Khulan Altangerel, profile picture
Uploaded byKhulan Altangerel
7,342 views

Mongolia’s meat supply chain analysis

The document analyzes Mongolia's meat supply chain in comparison to Australia's, highlighting the challenges Mongolia faces, such as price increases and meat quality decline due to poor management and cold chain integrity. It outlines the structure of Mongolia's meat industry, the significance of cold chain logistics, and recommends improvements based on Australian practices. The analysis reveals that Australia's meat supply chain performs better due to well-established quality assurance systems and effective management strategies.

Food◦

Embed presentation

Mongolia’s meat supply chain analysis: Benchmarking with Australian meat supply chain School of Management and Economics Student name: Khulan Altangerel Supervisor: Feng Yi, Associate professor
CONTENTS • Outline • Sector background • Statement of the problem • Purpose • Objectives • Methodology • Cold chain • Australian meat supply chain analysis • Mongolia’s meat supply chain analysis • A case study of meat wholesaling: Ulaanbaatar city’s “Huchit shonhor” food market • Integrity of the cold chain in Mongolia's meat supply chain • Main factors of meat price • Stage comparison • Recommendations for Mongolia's meat supply chain improvement • Conclusion
OUTLINE • Introduction • Literature review • Australian meat supply chain analysis Chapter 1 Chapter 2 Chapter 3 Chapter 6 • Mongolia’s meat supply chain analysisChapter 4 • Stages comparison and recommendationsChapter 5 • Conclusion
SECTOR BACKGROUND • Mongolia is one of the leading countries in terms of the livestock number and meat consumption per capita and home to 45 million head of livestock. The meat industry is considered to be one of the most potential sectors for future development. Despite the growth of livestock, Mongolia’s meat industry faces many problems such as meat price increase, meat contamination and improper meat processing during last several years. Source: National Statistical Office of Mongolia Table: Average price of beef
PROBLEMS IN MONGOLIAN MEAT INDUSTRY Reduce Cost Improve Product Quality Not optimized Supply Chain Poor quality High price Improper processing These problems indicate that Mongolia’s meat supply chain is not optimized and reminding effective management must take into account in the supply chain, to reduce cost and to improve service level.
PURPOSE – To ANALYZE MONGOLIAN MEAT SUPPLY CHAIN to determine what factors and which stage of the supply chain lead to price increase and quality decline of the end-consumer product. – To GIVE RECOMMENDATIONS on where improvements can be made in the Mongolia’s meat supply chain based on the analysis of Australian meat supply chain.
OBJECTIVES • To investigate cold chain management • To identify the impact of the meat industry in Mongolian economy. • To examine primary factors which affect high meat price. • To identify where improvements can be made in the supply chain. • To investigate Australian beef supply chain and find out the factors that may have favorable impacts on the improvement of Mongolia’s meat supply chain.
METHODOLOGY Cold chain characteris -tics Bench marking Supply chain analysis
METHODOLOGY Analyzing Australian meat supply chain Analyzing Mongolia’s meat supply chain Proposing supply chain framework Making a stage comparison Performance Proposing supply chain framework Recommendations
Meat & marine products Fruits & vegetables Fish & Sea food Dairy products Beverages COLD CHAIN PRODUCTS: FOOD SECTOR • If cold chain control is violated at any point, meat safety, quality and hygiene are compromised. • Controlling the temperature of meat products from the processing stage has been proven to not only help control microbial growth, but also assist in creating a quality meat product.
COLD CHAIN • A cold chain is a temperature-controlled supply chain that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption. Major Industries: Food, Pharmaceutical • A well-organized cold chain reduces spoilage, retains the quality of the products and guarantees a cost efficient delivery to the consumer given adequate attention for customer service. • Feature of cold chain is every stage in the chain should comply with cold chain standards which extend shelf life and ensure product quality and safety. SUPPLY CHAIN TEMPERATURE CONTROL (REFRIGERATION) COLD CHAIN
AUSTRALIAN MEAT SUPPLY CHAIN ANALYSIS
Australia is one of the world’s largest producers of commercial livestock and red meat. Beef cattle and sheep are the dominant industries. Also they are major agricultural commodities and represent a significant segment of the economy. The Australian meat industry is affected by both domestic and international demand for its products. So the market is characterized by a range of domestic and export consumer types at the point of final consumption and through the supply chain. AUSTRALIAN MEAT INDUSTRY
Supply Chain Participants Regulatory Groups Australian meat industry has a diverse range of stakeholders which can be broadly categorized into two groups. STAKEHOLDERS OF AUSTRALIAN MEAT SUPPLY CHAIN
AUSTRALIAN MEAT SUPPLY CHAIN • Livestock supply chain is the most extensive in Australia in terms of distance and geographical spread. • The meat supply chain has seven key functional stages, made up of: Breeding Fattening Feedlotting Marketing Transportation Processing Retailing 1 2 4 5 6 7 3
AUSTRALIAN MEAT SUPPLY CHAIN FRAMEWORK
AUSTRALIAN MEAT SUPPLY CHAIN FRAMEWORK
QUALITY ASSURANCE (QA) The QA systems developed by the Australian meat industry that cover all the links in the supply chains, from paddock to fork. • Livestock Production Assurance • LPA Quality Assurance National Feedlot Accreditation Scheme TruckCare • Australian Government Legislation and Standards • AQIS health certificate • Australian Government Halal Slaughter Program • Micro-organism monitoring • MLA food safety program • National Residue Survey National Saleyard Quality Assurance Program • National Livestock Identification System • AUS-MEAT QA on farms QA on feedlots QA on transportation QA on saleyards QA on processing QA on overall supply chain
INTEGRITY OF THE COLD CHAIN Quality Assurance Systems Integrity of the Cold Chain Integrity of the cold chain is critical for both the domestic and the export market. Quality assurance systems ensure integrity of the cold chain in Australian meat supply chain. However cold chain is complicated to manage the product arrives at market in prime condition.
MONGOLIA’S MEAT SUPPLY CHAIN ANALYSIS MONGOLIAN LIVESTOCK INDUSTRY • Livestock industry was the main foundation of Mongolia’s economy and it still plays an important role in economy, employment and export revenues.
CONTINUED… 80 percent (1.35 million hectares) of total land is suitable for livestock herding. Main livestock production comes from meat, milk and cashmere products which are included in the country’s strategic products. 80%
MONGOLIA’S MEAT INDUSTRY Meat industry plays an important role in the food sector and is considered to be one of the most potential sectors for future development. Mongolia annually produces 200-250 thousand tons of meat from 8.2 million livestocks and self-sufficient for its domestic meat consumption (MoIA, 2013). 2008 2009 2010 2011 2012 2013 Performance 2013/2012 Meat production 221.3 264.4 204.4 208 220.4 238.2 107.40% Meat processed through plants 12 21.4 14.7 15.6 16.4 22.1 134.70% Source: MoIA, 2013 Table 8 : Recent meat production (thousand tons)
MEAT EXPORT Mongolia’s contribution to world meat exports is very small. Meat export occupies very small portion in meat production. Actual meat exports during the last six years averaged around 10.3-3 thousand tons. Meat products are mainly exported to Russia (horse meat, beef), Arab countries: Turkey, Jordan … (mutton, lamb), China (mutton, goat) and Japan (horse meat). Meat production and export, in thousand tons, (Source: MoIA, 2013)
PRODUCT CHARACTERISTICS Five types of livestock are raised in Mongolia: sheep, goats, cattle, horses, and camels. Sheep and goats comprise the majority of livestock and respectively accounted for 44.5% and 42.6% of the total number of livestock in 2013. Mongolian livestocks are organically produced related to the traditional pastoral livestock breeding. All livestocks fed with organic grass while they graze on native pasture and that can be a special characteristic of Mongolian livestocks. The structure comparison of Mongolian livestock In 1990 In 2013
END CONSUMER DEMAND – MEAT CONSUMPTION • Meat consumption in urban areas and rural areas are different. But the difference is getting smaller in recent years. Mongolians mainly consume beef and mutton, accounting for around 45% and 35% of the total quantity of meat respectively, while horse, goat, and camel meats occupy small portion in consumption. Province name Total meat consumption thousand tn Percentage of meat consumption % Total meat consumption mn. ₮ Percentage of meat consumption in GDP Ulaanbaatar 97,0 40,1% 378 252,10 12,7% Selenge 12,6 5,2% 37 800,00 19,4% Uvurkhangai* 11,5 4,7% 26 353,58 24,1% Khuvsgul 10,4 4,3% 29 094,24 20,5% Arkhangai* 9,8 4,0% 20 502,72 16,7% Khentii 8,3 3,4% 18 009,00 22,4% Table 14 : Annual meat consumption by province Source: NSO and MOIA, end of 2008
DISTRIBUTION OF SUPPLY Although livestock is relatively uniformly distributed in comparison with the population size of each region, the forests and mountainous areas of northern and eastern Mongolia are most populous in terms of livestock. Overgrazing is becoming problematic in areas close to major markets.
INCONSISTENCY OF DEMAND AND SUPPLY Inconsistency of demand and supply led to threefold increase in meat price between 2001 and 2009 (Mercy-Corps, 2010). MAIN FACTORS: 1) Dependence of livestock production on weather and seasonal conditions Dependence of pastoral livestock breeding on weather conditions causes the supply shortage because of the decrease of livestock number during adverse weather.
2) Meat supply has the characteristic of seasonal fluctuation. Annual supply, Source: Mercy Corps, 2010 INCONSISTENCY OF DEMAND AND SUPPLY Shortage Surplus There is a supply shortage between January and June and supply is exceeded between July and December. This is because herders tend to sell livestock in the months between July and December when livestocks have the heaviest weight.
Supply Chain Participants Regulatory Groups STAKEHOLDERS OF MONGOLIA’S MEAT SUPPLY CHAIN Herder households Agents Intermediaries Slaughterhouses Meat Processors Wholesalers Retailers Mongolian Meat Association (MMA) Ministry of Industry and Agriculture (MoIA) State Specialized Inspection Agency (SSIA) Mongolian National Agency for Standardization and Metrology (MNASM)
SUPPLY CHAIN STAGES Livestock production Marketing Processing Distribution Retailing
MONGOLIA’S MEAT SUPPLY CHAIN FRAMEWORK MARKETING household
MONGOLIA’S MEAT SUPPLY CHAIN FRAMEWORK MARKETING household
A CASE STUDY OF MEAT WHOLESALING: ULAANBAATAR CITY’S “HUCHIT SHONHOR” FOOD MARKET In the past, Huchit Shonhor food market was just one of many small markets in the city, but with the movement of fowl places out of the city, the Huchit Shonhor market began to carry out "the wholesale market" functions. The majority of the meat for Ulaanbaatar city consumption is shipped to the Huchit Shonhor food market from fowl places and then retailers and merchants of other food markets buy the meat from the Huchit Shonhor food market and then sell to consumers. Wholesaler from countryside Wholesaler inside the market Meat salesperson inside the market Retailers Food markets Others Wholesalers Increases price Increases price Increase price Increase price Increase price
CONTINUED… Wholesaler from countryside Wholesaler inside the market Meat Salesperson inside the market Mutton 1300 - 2200 1550 - 2200 2200 - 2500 Beef 1600 - 2000 1400 - 2200 2000 - 2400 Horse meat 500 - 1000 700 - 1000 1100 - 1300 Goat meat 1100 - 1600 1400 - 1700 1800 - 2000 Camel meat 1100 - 1200 1200 - 1450 1750 - 2000 Meat transaction participants in this market have a strong influence in meat price formation of Ulaanbaatar city. At each stage of the meat sales transaction, meat price become more expensive than previous stage and this transaction with multi-participants is the main reason of high meat price in Ulaanbaatar city. Source: Changes and Actual State of Mongolian Meat Market and Distribution System A Case Study of Ulaanbaatar City’s “Khuchit Shonhor” Food Market, 2006 Table: Meat prices by stages of sale in Huchit Shonhor food market, tg/per kg
MAIN FACTORS OF MEAT PRICE INCREASE 1. Strong Influence of Wholesale Function of the supply chain. 2. Inconsistency of Demand and Supply – Adverse weather conditions (dzud and drought) – Supply fluctuation
Stage comparison and Recommendations for Mongolia’s meat supply chain improvement
STAGE COMPARISON OF AUSTRALIAN AND MONGOLIA’S MEAT SUPPLY CHAIN - LIVESTOCK PRODUCTION AUSTRALIA MONGOLIA Responsiveness to harsh weather conditions Australian meat industry has developed necessary capacity to handle such uncertainties which are caused by adverse weather conditions. Mongolia’s cannot respond significantly to changes in weather conditions. Rearing method The use of feedlots has developed. The use of feedlot removed most of the seasonality in the weight gain of livestock by providing a year-round supply of feed, and the extremes in the variability of growth rate of livestocks when they graze on seasonal grasses. In the southern part, more intensive farms are mainly located. Livestock graze on improved pastures that have replaced the less nutritious native grasses there. The usual pastoral livestock breeding method used in Mongolia involves the extensive grazing of various types of livestock at one herder household site (livestock farming). Livestock producer Private companies and farmers produce most of the commercial livestocks. They own stations where the livestock graze on vast land. Some of them are vertically integrated and operated as a meat processor and a distributer of end-products. Producer Alliances are well developed. Almost all (97%) livestocks are privately owned by herder households. This is the result of the large-scale privatization process that began in the early 1990s, almost all state-owned
STAGE COMPARISON - MARKETING AUSTRALIA MONGOLIA Selling Systems Various livestock selling systems are used in Australian meat supply chain including saleyard auctions, direct sale, auction plus, property auctions, forward contract, over the hooks marketing and niche markets to cater for different needs and markets. Each of selling systems has their own advantages and disadvantages and it is possible for the processors to choose a convenient method to source livestock depending on targeted market and a season. In Mongolia, livestock is mainly sold to a merchant or an agent. A buyer may visits the property, inspect the livestock, and negotiate a price. Other selling systems are not implemented in the meat supply chain. Meat processing plants are mainly source through their agents and other processors source through an intermediaries. This type of marketing method increases the role and influence of intermediaries in the supply chain.
STAGE COMPARISON - PROCESSING AUSTRALIA MONGOLIA Regulations There are around 240 to 300 slaughterhouses and their operations are accredited by QA systems. The Australian processing industry has also introduced a number of measures to enhance meat quality. Portion of the meat which are being processed under regulations are as low as 13%. It shows that the control of meat quality and standard fulfillment of processing is loosely defined. Processing Technology Australian meat processors produce value- added meat products by advanced technologies and techniques while supporting the high quality. Meat is packaged in a variety of ways for ease of handling and transportation for both export and domestic markets. The portion of value-added meat products is small due to the lack of sophisticated processing technology in small slaughterhouses. Vertical Integration Most of the large processors operate a significant vertically integrated supply chain from cattle breeding to distribution and occupy majority of the market. Few of large processors operate vertically integrated supply chain from marketing to distribution. Responsiveness to the Change of Consumer Taste High proportions of Australians are eating less red meat and are looking to lower the fat levels in the diet. The industry has responded by producing meat cuts with lower fat level. Large cuts are still dominated in Mongolia’s meat industry.
Australia Mongolia Regulations The transport requirements for livestock are complex and governed by a number of restrictions and guidelines in Australia. Livestocks must be transported live on specialized livestock vehicles between farm- based and intermediate movements and once slaughtered the product must be transported between 4ºC and -22ºC by refrigerated truck depending on the end marketplace and whether the product is chilled or frozen to comply with cold chain rule. But in Mongolia, livestock is transported through the functional stages by unspecialized truck. Also meat products from small slaughterhouses are distributed to food markets and retailers by unrefrigerated trucks. This stage affects badly to product quality due to the transportation which is not abided by any specific cold chain rules relating to loading, unloading and transporting livestock in Mongolia. STAGE COMPARISON - TRANSPORTATION
STAGE COMPARISON - RETAILING AND WHOLESALING AUSTRALIA MONGOLIA Regulations In Australia there are a number of initiatives to enhance existing regulations to ensure the quality of meat is maintained until the final consumers. Domestic meat retailers are developing a quality assurance program covering areas such as product handling, cleaning, display temperature and even business management. Meat products are mainly sold in food markets under inappropriate temperature which is not in compliance with cold chain standard. Almost all meat products which are sold in food markets are contaminated due to its polluted environment and operation which is not regulated by standards of product handling, cleaning, and display temperature. Influence of Wholesalers Increasing vertical integration of supply chain reduced a role and influence of a separate wholesale function. In Mongolia, wholesaler has a very strong influence in this stage. Meat products slaughtered in slaughterhouses are mainly supplied to food markets by wholesalers. Many intermediaries participate in retailing and wholesaling stage. It is one of the main reason of high meat price.
PERFORMANCE EFFECTIVENESS QA systems Intensive Livestock Operations Effective Marketing Systems Sophisticated Processing Technology Flexibility Respon- siveness Supply Chain Integration Australia Mongolia Livestock production Marketing Transportation Processing Retailing
PERFORMANCE • The effectiveness of the cold chain in maintaining the safety, durability and quality of foods relies on controlling product temperature through each and every step in the cold chain. • The analysis of supply chain structure and stage comparison between Australian and Mongolia’s meat supply chain clarifies that Australian meat supply chain performance and effectiveness are better than Mongolia’s. It is attributable to the well-established QA systems, which support cold chain control that cover every stage in the Australian meat supply chain. Also the effectiveness and well formulated management of Australian meat supply chain is attributable to some other factors such as supply chain integration, responsiveness and flexibility to change of demand and weather conditions, sophisticated processing technology, effective marketing systems, intensive livestock operations and so on. • On the contrary, cold chain control is violated at each stage in Mongolia’s meat supply chain. Meat safety, quality and hygiene are compromised due to the poor temperature control in the supply chain.
RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT LIVESTOCK PRODUCTION • To develop necessary capacity to handle such uncertainties which are caused by adverse weather conditions. • To develop livestock producer vertical and horizontal alliances to provide producers with leverage to get into the commercial world by combining to deal with a significant volume of product. • To develop the use of feedlot to remove seasonality in the weight gain of livestock, and the extremes in the variability of growth rate of livestocks when they graze on seasonal grasses.
RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT LIVESTOCK PRODUCTION • To develop necessary capacity to handle such uncertainties which are caused by adverse weather conditions. • To develop livestock producer vertical and horizontal alliances to provide producers with leverage to get into the commercial world by combining to deal with a significant volume of product. • To develop the use of feedlot to remove seasonality in the weight gain of livestock, and the extremes in the variability of growth rate of livestocks when they graze on seasonal grasses.
RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT MARKETING • To develop various selling systems to distribute livestock efficiently. Implementing various selling systems can be efficient. It will give opportunity for processors to source livestock through a variety of channels. Generally, Australia's mechanism to distribute livestock between different stages and vertical integration of the supply chains can offer valuable benchmarks for the Mongolia’s meat industry.
RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… • To enhance the audit of the regulatory bodies on slaughterhouses operations and to make consolidation of small slaughterhouses. • To be innovative when respond to consumer taste change. • To improve processing technology to produce value- added products while supporting high quality. • To attract export market by its’ organic products. MEAT PROCESSING
RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… • Livestock should be transported live on specialized livestock vehicles between movements to ensure the welfare of the animal and work so that the livestocks do not become stressed or hurt. Once slaughtered the it must be transported by refrigerated truck depending on the end marketplace and whether the product is chilled or frozen to comply with cold chain rule. TRANSPORTATION
l RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… RETAILING AND WHOLESALING • To improve the environment and product handling operations of food markets. • To increase supply chain vertical integration of meat processors to reduce wholesale function in the supply chain. Vertical integration of Australian meat supply chains can be a good lesson to reduce the role and influence of a separate wholesale function.
l RECOMMENDATIONS FOR MONGOLIA’S MEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… WHOLE SUPPLY CHAIN • Developing quality assurance systems which cover all stages of the supply chain is necessary in Mongolia’s meat industry. • Forming an alliance with the Australian meat industry can be another useful approach to quickly learn how meat supply chains are developed and managed in Australia. In this respect, industry exchange visits may be arranged through peak bodies in both countries for senior industry personnel. On the other hand, technical training tours may be organized for various other industry personnel to learn from each other various techniques related to meat products such as preparation, processing, and specifications.
Further Research The recommendations for the future development of Mongolia’s meat supply chain can be improved by basis of economic calculations and feasibilities.
CONCLUSION • Success of the Australian meat industry is attributable to the development and effective management of its meat supply chains. In this regard, Mongolia’s meat industry can benefit from learning how Australia has developed and managed its meat supply chains. • The paper accomplished two main aims. • It can be helpful to any stakeholders of Mongolia’s meat supply chain since it can give them clear understanding about the supply chain. • Analyses included in the paper might be a valuable source of information for scholars who intend to conduct research in this area.
••••••••••••••••••••••••••••••••••

More Related Content

PDF
MMX2022 - La difficulté du sourcing de protéines non OGM en France et en UE
byInstitut de l'Elevage - Idele
 
PPTX
Dairy Farm, How to start a Dairy Farming Business
byAjjay Kumar Gupta
 
PPTX
Biosecurity measures for Poultry farms.pptx
byHarshiniAlapati
 
PDF
Anatomy of female reproductive organs in domestic animals
byDrGovindNarayanPuroh
 
PPT
Dairy farming –process
bymlindsay1
 
PDF
Impact of Metabolic Disorders and Mastitis on Reproduction
bymiloshaa
 
PPTX
Feed Mill Operations.pptx
byDr Ameer Suhail
 
PDF
Broiler farm-project-report-1000-birds
bybodakeganesh
 
MMX2022 - La difficulté du sourcing de protéines non OGM en France et en UE
byInstitut de l'Elevage - Idele
 
Dairy Farm, How to start a Dairy Farming Business
byAjjay Kumar Gupta
 
Biosecurity measures for Poultry farms.pptx
byHarshiniAlapati
 
Anatomy of female reproductive organs in domestic animals
byDrGovindNarayanPuroh
 
Dairy farming –process
bymlindsay1
 
Impact of Metabolic Disorders and Mastitis on Reproduction
bymiloshaa
 
Feed Mill Operations.pptx
byDr Ameer Suhail
 
Broiler farm-project-report-1000-birds
bybodakeganesh
 

What's hot

PDF
MMX2022 - Les perspectives du marché du lait et des produits laitiers
byInstitut de l'Elevage - Idele
 
PPTX
Feeding of Swine
byDSVCKV, DURG
 
PPTX
Indian Poultry Sector in Transition - Knowledge Day 2016
byPoultry India
 
PPTX
Developments in the Nutrient Requirement of Chicken
byPVNRTVU, College of Veterinary Science,Rajendranagar, Telangana, India
 
DOC
Information for Broiler Poultry Farms
byJawwad Zia
 
PPTX
Economics of Cow Comfort
byJeffrey Bewley
 
PPTX
Feeding of Broilers for Optimum growth and Feed efficiency
byPVNRTVU, College of Veterinary Science,Rajendranagar, Telangana, India
 
PPT
Indian dairy industry future prospects & key challenges
byJitendra Vala
 
PDF
Swine
bychemist_012001
 
PDF
Milk Production In Pakistan
byAbrar Ahmed
 
PPT
Dairy herd health
byAsfar Zaman
 
PPTX
Principales construcciones e instalaciones en bovinos
byLissethTorres14
 
PPTX
Pregnancy and its termination
byDr. Sushil Neupane
 
PPT
Animal reproduction and obstetrics
byjoreno
 
PPTX
Managing Mastitis in Bred Heifers
byDAIReXNET
 
PPTX
Harmful effects of forage crops
byVENKATESH AGRI
 
PDF
Andrology lecture 1 Technique of Artificial insemination in cattle
byDrGovindNarayanPuroh
 
PPTX
Tail docking
byAsfar Zaman
 
PPT
Mammary glands power point by Dr. Rekha Pathak senior scientist IVRI
byRekha Pathak
 
PPTX
Animal handling & Restrain
byMux Lm
 
MMX2022 - Les perspectives du marché du lait et des produits laitiers
byInstitut de l'Elevage - Idele
 
Feeding of Swine
byDSVCKV, DURG
 
Indian Poultry Sector in Transition - Knowledge Day 2016
byPoultry India
 
Developments in the Nutrient Requirement of Chicken
byPVNRTVU, College of Veterinary Science,Rajendranagar, Telangana, India
 
Information for Broiler Poultry Farms
byJawwad Zia
 
Economics of Cow Comfort
byJeffrey Bewley
 
Feeding of Broilers for Optimum growth and Feed efficiency
byPVNRTVU, College of Veterinary Science,Rajendranagar, Telangana, India
 
Indian dairy industry future prospects & key challenges
byJitendra Vala
 
Swine
bychemist_012001
 
Milk Production In Pakistan
byAbrar Ahmed
 
Dairy herd health
byAsfar Zaman
 
Principales construcciones e instalaciones en bovinos
byLissethTorres14
 
Pregnancy and its termination
byDr. Sushil Neupane
 
Animal reproduction and obstetrics
byjoreno
 
Managing Mastitis in Bred Heifers
byDAIReXNET
 
Harmful effects of forage crops
byVENKATESH AGRI
 
Andrology lecture 1 Technique of Artificial insemination in cattle
byDrGovindNarayanPuroh
 
Tail docking
byAsfar Zaman
 
Mammary glands power point by Dr. Rekha Pathak senior scientist IVRI
byRekha Pathak
 
Animal handling & Restrain
byMux Lm
 

Viewers also liked

PPTX
Development of Cold Chain Supply in India
byFarhan Khan
 
PPTX
Meat processing and Value added product outline
byHaripriya Radhakrishnan
 
PDF
Cold Chain for Meat
byAsian Food Regulation Information Service
 
PDF
Sustainability: An Introduction of the Pork Meat Sector
byFAO
 
PPTX
Mobile slaughter
byUniversity of Maryland Extension Small Ruminant Program
 
PPTX
Meat & Sustainability
byDissident
 
PPT
Reduction of post-slaughter beef loss and application of HACCP in meat proces...
byILRI
 
Development of Cold Chain Supply in India
byFarhan Khan
 
Meat processing and Value added product outline
byHaripriya Radhakrishnan
 
Cold Chain for Meat
byAsian Food Regulation Information Service
 
Sustainability: An Introduction of the Pork Meat Sector
byFAO
 
Mobile slaughter
byUniversity of Maryland Extension Small Ruminant Program
 
Meat & Sustainability
byDissident
 
Reduction of post-slaughter beef loss and application of HACCP in meat proces...
byILRI
 

Similar to Mongolia’s meat supply chain analysis

PDF
21.04.2016 suvdmaa (precom)
byThe Business Council of Mongolia
 
PDF
Value addition in meat
byBidyutivri
 
PPTX
Meat industry and its scope
byDr Muhammad Umar Aziz
 
PDF
Meat value chain mar-22 - dr zubair
byMuhammad Zubair
 
PDF
Marketing of meat & meat merchandising practices in india
byDr. Keshab Debnath
 
PPTX
Livestock marketing and supply chain management of livestock products
byILRI
 
PPTX
Indian meat industry
byDr.Sharon Abdul Jameela
 
PDF
indian_meat_industry_for meat processing and preservation
byRahulVashishth11
 
PPTX
Indianmeatindustry 160428182545
bynavi04vet
 
PPT
Ethiopian Meat Export Operators and Facilities
byessp2
 
PPTX
Mastering Market Realities in Global Meat Industry
byDr. Vijayender Nalla
 
PPT
Meat Market Study by ASI Partners
byasipartners
 
PPT
China meat product industry report, 2010 2011
byResearchInChina
 
PDF
ANZ Bullrush - 12pp
byKate Hage
 
PPTX
Linking famers to (high value) livestock product markets: Opportunities and c...
byILRI
 
PDF
Implications2
bygulab sharma
 
PPTX
Mr. Sterling Liddell and Ms. Christine McCracken - Production Growth Ahead; C...
byJohn Blue
 
PDF
ZAMANI_2016.14.02_Final
byIvaylo Velikov
 
PPTX
2013 horsemeat brief patricio hidalgo analysis
byPatricio Hidalgo
 
PPT
Alberta Ag conference January 9, 2003
byRanch Foods Direct
 
21.04.2016 suvdmaa (precom)
byThe Business Council of Mongolia
 
Value addition in meat
byBidyutivri
 
Meat industry and its scope
byDr Muhammad Umar Aziz
 
Meat value chain mar-22 - dr zubair
byMuhammad Zubair
 
Marketing of meat & meat merchandising practices in india
byDr. Keshab Debnath
 
Livestock marketing and supply chain management of livestock products
byILRI
 
Indian meat industry
byDr.Sharon Abdul Jameela
 
indian_meat_industry_for meat processing and preservation
byRahulVashishth11
 
Indianmeatindustry 160428182545
bynavi04vet
 
Ethiopian Meat Export Operators and Facilities
byessp2
 
Mastering Market Realities in Global Meat Industry
byDr. Vijayender Nalla
 
Meat Market Study by ASI Partners
byasipartners
 
China meat product industry report, 2010 2011
byResearchInChina
 
ANZ Bullrush - 12pp
byKate Hage
 
Linking famers to (high value) livestock product markets: Opportunities and c...
byILRI
 
Implications2
bygulab sharma
 
Mr. Sterling Liddell and Ms. Christine McCracken - Production Growth Ahead; C...
byJohn Blue
 
ZAMANI_2016.14.02_Final
byIvaylo Velikov
 
2013 horsemeat brief patricio hidalgo analysis
byPatricio Hidalgo
 
Alberta Ag conference January 9, 2003
byRanch Foods Direct
 

Recently uploaded

PPTX
meat and poultry processing methods.pptx
bypeekachu9009
 
PPTX
AUGMENTED REALITY IN FOOD INDUSTRIES AND APPLUCATION
byJhalaknath Sharma
 
PPTX
Phenotypic and Molecular Characterization of Anthracnose Resistance in Lima B...
byskaletmedia
 
PPTX
Goat_Manure_Marketing_Strategyrishab, narayan .pptx
byNarayanGhorai2
 
PPTX
CLIMATE, SOIL AND NUTRIENTS FOR MANGO PRODUCTION IN BANGLADESH .pptx
byProdipto Bishnu Angon
 
PDF
POLENTA E SCHIZ FORMAGGIO FRESCO BELLUNESE
byLocanda Baita A L'Arte
 
meat and poultry processing methods.pptx
bypeekachu9009
 
AUGMENTED REALITY IN FOOD INDUSTRIES AND APPLUCATION
byJhalaknath Sharma
 
Phenotypic and Molecular Characterization of Anthracnose Resistance in Lima B...
byskaletmedia
 
Goat_Manure_Marketing_Strategyrishab, narayan .pptx
byNarayanGhorai2
 
CLIMATE, SOIL AND NUTRIENTS FOR MANGO PRODUCTION IN BANGLADESH .pptx
byProdipto Bishnu Angon
 
POLENTA E SCHIZ FORMAGGIO FRESCO BELLUNESE
byLocanda Baita A L'Arte
 

Mongolia’s meat supply chain analysis

  • 1.
    Mongolia’s meat supply chain analysis: Benchmarkingwith Australian meat supply chain School of Management and Economics Student name: Khulan Altangerel Supervisor: Feng Yi, Associate professor
  • 2.
    CONTENTS • Outline • Sectorbackground • Statement of the problem • Purpose • Objectives • Methodology • Cold chain • Australian meat supply chain analysis • Mongolia’s meat supply chain analysis • A case study of meat wholesaling: Ulaanbaatar city’s “Huchit shonhor” food market • Integrity of the cold chain in Mongolia's meat supply chain • Main factors of meat price • Stage comparison • Recommendations for Mongolia's meat supply chain improvement • Conclusion
  • 3.
    OUTLINE • Introduction • Literaturereview • Australian meat supply chain analysis Chapter 1 Chapter 2 Chapter 3 Chapter 6 • Mongolia’s meat supply chain analysisChapter 4 • Stages comparison and recommendationsChapter 5 • Conclusion
  • 4.
    SECTOR BACKGROUND • Mongoliais one of the leading countries in terms of the livestock number and meat consumption per capita and home to 45 million head of livestock. The meat industry is considered to be one of the most potential sectors for future development. Despite the growth of livestock, Mongolia’s meat industry faces many problems such as meat price increase, meat contamination and improper meat processing during last several years. Source: National Statistical Office of Mongolia Table: Average price of beef
  • 5.
    PROBLEMS IN MONGOLIANMEAT INDUSTRY Reduce Cost Improve Product Quality Not optimized Supply Chain Poor quality High price Improper processing These problems indicate that Mongolia’s meat supply chain is not optimized and reminding effective management must take into account in the supply chain, to reduce cost and to improve service level.
  • 6.
    PURPOSE – To ANALYZEMONGOLIAN MEAT SUPPLY CHAIN to determine what factors and which stage of the supply chain lead to price increase and quality decline of the end-consumer product. – To GIVE RECOMMENDATIONS on where improvements can be made in the Mongolia’s meat supply chain based on the analysis of Australian meat supply chain.
  • 7.
    OBJECTIVES • To investigatecold chain management • To identify the impact of the meat industry in Mongolian economy. • To examine primary factors which affect high meat price. • To identify where improvements can be made in the supply chain. • To investigate Australian beef supply chain and find out the factors that may have favorable impacts on the improvement of Mongolia’s meat supply chain.
  • 8.
  • 9.
    METHODOLOGY Analyzing Australian meat supply chain Analyzing Mongolia’smeat supply chain Proposing supply chain framework Making a stage comparison Performance Proposing supply chain framework Recommendations
  • 10.
    Meat & marine products Fruits & vegetables Fish& Sea food Dairy products Beverages COLD CHAIN PRODUCTS: FOOD SECTOR • If cold chain control is violated at any point, meat safety, quality and hygiene are compromised. • Controlling the temperature of meat products from the processing stage has been proven to not only help control microbial growth, but also assist in creating a quality meat product.
  • 11.
    COLD CHAIN • Acold chain is a temperature-controlled supply chain that provides a series of facilities for maintaining ideal storage conditions for perishables from the point of origin to the point of consumption. Major Industries: Food, Pharmaceutical • A well-organized cold chain reduces spoilage, retains the quality of the products and guarantees a cost efficient delivery to the consumer given adequate attention for customer service. • Feature of cold chain is every stage in the chain should comply with cold chain standards which extend shelf life and ensure product quality and safety. SUPPLY CHAIN TEMPERATURE CONTROL (REFRIGERATION) COLD CHAIN
  • 12.
  • 13.
    Australia is oneof the world’s largest producers of commercial livestock and red meat. Beef cattle and sheep are the dominant industries. Also they are major agricultural commodities and represent a significant segment of the economy. The Australian meat industry is affected by both domestic and international demand for its products. So the market is characterized by a range of domestic and export consumer types at the point of final consumption and through the supply chain. AUSTRALIAN MEAT INDUSTRY
  • 14.
    Supply Chain Participants Regulatory Groups Australian meat industryhas a diverse range of stakeholders which can be broadly categorized into two groups. STAKEHOLDERS OF AUSTRALIAN MEAT SUPPLY CHAIN
  • 15.
    AUSTRALIAN MEAT SUPPLYCHAIN • Livestock supply chain is the most extensive in Australia in terms of distance and geographical spread. • The meat supply chain has seven key functional stages, made up of: Breeding Fattening Feedlotting Marketing Transportation Processing Retailing 1 2 4 5 6 7 3
  • 16.
    AUSTRALIAN MEAT SUPPLYCHAIN FRAMEWORK
  • 17.
    AUSTRALIAN MEAT SUPPLYCHAIN FRAMEWORK
  • 18.
    QUALITY ASSURANCE (QA) TheQA systems developed by the Australian meat industry that cover all the links in the supply chains, from paddock to fork. • Livestock Production Assurance • LPA Quality Assurance National Feedlot Accreditation Scheme TruckCare • Australian Government Legislation and Standards • AQIS health certificate • Australian Government Halal Slaughter Program • Micro-organism monitoring • MLA food safety program • National Residue Survey National Saleyard Quality Assurance Program • National Livestock Identification System • AUS-MEAT QA on farms QA on feedlots QA on transportation QA on saleyards QA on processing QA on overall supply chain
  • 19.
    INTEGRITY OF THECOLD CHAIN Quality Assurance Systems Integrity of the Cold Chain Integrity of the cold chain is critical for both the domestic and the export market. Quality assurance systems ensure integrity of the cold chain in Australian meat supply chain. However cold chain is complicated to manage the product arrives at market in prime condition.
  • 20.
    MONGOLIA’S MEAT SUPPLYCHAIN ANALYSIS MONGOLIAN LIVESTOCK INDUSTRY • Livestock industry was the main foundation of Mongolia’s economy and it still plays an important role in economy, employment and export revenues.
  • 21.
    CONTINUED… 80 percent (1.35million hectares) of total land is suitable for livestock herding. Main livestock production comes from meat, milk and cashmere products which are included in the country’s strategic products. 80%
  • 22.
    MONGOLIA’S MEAT INDUSTRY Meatindustry plays an important role in the food sector and is considered to be one of the most potential sectors for future development. Mongolia annually produces 200-250 thousand tons of meat from 8.2 million livestocks and self-sufficient for its domestic meat consumption (MoIA, 2013). 2008 2009 2010 2011 2012 2013 Performance 2013/2012 Meat production 221.3 264.4 204.4 208 220.4 238.2 107.40% Meat processed through plants 12 21.4 14.7 15.6 16.4 22.1 134.70% Source: MoIA, 2013 Table 8 : Recent meat production (thousand tons)
  • 23.
    MEAT EXPORT Mongolia’s contributionto world meat exports is very small. Meat export occupies very small portion in meat production. Actual meat exports during the last six years averaged around 10.3-3 thousand tons. Meat products are mainly exported to Russia (horse meat, beef), Arab countries: Turkey, Jordan … (mutton, lamb), China (mutton, goat) and Japan (horse meat). Meat production and export, in thousand tons, (Source: MoIA, 2013)
  • 24.
    PRODUCT CHARACTERISTICS Five typesof livestock are raised in Mongolia: sheep, goats, cattle, horses, and camels. Sheep and goats comprise the majority of livestock and respectively accounted for 44.5% and 42.6% of the total number of livestock in 2013. Mongolian livestocks are organically produced related to the traditional pastoral livestock breeding. All livestocks fed with organic grass while they graze on native pasture and that can be a special characteristic of Mongolian livestocks. The structure comparison of Mongolian livestock In 1990 In 2013
  • 25.
    END CONSUMER DEMAND– MEAT CONSUMPTION • Meat consumption in urban areas and rural areas are different. But the difference is getting smaller in recent years. Mongolians mainly consume beef and mutton, accounting for around 45% and 35% of the total quantity of meat respectively, while horse, goat, and camel meats occupy small portion in consumption. Province name Total meat consumption thousand tn Percentage of meat consumption % Total meat consumption mn. ₮ Percentage of meat consumption in GDP Ulaanbaatar 97,0 40,1% 378 252,10 12,7% Selenge 12,6 5,2% 37 800,00 19,4% Uvurkhangai* 11,5 4,7% 26 353,58 24,1% Khuvsgul 10,4 4,3% 29 094,24 20,5% Arkhangai* 9,8 4,0% 20 502,72 16,7% Khentii 8,3 3,4% 18 009,00 22,4% Table 14 : Annual meat consumption by province Source: NSO and MOIA, end of 2008
  • 26.
    DISTRIBUTION OF SUPPLY Althoughlivestock is relatively uniformly distributed in comparison with the population size of each region, the forests and mountainous areas of northern and eastern Mongolia are most populous in terms of livestock. Overgrazing is becoming problematic in areas close to major markets.
  • 27.
    INCONSISTENCY OF DEMANDAND SUPPLY Inconsistency of demand and supply led to threefold increase in meat price between 2001 and 2009 (Mercy-Corps, 2010). MAIN FACTORS: 1) Dependence of livestock production on weather and seasonal conditions Dependence of pastoral livestock breeding on weather conditions causes the supply shortage because of the decrease of livestock number during adverse weather.
  • 28.
    2) Meat supplyhas the characteristic of seasonal fluctuation. Annual supply, Source: Mercy Corps, 2010 INCONSISTENCY OF DEMAND AND SUPPLY Shortage Surplus There is a supply shortage between January and June and supply is exceeded between July and December. This is because herders tend to sell livestock in the months between July and December when livestocks have the heaviest weight.
  • 29.
    Supply Chain Participants Regulatory Groups STAKEHOLDERS OF MONGOLIA’SMEAT SUPPLY CHAIN Herder households Agents Intermediaries Slaughterhouses Meat Processors Wholesalers Retailers Mongolian Meat Association (MMA) Ministry of Industry and Agriculture (MoIA) State Specialized Inspection Agency (SSIA) Mongolian National Agency for Standardization and Metrology (MNASM)
  • 30.
    SUPPLY CHAIN STAGES Livestock production MarketingProcessing Distribution Retailing
  • 31.
    MONGOLIA’S MEAT SUPPLYCHAIN FRAMEWORK MARKETING household
  • 32.
    MONGOLIA’S MEAT SUPPLYCHAIN FRAMEWORK MARKETING household
  • 33.
    A CASE STUDYOF MEAT WHOLESALING: ULAANBAATAR CITY’S “HUCHIT SHONHOR” FOOD MARKET In the past, Huchit Shonhor food market was just one of many small markets in the city, but with the movement of fowl places out of the city, the Huchit Shonhor market began to carry out "the wholesale market" functions. The majority of the meat for Ulaanbaatar city consumption is shipped to the Huchit Shonhor food market from fowl places and then retailers and merchants of other food markets buy the meat from the Huchit Shonhor food market and then sell to consumers. Wholesaler from countryside Wholesaler inside the market Meat salesperson inside the market Retailers Food markets Others Wholesalers Increases price Increases price Increase price Increase price Increase price
  • 34.
    CONTINUED… Wholesaler from countryside Wholesaler inside themarket Meat Salesperson inside the market Mutton 1300 - 2200 1550 - 2200 2200 - 2500 Beef 1600 - 2000 1400 - 2200 2000 - 2400 Horse meat 500 - 1000 700 - 1000 1100 - 1300 Goat meat 1100 - 1600 1400 - 1700 1800 - 2000 Camel meat 1100 - 1200 1200 - 1450 1750 - 2000 Meat transaction participants in this market have a strong influence in meat price formation of Ulaanbaatar city. At each stage of the meat sales transaction, meat price become more expensive than previous stage and this transaction with multi-participants is the main reason of high meat price in Ulaanbaatar city. Source: Changes and Actual State of Mongolian Meat Market and Distribution System A Case Study of Ulaanbaatar City’s “Khuchit Shonhor” Food Market, 2006 Table: Meat prices by stages of sale in Huchit Shonhor food market, tg/per kg
  • 35.
    MAIN FACTORS OFMEAT PRICE INCREASE 1. Strong Influence of Wholesale Function of the supply chain. 2. Inconsistency of Demand and Supply – Adverse weather conditions (dzud and drought) – Supply fluctuation
  • 36.
    Stage comparison and Recommendationsfor Mongolia’s meat supply chain improvement
  • 37.
    STAGE COMPARISON OFAUSTRALIAN AND MONGOLIA’S MEAT SUPPLY CHAIN - LIVESTOCK PRODUCTION AUSTRALIA MONGOLIA Responsiveness to harsh weather conditions Australian meat industry has developed necessary capacity to handle such uncertainties which are caused by adverse weather conditions. Mongolia’s cannot respond significantly to changes in weather conditions. Rearing method The use of feedlots has developed. The use of feedlot removed most of the seasonality in the weight gain of livestock by providing a year-round supply of feed, and the extremes in the variability of growth rate of livestocks when they graze on seasonal grasses. In the southern part, more intensive farms are mainly located. Livestock graze on improved pastures that have replaced the less nutritious native grasses there. The usual pastoral livestock breeding method used in Mongolia involves the extensive grazing of various types of livestock at one herder household site (livestock farming). Livestock producer Private companies and farmers produce most of the commercial livestocks. They own stations where the livestock graze on vast land. Some of them are vertically integrated and operated as a meat processor and a distributer of end-products. Producer Alliances are well developed. Almost all (97%) livestocks are privately owned by herder households. This is the result of the large-scale privatization process that began in the early 1990s, almost all state-owned
  • 38.
    STAGE COMPARISON -MARKETING AUSTRALIA MONGOLIA Selling Systems Various livestock selling systems are used in Australian meat supply chain including saleyard auctions, direct sale, auction plus, property auctions, forward contract, over the hooks marketing and niche markets to cater for different needs and markets. Each of selling systems has their own advantages and disadvantages and it is possible for the processors to choose a convenient method to source livestock depending on targeted market and a season. In Mongolia, livestock is mainly sold to a merchant or an agent. A buyer may visits the property, inspect the livestock, and negotiate a price. Other selling systems are not implemented in the meat supply chain. Meat processing plants are mainly source through their agents and other processors source through an intermediaries. This type of marketing method increases the role and influence of intermediaries in the supply chain.
  • 39.
    STAGE COMPARISON -PROCESSING AUSTRALIA MONGOLIA Regulations There are around 240 to 300 slaughterhouses and their operations are accredited by QA systems. The Australian processing industry has also introduced a number of measures to enhance meat quality. Portion of the meat which are being processed under regulations are as low as 13%. It shows that the control of meat quality and standard fulfillment of processing is loosely defined. Processing Technology Australian meat processors produce value- added meat products by advanced technologies and techniques while supporting the high quality. Meat is packaged in a variety of ways for ease of handling and transportation for both export and domestic markets. The portion of value-added meat products is small due to the lack of sophisticated processing technology in small slaughterhouses. Vertical Integration Most of the large processors operate a significant vertically integrated supply chain from cattle breeding to distribution and occupy majority of the market. Few of large processors operate vertically integrated supply chain from marketing to distribution. Responsiveness to the Change of Consumer Taste High proportions of Australians are eating less red meat and are looking to lower the fat levels in the diet. The industry has responded by producing meat cuts with lower fat level. Large cuts are still dominated in Mongolia’s meat industry.
  • 40.
    Australia Mongolia Regulations Thetransport requirements for livestock are complex and governed by a number of restrictions and guidelines in Australia. Livestocks must be transported live on specialized livestock vehicles between farm- based and intermediate movements and once slaughtered the product must be transported between 4ºC and -22ºC by refrigerated truck depending on the end marketplace and whether the product is chilled or frozen to comply with cold chain rule. But in Mongolia, livestock is transported through the functional stages by unspecialized truck. Also meat products from small slaughterhouses are distributed to food markets and retailers by unrefrigerated trucks. This stage affects badly to product quality due to the transportation which is not abided by any specific cold chain rules relating to loading, unloading and transporting livestock in Mongolia. STAGE COMPARISON - TRANSPORTATION
  • 41.
    STAGE COMPARISON -RETAILING AND WHOLESALING AUSTRALIA MONGOLIA Regulations In Australia there are a number of initiatives to enhance existing regulations to ensure the quality of meat is maintained until the final consumers. Domestic meat retailers are developing a quality assurance program covering areas such as product handling, cleaning, display temperature and even business management. Meat products are mainly sold in food markets under inappropriate temperature which is not in compliance with cold chain standard. Almost all meat products which are sold in food markets are contaminated due to its polluted environment and operation which is not regulated by standards of product handling, cleaning, and display temperature. Influence of Wholesalers Increasing vertical integration of supply chain reduced a role and influence of a separate wholesale function. In Mongolia, wholesaler has a very strong influence in this stage. Meat products slaughtered in slaughterhouses are mainly supplied to food markets by wholesalers. Many intermediaries participate in retailing and wholesaling stage. It is one of the main reason of high meat price.
  • 42.
  • 43.
    PERFORMANCE • The effectivenessof the cold chain in maintaining the safety, durability and quality of foods relies on controlling product temperature through each and every step in the cold chain. • The analysis of supply chain structure and stage comparison between Australian and Mongolia’s meat supply chain clarifies that Australian meat supply chain performance and effectiveness are better than Mongolia’s. It is attributable to the well-established QA systems, which support cold chain control that cover every stage in the Australian meat supply chain. Also the effectiveness and well formulated management of Australian meat supply chain is attributable to some other factors such as supply chain integration, responsiveness and flexibility to change of demand and weather conditions, sophisticated processing technology, effective marketing systems, intensive livestock operations and so on. • On the contrary, cold chain control is violated at each stage in Mongolia’s meat supply chain. Meat safety, quality and hygiene are compromised due to the poor temperature control in the supply chain.
  • 44.
    RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT LIVESTOCK PRODUCTION • To develop necessary capacity to handle such uncertainties which are caused by adverse weather conditions. • To develop livestock producer vertical and horizontal alliances to provide producers with leverage to get into the commercial world by combining to deal with a significant volume of product. • To develop the use of feedlot to remove seasonality in the weight gain of livestock, and the extremes in the variability of growth rate of livestocks when they graze on seasonal grasses.
  • 45.
    RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT LIVESTOCK PRODUCTION • To develop necessary capacity to handle such uncertainties which are caused by adverse weather conditions. • To develop livestock producer vertical and horizontal alliances to provide producers with leverage to get into the commercial world by combining to deal with a significant volume of product. • To develop the use of feedlot to remove seasonality in the weight gain of livestock, and the extremes in the variability of growth rate of livestocks when they graze on seasonal grasses.
  • 46.
    RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT MARKETING • To develop various selling systems to distribute livestock efficiently. Implementing various selling systems can be efficient. It will give opportunity for processors to source livestock through a variety of channels. Generally, Australia's mechanism to distribute livestock between different stages and vertical integration of the supply chains can offer valuable benchmarks for the Mongolia’s meat industry.
  • 47.
    RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… • To enhance the audit of the regulatory bodies on slaughterhouses operations and to make consolidation of small slaughterhouses. • To be innovative when respond to consumer taste change. • To improve processing technology to produce value- added products while supporting high quality. • To attract export market by its’ organic products. MEAT PROCESSING
  • 48.
    RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… • Livestock should be transported live on specialized livestock vehicles between movements to ensure the welfare of the animal and work so that the livestocks do not become stressed or hurt. Once slaughtered the it must be transported by refrigerated truck depending on the end marketplace and whether the product is chilled or frozen to comply with cold chain rule. TRANSPORTATION
  • 49.
    l RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… RETAILING AND WHOLESALING • To improve the environment and product handling operations of food markets. • To increase supply chain vertical integration of meat processors to reduce wholesale function in the supply chain. Vertical integration of Australian meat supply chains can be a good lesson to reduce the role and influence of a separate wholesale function.
  • 50.
    l RECOMMENDATIONS FOR MONGOLIA’SMEAT SUPPLY CHAIN IMPROVEMENT CONTINUED… WHOLE SUPPLY CHAIN • Developing quality assurance systems which cover all stages of the supply chain is necessary in Mongolia’s meat industry. • Forming an alliance with the Australian meat industry can be another useful approach to quickly learn how meat supply chains are developed and managed in Australia. In this respect, industry exchange visits may be arranged through peak bodies in both countries for senior industry personnel. On the other hand, technical training tours may be organized for various other industry personnel to learn from each other various techniques related to meat products such as preparation, processing, and specifications.
  • 51.
    Further Research The recommendationsfor the future development of Mongolia’s meat supply chain can be improved by basis of economic calculations and feasibilities.
  • 52.
    CONCLUSION • Success ofthe Australian meat industry is attributable to the development and effective management of its meat supply chains. In this regard, Mongolia’s meat industry can benefit from learning how Australia has developed and managed its meat supply chains. • The paper accomplished two main aims. • It can be helpful to any stakeholders of Mongolia’s meat supply chain since it can give them clear understanding about the supply chain. • Analyses included in the paper might be a valuable source of information for scholars who intend to conduct research in this area.
  • 53.