engaged in intensivelivestock production can possess pasture and hay land’/5.1.1/.
Policy recommendation:
Therefore, it is recommended that the following changes be made to the relevant articlesof the land law:
Article 52.5
Use fenced pastureland all year round regardless the season by citizens, economic entitiesand organizations for purposes of undertaking intensified settled livestock husbandry and raising domestic (other than traditional) animals
Article 52.5 amended
Pastureland can be possessed all year round regardless the season by economic entities and organizations can for purposes of undertaking intensified livestock husbandry and raising domestic (other than traditional) animals
A word ‘fenced ’ is deleted because fencing pastureland especially summer and autumnpastures should not be condition at least in some places for granting possession right.
Article 53.2 Soum and Districts Governors allocate annually territories potential for haymaking to citizens, economic entities and organizations for use based on the Bag, Khoroo Public Khural proposals, and ensure their proper implementation
Article 53.2 amended
2 Based on the findings of the survey and stakeholder workshop
90
Soum and Districts Governors allocate annually territories potential for haymaking,except for territories contracted for possession or use, to citizens, economic entities and organizations for use based on the Bag, Khoroo Public Khural proposals, and ensure their proper implementation.
New article
Hayfields can be possessed by economic entities and organizations for purposes of undertaking intensified livestock husbandry
Making amendments to the land law is complicated and time-consuming process.Therefore, empowering farmers and local administrations to effectively apply the existing land law through improving their understanding is important in the short-term.
The seminar showed that farmers are not well aware of their rights with respect to land possession and use and some of the problems can be settled within the existing land law.
The following articles of the law need to be clearly understood and applied:
Possess freely a homestead area up to 0,07 ha and up to 0,1 ha for cultivatingvegetables, fruits, berries and agricultural plants /29/
Except for land specified in 29.1 citizens can possess freely land for growing vegetable, fruits and other cultivated plants up to 0.1 ha
Possess with privileged right crop land up to 100 ha for growing cereals and up to 5 ha for growing potato and vegetables if have a stable and long stage of work in crop farming based on the proposals from the common hural of bag citizens and the decision by the sum hural of citizens’ representatives /29.3/
Participate in land auctioning in order to possess land greater than the specified in29.1-29.3 /33.1.2/
Jointly possess with khot ail members land under winter and spring camps /52.7/
Possess hayfields if you have improved their yield by investing in makingirrigation, fencing, fertilizing, planting trees etc through the decision by the sum hural of citizens’ representatives. The provision applies also to economic entities and organizations of Mongolia /53.5/
Possess with privileged right land under lakes, water pools, reservoirs, animals,trees and plants created by your investments based on the proposals from thecommon hural of bag citizens, the conclusions by the relevant professional organizations and the decision by the sum hural of citizens’ representatives. The provision applies also to economic entities and organizations of Mongolia /27.6/.
Citizens, economic entities, and organizations of Mongolia are entitled to possess land for duration of 15-60 years and extend it for up to 40 years at a time /30.1/. Procedures for getting the land possession license by citizens, economic entities, and organizations of Mongolia are in articles 31-33 of the law.
Winter and spring pastures can be leased to herders’ groups on the basis of theendorsement by the common hural of bag citizens and the decision by the sumgovernor /52.2/
91
Use fenced pastureland all year round regardless the season by citizens, economic entities and organizations for purposes of undertaking intensified settled livestock husbandry and raising domestic (other than traditional) animals/52.5/. The provision applies also to economic entities and organizations of Mongolia.
For example, farmers can possess homestead area beyond the limit of 0.07 ha per household if it is willing and prepared to pay. Also, a farmer willing to have own hayfield may be able to do so under the article 53.5
The meaning and practical application of the above articles need to be communicatedto both local administrations and farmers through awareness building and public relations activities such as issuing leaflets written in simple language and live TVand radio coverage on good examples of and guidance to the practical application of the law articles in real life cases.
Improving local governments’ capacity to effectively utilize available resources
including land
A poor understanding and motivation of both local government bodies and farmers/herders to properly use the existing local potentials including land resources is related to the old mentality of people and general governance problem. Dependencymentality, expecting investments from outside the local community such as aid andgrants persists to exist and was clearly noticeable during the survey and seminar.Dependency mentality causes indolence and feelings of incapability, poses a majorstumbling block for the implementation of development policies and programs to alleviate poverty.
Policy recommendation
There is a need to design and implement a comprehensive capacity building programinvolving national extension services and NGOs such as Dairy Farmers’ Association perhaps with support from the donors. Identifying good examples of successful self-initiated or bottom-up development initiatives and using them for demonstration purposes could be an important part of this program. Interviews with herders suggest the most effective of training herders is to use live demonstration activities. Successful dairyfarmers known during the case study can be used as a demonstration cases for replicating in other regions.
An important direction of capacity building is to equip herders/farmers communities withthe knowledge and skills to grasp and benefit unused local potentials for development.Local government bodies, especially bag governors have to play an important role in addressing this challenge if trained well in community mobilization skills. Demonstrationof best practices by successful bag governors could constitute an important part of such training. Training needs to address, among others the role of government, private sector and communities or community-based organizations in a market economy in general and
92
rural development in particular: what government should and should not provide, whatcommunities and private sector can and should do.
Promoting cooperation among farmers/herders
PPILP intends to support cooperation of intensive livestock farmers in improvingpastures, preparing fodder including irrigated fodder towing and marketing /5.3.4c/.
The current support to cooperation focuses on cooperatives. The potentials of the increasing informal cooperation, however, are not well recognized and promoted. The most existing agricultural cooperatives are cooperatives established on the basis of former negdels. As evidenced from surveys done elsewhere most of these cooperatives are struggling hard just to survive and are becoming not able to meet the expectations of members. This is largely related to poor management. Unfortunately, this erodes the trust of people to cooperatives and discourages herders from taking initiatives in cooperative development. Therefore, most herders are not interested in joining the existing formalcooperatives and many members are willing to quit.
The cooperative originated from the negdel cannot provide required services tomember-herders, instead it is becoming extra burden on herders by asking them to selllivestock raw materials at cheap prices to survive financially. It is clear that thecooperative will go bankrupt. We need to support a cooperative established bybottom-up initiatives of herders. However, trust among herders has not yet built up.Also they lack knowledge how to start and capacities to manage. 2 Bag
Governors/Herders, Mandah Soum, Dornogobi aimag
Policy recommendation:
Supporting cooperatives, only form of cooperation needs to be changed to cover the other potential forms of cooperation. There is enough evidence that informal cooperation of herders and farmers has good potentials to enhance livestock farmingperformance. Therefore, frequently promoted phrase ‘supporting co-operatives’ and an approach which imposes one particular institutional form of co-operation needs to be changed in favor of support for all possible forms of cooperation and the phrase ‘supporting co-operation’
A detailed analysis of poor performance of cooperatives is needed to identify main problems and potential solutions
Targeted capacity building program is needed for improving poor-performingcooperatives using live examples of successful cooperatives
Making sure that farmers can possess pastureland
Article 6.2.1 of the new land law treats pastures as common-use land the same as public land in cities and settlements. Under the old land law only water and saltlicks on pastures,
93
but not pastures themselves were regarded as common-use land (article 38.2.1). Although the term ‘common-use land’ is not defined, the fact that it includes public land in cities makes it similar to open access land. This contradicts the tradition of pastureland tenure as understood and followed by communities and khot ails, and threatens the conservation of pastureland. No contracts means no responsibility for overstocking and overgrazing of pastures and no division of responsibilities between local government bodies, herding communities and members of communities. This situation entails increasing anarchy inpastureland use and makes the grassland management very difficult leading to overgrazing and degradation of pastureland, a key resource to dairy farmers. The issue became a major point of debate during discussion of the new law. A compromise was adopted that reads ‘based upon the local conditions and traditions, carrying capacity of pastures and opinions of bag khurals, sum governors can decide to allocate winter and spring pastures to groups of herders under conditions and contract for the purpose of preventing degradation and restoration’ (article 52.2 of the new law). However, as evidenced from the case study possessing summer and autumn pastures is crucial for dairy farmers. Therefore, the above-recommended amendments to the land law need to be made as soon as possible to implement the Government’s priority to support intensive livestock production.
Rehabilitating/construction of wells
The survey found that a lack of access to reliable water source is one of the key constraints faced by dairy farmers. Often farmers lack the knowledge and skills to takeactions in digging and maintaining well. Well rehabilitation/construction program is high on the Government’s agenda. The government spends billions in well rehabilitation programs every year. Unfortunately, because of uncertainties regarding the tenure ofwells newly constructed or rehabilitated wells are not free of problems non-sustainable use and destruction. As a result there is a lack of incentives for farmers and herders in well maintenance including incentives for taking collective actions in the management of wells.
Responsibilities and rights of investors like the Government and donors and users like herders' groups and individual herders with regard to ownership, possession and user rights in relation to newly-built or rehabilitated wells are not specified yet and understood differently even among the government agencies involved.
Policy recommendation: The government needs to take care of the institutional issues regarding well management and provide clear guidelines on the division of responsibilities between government agencies of different levels and profiles, water users, watercompanies and others. MFA needs to play a lead role in this area. Very low understanding and enforcement of the Law on Water /Article 7/ thatinventory of water should be carried out annually by the Soum governors need to be improved. Guidelines and mock-ups for well inventory need to be reviewed and enforced at Aimag and Soum levels.The responsibilities of the Aimag and Soums governments with regard to well ownership need to be unambiguously understood and enforced
94
95
Potential contradictions between the provision of the Law on Water that can be interpreted that water for livestock purposes should not be contracted but used commonly /Article 16, 17/ and the need for possession of water wells i.e. equipment under contract need to be resolved in favor of providing incentives for users to maintain well in a sustainable manner Well users/herders need to be trained in
o Maintaining well equipment in proper conditions o Raising and administering funds for well maintenance o Ensuring equal access to water for community members and resolving
conflicts o Regulating the use of pastures around the well to prevent overgrazing and
degradation
