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Assessment of Wood Product Value Chains and Recommendations for the Mongolian Wood-Processing Industry

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Assessment of Wood Product Value Chains and Recommendations for the Mongolian Wood-Processing Industry Picture 1. Firewood in front of a school in Erdenebulgan soum, Khuvsgul aimag, Photo: R.Glauner Assessment of Wood Product Value Chains and Recommendations for the Mongolian Wood-Processing Industry UN-REDD Mongolia National Programme Date: 8/1/2018 This report is produced as an output of the UN-REDD Mongolia National Programme. The UN-REDD Programme is the United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation (REDD+) in developing countries. The Programme was launched in 2008 and builds on the convening role and technical expertise of the Food and Agriculture Organization of the United Nations (FAO), the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP). The UN-REDD Programme supports nationally-led REDD+ processes and promotes the informed and meaningful involvement of all stakeholders, including indigenous peoples and other forest-dependent communities, in national and international REDD+ implementation. Authors Reinhold Glauner Delgerjargal Dugarjav Copyright © UN-REDD Mongolia National Programme The views in this publication are those of the authors and do not necessarily reflect the views of the Ministry of Environment and Tourism, the UN-REDD Mongolia National Programme or its collaborating partner organizations. Acknowledgements The UN-REDD Mongolia National Programme would like to thank the two authors of the report, Reinhold Glauner and Delgerjargal Dugarjav, and the reviewers for their efforts. Thanks a are also due to the participants in the consultation workshops for sharing their valuable inputs. Contact Information The UN-REDD Programme / Mongolia National Programme Management Office / Mongolia Tel: +976 77117750 Web site: www.reddplus.mn i Table of Content Executive Summary ................................................................................................................................ vii 1 Introduction and Objectives ............................................................................................................ 1 2 Methods .......................................................................................................................................... 2 2.1 Study Limitations ................................................................................................................... 2 2.2 Value-Chain Analysis .............................................................................................................. 2 2.3 Supply and Demand Analyses ................................................................................................ 4 2.4 Market Analysis ...................................................................................................................... 4 2.5 Market Constraints and Industry Recommendations ............................................................ 5 2.5.1 Private Sector Partners ...................................................................................................... 5 2.5.2 Focus Groups, Consultation, and Review Workshops ....................................................... 6 3 Background Analyses ....................................................................................................................... 7 3.1 Forest Resources in Mongolia ................................................................................................ 7 3.1.1 Forest Area ........................................................................................................................ 7 3.1.2 Growing Stock .................................................................................................................. 11 3.1.3 Increment (Mean Annual Increment – Current Increment – Periodic Increment) ......... 14 3.2 Market Size .......................................................................................................................... 17 3.3 Current Supply and Demand ................................................................................................ 18 3.4 REDD+ Strategy .................................................................................................................... 21 4 Results ........................................................................................................................................... 22 4.1 Potential Wood Supply ........................................................................................................ 22 4.2 Demand of Wood and Market Size ...................................................................................... 25 4.2.1 Financial appraisals of downstream approaches ............................................................ 29 4.3 Proposals suggested by stakeholders .................................................................................. 30 4.4 Field Study Findings ............................................................................................................. 32 4.4.1 Wood Availability for downstream Processing................................................................ 33 4.4.2 Wood Allocation / Harvesting Quota .............................................................................. 36 4.4.3 Downstream Processing .................................................................................................. 36 4.5 Survey results ....................................................................................................................... 38 4.6 Underlying Policies and Conditions...................................................................................... 39 4.7 SWOT-Analysis ..................................................................................................................... 42 5 Modernization Approach .............................................................................................................. 44 5.1 Concept ................................................................................................................................ 44 5.2 Suggested Processing Technology ....................................................................................... 45 5.2.1 Sawmills ........................................................................................................................... 45 5.2.2 Hubs ................................................................................................................................. 48 5.3 Geographical distribution .................................................................................................... 48 ii 5.4 Implementation Approach through a Model Forest Area ................................................... 49 6 Conclusions .................................................................................................................................... 50 6.1 General ................................................................................................................................. 50 6.2 Key Products ........................................................................................................................ 53 6.3 Key Partners ......................................................................................................................... 54 6.4 Forest Model Area ............................................................................................................... 54 7 Recommendations......................................................................................................................... 56 7.1 Priority Interventions ........................................................................................................... 56 7.2 Stakeholder Recommendations ........................................................................................... 57 7.2.1 Policy level ....................................................................................................................... 57 7.2.2 Research, Training & Education ....................................................................................... 57 7.2.3 Industry ............................................................................................................................ 57 7.2.4 Project / Donor levels ...................................................................................................... 58 8 Literature ....................................................................................................................................... 59 9 Annex ............................................................................................................................................. 62 Annex 1 – Selected text of the Terms of Reference .......................................................................... 62 Annex 2 – Questionnaires ................................................................................................................. 66 Questionnaire for wood processing industries and enterprises ................................................... 66 Questionnaire for Forestry officials ............................................................................................... 68 Annex 3 – 1st Assignment .................................................................................................................. 69 Annex 4 – 2nd Assignment ................................................................................................................. 70 Annex 5 – Model development of cluster industries at Zuunkharaa ...............................................
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