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Final Report on the Study of Value Chains for Live Animals/Meat and Hides/Skins in Mongolia

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Final Report on the Study of Value Chains for Live Animals/Meat and Hides/Skins in Mongolia Final report on the study of value chains for live animals/meat and hides/skins in Mongolia Final Report as at 31 July 2015 A d d r e s s GFA Consulting Group GmbH Eulenkrugstraße 82 22359 Hamburg Germany Telefon +49 (40) 6 03 06 – 166 Fax +49 (40) 6 03 06 – 169 E-Mail [email protected] Contents LIST OF ABBREVIATIONS .............................................................................................................. 1 LIST OF TABLES AND FIGURES ...................................................................................................... 2 INTRODUCTION ........................................................................................................................... 4 ONE. RESEARCH PROGRAM OF THE VALUE CHAIN STUDY ............................................................. 5 1.1. Objective of the study .......................................................................................................... 5 1.2. Methods of the study ........................................................................................................... 6 1.3. Study objects of the supply study ........................................................................................ 6 1.4. Study objects of the demand study ..................................................................................... 7 TWO. STUDY ON THE VALUE CHAIN OF LIVE ANIMALS AND MEAT ................................................ 8 2.1. Executive summary .............................................................................................................. 8 2.2. Analysis of live animals and meat supply ............................................................................. 9 2.2.1 Overview of the livestock sector in Mongolia ................................................................ 9 2.2.2. Volume of meat preparation ...................................................................................... 11 2.2.4. Sales systems of live animals, meat and by-products ................................................. 16 2.3. Analysis of live animals and meat demand ........................................................................ 18 2.3.1. Processors and their procurement system of live animals and meat ........................ 18 2.3.2. Meat plants in Arkhangai and Zavkhan aimags .......................................................... 20 2.3.3. Meat production and processing ................................................................................ 22 2.3.4. Domestic market for meat .......................................................................................... 23 2.3.5. Export markets for meat ............................................................................................. 25 2.4. Value chain for live animals and for meat ......................................................................... 27 2.4.1. SWOT Analysis for the live animals and meat sector .................................................. 27 2.4.2. Value chain for live animals and meat and main problem areas ................................ 28 2.4.3. Value chain for live animals and meat and main intervention points ........................ 32 2.4.4. Strategy and action plan for upgrading the value chain for live animals and meat ... 34 THREE. STUDY ON THE VALUE CHAIN OF HIDES/SKINS .................................................................38 3.1. Executive summary ............................................................................................................ 38 3.2. Analysis of hides and skins supply ...................................................................................... 39 3.2.1. Volume of hides/skins preparation ............................................................................. 39 3.2.2. Sales of skin and hides................................................................................................. 42 3.2.3. Cooperation between herders, cooperatives and processors .................................... 44 3.2.4. Training needs of herders ........................................................................................... 46 3.3. Analysis of hides and skins demand ................................................................................... 47 3.3.1. Hides/skins processing factories in Mongolia ............................................................. 47 3.3.2. Procurement of hides/skins raw material ................................................................... 49 3.3.3. Processing of raw material and types of products ..................................................... 51 3.4. Value chain for hides/skins ................................................................................................ 53 3.4.1. SWOT Analysis of the hides/skins sector .................................................................... 53 3.4.2. Mapping of the value chain for hides/skins and main issues ..................................... 54 3.4.3. Main intervention points for upgrading the hides/skins value chain ......................... 58 3.4.5. Strategy and action plan for upgrading the value chain for hides/skins .................... 60 Annex 1: Questionnaire for herders ............................................................................................62 Annex 2. Required information from other stakeholders in the meat value chain ........................66 Annex 3. Number of herder households covered by the study .....................................................69 Annex 4. Meat processing companies in Mongolia.......................................................................70 Annex 5. Production lines and equipment of surveyed meat processing plants ............................71 LIST OF ABBREVIATIONS APUGs – Association of Pasture Users Groups AFPUG – Aimag Federation of Pasture Users Groups GG – Green Gold project of SDC HACCP - Hazard analysis and critical control point HH - Herder Household LLC – Liability limited company MMA- Mongolian Meat Association MALI- Mongolian Association of Leather Industry. MNS – Mongolian National standard PUG – Pasture Users Group SDC – Swiss Agency for Development and Cooperation SME – Small amd medium enterprise 1 LIST OF TABLES AND FIGURES Table 1. Number of herder households covered by the study .....................................................................6 Table 2. Number of persons in focus group discussions and interviews ......................................................7 Table 3. Growth and share of livestock sector in GDP (%) ............................................................................9 Table 4. Growth of meat production (2004 = 100) .................................................................................... 10 Table 5. Production of main types of meat, ‘000 tons ............................................................................... 10 Table 6. Per-capita meat consumption, kg ................................................................................................. 11 Table 7. Pasture carrying capacity in Mongolia, 2014 ............................................................................... 11 Table 8. Volume and structure of consumption of animals in soums of Arkhangai aimag, 2014 ............. 12 Table 9.The type of livestock consumption of herder’s households ......................................................... 12 Table 10. The sales types of animals on the market , percentage ............................................................. 13 Table 11. The use of livestock in Zavkhan aimag by soums ....................................................................... 13 Table 12. Animal use by type ..................................................................................................................... 14 Table 13. Types of sales, percentage ......................................................................................................... 14 Table 14. Supply potential of meat in selected soums’ of Arkhangai and Zavkhan aimags ...................... 15 Table 15. Procedures of live animals and meat procurement ................................................................... 18 Table 16. Procurement of live animals by processing companies ............................................................. 19 Table 17. Suggestions by processors for improving the meat procurement system ................................. 20 Table 18. Meat plants in Arkhangai and Zavkhan aimags .......................................................................... 20 Table 19. Major products of meat companies, tons .................................................................................. 22 Table 20. Authorized meat export in 2015 /tons/ ..................................................................................... 26 Table 21. Comparative research on the meat price as of 2012 ................................................................. 27 Table 22. Export of by-products, tons ........................................................................................................ 27 Table 23. SWOT Analysis of the live animals and meat sector of Mongolia .............................................. 27 Table 24. Action Plan for upgrading of the value chain for live animals and meat ................................... 36 Table 25. Preparation of hides and skins, thousand pieces ....................................................................... 39 Table 26. Sale of hides/skins
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