NATIONAL DAIRY DEVELOPMENT BOARD OF MONGOLIA
DAIRY VALUE CHAIN B. MUNKHJARGAL, EXECUTIVE MANAGER
Ulaanbaatar 12-Apr-2016
DAIRY SECTOR OF MONGOLIA
35.3
1000 34
900 36.8
36.9
800
28
55.4
588
33.8
765.4
667
803.4
529.9
300 200
70.5
72.8
600
400
71.1
63.9
700
500
46.1
338.4
100 0 2010
2011
2012
2013
2014
Import, million litres Milk received and processed by dairies, million litres Milk production by agriculture, million litres
2015
VALUE CHAIN MAP AND DESCRIPTION OF STAKEHOLDERS URBAN CONSUMERS
RURAL CONSUMERS
IMPORTERS
RETAILING WHOLESALING
OPEN MARKET RETAILERS
SMALL GROCERIES AND RESTAURANTS
SCHOOLS
RAW MILK BROKERS
Heat treatment PROCESSING PASTEURIZING
CHAIN of SUPERMARKETS
LARGE/ MEDIUM DAIRY PROCESSORS
TRAINING
SMALL DAIRY PROCESSORS
TRANSPORTING COOLING COLLECTION FARMER, HERDER GROUPS (incl cooperatives)
PRODUCTION
SMALLHOLDER FARMERS <20 COWS
GENE BANK
Channel 1; Raw milk
MEDIUM FARMERS (20 â&#x20AC;&#x201C; 50 COWS) )
PRIVATE VETERINARIANS / INSEMINATORS (20)
Channel 2; traditional dairy products
LARGE DAIRY FARMS >50 COWS FEED SUPPLIERS
Channel 3; Pasteurized milk and
FINACIAL INSTITUTI ONS IMPORTERDISTRIBUTORS OF EQUIPMENTS
Channel 4; Dairy products
BANKS
PARTNERSHIP IN DAIRY VALUE CHAIN • Milk producers: 153000 herder households • Smallholder dairy farmers : have own trade links 1 • Medium-and large-scale farmers : more organized, dairy farms combined with crop production
2
PARTICIPANTS OF DAIRY VALUE CHAIN
• Raw Milk Changers : approx.100 changers deal with milk collection, cooling and ransportation
• Dairy processors: Milk collection and cooling, transportation, receiving, 3 processing and marketing of finished dairy products
Support markets: Bank: Feed suppliers: concentrates, silages, mineral based feed, rude feed 4 Veterinary services: approx 700 private veterinary service provides: animal health, training, inspection, diagnose, treatment, disease prevention Gene bank: National gene bank , breeding services, artificial insemination, technicians services Equipment suppliers: Dairy farming, processing and packaging equipment Training: 5 Consumers: rural and urban consumers
DAIRY VALUE CHAIN ASSESMENT improvement of dairy chain:
• Determining the constraints • Market analysis of domestic dairy products • Impact of the dairy business in income of individual stakeholders SOME POSITIVE CHANGES among the stakeholders • Consumers education on difference between recombined and fresh milk is improved • Tendency to reduce seasonal character of milk supply • Competitiveness of locally produced milk is increased due to Mongolian Currency fall and world milk powder price increase • Steady increase of domestic milk sector due to favorable policy and strategies: Chinggis Bond, huge investment in dairy industry by bigger national companies • Competition among domestic producers
CONSTRAINTS AND MARKET-BASED SOLUTIONS VALUE CHAIN CONSTRAINTS FOR MILK PRODUCERS FINANCIAL
TECHNOLOGY
INPUT SUPPLY
MANAGEMENT
LOW EFFICIENCY
ENERGY INSUFFICIENT
LOW PRODUCTIVITY
IMPLEMENTED GAP, GHP
REVENUE IRREGULAR
NOT ENOUGH COOLING AND MILKING EQUIPMENT
BREEDING DISSATISFIED
NOT ENOUGH COOLING AND MILKING EQUIPMENT
MECHANIZATION UNACCEPTABLE
FODDER SHORTAGE
LOAN FACILITIES
MILK COOLING CENTER CONSTRUCTION
IMPORT DAIRY COWS
LOAN GUARANTEE
STANDARDS
REVENUES EVIDENCE AVAILABLE
NOT ENOUGH TRUCKs
MARKET-BASED SOLUTIONS
FINANCIAL TRAINING
BREEDING TRAINING
RAISING PRICES FEEDING CLUSTERS MECHANIZATION
TRAINING AND EXTENSION GAP AND GHP
COOPERATION
CONSTRAINTS AND MARKET-BASED SOLUTIONS VALUE CHAIN CONSTRAINTS FOR DAIRY PROCESSORS FINANCIAL
TECHNOLOGY
INPUT SUPPLY
MANAGEMENT
FINANCIAL SHORTCOMINGS
OUTDATED EQUIPMENTS
RAW MILK PRICE GROWTH
INTRODUCING GMP, GHP
INVESTMENT LOAN
RAW MILK QUALITY NOT FIXED
DAIRY PERSONNEL
COMPETITIVE POOR
SALES REPAYMENT
PACKAGING
SEASONAL SUPPLY OF RAW MILK
ADVERTISING
TRANSPORTATION SHORTCOMINGS
ENGINEERING HIGH PRICE
COMMERCIAL CLUSTERS DEVELOPED
BUSINESS AND INVESTMENT ENVIRONMENT
RAW MILK QUALITYS STABILIZE
COST REDUCTION
EXTENSION GMP AND GHP
LOAN GUARANTEE
TECHNOLOGICAL RENOVATION
IMPORT-SUBSTITUTING PRODUCTS
ADVERTISING
TECHNOLOGY LIQUIDITY
ADVANCED TRAINING
BUSINESS AND INVESTMENT ENVIRONMENT
EXTENSION GMP AND GHP
COOPERATION
MARKET-BASED SOLUTIONS
DAIRY CLUSTER
Basic infrastructure
Soft infrastructure
THANK YOU FOR YOUR ATTENTION