The Green Gold Project facilitated increased sales of yak down and camel wool by linking herders to processors. In 2014, herder cooperatives supplied 48.5 tons of yak down, up 37.8% from the previous year, earning herders $576 million in sales. Testing showed combing baby camel wool rather than cutting improved quality by reducing hair and dirt. The project trained herders to improve down/wool quality, organized cooperatives for bulk sales, and worked to strengthen standards for grading raw materials.

1. 1
GREEN GOLD PROJECT
COMPONENT 4:
FACILITATE MARKET ACCESS BY LINKING YAK HERDERS
TO PROCESSING COMPANIES
ANNUAL REPORT 2014
Ulaanbaatar
2014

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Content
List of tables and figures .......................................................................................................3
Abbreviation..........................................................................................................................3
Executive summary...............................................................................................................4
1. Main results of Inception phase......................................................................................5
2. Main results and core activities in reporting period......................................................... 6
Output 4.1 Improved quality and volume of yak down and camel hair supplied by herders6
Amount of yak down and camel hair supplied to the national processors by the herders in
cooperatives have increased.............................................................................................6
The quality oriented training of yak down were organized jointly with AFPUGs and
processors ........................................................................................................................8
The highly productive comb, registration book and tag system have been tested.............. 9
Conducted test of baby camel combing and analyzed wool ................................................ 10
Introduction of new method to prepare camel wool ......................................................... 12
The nucleus herd of “Terkh” brown yak in Arkhangai aimag has been inititated .............. 13
Output 4.2. APUG’s and Cooperatives have market-links ................................................... 14
The match making between producers and processors has been initiated and organized
direct sale of yak down and camel wool .......................................................................... 14
Increase role of APUGs and cooperatives in development of value chain ....................... 14
The cooperative trainings were organized in regional level ............................................. 15
The new secondary cooperatives were established ........................................................ 16
Hand spinning trainings were organized and woman herders trained for spinning yarn and
felt making.......................................................................................................................17
The opening of raw materials storage in Khaliun soum, Gobi-Altai aimag. ...................... 17
Output 4.3 Domestic processing companies exporting value added products ..................... 18
Updating quality standards started.................................................................................. 18
Initiatives started to establish “United yak brand” among yak down processors .............. 18
International designer consulted to processing companies and collection of yak down
products produced ..........................................................................................................19
3. Monitoring of progress with regard to the project indicators...................................... 20
4. Suggestions and conclusion......................................................................................... 22

3. 3
List of tables and figures
Picture 1. Amount of prepared yak down by aimags......................................................................6
Picture 4. During yak down preparation training .............................................................................9
Picture 5. Different combs tested for yak combing .........................................................................9
Picture 6. Example of registration book and labeling in herder cooperative............................10
Picture 7. Testing for combing of baby camel................................................................................11
Picture 8. Diameter of fiber...............................................................................................................12
Picture 9. Bunches of hair Picture 10. Cutting of hair .................................13
Picture 11. Photos from Match making..........................................................................................14
Picture 12. Participant of cooperative training in Khovd and Arkhangai aimag.......................16
Picture 13. Participants of secondary cooperative training in Uvs and Arkhangai aimag.......16
Picture 14. Products from participants of spinning and felt making training ............................17
Picture 15. Photos of row material storage in “Evt zalaa” cooperative.....................................18
Table 1. Wool test result of combed and sheared camel wool ...................................................11
Table 2. Volume of supplied yak down and camel wool by herder cooperatives.....................14
Abbreviation
AFPUG- Aimag Federation of Pasture Users Group
APUG- Association of Pasture Users Group
C4- Component 4
GG- Green Gold
GG C4- Green Gold Component 4
LLC- Liability Limited Company
NGO- Non Governmental Organization
PIU- Project Implementation Unit
PUG- Pasture Users Group
WCSC- Wool Craft Support Center

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Executive summary
The GG C4 of “Green gold” project had organized variety of activities to increase the volume
of yak down preparation and collaborated with aimag and soum pasture management
committees and domestic producers. As a result 48.5 tonnes of yak down was prepared in
2014 through “Green gold” project beneficiary cooperatives which is 37,8% higher than the
volume prepared in previous year. Herders sold their yak down through their cooperatives
for 12000-15000MNT per kg. Yak down sales reached 576 million MNT.
Baby camel wool combing test was conducted in Bayangovi soum of Bayankhongor and
Togrog soum of Gobi-Altai aimag in attempt to increase the value of camel wool value and
income for herders. It was evident from the comparison of cut and combed wool samples
that it has more cashmere content and less hair and other unnecessary mix when wool is
prepared by combing. It showed production yield could also be greater.
In 2014, 4 secondary cooperatives and 31 primary cooperatives from 32 soums of 7 Aimag
were involved in yak and camel wool preparation process. Activities to strengthen local
cooperatives and increase cooperative member’s rights and participation were held in
Zuungobi soum of Uvs aimag, Otgon soum of Zavkhan aimag and Erdenebulgan soum of
Arkhangai aimag. In total 35 primary cooperatives were involved in those activities and
secondary cooperatives were founded in those 3 aimags.
Based on the needs to prepare hand woven camel yarns that is met with domestic and
international market requirements, trainings were organized in Gobi-Altai, Bayankhongor and
Khovd aimags to train female herders on how to conduct primary treatment to camel wool,
prepare hand woven yarns and provide skills to make felt products. Necessary equipments
were procured and provided to them.
In order to grade camel wool more specifically, change wool preparation process and make
that in accordance with the standard and have a clear and easy to understand methods for
herders to help them to prepare their camel wool according to the standard requirements,
MNS36:2007 camel wool standard etalon was renewed. Working groups to update
MNS.4950-2000 processed camel wool and MNS.5248-2003 processed yak down standards
had been established and working on to develop standards to suit for current production
demand.
Wool processing companies agreed to develop “Yak Mongolia” yak down brand with aim to
introduce Mongolian yak down products at international market and increase sales of yak
down products. International designer consultant was assigned to develop yak down product
sample design portfolio that meets international market requirements and enhance skills of
domestic designers. 28 sample designs consisting of portfolio that is developed by the
international designer as well as domestic producers were selected for display in
international exhibition.

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1. Main results of Inception phase
The inception phase of GG C4 was planned November 2013 to March 2014 and following
results were made during Inception phase and compose precondition of operation:
• Organized Inception workshop, introduced project implementation approaches and
stakeholders and partners have been integrated and agree on the operation plan 2014,
• The actual and potential supply of yak down and camel hair have been analysed in
targeted aimags,
• The role of APUGs and cooperatives in the supply of raw materials has been
conceptualized,
• The demand for yak down and camel hair products has been analysed,
• The development strategy for the value chains for yak down and camel hair has been
compiled and agreed by stakeholders.

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2. Main results and core activities in reporting period
Output 4.1 Improved quality and volume of yak down and camel hair supplied by
herders
Amount of yak down and camel hair supplied to the national processors by the
herders in cooperatives have increased.
A various activities were organized with cooperation of AFPUG and APUG and the national
processors to increase the yak down preparations amount and as a result the cooperatives
of the “ Green Gold” project have prepared 48.5 tons of yak down which is 37,8 percent
higher than previous year. If we look at the preparation of yak down by aimags; Arkhangai
29.8 tons, Bayankhongor 7.5 tons, Zavkhan 5.4 tons,Khovd 3.3 tons, Bayan-Ulgii 1.8 tons
and Uvs aimag has produced 0.5 tons of yak downs respectively. The quality of raw
materials, which was supplied directly to the processors without any involvement of brokers,
have increased and price differences from the raw materials have increased the herders
income instead of going to the brokers’ pockets.
Picture 1. Amount of prepared yak down by aimags
The herders have sold 1kg of yak down with price of MNT12000-MNT15000 by selling it
through their cooperatives and have collected profit of MNT576 millions from sale of yak
downs.
A significant change in this year’s preparation of yak down was that the initial stage
cooperatives have worked as a team and made contracts with the processing factories.
Cooperatives in Arkhangai aimag have provided supplies via “Khorgiin Misheel” cooperative
and cooperatives in Khovd aimag via “Altai Uulsiin Orgil” secondary cooperative.
In case of the processors, it was much easier to communicate with secondary cooperatives
rather than wasting a time by trying to communicate with several small cooperatives once.
This case shows that there is a need to establish secondary cooperatives in the area.

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Figure 2. Percentage of procured yak down by producers
If we look at the procurement of yak down by the processors: Baylag-Ulzii - 22.4 tons, Sor
Cashmere-11.3 tons, Ugooj Shim-3.5 tons, Jints Murun-3.1 tons, Uujim -2 tons and French
and UK companies have procured 4.2 yak downs from Arkahngai aimag.
In case of the processors, they had a less interest in procuring camel wools and producing
camel wool products. In 2014, they have procured 54 tons of camel wool through the
herder’s cooperatives of “Green Gold” project. The processors made profit of MNT302
million after purchasing 1kg of camel wool with prices between MNT4500 to MNT5500.
Combined with the premium from the government, the total profit of herders from came wool
sales was MNT410 millions.
Figure 3. Supply of camel wool by aimags and procured processors
This year, ”Evt Zalaa” cooperative of Khaliun soum in Gobi-Altai aimag has prepared both
baby camel wool and white camels wools separately and supplied 1.3 tons to “Baylag Ulzii”
company with a price which was above the market price. This was a crucial step in
increasing the value and price of wool.

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The quality oriented training of yak down were organized jointly with AFPUGs and
processors
According to the results of the supply study on yak down more than 30 per cent of the total
potential resources in the target soums is actually not collected and used. The herders forgo
about 35 tons of yak down annually without using it. On the other hand, processing
companies producing yak down products are not able to obtain the volume of raw materials
which they require for their production. In addition, the raw material contains only a minor
share of yak down and the major share of coarse hair cannot be used by the processors.
Therefore, GG C4 pursues the strategy to improve the supply of yak down from cooperatives
to processors in terms of volume and quality. This allows herders to achieve higher income
from yak down preparation and processors to increase their production, sales and
profitability.
Therefore GG C4 organized trainings for herders together with herder cooperatives and
processors on effective combing of yak down as well as sorting and packaging of the
combed down in accordance with the requirements of the processors. The trainings were
organized between April and May 2014.
Depending on the actual needs of the target groups in project aimags GG C4 organized two
different types of training in six aimags (Gobi-Altai aimag is not relevant for yak down
supply):
 In cooperation with the Arkhangai Aimag Federation of PUGs quality trainings on yak
down preparation were organized in Arkhangai, Bayankhongor, Khovd and Zavkhan
aimags. As the herders there are more experienced in collection of yak down the
trainings were focused on sorting and packaging the raw materials. This training was
conducted in close cooperation with those processors that have already made
agreements to collect yak down from these aimags.
 Quality trainings were also organized in Uvs and Bayan-Ulgii aimags in cooperation with
the respective AFPUGs. Since herders there have less experience and practice in
combing of yak down the training was focused on more productive combing but also
included the aspects of sorting and packaging.
The trainings were conducted at two levels - the aimag and soum levels. The aimag level
trainings were organized in the center of Arkhangai and Khovd aimags. The aimag level
trainings were conducted by a representative from processors that are going to purchase
yak down in that particular aimag and trainers from the AFPUG. Participants were the heads
of APUGs in the project targeted soums. Trainers and leaders of the APUGs then organized
the soum level trainings. A total of 22 trainings were organized in those project targeted
soums with a large resource of yak down. The trainings were organized for 1 day, which
comprised half day classroom training and half day practical training for combing of yak. The
trainings were conducted with intensive participation and involvement of the participants.
The one-day trainings comprised half day classroom training and half day practical training
for combing of yaks. The trainings were conducted with intensive participation and
involvement of the participants.
The 638 participants of the trainings came from these target groups: 71.6% herders, 2,9%
heads of APUGs, 15.5% heads of PUGs, 7.3% unemployed people in soum centre and
2.6% representatives of soum administrations.

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Picture 2. During yak down preparation training
The highly productive comb, registration book and tag system have been tested
In order to increase the volume and quality of the yak down preparation the component
elaborated an approach to use more effective combs for the combing of yaks. Therefore the
combing training was combined with testing of 3 different types of combs. Two of them were
obtained by the project from China and one comb is produced in Mongolia. The different
combs are presented in the following table.
Picture 3. Different combs tested for yak combing
1. China, Qinghai province,
Northwest Institute of
Plateau Biology
2. China, Tibet 3. Mongolia, “Khungun
tsagaan edlel” LLC
A total of 620 combs were distributed to 24 soum APUGs during the quality training and
were thoroughly tested during the practical combing trainings.
As a result of the tests it can be concluded that the most effective comb in terms of yield and
time is the one produced by the Northwest Institute of Plateau Biology in Qinghai province
from China. The yield of yak down obtained with this comb is 30 percent more than the

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combs used by herders before and in terms of the combing time 9 minutes less were
required than before.
The raw material registration or tag system is the tool to have clear origin of raw materials,
and to establish trust between the herders and the cooperatives, and the processors and the
cooperatives. The project has planned to introduce the tag system into the preparation
process of camel wool and has prepared and introduced the tag’s design but the printing and
distribution costs were high. So, we have experimented tag system in one cooperative in
Arkahngai, Bayankhongor,Zavkhan and Khovd aimags.
The cooperatives registered the downs received from the herders in “registration book”,
sorted and packed the downs by colors, put number, color, and weight on the package and
delivered packages to the processors.
This year was an experimental year and based on the comments received from the
cooperatives we will work on perfecting the initial registration and tag system.
Picture 4. Example of registration book and labeling in herder cooperative
Conducted test of baby camel combing and analyzed wool
With cooperation of AFPUG and Baylag Ulzii Company, the test to increase the value of the
camel wool and income of the herders by combing the baby camel’s wools were conducted
in Bayangobi soum of Bayankhongor and Tugrug soum of Gobi-Altai aimag.
As the result of testing, following quality improvements were made:
• Small thread of hairs that used to be cut with the wool were left in camel’s body after
the combing process. This significantly decreases the amount of small thread hairs in
the wool and increase the quality of the wool.
• Less dirt and dust
• While the cutting process of the wool effects the length of threads in the wool, the
combing process does not affect the threads.

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Picture 5. Testing for combing of baby camel
To this end the GG C4 arranged fibre tests of baby camel wool from two different breeds
:Lamiin Gegeenii Ulaan from Bayankhongor aimag and Tuvkhun Tungalagiin Huren from
Gobi-Altai aimag. The test comprised 58 samples from different herders in 4 soums and from
two ages of baby camel (1 and 2 year old camel). The wool was collected by shearing as
well as by combing method.
Table 1. Wool test result of combed and sheared camel wool
Unit
1 year 2 year
Combed Sheared
Differen
ce
Combed Sheared
Differ
ence
Content
Cashmere % 67.6 64.9 2.8 67.6 61.5 6.1
Medium coarse % 30.8 32.8 -2.0 31.2 36.7 -5.5
Dust and
dandruff
%
1.5 2.3 -0.8 1.3 1.8 -0.6
Diameter
Mean fiber
diameter
mkm
16.5 16.3 0.2 17.3 17.4 -0.1
CV % 21.5 20.7 0.8 21.9 21.6 0.3
Length
Mean fiber
length
mm
53.3 50.5 2.8 52.7 52.5 0.3
СV % 33.4 33.4 0.0 33.2 33.1 0.1
Rate short down %
24.6 24.4 0.2 26.0 15.5
10.
5
The above results of baby camel wool test show that the cashmere content of combed wool
is 2.8% more, medium coarse is less by 2.0% and dust and dandruff is less by 0.8% than
sheared wool of 1 year baby camel. In case of 2 year old baby camel, cashmere content of
combed wool is 6.1% more, medium coarse is less by 5.5% and dust and dandruff is less by
0.6% than sheared wool in 2 year baby camel. Therefore, it can be concluded that for baby
camel wool which has been collected by combing the cashmere content is higher and
medium coarse and dandruff content are less.
The mean fiber length of 1 year old combed wool is longer by 2.8 centimeter, 2 year old is
longer by 0.3 centimeter, and it means that combed wool positively influences the quality of
yarn and of the final product. The mean fiber diameter of 1 year baby camel wool is 16.4
mkm and 2 year baby camel wool is 17.4 mkm, which is close to the fiber diameter of goat

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cashmere (see following graph).
Picture 6. Diameter of fiber
Based on these new and interesting test results, the GG C4 will consult herders to use the
combing method for collection of baby camel wool in order to increase the production yield
and quality. This will help herders to achieve higher income from this new type of raw
material.
Introduction of new method to prepare camel wool
The recent research and practice conducted to increase camel wool value have proved that
herders income will be improved and processors’ cost will be decreased if baby camel wool
is combed when prepared. Handouts were developed and disseminated to the herders of 16
soums of 4 aimags on giving herders specific information and knowledge on how to prepare
camel wool, preparing wool according to necessary quality requirements, how herders can
increase their income when supplying their wool to domestic processors through
cooperatives etc. The information was specifically given how high quality baby camel wool
that almost matches goat cashmere can be prepared by combing but not shearing.
Camel wool does not become tangled as much as other livestock animals. There is potential
to comb its wool at the right timing instead of shearing. This camel wool preparation method
is easier and cashmere content in wool is significantly increased which allows herders to
increase their income from selling wool. It is also beneficial for the processors because the
cashmere content is higher in combed wool. Contrary to combing yak, there are two stages
for camel wool combing. Initially, bunches of hair is cut and then the cashmere is combed
out using special kind of comb. When camel wool is combed larger hair is left on the camel
which increases the cashmere yield from the wool. Also it enables the length of cashmere
become greater.

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Picture 7. Bunches of hair Picture 8. Cutting of hair
-
-
The nucleus herd of “Terkh” brown yak in Arkhangai aimag has been inititated
Since many years it is well known that the brown haired yaks of the “Terkh” breed in
Arkhangai aimag have more productivity not only of milk and meat than yaks of other breeds
but also have yak down which belongs to the quality with fine fibers and light colors. In order
to increase this valuable resource of yak down the GG C4 has endeavoured to support the
establishment of a nucleus herd of “Terkh” breed brown yaks in Arkhangai aimag.
The aim of this project is to create and develop local brand products based on the specific
features of the brown yak of “Terkh” breed through joint partnership of herder cooperatives,
processing companies and donor organizations. For the purpose of achieving sustainability
this limited project is therefore implemented in cooperation with partners such as Industrial
and agricultural department of Arkhangai aimag Governor office, GG C4 PIU, “Bayalag Ulzii”
LLC and “Khorgiin Misheel” cooperative in Arkhangai aimag. All partners discussed this
project,
agreed to jointly implement it and signed the cooperation agreement in June 2014.
The project started in June 2014 and will be implemented in 3 phases:
• Planning and starting of the project (June-July 2014),
• Implementation of the project (July 2014 - November 2016),
• Final evaluation of the project (November 2016).
The total investment cost of establishing the nucleus herd consist mainly of the cost for
purchasing 101 yak animals at the value of 43.5 million MNT. From this starting investment
40.2% are financed by “Khorgiin Misheel” cooperative, 36.8% by “Bayalag-Ulzii” LLC and
23% by GG C4. The project will be closely monitored for positive results and lessons learned
which can be used for similar approaches.

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Output 4.2. APUG’s and Cooperatives have market-links
The match making between producers and processors has been initiated and
organized direct sale of yak down and camel wool
The first match making event between herder cooperatives from “Green Gold” project and
processors was organized the on 18 March 2014. During match making the business
contract template between cooperatives and processors has been introduced and is agreed
by the stakeholders, cooperation arrangements between cooperatives and processors have
been established.
Picture 9. Photos from Match making
In match making event 11 cooperative groups from 7 aimags and 11 participating processors
presented their offers and requirements to each other. During the first days after the event
raw material sales amounting to 583 million MNT, 95% of the offered yak down and 48% of
the offered camel wool was agreed were negotiated and concluded between the two groups
of stakeholders.
Increase role of APUGs and cooperatives in development of value chain
In total 4 secondary cooperatives and 31 primary cooperatives in 32 soums of 7 aimags
were supplied yak down and camel wool.
Table 2. Volume of supplied yak down and camel wool by herder cooperatives
Aimags Soums Secondary
coop
Primary coop Yak down, kg Camel
wool, kg
Arkhangai 6 (1) 5 30.000
Bayankhongor 6 4 7.500 23.000
Bayan-Ulgii 4 1 5 1.800
Gobi-Altai 3 1 1.000
Khovd 6 1 8 3.300 20.000
Uvs 4 1 6 500 10.000
Zavkhan 3 1 2 5.500
Total 32 4 31 48.600 54.000
The cooperatives established by yak and camel herders are important actors in the value
chains for yak down and camel wool. They are supposed to implement essential functions in
order to increase the volume of raw materials and to improve their quality:

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• To inform and to train their members with regard to more intensive collection of raw
materials as well as better quality of raw materials,
• To collect raw materials from their members (through PUGs at bag level), provide
sorting, packaging and storage,
• To negotiate with Mongolian processors and to sell the raw materials to them at
prices and conditions which are beneficial for both sides in a sustainable manner,
• To deliver information to members/herders on time.
Participation of cooperatives in yak down preparation direct sale to processors were
conducted and increased not only volume also increased number of herders combing yaks,
sorting yak down and trustability of row material. In 2014 around 3000 herders participated in
yak down preparation and from selling yak down their income have increased by 50 percent.
The cooperative trainings were organized in regional level
For purpose of improving the structure and performance of existing cooperatives and at
supporting the establishment of new cooperatives in the GG C4 targeted soums, the GG C4
was organized cooperative trainings for heads of cooperatives and APUGs from 7 iamags.
The regional trainings were held in Arkhangai and Khovd aimags in August 2014.
In result of training participants get knowledge and skills for following issues:
• Leaders of existing cooperatives are qualified to identify development opportunities
and obstacles of their cooperatives, to strengthen their structure and management
and to improve their performance as actors in the value chains for yak down and
camel wool,
• Leaders of herders in soums without functioning cooperative are qualified to support
the establishment of new herder cooperatives,
• Leaders of cooperatives and APUGs are qualified to support the collaboration
between cooperatives and APUGs,
• Leaders of cooperatives and of herders understand the benefits and requirements for
the establishment of secondary cooperatives at aimag level.
Both trainings implemented by the cooperative training team consisting of Carl E. Krug and
Manaljav (cooperative experts from Germany and from Mongolia respectively). Both experts
have very long and extensive experience in qualifying and consulting cooperatives in
Mongolia. During training used a great variety of methods, most of which are participatory:
presentation with discussion, group work, exercises, role plays, visualization, instructive
games.
The selection of participants agreed with Aimag federations based on Application for
cooperative training. Total 42 participants were participated from 7 aimags, 69% are male
and 31% are female. 66.6% of total participants were heads of primary and secondary
cooperatives and 33.4% are heads and staffs from Aimag Federation and APUGs.

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Pictu
re
10. Participant of cooperative training in Khovd and Arkhangai aimag
The new secondary cooperatives were established
In frame of supporting cooperative development strengthen cooperative and increasing
members participation the project organized trainings for establishing secondary cooperative
in aimag level in Zuungobi soum Uvs aimag, Otgon soum Zavkhan aimag, Erdenemandal
soum Arkhangai aimag. Totally 35 organization were participated (in Uvs 15 primary
cooperatives, in Zavkhan 13 primary cooperatives, 1 NGO, in Arkhangai 4 cooperatives and
2 NGOs) and established 3 new secondary cooperatives.
The following main activities of newly established secondary cooperatives were reflect in by-
law:
• Mediation and sale of livestock row material, wool and agricultural products produced
in member cooperatives,
• Retail and wholesale of goods,
• Training, consultation and information to members and capacity building of primary
cooperatives,
• Preparation and primary processing of livestock row material.
NSTE of GG C4 is following up on identification future strategy and development of business
plan for secondary cooperatives.
Picture 11. Participants of secondary cooperative training in Uvs and Arkhangai aimag

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Hand spinning trainings were organized and woman herders trained for spinning yarn
and felt making
The project was organized hand spinning training for woman herders, 3 groups of female
herders (32 women) were supported by obtaining semi-processed raw materials, receiving
spinning training and provision of spinning wheels. The spinning trainings were conducted in
Gobi-Altai, Bayankhongor aimags and felt making training was held in Khovd aimags with
cooperation of “Wool craft support center”.
NGO, later WCSC will be support direct sales to selected buyers (e.g. shops for handicrafts
in UB). The female processor groups tested the use of production waste (cross hair and
short down) as raw material and the project continues to connect female groups to
processors in UB to obtain dehaired yak down, camel wool and production waste.
In result of these training woman herders able to increase their income and starts small
scale handmade value added production in local area.
Picture 12. Products from participants of spinning and felt making training
The opening of raw materials storage in Khaliun soum, Gobi-Altai aimag.
The main challenge that cooperatives face during the camel wool preparation process is that
keeping the collected wools until delivering them to the processors. In order to solve this
problem, the project has supported to the construction of the raw material storage in “Evt
Zalaa” cooperative of Khaliun soum in Gobi-Altai aimag. The warehouse was established
with investment of MNT11 million, has length of 16 meters, width of 8 meters, height of 3.5
meters, concrete floor and has capacity of 20 tons.
The GG C4 has provided the 70 percent of the total investment and the cooperative has
covered the 30 percent. The cooperative’s members have built the storage according to the
approved the plan in 45 days and the storage was opened in November 14 of 2014. Now the
cooperative has a capacity, thanks to the storage, to collect all types of raw materials from
herders and provides supplies to the processors.

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Picture 13. Photos of row material storage in “Evt zalaa” cooperative
Output 4.3 Domestic processing companies exporting value added products
Updating quality standards started
There is need to updating quality standards of row camel wool and processed camel wool
and yak down for increasing value of yak down and camel wool, increasing quality of final
products to requirement of international market.
The quality standards MNS 36:2007 for row camel hair was updated for purpose of giving
clear understanding to herders for preparation and classification of camel wool, including
preparation method of preparation.
Based on experiment and studies conducted by project, the standard is updated by
terminology and identification, technical requirement, classification of camel wool,
preparation method and delivered to relevant organizations. The project is planning to
submit updated standard to MASM and get approval before starting preparation in March
2015.
The working group of updating standards of processed camel wool (MNS.4950-2000) and
processed yak down (MNS.5248-2003) established. The objective of this work is define the
quality standard indicators that will be abided by processors (producers) in developing
(processing) a high quality yak down and camel wool that meets the requirement (demand)
of present consumers.
Initiatives started to establish “United yak brand” among yak down processors
Although, 4 out of 14 companies who produce end yak down products export more than 81%
of their products, 2 companies export 61-81%, 2 companies export 41-60% and 6 factories
export 40% of their products in 2013, there haven’t been any yak down products with “Made
in Mongolia” logo. Therefore, there is a great need to introduce Mongolian yak down
products to international market.

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Yak down processing factories of Mongolia agreed to establish “United yak brand” of
Mongolia in order to introduce wool products for international market and expand yak down
market for them.
Currently, 5 companies, who source raw materials from reliable supply or prepare their yak
down from cooperatives, joined the initiative. They aim to work towards introducing their
products at international market, producing and exporting and collaborating with other
factories.
International designer consulted to processing companies and collection of yak
down products produced
To develop a collection of knitted and woven yak down products and capacity building of
national designer the project hired international commercial designer. The assignment of
international designer was conducted by following steps: developing design concept,
preparing the themes and design ideas, delivering tech pack, first and second proto-types
and approving final samples for the exhibitions.
Based on the technical capabilities of the processors and their ability to interpret and
produce the design specifications the international designer allocated designs by processors
and organized 1 day training for designers of processing companies. After final check of
samples the project planning to marketing and exhibiting on the international market in the
near future. Also the international designer selected some products from processors and
evaluated ready to international exhibition, collection of knitted and woven yak down
products that would include men’s and ladies’ sweaters, cardigans, shawls, ponchos,
scarves in total 28 collection items are produced and selected.

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3. Monitoring of progress with regard to the project indicators
In the following table the current status of progress made with regard to the indicators of the GG C4 as contained in the Log frame is being
analyzed.
Indicators
Baseline
/Target
Status and achievements
(explain deviation from plan)
Analysis /comments
Outcome 4: Increased income of yak herders
Indicator 4.1. Change in
turnover of value added
domestic products made from
yak down and camel wool
(%).
Baseline: 100
Target: 120
Due to economic crises 2014-2015
sales income of processors reduced,
might be this indicator is not fulfilled.
The sales of finished products from raw materials which were
collected in the framework of GG C4 is expected during the
sales season beginning October 2014. Therefore relevant data
are available only in March 2015.
Indicator 4.2: Change of
herder gate fiber price as
percentage of Mongolian
consumer price of finished
products (%).
Baseline:
10%
Target: 15%
The value increased from 10% in 2013
to 15% in 2014 against the target of
15%. The indicator has been fulfilled.
In 2013 and 2014 the average consumer price of one finished
yak down product (garment 350 grams) was about 100.000
MNT. The yak down price increased from 10.000 to 15.000
MNT/kg out of which one average garment can be produced.
Indicator 4.3. Change of HH
income for sales of combed
yak down and camel wool
(%).
Baseline: 0%
Target: 20%
The value increased from 0% in 2013 to
50% in 2014 against the target of 20%.
The indicator has been fulfilled.
From the increase of herder gate price of yak down from 10.000
in 2013 to 15.000 MNT/kg in 2014 herders were able to
increase their income from yak down by up to 50%.
Output 4.1 Improved quality and volume of yak and camel wool supplied by herders
Indicator 4.1.1. Herder
households marketed combed
yak-down and camel wool
(%).
Baseline: 100
Target: 140
The value increased from 100 in 2013
to 300 in 2014 against the target of 140.
The indicator has been fulfilled.
Compared with results of the supply study for 2013 (about 1,000
herder households), the number of herder households selling
yak donw has increased to appr. 3,000 (+200%).

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Indicator 4.1.2. Change in
herder gate price of yak down
and camel wool
Baseline: 100
Target: 130
The value increased from 100 in 2013
to 150 in 2014 against the target of 130.
The indicator has been fulfilled.
The herder gate price for yak down increased from 10.000 MNT
to 15.000 MNT/kg.
Indicator 4.1.3. Change of
sales volume of combed yak
down sold by
cooperatives/APUGs (%).
Baseline: 100
Target: 140
The value increased from 100 in 2013
to 140 in 2014 against the target of 140.
The indicator is fulfilled.
The volume of yak down sold by cooperatives / APUGs in the
value chain was 48 tons as compared to about 30 tons sold in
2013 (+40%).
Indicator 4.1.4. Raw
cashmere output per kg of
combed yak down (%).
Baseline: 20
Target: 25
The value has increased from appr.
25% in 2013 to appr. 30% in 2014
against the target of 25%. The indicator
has been fulfilled.
Based on opinion obtained from processors buying yak down
(preliminary data).
Output 4.2 APUG’s and Cooperatives have market-links
Indicator 4.2.1. APUG’s and
cooperatives with new supply
chain (%).
Baseline: 100
Target: 140
The value has increased from 29% in
2013 to 50% in 2014. The indicator has
been fulfilled.
In the 2014 collection season 18 out of 31 cooperatives/APUGs
sold yak down or camel wool to processors (2013 9
cooperatives/APUGs).
Indicator 4.2.2. Annual
turnover of APUGs and
cooperatives from sales of yak
down and camel wool (%).
Baseline: 100
Target: 115
The value increased from 100 in 2013
to 270 in 2014 against the target of 115.
The indicator has been fulfilled.
The turnover of cooperatives from sales of yak down increased
from 270 mio MNT in 2013 to 734 mio MNT in 2014 (+270%).
Indicator 4.2.3. APUGs and
cooperatives selling semi
processed yak down and
camel wool (%).
Baseline: 100
Target: 140
Result 15: The value has increased
from 2013 (1 cooperative) to 2014 (6
cooperatives). The indicator has been
fulfilled.
In September 2014 5 cooperatives have been equipped with
spinning wheels and 20 female members have been trained in
hand spinning yarn from camel wool.
Output 4.3 Domestic processing companies exporting value added products
Indicator 4.3.1. Increase in
volume of yak down products
exported (%).
Baseline: 100
Target: 105 According to the agreed operation plan of GG C4 the production
of finished products for possible exports will be implemented at
the 2 nd quarter 2015. Data will be available only then.

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4. Suggestions and conclusion
1. Although yak down preparation is increased by 40 percent and herders’ income from
selling their yak down has increased by 50 percent, there is greater need to improve yak
down quality. Since the establishment of partnership between herders’ cooperatives and
producers, domestic producers started using raw materials with reliable source of
preparation.
2. Number of experiments to improve raw material quality and increase production yield in
order to add the value of camel wool and initial successes have been used for the
production. Furthermore, combined trainings, experimental and implementation activities
together with professional institutions were carried out to change camel wool preparation
method, increase processing yield, improve production design and quality, renew
standards, search for unique raw material sources and introduce at market.
3. Within the framework of strengthening primary cooperatives participated in yak down and
camel wool value chain, GG C4 rendered support to “Horgiin misheel” cooperative of
Tariat soum, Arkhangai aimag to develop brown yak breed, “Evt zalaa” cooperative of
Khaliun soum, Gobi-Altai aimag to build storage of raw materials. In 2014, primary
cooperatives of Arkhangai, Zavkhan and Uvs aimags collaborated to establish secondary
cooperatives.
4. Trainings on producing local value added camel wool products were organized and
required equipments were procured to support the production. Introduction of local felt
and wool products to neighboring markets had been planned.
5. Yak down processing companies agreed to use “Yak Mongolia” yak down brand that is
“Made in Mongolia” to introduce Mongolian yak down products at European market and
increase volume of sale.