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  1. 1. ANALYSIS OF LIVESTOCK HUSBANDRY OF MONGOLIA: A CASE STUDY OF TUV PROVINCE by Batchimeg Dorjsuren A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Agricultural Systems and Engineering Examination Committee: Prof. Vilas M. Salokhe (Chairperson) Dr. H.P.W. Jayasuriya Prof. Athapol Noomhorm Dr. Peeyush Soni Nationality: Mongolian Previous Degree: Bachelor of Agricultural Engineering of Mongolian State University of Agriculture, Ulaanbaatar, Mongolia Scholarship Donor: Netherlands Asian Institute of Technology School of Environment, Resources and Development Bangkok, Thailand May 2009
  2. 2. ACKNOWLEDGEMENT First, I would like to declare my sincere thanks to my dear Professor Vilas M.Salokhe, Chairman of my thesis advisory committee for suggesting this topic and his valuable guidance and priceless encouragement during my study. His generous help and longsighted advice have successfully affected in this research. Second, I would like to express deepest gratitude to Dr.H.P.W. Jayasuriya, Professor Athapol Noomhorn and Dr. Peeyush Soni. This work would not have been possible without the support and assistance of my committee members and dear teachers. Moreover, I would like to say thanks to secretaries and all staffs of AIT- ASE for their friendship. I am grateful to the AIT and Netherlands Ministry for Development Cooperation for providing the scholarship through AIT, which enabled me to pursue my studies at this institute. I hold the honest respect to all the farmers and herder households who participated in the questionnaire survey at Tuv provinces. I am eternally thankful to my father D.Dorjsuren and mother G.Bilegnyam for their great love that I feel even this far away. Finally, I want to thank my entire classmates of AITASE 2007 batch. ii
  3. 3. ABSTRACT The livestock sector is the key to economic growth and essential component of a povertyoriented rural development strategy. Mongolia has five types of livestock (sheep, goat, horse, cattle, and camel). Total 34.8 million livestock animal were counted in 2006, including 14.8 million sheep, 15.4 million goats, 2.11 million horses, 2.16 million cattle, and 253.5 thousand heads camels. Most of livestock is located in central and western part of the country. The Mongolian animal husbandry is divided in two main sectors including extensive animal husbandry and intensive animal husbandry. Generally, Mongolian climate is suitable for the extensive animal husbandry. However, during the last years, intensive animal husbandry is developing in some provinces, especially the nearest provinces with the bigger cities such as Tuv, Selenge and Bulgan provinces. Moreover, Mongolia livestock sector faced many significant problems such as grassland degradation, soil erosion, and desertification. Main sources of degradation are overgrazing, water source, and the population. In addition, the consequences such as poor infrastructures including road and storage facilities, the availability of critical support like constructing wells and shelters, and preparing hay are affecting the Mongolian livestock husbandry. Agricultural products especially livestock products is one of the major sources of Mongolian economics. Almost 90% of the total agricultural production of Mongolia produced from livestock sector and obtained the benefit approximately 980 million dollar in 2007. Productions differed by geographical location. Almost all products of food industry consume on the domestic market. Among the livestock raw materials of Mongolia, only cashmere and raw cashmere have been recognized as a competitive sector in the world. Keywords: Livestock, husbandry, horse, cattle, sheep, goat, camel extensive, intensive, agriculture, products, land degradation, and climate. iii
  4. 4. TABLE OF CONTENTS Chapter Title ACKNOWLEDGEMENT Page II ABSTRACT III ABBRIEVIATIONS VIII TABLE OF CONTENTS IV LIST OF FIGURES VI LIST OF TABLES VII CHAPTER I 1 INTRODUCTION 1.1 Brief Introduction of Mongolia 1.2 Background 1.3 Rationale 1.4 Objectives 1.5 Limitation of the Study 1 1 2 2 3 3 CHAPTER II 4 LITERATURE REVIEW 2.1 The Current Situation of Livestock Husbandry in Mongolia 2.2 Brief history of livestock husbandry development in Mongolia. 2.3 Regional Distribution 2.4 Livestock Production CHAPTER III 4 4 5 6 7 9 METHODOLOGY 3.1 Site selection 3.4 Data Collection 3.5 Data processing and analysis 9 10 11 12 CHAPTER IV 13 RESULT AND DISCUSSION 4.1 The current situation of Mongolian Animal Husbandry 4.2 The Present Status of Mongolian Livestock 4.3 Comparison of Actual and Estimated Livestock Number 4.4 Land Utilization 4.5 Mongolian Livestock Production 4.6 Past Policies and Strategies 4.7 The General View of Study Area 4.8 Veterinary Service 4.9 Problems and possibility of livestock sector’s for the future 4.10 Suggested Strategies for Future Expansion 4.11 SWOT Analysis CHAPTER V 13 13 14 15 18 21 26 27 38 39 40 40 43 CONCLUSIONS AND RECOMMENDATION iv 43
  5. 5. 5.1 Conclusions 5.2 Recommendations 43 44 REFERENCES 45 APPENDICES 47 v
  6. 6. LIST OF FIGURES Chapter Title Page 1.1 Map of Mongolia 1 2.1 Percentage shares of major divisions to GDP (NSO, 2005-2006) 4 2.2 GDP growth by percentage (NSO, 2007) 5 2.3 The comparison of total livestock with number of privately owned livestock 5 2.4 Regional distribution of livestock in 2006 6 2.5 Share of domestic production versus imports in consumption of major products 7 4.1 The state of livestock number of Mongolia from 1990 to 2008. 14 4.2 The comparison of the livestock structure in 2008 with 1990 14 4.3 The actual number of livestock compared with the estimated number of livestock in Mongolia from 1990 to 2008. (thousand heads) 17 4.4 The comparison of utilized lands between 2000 and 2006 (by type) 19 4.5 Different level of harm due to drought and dzud disasters in all provinces in Mongolia (AIACC,2006) 20 4.6 Losses adult animals of Mongolia (2000-2006) 21 4.7 The percentage of livestock products in agriculture (1990-2007) 21 4.8 The percentage of benefits from livestock types in economy (NSO, 2006) 22 4.9 Main livestock production of Mongolia (1990- 2006) 22 4.10 Milk flow chart 23 4.11 The type of livestock which provide the milk products 24 4.12 The percentage of total slaughtered livestock by types (thousand. tons). 25 4.13 The output of animal raw materials (1999-2006) 25 4.14 The livestock number of Tuv province, by soum. 28 4.15 The classification of herder's household of Tuv aimag 28 4.16 Herders’ age group and education level 29 4.17 The kind of livestock of herder households 31 4.18 The problems of herders in marketing 32 4.19 The income level of herders households 32 4.20 Major problems of herder households 33 4.21 Loan uses by households 33 4.22 Number of intensive farms of Mongolia 34 4.23 Number of intensive farms in Tuv province 34 4.24 Reason of establishment (a) and established year of dairy farms (b) 35 4.25 The reason which to initiate the dairy farm. 36 4.26 Main customers of dairy farms 37 4.27 The problems which to faced by the farmers in marketing. 38 vi
  7. 7. LIST OF TABLES Chapter 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 Title The calculation by using Equation 4.3 Estimation by using Equation 4.5 Milk availability (FAO/UN, 2006) Meat consumption in Asian first five countries (FAO, Rome, 2004) The output of animal’s raw material in 2004 by stage (metric. tons) Production of main livestock commodities (Shagdar, 2001) The implemented projects in livestock sector of Mongolia (Bataa, 2002) The result of restocking program in Tuv aimag in 2005 to 2007 The comparison the education level with herder’s age Households' population and livelihood situation The livestock composition of herder households (by animal type) Main customer and customer area of herders The income level of farms who include dairy activities and non-dairy activities Potential area of interference for betterment of livestock sector’s future growth vii Page 16 18 23 24 26 26 27 29 30 30 30 31 36 39
  8. 8. ABBRIEVIATIONS ADB ADO AIP GDP FAO IFAD NSO MIF MSY MTG MFA WB WFP EUP AIACC FAOSTAT RSSBP UN UNDP PRSP MPVA Tugrug Aimag Soum Bag Dzud Asian Development Bank Asian Development Outlook Asian Investment Program Gross Domestic Product Food and Agricultural Organization International Fund for Agricultural Development National Statistical Office Mongolian Investors Forum Mongolian Statistical Yearbook Mongolian Travel Guide Ministry of Food and Agriculture World Bank World Food Program European Union Program Assessments of Impacts and Adaptations to Climate Change Food and Agricultural Statistic Data Rural sector strategy and business plan United Nations United Nations Development Program Poverty Reduction Strategy Paper Mongolian Private Veterinary Association Mongolian currency (1$=1170 tugrug in 2007) Province Sub-province Subdivision of sub- province Harsh winter viii
  9. 9. CHAPTER I INTRODUCTION 1.1 Brief Introduction of Mongolia Figure 1.1 Map of Mongolia Mongolia is land-locked country of Central Asia. It borders by China to the South and East, and by Russia to the North and West. It is situated between the longitude 87.4 to 119.6 west and the latitude 52.1 to 41.4 north. The main land is at an average elevation of 1,580 meter above sea level. The current population is 2.64 million. Total area is 1.5641 million km sq, and 1.5 people stand per kilometer. 60.8 % people live in the urban areas and other 39.2 percent people live in the rural area of Mongolia (NSO, 2007). The climate of Mongolia is too harsh and it characterized by a long-lasting cold winter, dry and hot summer, low precipitation, high temperature fluctuations (day and night, summer and winter) and a relatively high number of sunny days (on an average, 260 days) per year. The highest precipitation is approximately from 20 to 35 centimeters per year in north part, and lowest precipitation is approximately from 10 to 20 centimeters south part of Mongolia. Some regions of Gobi (the name Gobi means desert and steppe) which located in north part mostly receive no precipitation at all in years. The effective vegetation growth period is a short around 80 to 130 days. It is depend on the location of Mongolia. Commonly, in winter (January and February), the average temperature is 25 °C, at night it reaches -40°C. In summer time, average temperature is +33 °C in central part of Mongolia such as Ulaanbaatar. Moreover, in Gobi region, the temperature reaches +38°C. 1
  10. 10. 1.2 Background The world is in the midst of what has been dubbed a livestock revolution with far reaching implications for human health, development, the environment, and trade (Delgado et al., 1999). Mongolia is one of the countries, which stands at forefront of this revolution. Therefore, the role of livestock sector is very important in the Mongolian economy, and this sector dominated on the agriculture. The value added of agricultural sector is 18.8% of GDP of Mongolia. The livestock products constitute 87.6% of total output of agriculture (NSO, 2006). In 2006, there were 421,400 herders, constituting almost half of the country’s economically active population (NSO, 2006). Moreover, there are two main sectors in the food and agricultural sector such as livestock and crop production. Those sectors encourage the rural development of Mongolia such as to provide the economic growth. Agro-processing industries generate value addition by the processing of agricultural raw materials, both food and non-food, into products, which are marketable, usable or edible; have improved storability and / or nutritive value, and enhance income and profitability for producers. An agro industrial system is modeled in order to illustrate the marketing, the processing, the production of agricultural materials and consumption in any countries (Salokhe, and Hicks, 2001). The Mongolian people to lead a nomadic lifestyle based on pastoral animal husbandry. After privatization, the intensive dairy farms became a significant issue, which is now on the political agenda. Keating, and McCown (2001) remarked that there are 2 main components in agricultural system such as the production system and management system. Production system contains pastureland, livestock animals, and the climate. Today, there are many significant problems such as the degradation of grassland, desertification, soil erosion and the lack for fodder of livestock. Moreover, the one of the problems is the impact of climate like drought and dzud (harsh winter). Drought occurs once every 2-3 years in the Gobi region and every 10 years in other regions (GOM&UNDP, 2000). Nationwide drought occurred in 1944 and in 1972 (MFA, 2001). Management system generates the knowledge regarding general principles and theory involving agricultural farms’ management like agricultural economics, animal science, agronomy, rural sociology psychology, and engineering (Keating, and McCown, 2001). 1.3 Rationale The livestock plays an important role in Mongolian agriculture and economy. Furthermore, meat and milk foodstuffs are important in Mongolian food sector and it generates the employment and income. Therefore, it is so important to know the past and current status, potentials, problems, and constraints. After that, policies and strategies can be designed for better management and improvements of this sector. Moreover, this study contributes to the development by providing the information about status and problems of herder households and some intensive dairy farms. 2
  11. 11. In addition, Enkhjargal (1999) recommended that the government policy for livestock sector, especially diary development should encourage and support research and development of dairy breeding, stock, pasture and farm management. Involvements of farmers as producers need to be extending into economic activities that could provide better returns to them. It should include feeding, breeding, health caring, milk collecting, transporting, and processing. 1.4 Objectives The major objective is to investigate Mongolian livestock sector in Tuv province. The specific objectives are: • • • • To evaluate the present situation of livestock sub sector of Mongolia, and to investigate the agricultural food and non-food products related with livestock animals. To analyze the future growth prospects of Mongolian livestock husbandry. To present the environmental factors which affect the livestock sector To conduct sector and SWOT analyses to identify strengths, weaknesses, opportunities, and threats that the intensive and extensive livestock husbandry has been facing with. 1.5 Limitation Because of unavailable of data for the whole country, this study was restricted only to Tuv province. In addition, information is limited about the herder households and farmers. Therefore, the study focuses on the main producers, which are herder households and some intensive dairy farms. 3
  12. 12. CHAPTER II LITERATURE REVIEW 2.1 The Current Situation of Livestock Husbandry in Mongolia The main source of Mongolian economy is coming from the agricultural sector (MIF, 2006). The agricultural sector of Mongolia divided two main subsectors such as livestock sector, and cropping sector (MIF, 2006). At the end of 2006, approximately 40% of total population had lived in the rural areas. Rural development is essential for Mongolia to achieve sustained economic growth and poverty reduction. Livestock continues to provide rural households with an important source of herders’ income, jobs and food security, and a means for investing and storing their wealth (WB, 2006). Therefore, animal husbandry plays the important role of the national economy. Moreover, agriculture still accounts for more than a fifth of GDP. Some 40 per cent of the Mongolian workforce employ in traditional nomadic livestock herding. Agriculture is produced 18.8 percent of GDP and contributed 30 percent of the total export of Mongolia. Figure 2.1 demonstrates the comparison of the portion of divisions to GDP in 2005 with 2006. Figure 2.1 The comparison of the portion of divisions to GDP (NSO, 2005-2006) The GDP growth due to contribution from all sectors was 9.9% in 2007, the average of GDP was 8.7% between 2003 and 2006. Especially agriculture sector provides almost half the population had a strong year, extending by 16% and contributing 4% points to growth of GDP. The data in Figure 2.2 shows that the ratio of GDP growth from 2003 to 2009. In addition, it shows GDP for the forecast period in Mongolia. The forecasts assume that the price will be comparatively higher for export goods (ADO, 2008). 4
  13. 13. Figure 2.2 GDP growth by percentage (NSO, 2007) Enkhjargal (2005) noted that 35% of GDP and the agricultural sector contribute almost one fourth goods for export. Moreover, approximately 50% of the total labor force is employed in agricultural sector. Barker (1997) remarked, ‘Mongolia is one of the few countries in Central Asia where people still live a nomadic lifestyle despite the extreme climate’. In addition, Mongolian livestock sector produces more than 90.1% of gross agricultural products and the source of income for more than 34% of all households in Mongolia. In 2006, there are 34.8 million livestock counted in Mongolia. The livestock number increased by 4.4 million heads of livestock animals compared to 2005 (NSO, 2006). Furthermore, as a result of census in 2006, there are 253,000 camels 2,114,000 horses, 2,167,000 cattle, 14,815,000 sheep and 15,451,000 goats counted in Mongolia. The number of horses increased by 86,000 heads, cattle increased by 204,000, sheep and goat increased by 2 million heads, respectively but the number of camel decreased by 0.7 thousand heads compared with 2005 (AIP, 2006-2007). Figure 2.3 The comparison of total livestock with number of privately owned livestock Moreover, the statistical data shows (Figure 2.3) that almost 97% of the total livestock was private owned in 2006, and 31% of herder households have more than 100 livestock animals. .2.2 Brief history of livestock husbandry development in Mongolia. 5
  14. 14. Traditionally, five types of domestic livestock in Mongolia are sheep, goats, cattle, horses, and camel. Pigs, hens and other birds seldom reared. Horse is the first animal in Mongolia to be domesticated (Baasanjav, et al., 1999). Shagdar (2001) remarked that the wild animals domesticated livestock animals such as sheep and horses in Mongolia between the 8th and 3rd centuries B.C. Shagdar (2001) argued that, Mongolian herder households began the nomadic form in the 13th century and this system remained until present day. In those times, most livestock animals was private owned of herders. However, in 1951, the livestock animals transferred to the collective ownership form. This collective ownership form was tended to develop more intensively managed production system. This form gave diverse assistances to the herders. For example, to build the enclosures and wells, to prepare hay (Shagdar, 2001). However, during the collectivization period, the share of private livestock decreased to 17-30 of the total number of livestock (Shagdar, 2001). The collective ownership form lasted till 1989. Due to tend of the decreasing livestock number, Mongolian government privatized the livestock animals to the herders in 1991. Because of privatization, 96.7 % of total livestock shifted private owned form and 31% of herder households have more than 100 livestock animals. After privatization, the livestock number and number of herders rapidly increased in Mongolia. 2.3 Regional Distribution Mongolia divided 5 main regions named East, West, Central, Khangai, and Ulaanbaatar. Figure 2.4 shows the regional distribution of livestock in Mongolia (NSO, 2006). The forests and mountainous areas of Khangai region, Central region, and West region of Mongolia are most populous in terms of livestock. Figure 2.4 Regional distribution of livestock in 2006 The livestock is relatively distributed in comparison with the population size of each region. Sheep and goats are the majority livestock and respectively accounted for 42.5% and 44.4% of 6
  15. 15. the total number of livestock in every region in 2006. Camels account for only 0.7% of total livestock and mainly rise in the southern part of the country (NSO, 2006). Overgrazing is becoming problematic in areas close to major markets. For example, livestock density of Orkhon-Uul, Darkhan and the capital city named of Ulaanbaatar, which is 5 to 10 times lower than other regions. 2.4 Livestock Production Mongolian major livestock products include meat and meat products, and milk and dairy products. In addition, wool, hair, cashmere, hides, and skins are the key input for animal processing industries (Shagdar, 2001). Agricultural production comprises of 30% meat and meat products, 27% of them include milk and dairy products, 2% skin and hides, 1% animal and plants oil, 31% flour and flour products, 2% fruit and vegetables, and 2% livestock feed and starches. Figure 2.5 Share of domestic production versus imports in consumption of major products (AIP, 2006-2007). From 1999 to 2004, all foodstuffs consumption except meat and milk has been below the recommended level. Because of natural disasters such as drought and dzud in recent years, the consumption of milk and meat products has declined during those years. However, the consumption of flour, rise, eggs, potatoes, and vegetables has increased in 1999-2002. Especially, consumptions of potatoes, vegetables, and fruits are significantly below the recommendation (PRSP, 2004). Mongolia imports some non-meat food products from Russia, China and others. Mongolia relies fully on imports for fruits and rice (WB, 2008). Livestock production is entirely seasonal, taking place in harmony with the Mongolian climate. For example, wool and hair collect in the late spring and early summer, while most livestock 7
  16. 16. slaughter in the late autumn and early winter. Milk and dairy products mainly produce during summer (Shagdar, 2001). a) Meat and meat products. On average, 7.5 million head of livestock slaughter for consumption annually, accounting for approximately 25% of the total livestock herd counted at the beginning of each year. This equals 250000-300000 tons of meat, which include mutton, beef, goat meat, and horsemeat. Camel meat is not so popular and consumed mostly during the winter. Meat and meat products taken from of 30% beef, 40% mutton, 10% goat meat, and 15% horsemeat. (Shagdar, 2001) b) Milk and dairy products. Annually, 250000-350000 tons milk produces in Mongolia. Cow’s milk possesses more than 80% of the total of milk. Moreover, sheep and goat milk, and horse milk accounting for about 10% and 8% respectively. In addition, more than 90% of all cows are accounted by native Mongolian cows, which have an average milk yield of 1.9 liters per day in steppe and forest region, and 1.3 liters in the Gobi region. (Shagdar, 2001) Dairy products include yogurt, butter, dried curds, cheese etc. Particularly in the rural areas, milk consumes directly and converts to a wide range of traditional products. Many of these have a long life and are stored for consumption in the winter and spring (WB, 2003). Horse milk is used to produce the popular drink, it contain a low alcohol that is similar the beer. Rich content of amino acids, vitamins, and sugar found in horse milk makes airag a nutritious and healthy drink, which is also low in fat. Therefore, it is used to treat many illnesses, including tuberculosis, diseases of digestive organs, pharmaceutical toxicity, and fatigue. (Shagdar, 2001) c) Wool, hair, and cashmere: Approximately, 25000 tons of wool, hair, and cashmere is produced in Mongolia, annually, more than 70% of which is accounted for by sheep wool. Mongolia is the second largest producer of raw cashmere in the world. Approximately, 3300 tons of cashmere is produced annually. That is accounting for about 20% of the total global supply. Therefore, cashmere is one of the main export commodities in Mongolia. In wool and cashmere industry, the productions of major items include spun threat, camel wool blanket, carpet, felt etc. (Shagdar, 2001) d) Hides and skin: One of valuable resource for producing luxury consumer goods is hides and skin. About 6.5-8.5 million individual hides and skin are produced in Mongolia, annually more than 80% of these are sheep and goatskins which are supplied to processing industries or exported. Traditionally, sheepskin was used for making warm winter coats and floor covering, while various accessories for handling horses were made from cattle hides. (Shagdar, 2001) 8
  17. 17. CHAPTER III METHODOLOGY The study conducted in four main stages such as the data collection, analysis of the data, and reporting, and conclusions and recommendation part. The general methodology used for specific objectives of the study is shown in Figure 3.1. Figure 3.1: Flow chart of methodology and procedure for survey and data collection. 9
  18. 18. 3.1 Site selection The sites for the study selected included three sub-provinces named Jargalant, Sumber, and Bayanchandmani of Tuv province. It is nearest province with the capital city (Figure 3.2). The site selection chose based on the following characteristics. • Agricultural production • The location of province • Potentials for the development of livestock husbandry • Financial constraints of the research • Data availability General information of Tuv province Area: 77,300 sq km Population: 96,500 Center: Zuunmod Number of livestock: 1.598.000 Cropland: 318.100 hectare Number of sub-provinces: 27 Tuv province is located in the centre of Mongolia. In addition, capital city named Ulaanbaatar located in this province’s territory. Tuv province is one of the biggest and most productive provinces, as this province is well positioned geographically to supply livestock production to nearest areas with high demand. This province is situated 43 km from the capital city. Moreover, the major intensive animal farms are located in Tuv province. In this province, have 201 household farms; include dairy farms 152, pork farms 24, and chicken farm 1, respectively (MFA, 2007). There are a total of 210,000 camels, 197,9 thousand head of horses, 131,1 thousand head of cattle, 1040,8 thousand of sheep, and 801,3 thousand heads of goats (NSO 2006). 3.3 Sampling Design and Procedures of Survey Formal survey was conducted to collect the general information of herder households’ comprehension and the current development of agricultural products. Herder household and farmers who own agribusiness were selected for interviews. The number of herder households and number of farms in each province were determined by following formula: Where: n= Number of total sample N= Total number of farms and herders households E= Error (0.05) 80 herder households and 8 intensive farms from selected in Tuv province for this survey. This size of samples of herders and farms provided statistical justification in order to generalize the results. 10
  19. 19. Figure 3.2 Location of Tuv aimag 3.4 Data Collection Data were collected from two sources. (i) Secondary data was from the Mongolian National Statistical Office, Mongolian State University of Agriculture and the Ministry of Food and Agriculture. Data used in this study included: Urban and rural population Number of herder households (selected area) Total number of livestock and livestock distribution Land utilization Main agricultural production 11
  20. 20. (ii) Primary data was collected through questionnaires distributed to the randomly selected dairy farms and herder households in Tuv province and to determine the production, processing and marketing (Appendix-A and B) Data collected in this part included: Present situation and the growth prospect of Livestock husbandry. The suggestions and comments of herders and farmers who responded in this research. The comments The current problems faced by the herders and farmers. The survey aimed to question 80 herding households from the Tuv province and 8 intensive farmers of Tuv province were involved, but in practice, only 69 herders and 32 small and medium scale intensive dairy farms were surveyed. Therefore, around 10 relevant people including an official such as governor of soum and bag, coordinator of household livelihood improvement related project, and livestock expert were given an additional questionnaire. 3.5 Data processing and analysis 3.5.1 Data processing The data of this study collected from the herder households and farmers of Tuv province. The draft were analyzed to know the development, future growth, the influencing factors and special characteristics of the livestock sector, SWOT analysis. Around 80 questionnaires processed in the SPSS package and Microsoft Excel by using descriptive statistics. Moreover, in the survey investigated the herders and farmers’ opinions about the Mongolian livestock sub sector. 3.5.2 Data analysis Data collections were analyzed quantitative and qualitative ways according to the field data. The basis statistics data and the survey questionnaire results investigated the past and current performance of Mongolian livestock husbandry, and calculated the future growth of livestock animals in Mongolia by showing the form of table, figure, flowchart, mean, and percentile. 3.5.3 SWOT analysis The statistical data and the results of questionnaire determine the external factors such as Opportunity and Threat and internal factors such as Strength and Weakness of intensive and extensive livestock husbandry of Mongolia. Moreover, SWOT analyses provided the opportunity, weakness and other factors of Tuv province for the livestock sector. 12
  21. 21. CHAPTER IV RESULT AND DISCUSSION 4.1 The current situation of Mongolian Animal Husbandry Generally, Mongolian animal husbandry divided two main sectors: extensive animal husbandry and intensive animal husbandry. Barker (1997) said, ‘Mongolia is one of the few countries in Central Asia where people still live a nomadic lifestyle despite the extreme climate’. The extensive livestock management system of Mongolia includes main five species of livestock for most of the year. The some herders and some relevant people believe that the extensive animal husbandry is most suitable sector in Mongolia. The first reason is that, approximately 80% of total territories are grassy area in Mongolia. This is one of the biggest scales of the world. Second, Mongolian livestock systems is continuing with a long traditional nomadic livestock herding. Hence, the herders obtained the great knowledge and experiments during the several centuries. Third, Mongolian herder households are settled in the traditional pastoral system such as “khot ail” and “neg goliinhon”. Two and more herder households including relatives and acquaintances called “khot ail” and “neg goliinhon” live together. This system is most indigenous form. This form of living served a variety of functions such as using pasture, and seasonal movement of households. Lastly, the demand of livestock production is increasing during the last few years because of incomes of family are increasing, and the increased demand from the neighbor countries. Furthermore, it has become the foundation of Mongolian livestock revolution. Moreover, Mongolian climate is suitable for the extensive animal husbandry. On the other side, the government of Mongolia begun to support intensive livestock farms to develop dairy and meat bread cattle, pork, and poultry. Some people said the intensive livestock husbandry is better than the extensive livestock husbandry. There are several reasons for this statement. The first significant reason is that the increasing livestock number of Mongolia. According to some researches, it is possible to support around 38 million heads of livestock on the Mongolian whole grasslands. However, the number of livestock already reached 42 million heads in 2008. Therefore, the growth of livestock is creating the degradation of pastureland by overgrazing in Mongolia. Secondly, since 1940 the average air temperature has been increasing in Mongolia caused by the climate change of the world. Moreover, the arid land is increasing due to decreasing of precipitation. Therefore, since last few years the yield of pasture is depleting gradually. Thus grazing time of livestock is decreasing in Mongolia. Finally, the development of extensive farms directly depends on the supply and safety of the food. Presently, Mongolia is importing most of food products except the meat and meat products. That is why the intensive animal husbandry is developing in some provinces, especially the nearest provinces with the bigger cities such as Tuv, Selenge and Bulgan. According to research by the Ministry of Food and Agriculture (2007), Mongolia has 750 intensive animal husbandries. Of which 494 farms for dairy, 10 of them for meat cow, 15 sheep farms for meat and wool, 79 farms with pigs, 111 farms with poultry and 40 farms with bees in Mongolia (Appendix.C) 13
  22. 22. 4.2 The Present Status of Mongolian Livestock Mongolian livestock reached 42195.8 thousand heads in 2008 and it increased by 4.8 percent compared with 2007. Figure 4.1 shows the livestock numbers of Mongolia during last 18 years. Sheep, goat, and cattle population has increased while those of camel and horse are decreasing in Mongolia during the last few years (Appendix D and F). Figure 4.1 The state of livestock number of Mongolia from 1990 to 2008. According to Figure 4.1, the total number of livestock dramatically increased between 1990 and 1999. However, it decreased by 28.7% due to drought and Dzud during 2000 to 2002. During that period, 3.5 million and 4.7 million heads of animals died in 2000 and 2001 respectively. During the last 7 years, the number of livestock increased by 31%. By the way, the number of livestock in 2008 reached highest number ever. Figure 4.2 The comparison of the livestock structure in 2008 with 1990 14
  23. 23. Figure 4.2 shows the comparison of livestock structure (by type) during 2008 and 1990. According to Figure 4.1, sheep were dominating in the livestock structure until 2003. However, cattle and goats dominated the structure of livestock during the recent years. This is because of cashmere become herder’s main income from livestock, due to free market economy. It explained that after privatization, the herders prefer to herd productive kinds of livestock. Although, the livestock resist Mongolian weather especially adopted for the cold season, the productivity of livestock is low. Therefore, the some preparations such as to build warm shelters, and to prepare and store hay and fodder are most significant principal elements during the wintertime. Moreover, pastures are subjected to increased vulnerability to parasites and other diseases. These issues affect the animal productivity. 4.3 Comparison of Actual and Estimated Livestock Number Three different estimation including the average of number of livestock, comparison of actual and estimated livestock number of Mongolia between 1990 and 2008, and livestock number in 2009 by using the Microsoft Excel (Appendix.G) are given below (Avdai et al, 1999). Calculation 1. The average number livestock in Mongolia from 1990 to 2008. The average number of livestock estimated was 29550.1 thousand heads between 1990 and 2008. Calculation 2. The goal of this part is that to estimate the equalized livestock number (amount) on the actual livestock amount by using the straight-line equation. yt = a + bt Where: t - period and a, b - the parametric constraints. - (4.2) To estimate, the parametric constraints can be solving by using the following method. The value obtained by using equation (4.3). Table 4.1 shows the results of estimation. To solve this system 2 of equation, substitute ∑t = 0. Moreover, the estimated values such as Σ y; Σt ; and Σyt are shown from the Table 4.1. 15
  24. 24. yt = 29785.64+571.45t yt - estimated livestock amount y –actual livestock amount The estimated livestock amount and actual livestock number of Mongolia between 1990 and 2008 are shown in Figure 4.3. Table 4.1 The calculation by using Equation 4.3 (thousand heads) t t2 y*t 25854.9 25527.9 25494.1 25174.7 26808.1 28572.3 29300.1 31292.3 32897.5 33596 30327.4 26075.2 23897.6 25427.7 28019.9 30398.8 34803 40263.8 42195.9 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 81 64 49 36 25 16 9 4 1 0 1 4 9 16 25 36 49 64 81 -232694.1 -204223.2 -178458.7 -151048.2 -134040.5 -114289.2 -87900.3 -62584.6 -32897.5 0 30327.4 52150.4 71692.8 101710.8 140099.5 182392.8 243621 322110.4 379763.1 TOTAL 565927.2 91 570 325731.9 y 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 16 yt=a+bt 24642.59 25214.04 25785.49 26356.94 26928.39 27499.84 28071.29 28642.74 29214.19 29785.64 30357.09 30928.54 31499.99 32071.44 32642.89 33214.34 33785.79 34357.24 34928.69 35500.14 36071.59 36643.04 37214.49 37785.94 38357.39 38928.84 826428.59
  25. 25. Figure 4.3 The actual number of livestock compared with the estimated number of livestock in Mongolia from 1990 to 2008. (thousand heads) • Calculation 3. The last estimation is that how many heads of Mongolian livestock will be reach in 2009 by using the following Equation 4.4. yt ± t α · δ y -(4.4) Where: yt - estimated amount of livestock on 2009 (see from previous Table 4.1) tα – dispersion of Student δy – standard deviation y + tα = 35500.14+8346.68= 43846.82 y - tα =35500.14- 8346.68= 27153.46 Calculation shows that the livestock number of Mongolia will reach from 27153.4 to 43846.8 thousand heads animals in 2009. Below three steps shows the steps of calculation 3. Step A. To calculate δy (standard deviation) can be solved by using following equation 4.5. (4.5). Table 4.2 shows the result of this estimation by using Equation 4.5. Where: n - total number of sample. Step B. To find the dispersion of Student (Student is the name of person) (tα). 17
  26. 26. tα (q; k) = tα (0.05, 18)= 2.12 (Appendix I) Where: k - degree of freedom k= n-1=18 q - significance level (Appendix I) Step C. tα · δy = 2.1 · 3974.61 = 8346.68 Table: 4.2 Estimation by using Equation 4.5 y 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 yt y-yt 25854.9 25527.9 25494.1 25174.7 26808.1 28572.3 29300.1 31292.3 32897.5 33596 30327.4 26075.2 23897.6 25427.7 28019.9 30398.8 34803 40263.8 42195.9 24642.6 25214 25785.5 26356.9 26928.4 27499.8 28071.3 28642.7 29214.2 29785.6 30357.1 30928.5 31500 32071.4 32642.9 33214.3 33785.8 34357.2 34928.7 1212.3 313.9 -291.4 -1182.2 -120.3 1072.5 1228.8 2649.6 3683.3 3810.4 -29.7 -4853.3 -7602.4 -6643.7 -4623 -2815.5 1017.2 5906.6 7267.2 (y-yt)2 1469671.29 98533.21 84913.96 1397596.84 14472.09 1150256.25 1509949.44 7020380.16 13566698.89 14519148.16 882.09 23554520.89 57796485.76 44138749.69 21372129 7927040.25 1034695.84 34887923.56 52812195.84 284356243.2 4.4 Land Utilization Mongolian total territory is 156411.6 thousand hectares. Of which, in total 74.2 % of total area is used for the agriculture, 15.7 % used for state special land, 9.1 % of total area is comprised forest land, 0.3 % land used for cities, rural town, and other settlements, 0.4 % land possesses water resources, and 0.2 % of total land is covered by transportation and networks in 2006 (NSO, 2006). Currently, Mongolian pastureland faced many significant problems such as grassland degradation, soil erosion, and desertification. Main sources of them are overgrazing, water 18
  27. 27. source, and the population. According to some survey, approximately 120 million hectare land (70 percent) of total Mongolian territory is degraded. Figure 4.4 The comparison of utilized lands between 2000 and 2006 (by type) Figure 4.4 shows utilization land between 2000 and 2006. For example, the agriculture land, and forestland decreased by 9% and 4% in 2006 compared to 2000. Generally, the development of crop production and destruction, the population’s migration to urban areas and the nomadic livestock husbandry are leading to the overgrazing and degradation of the land. Moreover, livestock number in Mongolia is increasing during the last few years. Especially in 2008, it reached the highest number of livestock for the first time in history. Even though, the herders are facing the shortage of fodder. In addition, the land for the natural pasture has slightly increased since 1989. 4.4.1 The Impacts for the Land Degradation There are many environmental factors affect on the agricultural sector in complex ways. Most scientists and experts agreed that factors of land degradation in Mongolia could be divided into following two main categories including human and natural factors. Today, many factors affect the land degradation caused by the human activities such as excessive grazing, deforestation, poor irrigation, and inappropriate land tenure in all sector. The first significant factor is overgrazing. Crop cultivation is one of the most important reasons of soil erosion and overgrazing. Spring tilling coincides caused the seasonal higher speed wind and most planted areas are lack of windbreaks like trees. For example, the average wind speed of Gobi region is 3…4 meters per second, it is one of the significant cause of soil moisture loss and erosion. According to some survey, an average of 35–50 tons of soils has been lost from each 19
  28. 28. hectare of cultivated land due to erosion during the past 30 years. Half of all cultivated land degraded to some degree of erosion. Another factor of overgrazing is the vehicle-induced degradation. The second significant factor is the deforestation due to clear-cutting the trees, fire, and insect infestations. The third important factor is inappropriate land tenure like mining and inadequate waste management. Shagdar (2001) estimated approximately 100,000 hectare of land have been degraded by mining and quarrying. Moreover, another significant factor of land degradation is bad or poor irrigation practices. Salinization of irrigated land in arid climates as a result of poor drainage and evaporation and using highly toxic pesticide for vegetation protection from insects causes depletion of soil productivity. The final factor of land degradation is the legal provision of “openness of pastureland which is public property”. Because of this legal provision, the utilizing of pastureland is free for everyone (UNDP & SIDA, 2003). On the other hand, the land degradation of Mongolia depends directly on nature and weather conditions. Most important impact is the location. It is located high above sea level and far away from the ocean. Mongolia lies between 420, 520N, and almost 1200 E. Another principal factor is the global warming and climatic change of the world. Climate change can affect weeds, insects, plant diseases, and pathogens in the environment, especially in agricultural activities. Another consequence on the pasture is the lack of rainfall. Mongolia has low precipitation and short growing seasons, especially long and cold winter and short and hot summer. Therefore, other significant causes are drought and Dzud in Mongolia. They are the keys determinants of vulnerability of livestock to climate change. They affect the livelihood of herders’ household, which is reduced livestock productivity, especially milk and destroy pasture (AIACC, 2006). The natural disasters like dzud and drought have occurred around 30 times in Mongolia with different level of harm (UNDP&SIDA, 2003) (Figure 4.5). Figure 4.5 Different level of harm due to drought and dzud disasters in all provinces in Mongolia (AIACC,2006) During the disaster of harsh winter (dzud) in 1999- 2000, almost one third of the total livestock died in 1999. Figure 4.6 shows that the losses adult animals between 2000 and 2006 in Mongolia. 20
  29. 29. Figure 4.6 Losses adult animals of Mongolia (2000-2006) thous.head Moreover, there are many negative consequence such as mental stress (66%), destroyed health (26%), be disabled (1.3%), running up a huge debt (18%), school children dropouts (17%), shortage of food (10%), became family break up, involving in robbery and crime faced in Mongolia, even suicide have been followed by the Dzud of 1999-2000 (AIACC, 2006). 4.5 Mongolian Livestock Production Agricultural products especially livestock products is one of the main source of economy. Almost 90% of the total agricultural production of Mongolia produced from livestock sector and yielded approximately 980.3 million dollar in 2007. Today, all meat and meat products, and milk and dairy products of food industry consume on the domestic market. However, Mongolia exports high quality meat and meat products, other animal originated raw products such as hides, skins, and wool. The population is increasing every year and 50% of total population is working in the agricultural sector in Mongolia. Agricultural production also should increase according to the population growth rate. Figure 4.6 provides the details the percentage of livestock products in total gross agricultural production output between 1990 and 2007. The largest contribution is provided by the livestock sector overall years in Mongolia. The production of livestock has increased by 11% from 1990 to 1995, last five years production of livestock sector dramatically increased. Generally, gross agricultural output has decreased slightly from 2000 to 2004 caused by drought and harsh winter (dzud). Figure 4.7 The percentage of livestock products in agriculture (1990-2007) 21
  30. 30. In addition, difference in culture and geographical segmentation of Mongolian each provinces reflect the ethnic and regional taste of livestock food products. Moreover, the statistical data shows that every livestock types give to the economy different benefits (Figure 4.7). Figure 4.8 The percentage of benefits from livestock types in economy (NSO, 2006) Generally, milk and meat products are the most essential products for the food industry in Mongolia. Productions differed by geographical location and it demonstrate different supply, different demand condition and different market conditions. Figure 4.8 shows the output of livestock products during the last 16 years in Mongolia. Figure 4.9 Main livestock production of Mongolia (1990- 2006) Agricultural food products deliver to Ulaanbaatar city from three main sources including products from local producers, the private sellers, and the imported products. 4.5.1 Milk and dairy products Milk and diary products are the traditional food of Mongolian people. Mongolia consumes a high per capita of milk, about 3 times the average for Asia as whole. Even though, the supply of milk is enough, the supply of the milk products is not enough due to excessive privatization. For example, dairy products with huge demand include cheese and ice cream but it still has been 22
  31. 31. importing from other countries. While 138 kg of dairy products per capita is required, the urban people consume only 50 kg of dairy products per year in Mongolia (Table 4.3). Table: 4.3 Milk availability (FAO/UN, 2006) Moreover, fresh milk and other traditional dairy products are also seasonal and we produce the milk products for a short period of a year. Many of these products have a long life and are stored for consumption in the winter and spring. During the winter and springtime, the intensive housing farms produce milk and dairy products. However, those products are insufficient. Moreover, the sterilized and unsterilized milk is selling in the city markets and especially in the street. It creates some threat and hazard like unhygienic conditions and it depends on the price of milk. Consumer perceived that low price of products is indicating bad quality of those products. Nevertheless, imports of milk with carton are increasing during the last years. Figure 4.9 shows the milk flow chart that link herders and dairy farmers with consumer in large urban cities such as Ulaanbaatar, Erdenet, Darkhan, and Selenge. Milk producer Milk cooling center 20% Milk processing plant 30% Bakery & restaurants 10% Schools 40% Food retail market 40% Retail stores & shops 50% Others 10% Consumer Figure 4.10 Milk flow chart Mongolian dairy products made by using the traditional methods of processing and produced by three main procedures named boiling with foam, curdling, and souring (fermentation). 23
  32. 32. Figure 4.11 The type of livestock which provide the milk products At present, around 80 factories are working with producing milk and other milk products. Last few years many companies have launched new factories, which can process and package in high temperature and vacuum environment and produce high quality, long-term preserve able and pasteurized products. Such as New Zealand –Mongolian joint venture company “NZM Food”, “Mon Fresh Juice”, “GUM” LLC “Vitafit”, and “Mon Tarag” They produce around 40 kinds of traditional dairy products. 4.5.2 Meat and meat products The meat processing industries work seasonally and the main working period is from October to December, in that time the abattoirs operate at maximum capacity. There is potential to improve the meat export and to compete with other neighbor For example, meat exported was 3846.8 tons of cattle’s frozen meat and 7072.8 tons of horse meat to the some foreign countries such as Russia, China, Japan, and some Arab countries such as Turkey and Jordan. Highest meat export reached around 40,000 tonnes per annum in 1977 and 1978 (Batjavkhlan, 2008). The collectivized state farms influenced the growth of meat export at that time. Moreover, in 2007 Mongolia produced 1.8 million dollar from the cattle meat, 1.3 million dollar from sheep meat, 2.5 million dollar from the horse meat, and 11623.9 dollar from pork meat respectively. The annual meat consumption is 65 thousand tons and according to agricultural products and consumption standard per capita by Mongolian Ministry of Health and Welfare, meat standard consumption is 230 g per day, yearly 120 kg per person for the Mongolian climate. Table: 4.4 Meat consumption in Asian first five countries (FAO, Rome, 2004) (kg. per person) Mongolia Singapore Brunei Darussalam China Russian Federation 108.8 71.1 56.4 52.4 51 However, during the recent 9 years, livestock slaughtered for consumption has been gradually decreasing after 2000 year’s harsh winter (dzud). Today, domestic demand of meat is increasing 24
  33. 33. due to urbanization and growth of population. During 2008, almost 50 percent of total livestock slaughtered for consumption include sheep meat, 39 percent is include goat meat (Figure 4.11). Figure 4.12 The percentage of total slaughtered livestock by types (thousand. tons). In socialism time, the market distribution was regulated by the government managed commercial system. After privatization, it changed to the free market. There are two main distribution roots in meat distribution such as distribution by meat wholesaler market and meat production plants. The government and Ministry of Health deal with the hygiene of meat produced and search for a greater proportion of the slaughtering through abattoirs with set up hygiene standards. Mongolia has around 30 medium and large sized slaughter houses. The capacity of them is about 85,000 tons of carcass meat, per year (AIP, 2006-2007). However, the slaughterhouses use just 29% of the total capacity. Largest meat slaughtering companies, Makh Impex, Bagakhangai Darkhan makh and Meat market are equipped with advanced and sophisticated facilities of modern meat processing industry that meets international standards. 4.5.3 Animals raw materials Animal originated raw materials are the base of the light industry of Mongolia. Mongolia produced 17000 metric tones sheep wool, around 9 millions skins and hides, and 3000 tones cashmere, per year. Figure 4.12 shows the output of animal originated raw materials during the last 8 years. The cashmere of goats is a most important part of the herder’s income. After privatization, the goat population increased dramatically, much faster than other animals. Figure 4.13 The output of animal raw materials (1999-2006) 25
  34. 34. Mongolian cashmere has main five stages and every stage has substantial excess capacity still remains: scouring (40% capacity utilization in 2004), dehairing (52%), spinning (42%), knitting (77%), and weaving (52%) (Table 4.5). More than 50% of Mongolia’s production of raw cashmere is smuggled to China without any processing. Table 4.5 shows cashmere Mongolian production, export, and imports of cashmere by stage of processing in 2004 (EPRC, 2005). Table: 4.5 The output of animal’s raw material in 2004 by stage (metric. tons) (The project by the Textiles Institute) Production Raw/greasy cashmere Scouring/ dehairing Dieing/ spinning Knitting Weaving Exports Imports Input to next stage of production 3200 800 147 312 30 Stage 1600 616 6 303 21 0 0 180 0 0 1600 184 341 0 0 Table 4.6 shows the main products of livestock commodities. The largest producers are Gobi Corporation, and Buyan Company. Furthermore, there are many processing factors of agricultural raw materials such as cashmere and other non-food materials in Ulaanbaatar, Darkhan, Erdenet and Hovd cities. Table: 4.6 Production of main livestock commodities (Shagdar, 2001) 2000 Spun threat, tons Camel wool blanket, thous m Scoured wool, thous tons Carpet, thous sq.m Knitted goods, thous pcs Felt, thous.m Felt boots, thous pairs Woolen fabrics, thous running m 40.8 28.5 1.4 704.8 1233.5 113.9 34 21 2001 2002 45.6 43.1 2.1 614.8 2315.7 110.5 33.4 38 55.9 38.3 1.2 533.9 5563.6 112.9 16.1 32 2003 2004 2005 2006 55.1 57.4 69.7 38.5 27.4 36.8 33.5 34.4 0.5 1.8 0.9 1.1 663.1 690.4 586.9 606.3 51.48.1 7989.9 3448.5 4529.3 303 67.8 69.1 68.8 9 4.9 10.5 7.8 54.6 58.7 64.8 69.5 Mongolia exports the animal originated raw products with high quality such as hides, skins, and wool (MIF, 2006). 4.6 Past Policies and Strategies Agricultural development especially livestock sector directly influences on Mongolian economy. Mongolian Government approved the policy named “Guidance and the State Policy on Rural Development” in 1996 (Bataa, 2002). The purpose tended the improving the living condition of herders and people of rural area. Moreover, the government extends many subsides to the herding sector. For example, herders pay no taxes: rather they pay a very tax based on the 26
  35. 35. number of goats. They do not pay their dormitory and food expenses when they board at sum and aimag schools and pay no social security or health fees: water is provided free from wells drilled and maintained by local government units: and fodder has been subsidized. The agricultural sector of Mongolia cooperate varied international organizations like FAO of the UN, ADB, IFAD, UNDP, WFP, WB, European Union Program, also Russia, Japan, USA, China, and Germany. Total 15 projects being implemented in the Mongolian agricultural sector. Approximately 7 projects of them tended to the livestock sector (Table 4.7). Table: 4.7 The implemented projects in livestock sector of Mongolia (Bataa, 2002) 4.7 The General View of Study Area In this part, briefly outline of livestock situation of Tuv province and to investigate the results of questionnaire, which is collected from the herder households’, and the owners of intensive diary farms of Tuv province (Appendix Hand I) are included. 4.7.1 The situation of Tuv province Tuv province includes 27 soums. According to the result of census by 2007, the livestock number of Tuv province reached 2626.5 thousand heads. It has increased by 21% than 2006. Three sub-provinces, named Bayanchandmani, Jargalant and Sumber of Tuv aimag, were 27
  36. 36. selected in this research. There is difference between the livestock numbers in those subprovinces. Bayanchandmani soum (sub-province) counted 44745 heads of livestock animals, Jargalant and Sumber counted 90652 and 29046 heads of livestock animals, respectively in 2007 (Figure 4.13). Figure 4.14 The livestock number of Tuv province, by soum. Moreover, in Tuv province live 13475 herder households with 2.5 million livestock. Figure 4.14 shows that 11% of total households have less than 10 animals, 9% of them have 11 to 30 animals, 16% have 51-100 animals, 21% have 101-200, 21% have 201-500, 7% have 501-900, and 2% have 1000-1499 animals. Moreover, around 45 households herd more than 1500 livestock animals each in Tuv province (Appendix-J). Figure 4.15 The classification of herder's household of Tuv aimag (by livestock number and percent of total) According to some survey, the herder households with 200-300 livestock animals can provide their own existence. It means they can supply only their own needs oriented living. Therefore, Tuv province has almost 50% of herding households with less than 100 animals. They are poor and unable to provide their own subsistence, because of countrywide drought and dzud. Since 1996, the government implements the restocking program in order to define the suitable 28
  37. 37. 2005 426692.1 2006 461923.5 2007 261710 1$= 1170 tugrug Number of members Involved in the restocking program Number of households Others Local government's and aimag's budget Total budget (thous.tug) Foreign countries's project and program's budget of which The number of animals which provided in the restocking program incomes and to improve livelihood of herders. Total 29538 animals were providing support to 1899 herder households from 27 soums of Tuv province for the period of the last three years (Table 4.8). Table: 4.8 The result of restocking program in Tuv aimag in 2005 to 2007 35300 29162.7 362229.4 9167 574 2158 53895.5 1025 407011 12016 992 4286 38282 3600 219828 8355 333 1312 (The livestock census of Tuv aimag, 2007) 4.7.2 Herder Household’s Characteristics Herder’s age and education level In total, three soums selected from Tuv aimag and 69 herders participated in the survey, five of them were family headed families. Their age, education, production environment, social, and living condition were investigated. Almost half of the all herders are young people aged between 36-55 years old, herding experience was around more than 20 years (Figure 4.15). Figure 4.16 Herders’ age group and education level Generally, the level of education in rural area is lowers than urban area in Mongolia. According to Table 4.9, the education level of herders is lower, especially people who aged between 36 and 55, and more than 55. The result shows 92 percent of herders aged between 36 and 55 had finished the secondary school, other 8 percent of middle age group have no education. 29
  38. 38. Table: 4.9 The comparison the education level with herder’s age Education No Secondary Technical High school University education school school 16-35 36-55 55+ Total 19 1 1 21 0 1 1 2 4 23 7 34 7 0 0 7 Total 5 0 0 5 35 25 9 69 The herder households’ population and their livelihood situation As a result, 26 % of respondent households had a family size of 1-5 members, 67% had a 5-10 members, and 7% had a more than 10 members. The survey revealed that 13% herders were poor (with up to 100 head of livestock), 76.8% medium (between 100-499 head of livestock), and 10% high level (more than 500 head of livestock) of their livelihood situation (Table 4.10). The livestock animals are a main source of their livelihood for the all herder households. Table: 4.10 Households' population and livelihood situation Livelihood situation High Medium Poor Total 1... 5 3 13 2 18 5... 10 4 38 4 46 10+ Households' population 0 2 3 5 7 53 9 69 Total Table 4.11 shows the livestock number of respondent households and livestock composition by animal type. Amongst the 69-herder households, the average number of dairy animal was 216 animals and minimum and maximum numbers were 21 and 1652 animals, respectively. Table: 4.11: The livestock composition of herder households (by animal type) Total Sheep Goat Cattle Horse Camel No of respondents 69 Min number of animals 21 69 68 69 69 11 Max number of animals 1652 5 4 7 3 2 30 690 520 54 379 10 Mean 216.88 103.36 61.85 19.41 32.41 4.73
  39. 39. In addition, 11.6% of herders had crossbred type of livestock, 31.9% are herd fresh bred livestock, and 56.5% of them had improved bred type of livestock (Figure 4.16). Figure 4.17 The kind of livestock of herder households The marketing Main products of the herder households are surely meat and milk products and animals’ raw materials. More than half percent of respondents said their income from the livestock is enough and around 49 percent of them said the income is not enough for their daily life. The respondents who said income is not enough, they cannot sell their meat and dairy products in the market. Some herders who have enough livestock animals sell their products to the market. Generally, main market for the products is Ulaanbaatar city, and Tuv province. Main customer is retailer. 37.7% of the herders sell their products in the own province, 34.8% of them sell in Ulaanbaatar city and 15.9% of them sell their products in the nearest province (Table 4.12). Table: 4.12 Main customer and customer area of herders City market Where do u sell Nearest province your Other products Own province Total Percent Who's your customer Factory Person 3 21 0 11 0 8 0 26 3 66 4.3 95.7 Total 24 11 8 26 69 100 Percent 34.8 15.9 11.6 37.7 100 Furthermore, most herders reported that they feel some problems in marketing (Figure 4.17). Almost half of respondents reported the main problem of marketing is the competition between herders. They sell their products direct to the market. Moreover, quality of products is another major problem in the marketing for the herders’ households. The second main negative problem faced by herders is that the price of dairy products. According to my survey, 16% of farmers and herders responded that the price of dairy products is low. In addition, the prices of products depend on the market size, and un-pasteurized form of milk. Therefore, the third main problem of herders is the lack of transportation equipment. It is restricted herder households in expanding their market. Moreover 43% of herders have motorcycle, 21% of them have own car or tractor, 31
  40. 40. other 36% of herders do not have any technical equipment. Besides those problems, herders responded that other problems in the marketing are quality of products, small market, and storage. Figure 4.18 The problems of herders in marketing On the other hand, 65% of total herders’ income level who sells their products in the market was average. 20% of them said the income level is high and other around 15% of respondents said the income is not enough for their life and just can provide their own subsistence (Figure 4.18). Additionally, some herders want to start new business, but their income from the livestock production is not enough for their daily life. Figure 4.19 The income level of herders households Furthermore, there are several problems faced by the herders. Figure 4.19 shows those problems. Most significant problems of herders are the availability and quality of products, finance, marketing of products, and availability of fodder. Furthermore, the lack of transportation means restricted to expand their business. There are some other problems such as the lack of winter and spring shelter, the lack of water supply (not enough well), and decreasing arable land. Generally, most processing activities were done manually and they use the public wells and operate them manually, too. Therefore, the insufficient equipment level for primary processing of raw materials affects their income. 32
  41. 41. Figure 4.20 Major problems of herder households The government support Several activities like the restocking program, and improvement of wells and shelters were implemented by the government. However, 41 percent of herders responded that the result is not satisfied for them, 39 percent of them said that they are satisfied from those activities, and other herders said had no comment. Thus, most herders are not satisfied with the government policies. 92.7% of all herder households loan the money from the bank. 20.3% of them would spend their loans for preserving hay, well and shelters. Some herders interested in pursuing business besides their livestock. Figure 4.20 shows use of the loan for different purpose. 21% of all respondents’ loan their animal husbandry production such as preserving hay, building wells and shelters, 19% of them spent on food and households goods, and 17% of them used for other purposes. Figure 4.21 Loan uses by herder households 33
  42. 42. 4.7.3 Dairy Farms’ Characteristics General information As a result, from Ministry of Food and Agriculture (2007), Mongolia has around 750 intensive farms including dairy farms, pig, poultry, bees and rabbit farm (Figure 4.21). Tuv aimag is one of the biggest productive provinces in Mongolia (Figure 4.22). Figure 4.22 Number of intensive farms of Mongolia Figure 4.23 Number of intensive farms in Tuv province Total 32 small and medium scale intensive dairy farms of Tuv aimag involved in this study. 34
  43. 43. The reason of establishment Figure 4.23 (a) shows that most important factor, which encourages the establishment of the farms, is the market demand. Profitability and family business came next with the percentage response of 31% and 13%, respectively. Moreover, 72% of total farms were established between 1990 and 1999, and 25 percent of them were established after 2000 (Figure 4.22 b), (Appendix H). After livestock privatization in 1991, there was a rapid increase in the number of farms. It affected the increasing number of livestock animals and the output of livestock products. Figure 4.24 Reason of establishment (a) and established year of dairy farms (b) The technology of dairy farms The technology used by small scale and medium scale dairy farms is mostly simple and traditional techniques. According to survey, 71.9% of farms used half stationary and 28.1% of them used stationary. Most processing activities are done manually. Most of government supported programs tended to the farmers training. The farmers said that the skilled workers are not so important to them, but they want to use the modern technology. However, the resources and income are limited for the farmers. 35
  44. 44. Figure 4.25 The reason which to initiate the dairy farm. As a result, (Figure 4.24) three major reasons given to initiate dairy farm are; potential profit, market demand, and government supported programs. The number of animals and the income of farms Amongst the 32 dairy farms, the average number of dairy animal was 29 cows. The minimum and maximum number was 13 and 62 cows, respectively. Average annual milk production is 1826 litres per cow. Minimum and maximum numbers of annual milk production are 400 and 3100 litres per cow, respectively (Appendix H). Furthermore, Table 4.13 shows that 81.2% of 32 dairy farms are recorded have non-dairy activities, 18.8% of them have some additional activities, for example vegetable, mare milk and crop. Table: 4.13 The income level of farms who include dairy activities and non-dairy activities The farms who include non dairy activities No Yes The Enough (1076-1589$) income Middle (512-974$) Not enough (300-461$) Total 8 12 6 26 6 0 0 6 Total 14 12 6 32 Around 53.2% of the owners of dairy farms answered that their income from the dairy (gross income is between 1076 and 1589$) is enough for their family’s livelihood; 37.5% of them have average (income is between 512 and 974$) and 18.8% of them have not enough income (between 300 and 461$) for sustaining family’s livelihood (Appendix-H). Supplementary feeds Availability of supplementary feeds is an essential problem for the herders and dairy farms. 36
  45. 45. Normal dairy supplementary feeds of the dairy farms are natural hay and bran, but they are not adequate in the farms. Around 70% of expenditures of dairy farms are the fodder related. It was revealed that 46.9% of 32 farms are buying the feeds and 53.1% of them prepare by own. The cost of preparing 1 ton of hay by own is 23 $, buying 1 ton of hay cost is 39 $. (WB, 2003). (1$=1160 tugrug) Therefore, it is very important to prepare the hay by own. However, there are many problems in preparing the hay such as the lack of hayfields, and the lack of equipment. Moreover, 59.4% of total respondents who prepare own hay do not have the haymaking equipment and 40.6% of them have the haymaking equipment. 43.8% of total respondents buy bran from the market, and 56.2% from the processor. Marketing Tuv province is the biggest milk-producing province. Market structure of Tuv province includes the public or private enterprises and companies. All dairy farms targeted their products for the domestic consumption. Supply of dairy products depends on the Mongolian seasons. Farmers informed that main consumer area is Ulaanbaatar. According to survey, 69% of respondent farms sell their products to the processor, 25% and 6% of farms sell their dairy products to the trader and direct to the market, respectively (Figure 4.25 ). Figure 4.26 Main customers of dairy farms Generally, there are many factors affect in demand. The first significant factor is the quality. Of course, consumer needs pure milk. According to survey, most farmers are satisfied their dairy products because they have the high producing dairy cows. However, they want to increase the milk production per cow. Besides the quality of milk, consumers expect low price products with high quality products from the farms. Most of farmers said the price is negotiable to sell. However, 26% of farmers and herders responded that the price of dairy products is low. That is why; it needs to increase the price, due to develop their dairy business. Another significant factor is distribution. Dairy products are widely available summer and autumn time in Mongolia. Furthermore, the lack of transportation and packing system restricted farms in expanding their market. 37
  46. 46. Moreover, as a result, all dairy farms are facing several problems in the market. Most important problem is the competition between dairy farms, because most farms centralized in Tuv province (Figure 4.26). However, farms success depends upon their ability to compete. Moreover, 16% of them answered that the lack of modern technologies and equipments among dairy producers, collectors and processors. Most dairy farms used a combination of few types of machineries, because the cost of new and imported equipments is higher. Moreover, 13% of them reported finance, and 6% and 3% of them reported small market and lack of feed, respectively. Figure: 4.27 The problems which to faced by the farmers in marketing. Lastly, the government will have to continue to provide the infrastructure of Tuv province such as communication, public utility supply like water and electricity, information and extension services, and public storage. 4.8 Veterinary Service Today, all veterinary services privatized since 1997. Mongolian veterinary services organized throughout Mongolia with 18 provinces, 4 towns, and 350 sums (MPVA site). Total, Mongolia has around 380 veterinary service organizations. The service is fully dependent on their private income, and currently there is no access to investment capital. Therefore, the current situation of veterinary service faced several significant problems in Mongolia. According to the research from Mongolian Private Veterinary Association identified following problems in Mongolian veterinary sector. The first problem is the communication and location of the herders’ households. It means, Mongolian territory is huge and the distance between herders household is far from the center of aimag and soum. The second problem is that a gap between veterinarians and herders because of lack of communication and relationship based on veterinary services. 38
  47. 47. However, herders take care for their animals 3 times per year, regularly. According to my research, 84% farmers and 64% herders responded that they can satisfied the veterinary service and the quality of service, and other 16% farmers and 36% herders said that the veterinary service is poor and they advised that the government provide to reform the veterinary sector from old practices. Summary, the veterinary service is good in Mongolia and quality of service is high. The government supports to herders with provision of aid funds of free gift drugs and medicines. In addition, many policies for the veterinary service tend to protect livestock animals by the western union and other charity organizations. 4.9 Problems and Scope for Livestock Husbandry Around 80 percent of total agricultural products related to the livestock sector in Mongolia. However, there are many problems faced in this sector (Table 4.14). Table 4.14: Problems and possibility of livestock sector’s for the future 39
  48. 48. 4.10 Suggested Strategies for Future Expansion The Mongolian government has been launching programs to encourage intensive and extensive livestock sectors. Although, country’s resource assistances provide sufficient opportunities to develop further in livestock sectors, according to this study almost half of herders responded that they do not feel any support from the government. Moreover, they said that the favorable policies of government should support farmers such as to improve productivity, to improve the packaging, transportation facilities, and the loan facility. Therefore, the government keeps the communication between the government, herders, and intensive animal farms and continue improve infrastructures: roads, water supply, and electricity in rural areas. As a result, herders and farmers had been expecting the policies about to control the products price and reduce the fodder cost. Most farmers planned to expand their farms in the near future. More than half percent of farmers responded that they want to increase their cow number, upgrade cow quality, and improve feeding. 4.11 SWOT Analysis The SWOT analysis deals with two main factors (internal factors and external factors) and then by their dual positive and negative aspects (strengths and opportunities, as the internal factors, with weaknesses and threats representing the external factors). SWOT analysis on Extensive animal husbandry Strengths • Abundant grazing land • Expenditure is low • Pure natural products and products are manufactured at the lower cost • Availability of experienced herders • Uses low cost pastoral hay • Availability of various raw material Opportunities • Less negative impact to environment • Less input • Availability to enhance the export • Availability to supply for domestic resource and goods Weaknesses • Some small scale supplying products • Seasonality of supply • Lack of infrastructure • Low income of farmers 40
  49. 49. • • • • The veterinary service is far from the households Destroy to grassy land The shortage of information of herders Poor support of the government Threats • Climatic risky conditions like Dzud and drought • Disasters which are caused by hail, heavy storm • Overgrazing due to the increasing number of livestock • Importing substitute products SWOT Analysis on Intensive animal husbandry Strengths • Increasing of the quality and quantity of products. • Milk consumption and availability is higher • Labor force is abundant Opportunities • Effect from climatic condition is less • Dairy cows with high quality • Rapidly growing in urban market • Potential to export milk and dairy products Weaknesses • Milk production is seasonal • Obsolete equipment and technologies • Poor support from the government • Low level of education and technical skills • Less opportunity at the international sales market • The lack of information of herders Threats • Non natural products • The competition from the imported milk and milk products • Lack of capital to develop the dairy farms 41
  50. 50. SWOT analysis of Study area (Tuv province) Strengths • Lower risk about natural and climatic condition • Nearest province with Ulaanbaatar city • Transportation and information is higher • Resources of agricultural machinery and equipment • Marketing and sales management more developed. • Veterinary service is good Opportunities • Availability to perform any project and research • Availability of experienced workers Weaknesses • Increasing thefts number of animal • Quality of products is low Threats • Overgrazing • Water resources • Increased market competition 42
  51. 51. CHAPTER V CONCLUSIONS AND RECOMMENDATION 5.1 Conclusions Mongolia is a predominantly agriculture country and livestock sector is the most significant sector. Agriculture contributes around 19% of GDP and contributes 30 percent of the total exported of Mongolia. The livestock products constitute 87.6% of total output of agriculture. Moreover, 40% the workforce of the country’s population is directly employed in the agricultural sector. Mongolian livestock animal is adapted for the extensive livestock management system. Moreover, after privatization in 1991, the intensive dairy farms became a significant issue. In addition, the tendency of land usage leads modern farmers towards private and small to medium scale farming over the last few years. According to my survey, the growth prospects of livestock sector look more favorable in Mongolia. The potentiality for the development of livestock sector both of intensive and extensive livestock husbandry is great in view of the availability of raw materials, human resources, and the endowments. However, this potential is limited due to unexpected natural disaster, and degradation of pastureland caused by overgrazing, deforestation, and climate change. Moreover, the availability of critical support like wells, and infrastructure, price fluctuation of livestock products, out of date equipment and technology of processing and producing factories, the capital of intensive farms, and a lack of information. Those consequences affect the livelihood of herders’ household, livestock productivity. Tuv province is one of the big potentialized provinces. Because of the climatic hazard in this province is lower than some other provinces. The infrastructure such as power, transportation, and communication system in Tuv province has been improving compared to other provinces. However, even though, there are many advantages of livestock sector in Tuv province, also there are several problems faced by herders and intensive dairy farms such as land degradation, quality of products, market competition, information, and extension service and the imported goods. Based on present conditions it is necessary to provide the government endowments and proper situation to expand the livestock sector. Although, Mongolian government is keeping to continue, its efforts in terms of improving productivity of livestock both extensive and intensive animal husbandry, but in the future, the role of government should be to give more attention to the intensive and extensive animal husbandry. 43
  52. 52. 5.2 Recommendations The following research should be carried out to promote the development of livestock husbandry in Mongolia. • Further investigation should perform in other provinces of the country and in country as a whole. • More detailed research on potential of livestock products and to investigate the ways to improve quality of meat and milk products, varieties for raw materials and producing more value added products. • To investigate the ways to combat with the land degradation and how to mitigate the effects of natural disasters such as drought and harsh winter (dzud). 44
  53. 53. REFERENCES AIACC Final Report Batima.P “Climate Change Vulnerability and Adaptation in the Livestock Sector of Mongolia”, 2006. Institute of methodology and Hydrology, Ulaanbaatar, Mongolia. Asia Invest Programme (AIP) 2006-2007 “Food technology, packaging and safety in Mongolia” , Ulaanbaatar, Mongolia. Avdai. Ch, Ayursed. J, Tseren. O, Tsendsuren. T “The general principle of research”, 1999. Ulaanbaatar, Mongolia. Baasanjav. Z, Batbayar.D, Boldbaatar.J and others, (1999). “History of Mongolia”. Ulaanbaatar Admon Bataagiin Bynie “The Country report on Animal Genetic Resources of Mongolia”, 2002. Ulaanbaatar, Mongolia. Batjargal.Z “Desertification in Mongolia” National Agency for Meteorology, Hydrology and Environment Monitoring”, Ulaanbaatar, Mongolia. Batjavkhlan Dashdondog “Status and Potential of Improving Agro-Production in Mongolia” 2008. Master’s Thesis, AIT, Bangkok, Thailand. Delgado,1999. Scott Waldron, Colin Brown et al, “China”s Livestock Revolution: Agribusiness and Policy Developments in the Sheep Meat Industry”, p1, 2006. Enkhjargal. Th “Institutional building for dairy-based farming and veterinary system in Mongolia” 1999. Thesis No AC99-38, AIT, Bangkok, Thailand. Enkhjargal. T “WTO membership agriculture in transition economies: Country Overview – Mongolia”, 2005. Ulaanbaatar, Mongolia. FAO/UN Dairy Food Project, Tsetsgee.S “Mongolia: Milk production, processing, consumption & outlook 2010”, 2006. Ministry of Food & Agriculture, Ulaanbaatar, Mongolia. 45
  54. 54. GOM and UNDP (2000). Lesson Learned in the 1999-2000 Dzud, Research report complied under the MON/00/302 Project funded by the Government of Mongolia and the UNDP, Ulaanbaatar, Mongolia. Keating B.A, and McCown R.L. “Advances in farming systems analysis and intervention”, 2001, Agricultural System 70 (2001) 555-579. Lor Lytour. “Status of Small and Medium Scale Agro-Industries in Phnom Penh, Cambodia” Thesis No AE-03-3, AIT, Bangkok, Thailand. Ministry of Food and Agriculture (MFA), 2001. “Livestock in the winter of 2000-2001”. Ulaanbaatar, Mongolia. Mongolian Economic Policy Reform and Competitiveness Project (EPRC), “A value Chain Analysis of the Mongolian Cashmere Industry”, 2005. Ulaanbaatar, Mongolia. Mongolian Investors Forum (MIF), 2006. Food and Agriculture Sector, Ulaanbaatar, Mongolia. Mongolian Travel Guide, 2007. Ulaanbaatar, Mongolia. National Statistics Office (NSO), 1998-2007. Mongolian Statistics Yearbook, 1998-2007, Ulaanbaatar, Mongolia. Poverty Reduction Strategy Paper (PRSP). “Economy growth support and poverty reduction strategy”, 2004. Ulaanbaatar, Mongolia. Salokhe V.M. and Alastair Hicks “Agribusiness Development through Agricultural Engineering Apllications to Agricultural Products”, 2001. AIT. Bangkok, Thailand Shagdar. E “The Mongolian livestock sector: Vital for the economy and people, but vulnerable to natural Phenomena” 2001, Research division, ERINA. Tsetsgee Ser-Od, “Small milk producers the key to dairy industry revival” 2007, Ministry of Food and Agriculture, Ulaanbaatar, Mongolia. UNDP/ SIDA and Ministry of Finance and Economy Poverty Research group “An Examination of the Effectiveness of Herd Restocking Strategies in Building and Securing the Incomes and the Livelihood of Herder households”, 2003. Ulaanbaatar, Mongolia. 46
  55. 55. World Bank (WB). “Semi- Intensive Dairy Sector in Mongolia”, 2003. East Asia and Pacific Region, 1818H Street NW, Washington DC 20433. World Bank’s Rural Strategy for Mongolia (WB),“Rural sector strategy and business plan”, 2006. World Bank (WB). “Mongolia quarterly” 2008, Page 8. Mongolian Developmant Gateway. Available online at: Mongolian Private Veterinary Service. Available online at: FAO, Rome, 2004. Available online at: wtopic=180359&st=0&p=4010343&#entry4010343 APPENDIX. A 47
  56. 56. Questionnaire from the Livestock Herder Households for Livestock Industry (English translation of Mongolian) Name: ……………………………………………………… Location: …………………………………………………… Date: ……………………………………………………….. Section 1: Personal data 1. Sex a. Male 2. Present age a. 16-35. b. 36-55 c. 55+ 3. Marital status a. Married c. Widowed 4. Education a. No education b. Secondary school c. High school d. Technical College e. University f. Others (specify) b. Female b. Unmarried Divorced/separated Section 2: Information of Household: 1. Family situation. Education No Name Sex Age Technical High University college school 1 2 3 4 5 TOTAL 2. The livelihood situation a. Poor b. Medium c. High 3. Livelihood source 48 Work Secondary experience school
  57. 57. a. Animal husbandry b. Pension, subsides, c. Salaries d. Production, service other than animal husbandry e. Others 4. How many years have you been herding? a. 1-5 years b. 5-10 years c. 10-15 years d. More that 15 5. Does any household member belong to a farmer or other community organizations? a. Yes b. No If yes, please give details Member No Organization Since what year Position presently held 6. Did you attend any project and training? (ur dung) a. Yes b. No If yes, what name of project or training did you attend? ……………………………………………………………………………………… Project or training output ……………………………………………………………………………………… Section: 3 Information of Livestock 1. Total livestock number Of which; a. Sheep b. Goat c. Cattle d. Horse e. Camel 2. What type of livestock breeds do you raise? a. Fresh bred livestock b. Crossbred livestock c. Improved bred animals 3. Reason of low production of your household? a. Hay, fodder b. Pasture management 49
  58. 58. c. Water d. Bandit e. Degenerate 4. During last 4 years, does any disease problem happen to your particular livestock? a. Yes b. No 5. Compared the situation of last four years with to last year (presently) how you would express amount of economic lost due to disease. a. Worst b. No change c. reduced a little bit d. reduced substantially 6. Do you do prevention measure regularly or only irregular? a. Regular b. Irregular Section: 4 Marketing 1. What are your main products? a. Meat b. Milk and dairy production. c. Raw materials 2. How profitable your products for your herder household? a. Profitable b. Non- profitable 3. Where do you sell your products? A. City market B. Own province C. Outside province D. Others 4. What do think about the production price? a. Low ………………. b. Reasonable………………. 5. Do you feel any difficulties in marketing your products? a. Yes b. No If yes, what are they? - Small market - Competition from counterparts - Quality of product - Storage - Transportation - Others (specify) 6. Who is your customer? a. Factory b. Person 7. Do you sell your products through middle men? a. Yes b. No If yes, what are the roles of middle men? 50
  59. 59. ……………………………………………………………………………………… ……………………………………………………………………………………… 8. How is your income? a. Enough b. Average c. Not enough 9. In addition, do you have any possibilities for creating additional value? a. Yes b. No 10. Did you loan the money from the bank? If yes, what was the interest…………per month. Duration…………month. What is your loan purpose? a. Expenses associated with the sale of raw materials b. Buying, any fixed asset. (vehicle, car and TV etc) c. Working capital for trading activities d. Animal husbandry production(hay making, veterinary, shelters, and wells) e. School tuition f. Buying food and household goods g. Others 11. Do you have a debt? a. Yes b. No 12. Are there any major problems for your business? Please rank: Availability and quality of pastures Animal quality Availability and quality of fodder Animal shelters Haymaking equipment Veterinary service Marketing of products Finances Availability of information 14. Where do you obtain the knowledge about the market economy new information of new technology on livestock development and disease control? ……………………………………………………………………………………… APPENDIX. B 51
  60. 60. Questionnaire from the Intensive Dairy Farms for Livestock Industry (English translation of Mongolian) Country ……………………………………………………… Industry name………………………………………………… Interviewer’s name …………………………………………… Date of interview …………………………………………….. Name of respondent ………………………………………….. a) Entrepreneur b) Manager c) Partner d) Other (specify) Section A: Information about the dairy farms. 1. Establishment of your farms Year ………… 2. Location of your farm a. Town b. Village c. Other (specify) 3. How many dairy animals do you have? ............ 4. Reason to initiate dairy farm. a. Market demand b. Profit potential c. Availability of raw material d. Techniques availability e. Other (specify) 5. What is the technology you use? a. Half stationary b. Stationary 6. Which problems you encounter in application? a. Taking too much time, (please specify the time) b. Complicated procedure (please tell the procedure) c. Seeking help from friends and acquaintances d. Cost too much (specify) e. Other (specify) 7. Does your farming include non-dairy activities? Please, specify ………………………….. 8. Is income from the dairy enough for sustaining family’s livelihood? a. Enough b. Middle c. Not enough 9. Is there negative attitude from the people when you intend to set up the 52 enterprise?
  61. 61. a. Yes b. No 10. What were the negative attitudes? a. Not understandable b. Persuaded not do so c. Gossip from the people d. Others (specify) 11. Are these negative attitudes still exist? a. Yes b. No 12. Among the total workers, can you tell in detail how many are skilled workers and how many are unskillful workers? a. Skilled workers (persons) …………… b. Unskilled workers (persons) …………… 13. What was the cost of production of your enterprise last year? a. Total ……………………………….. b. Raw material………………………... c. Labor ……………………………….. d. Transportation………………………. e. Water/Power ……………………….. f. Interest payment on loans…………… g. Other (specify) ……………………… 14. What was the output value of the enterprise last year? Section B: Marketing 1. Please tell the channel from which you acquire the supply of production material? a. State b. Market c. Acquaintance and friends d. Other (specify) 2. Estimated annual milk production per cow. (litres) ……………. 3. Do you have any difficulty to get your production material? a. Yes (cont Q.4) b. No If yes, what are the problems? a. No adequate resource b. No stable raw material source c. Fluctuation of price d. Others (specify) 4. Where do you sell your product? a. City b. Outside province c. Own province d. Others (specify) 5. To whom do you sell? 53
  62. 62. a. trader b. processor c. direct to market 6. Is your milk tested your quality a. Yes…………….. b. No…………….. 7. Are you satisfied with the testing system? a. Yes…………….. b. No…………….. 8. If your farm produced more milk, could you sell it? a. Yes…………….. b. No…………….. 9. Do you feel any difficulties in marketing your products? a. Yes b. No If yes, what are they? a. Small market b. Market channel problems c. Competition from counterparts d. Quality of product e. Transportation f. Others (specify) 9. Do you think the current policy is good for the growth of agro industrial enterprise? a. Yes…………….. b. No…………….. (cont Q.2) 11. What is your normal daily supplementary feed? d. Hay e. Bran f. Other 12. How do you obtain hay? a. By own b. Buying 13. Do you have haymaking equipment? 14. Do you cultivate any fodder crops? 15. What veterinary service do you use? 16. How difficult is it to obtain all desired veterinary services? 17. Did you have experience to get artificial insemination for dairy cattle? 18. Where do you get information in need? 19. How would you like to develop your dairy business in the future? a. Increase your cow numbers b. Upgrade cow quality c. Improve feeding d. Mechanize milking 54
  63. 63. APPENDIX. C The number of intensive animal husbandry of Mongolia (by provinces) 55
  64. 64. APPENDIX. D The livestock number of Mongolia (by provinces) 56
  65. 65. APPENDIX. F Number of livestock and household animals Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sheep 15083 14721 14657 13779.2 13786.6 13718.6 13560.6 14165.6 14694.2 15191.3 13876.4 11937.3 10636.6 10756.4 11686.4 12884.5 14815.1 16990.1 17898 Goat 5125.7 5249.6 5602.5 6107 7241.3 8520.7 9134.8 10265.3 11061.9 11033.9 10369.8 9591.3 9134.8 10652.9 12230 13267.4 15451.7 18347.8 19465.4 Cattle 2846.7 2822 2619.2 2730.5 3005.2 3317.1 3476.3 3612.8 3725.8 3824.7 3097.6 2069.6 1884.3 1792.8 1841.6 1963.6 2167.9 2425.8 2448.3 57 Horse 2262 2259.3 2200.2 2190.3 2408.9 2648.4 2770.5 2893.2 3059.1 3163.5 2660.7 2191.8 1988.9 1968.9 2005.3 2029.1 2114.8 2239.5 2122.4 Camel 537.5 476 415.2 367.7 366.1 367.5 357.9 355.4 356.5 355.6 322.9 285.2 253 256.7 256.6 254.2 253.5 260.6 261.8 Total 25854.9 25527.9 25494.1 25174.7 26808.1 28572.3 29300.1 31292.3 32897.5 33569 30327.4 26075.2 23897.6 25427.7 28019.9 30398.8 34803 40263.8 42195.9
  66. 66. APPENDIX. G Table of the Mathematic Statistic q q k 0.05 1 2 3 4 5 6 7 8 9 10 11 12 13 q k 0.01 12.71 4.3 3.18 2.78 2.57 2.45 2.36 2.31 2.26 2.23 2.2 2.18 2.16 63.66 9.92 5.84 4.61 4.03 3.71 3.5 3.36 3.25 3.17 3.11 3.05 3.01 k 0.05 14 15 16 17 18 19 20 21 22 23 24 25 26 0.01 3.14 2.13 2.12 2.11 2.1 2.09 2.09 2.08 0.7 2.07 2.06 2.06 2.06 2.98 2.95 2.92 2.9 2.88 2.86 2.85 2.83 2.82 2.81 2.8 2.79 2.78 58 0.05 27 28 29 30 40 50 60 70 80 100 120 200 500 0.01 2.05 2.05 2.05 2.04 2.02 2.01 2 1.99 1.98 1.98 1.97 1.96 1.96 2.77 2.76 2.76 2.75 2.7 2.68 2.66 2.64 2.63 2.62 2.6 2.59 2.58
  67. 67. APPENDIX. H The brief information of respondent dairy farms (1$=1170 tugrug) 59
  68. 68. APPENDIX. I The brief information of herder households No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Herder's name Bayartsogt. K Tumurbaatar.D Davaadorj.B Boldhuyag. D Amgalan.T Bat-Erdene.S Genden.D Damrin.S Chuluun-Erdene.A Bolorgerel.G Uhnaa.B Boldkhuu.Y Yadmaa.J Jargalsaihan.L Lhagvadorj.B Tumen.H Enkhtuvshin.R Radnaabazar.J Nyambayar.O Sumyabazar. A Otgonbaatar.N Naranbaatar.N Terbish.H Myanganbaatar. E Huushaan.M Ochirzaan. L Erdenekhuu.E Batbaatar. B Ayurzana. G Gongor.T Vaahchig. Z Jantsan.U Zolbayar. S Myagmardorj.M Surenhorol. A Amgalanbaatar. C Sergei.D Doljinsuren. D Batbaatar.S Boldhet.L Lhamsuren.Y Radnaaragchaa. E Khishigt Livetsock number Family size Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Sumber soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum 60 Total Sheep Goat Cattle Horse 5 6 5 8 3 6 5 5 7 4 9 11 3 6 7 3 3 5 10 5 6 5 7 4 8 5 8 3 6 3 5 5 12 7 8 5 5 11 6 2 6 5 3 Name of soum 323 758 425 105 77 374 509 489 190 72 128 41 813 65 90 150 386 175 31 60 430 72 155 170 66 84 167 53 92 726 67 151 72 63 41 290 123 85 130 510 161 1325 84 180 360 160 37 30 230 300 200 86 25 50 9 320 16 43 65 150 65 8 19 180 25 58 51 18 25 55 14 45 270 17 53 25 19 8 65 49 25 40 200 47 610 18 70 295 200 44 23 90 125 200 65 29 45 14 390 29 29 53 160 69 6 25 200 23 66 64 24 28 65 22 27 350 24 45 30 23 13 160 36 36 51 260 65 550 29 23 40 18 13 9 17 23 26 11 9 14 15 24 12 9 11 24 12 9 9 15 9 14 21 13 14 16 12 12 25 19 21 17 16 11 34 18 15 15 34 19 45 12 50 60 45 11 15 37 56 60 28 9 19 3 77 8 9 21 52 29 8 7 35 15 17 34 11 17 31 5 8 75 7 32 8 5 9 29 20 9 24 12 30 120 25 Camel 3 2 5 3 2 6 2 4
  69. 69. 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Norvilon.A Zorigoo Sainbayart.D Dalhjav.N Naidan.N Dorjsuren. D Tserenpil.Ts Uuganbaatar.O Tsogtgerel. D Lkhasuren. U Otgonbold.G Ganbat.G Tserendorj.J Jargal.N Nasanbayar.M Dorligjav.O Boldbayar.D Boldhuyag. G Nasanjargal.N Enkhjav.A Altangadas.U Uragshlalt Purevdorj. P Sosorbaram.N Batdorj. N Munkhbaatar. D Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Jargalant soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum Bayanchandmani soum 61 7 7 3 9 10 5 5 7 4 8 6 9 4 5 6 5 3 8 6 5 2 9 5 4 5 6 41 170 80 180 27 125 180 1639 66 75 128 176 90 69 413 44 78 45 73 58 75 165 168 31 80 95 15 54 32 64 5 35 57 740 16 24 40 78 25 18 160 9 30 9 25 16 21 48 55 4 22 40 8 66 23 58 6 51 65 670 25 35 56 57 39 26 180 16 20 18 20 25 28 60 65 9 30 37 12 18 13 21 13 23 21 54 12 8 12 22 15 14 28 11 18 12 15 8 15 18 15 13 12 18 6 32 12 37 3 16 37 170 13 8 20 19 11 11 45 8 10 6 13 9 11 39 33 5 16 9 5
  70. 70. APPENDIX: J Selected social indicators of herdsmen households 62
  71. 71. 1