Preserving unique Mongolian livestock sector for future generations
Mongolia is famous worldwide for its livestock sector, called its ‘white gold,’ however the sector is also facing challenges.
To preserve the unique Mongolian livestock sector for future generations, Mongolia has to find a balance between the carrying capacity of the grassland and the modern consumer requirements.
Pathways have to be defined to adapt to the current and future trends. It is inspiring to experience that this is definitely achievable. Partners are working on implementing innovative ideas. For instance, herders that make cheese in a small cheese processing facility, is an example of a circular model reducing the carbon footprint significantly.
The Governor of TUV, a region in Mongolia, has a clear vision of how the food & agribusiness sector should develop in the upcoming decades. He is stimulating the private sphere to invest in the sector. In addition, he is supporting the development of business-like cooperatives to create a more integrated value chain. Partners in TUV initiated promising initiatives. For instance, Mongol, a leading processing company, has developed a technique to make high quality wool cashmere to make fashionable jackets, shawls, and blankets. Affordable credit is needed to assist companies such as Mongol to scale their business activities.
For that reason, financial institutions are the avenue to accelerate the develop of a sustainable sector and to unlock the rich potential of the livestock sector. Khan Bank, the leading commercial bank in Mongolia, is genuinely committed to contribute to this transition. New financial services are needed to enable food & agribusiness partners to invest in the sector. Longer tenors, lower collateral requirements and repayment schemes aligned with the cash cycle in the sector are needed to offer affordable credit.
In addition, a strong cooperation is also needed to professionalize the sector. Governmental organizations, private companies, herders, international partners, and local financial institutions will be the key success factor to achieve the ambition in the sector. Creating this ‘Mongolian diamond’ will turn Mongolia’s white gold into a diamond!
