Mongolia Livestock Analysis: A Case Study of Tuv Province

ANALYSIS OF LIVESTOCK HUSBANDRY OF MONGOLIA:
A CASE STUDY OF TUV PROVINCE

by

Batchimeg Dorjsuren

A thesis submitted in partial fulfillment of the requirements for the
degree of Master of Engineering in
Agricultural Systems and Engineering

Examination Committee: Prof. Vilas M. Salokhe (Chairperson)
Dr. H.P.W. Jayasuriya
Prof. Athapol Noomhorm
Dr. Peeyush Soni

Nationality:

Mongolian

Previous Degree: Bachelor of Agricultural Engineering of
Mongolian State University of Agriculture,
Ulaanbaatar, Mongolia
Scholarship Donor:

Netherlands

Asian Institute of Technology
School of Environment, Resources and Development
Bangkok, Thailand
May 2009

ACKNOWLEDGEMENT
First, I would like to declare my sincere thanks to my dear Professor Vilas M.Salokhe,
Chairman of my thesis advisory committee for suggesting this topic and his valuable
guidance and priceless encouragement during my study. His generous help and longsighted
advice have successfully affected in this research.
Second, I would like to express deepest gratitude to Dr.H.P.W. Jayasuriya, Professor
Athapol Noomhorn and Dr. Peeyush Soni. This work would not have been possible
without the support and assistance of my committee members and dear teachers. Moreover,
I would like to say thanks to secretaries and all staffs of AIT- ASE for their friendship.
I am grateful to the AIT and Netherlands Ministry for Development Cooperation for
providing the scholarship through AIT, which enabled me to pursue my studies at this
institute.
I hold the honest respect to all the farmers and herder households who participated in the
questionnaire survey at Tuv provinces.
I am eternally thankful to my father D.Dorjsuren and mother G.Bilegnyam for their great
love that I feel even this far away. Finally, I want to thank my entire classmates of AITASE 2007 batch.

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ABSTRACT
The livestock sector is the key to economic growth and essential component of a povertyoriented rural development strategy. Mongolia has five types of livestock (sheep, goat,
horse, cattle, and camel). Total 34.8 million livestock animal were counted in 2006,
including 14.8 million sheep, 15.4 million goats, 2.11 million horses, 2.16 million cattle,
and 253.5 thousand heads camels. Most of livestock is located in central and western part
of the country.
The Mongolian animal husbandry is divided in two main sectors including extensive
animal husbandry and intensive animal husbandry. Generally, Mongolian climate is
suitable for the extensive animal husbandry. However, during the last years, intensive
animal husbandry is developing in some provinces, especially the nearest provinces with
the bigger cities such as Tuv, Selenge and Bulgan provinces.
Moreover, Mongolia livestock sector faced many significant problems such as grassland
degradation, soil erosion, and desertification. Main sources of degradation are overgrazing,
water source, and the population. In addition, the consequences such as poor
infrastructures including road and storage facilities, the availability of critical support like
constructing wells and shelters, and preparing hay are affecting the Mongolian livestock
husbandry.
Agricultural products especially livestock products is one of the major sources of
Mongolian economics. Almost 90% of the total agricultural production of Mongolia
produced from livestock sector and obtained the benefit approximately 980 million dollar
in 2007. Productions differed by geographical location. Almost all products of food
industry consume on the domestic market. Among the livestock raw materials of
Mongolia, only cashmere and raw cashmere have been recognized as a competitive sector
in the world.
Keywords: Livestock, husbandry, horse, cattle, sheep, goat, camel extensive, intensive,
agriculture, products, land degradation, and climate.

iii

TABLE OF CONTENTS
Chapter

Title

ACKNOWLEDGEMENT

Page
II

ABSTRACT

III

ABBRIEVIATIONS

VIII

TABLE OF CONTENTS

IV

LIST OF FIGURES

VI

LIST OF TABLES

VII

CHAPTER I

1

INTRODUCTION
1.1 Brief Introduction of Mongolia
1.2 Background
1.3 Rationale
1.4 Objectives
1.5 Limitation of the Study

1
1
2
2
3
3

CHAPTER II

4

LITERATURE REVIEW
2.1 The Current Situation of Livestock Husbandry in Mongolia
2.2 Brief history of livestock husbandry development in Mongolia.
2.3 Regional Distribution
2.4 Livestock Production
CHAPTER III

4
4
5
6
7
9

METHODOLOGY
3.1 Site selection
3.4 Data Collection
3.5 Data processing and analysis

9
10
11
12

CHAPTER IV

13

RESULT AND DISCUSSION
4.1 The current situation of Mongolian Animal Husbandry
4.2 The Present Status of Mongolian Livestock
4.3 Comparison of Actual and Estimated Livestock Number
4.4 Land Utilization
4.5 Mongolian Livestock Production
4.6 Past Policies and Strategies
4.7 The General View of Study Area
4.8 Veterinary Service
4.9 Problems and possibility of livestock sector’s for the future
4.10 Suggested Strategies for Future Expansion
4.11 SWOT Analysis
CHAPTER V

13
13
14
15
18
21
26
27
38
39
40
40
43

CONCLUSIONS AND RECOMMENDATION
iv

43

5.1 Conclusions
5.2 Recommendations

43
44

REFERENCES

45

APPENDICES

47

v

LIST OF FIGURES
Chapter
Title
Page
1.1 Map of Mongolia
1
2.1 Percentage shares of major divisions to GDP (NSO, 2005-2006)
4
2.2 GDP growth by percentage (NSO, 2007)
5
2.3 The comparison of total livestock with number of privately owned livestock
5
2.4 Regional distribution of livestock in 2006
6
2.5 Share of domestic production versus imports in consumption of major products
7
4.1 The state of livestock number of Mongolia from 1990 to 2008.
14
4.2 The comparison of the livestock structure in 2008 with 1990
14
4.3 The actual number of livestock compared with the estimated number of livestock in
Mongolia from 1990 to 2008. (thousand heads)
17
4.4 The comparison of utilized lands between 2000 and 2006 (by type)
19
4.5 Different level of harm due to drought and dzud disasters in all provinces in
Mongolia (AIACC,2006)
20
4.6 Losses adult animals of Mongolia (2000-2006)
21
4.7 The percentage of livestock products in agriculture (1990-2007)
21
4.8 The percentage of benefits from livestock types in economy (NSO, 2006)
22
4.9 Main livestock production of Mongolia (1990- 2006)
22
4.10 Milk flow chart
23
4.11 The type of livestock which provide the milk products
24
4.12 The percentage of total slaughtered livestock by types (thousand. tons).
25
4.13 The output of animal raw materials (1999-2006)
25
4.14 The livestock number of Tuv province, by soum.
28
4.15 The classification of herder's household of Tuv aimag
28
4.16 Herders’ age group and education level
29
4.17 The kind of livestock of herder households
31
4.18 The problems of herders in marketing
32
4.19 The income level of herders households
32
4.20 Major problems of herder households
33
4.21 Loan uses by households
33
4.22 Number of intensive farms of Mongolia
34
4.23 Number of intensive farms in Tuv province
34
4.24 Reason of establishment (a) and established year of dairy farms (b)
35
4.25 The reason which to initiate the dairy farm.
36
4.26 Main customers of dairy farms
37
4.27 The problems which to faced by the farmers in marketing.
38

vi

LIST OF TABLES
Chapter
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14

Title

The calculation by using Equation 4.3
Estimation by using Equation 4.5
Milk availability (FAO/UN, 2006)
Meat consumption in Asian first five countries (FAO, Rome, 2004)
The output of animal’s raw material in 2004 by stage (metric. tons)
Production of main livestock commodities (Shagdar, 2001)
The implemented projects in livestock sector of Mongolia (Bataa, 2002)
The result of restocking program in Tuv aimag in 2005 to 2007
The comparison the education level with herder’s age
Households' population and livelihood situation
The livestock composition of herder households (by animal type)
Main customer and customer area of herders
The income level of farms who include dairy activities and non-dairy activities
Potential area of interference for betterment of livestock sector’s future growth

vii

Page
16
18
23
24
26
26
27
29
30
30
30
31
36
39

ABBRIEVIATIONS
ADB
ADO
AIP
GDP
FAO
IFAD
NSO
MIF
MSY
MTG
MFA
WB
WFP
EUP
AIACC
FAOSTAT
RSSBP
UN
UNDP
PRSP
MPVA
Tugrug
Aimag
Soum
Bag
Dzud

Asian Development Bank
Asian Development Outlook
Asian Investment Program
Gross Domestic Product
Food and Agricultural Organization
International Fund for Agricultural Development
National Statistical Office
Mongolian Investors Forum
Mongolian Statistical Yearbook
Mongolian Travel Guide
Ministry of Food and Agriculture
World Bank
World Food Program
European Union Program
Assessments of Impacts and Adaptations to Climate Change
Food and Agricultural Statistic Data
Rural sector strategy and business plan
United Nations
United Nations Development Program
Poverty Reduction Strategy Paper
Mongolian Private Veterinary Association
Mongolian currency (1$=1170 tugrug in 2007)
Province
Sub-province
Subdivision of sub- province
Harsh winter

viii

CHAPTER I
INTRODUCTION
1.1 Brief Introduction of Mongolia

Figure 1.1 Map of Mongolia
Mongolia is land-locked country of Central Asia. It borders by China to the South and East, and
by Russia to the North and West. It is situated between the longitude 87.4 to 119.6 west and the
latitude 52.1 to 41.4 north. The main land is at an average elevation of 1,580 meter above sea
level.
The current population is 2.64 million. Total area is 1.5641 million km sq, and 1.5 people stand
per kilometer. 60.8 % people live in the urban areas and other 39.2 percent people live in the
rural area of Mongolia (NSO, 2007).
The climate of Mongolia is too harsh and it characterized by a long-lasting cold winter, dry and
hot summer, low precipitation, high temperature fluctuations (day and night, summer and winter)
and a relatively high number of sunny days (on an average, 260 days) per year.
The highest precipitation is approximately from 20 to 35 centimeters per year in north part, and
lowest precipitation is approximately from 10 to 20 centimeters south part of Mongolia. Some
regions of Gobi (the name Gobi means desert and steppe) which located in north part mostly
receive no precipitation at all in years.
The effective vegetation growth period is a short around 80 to 130 days. It is depend on the
location of Mongolia. Commonly, in winter (January and February), the average temperature is 25 °C, at night it reaches -40°C. In summer time, average temperature is +33 °C in central part of
Mongolia such as Ulaanbaatar. Moreover, in Gobi region, the temperature reaches +38°C.

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1.2 Background
The world is in the midst of what has been dubbed a livestock revolution with far reaching
implications for human health, development, the environment, and trade (Delgado et al., 1999).
Mongolia is one of the countries, which stands at forefront of this revolution. Therefore, the role
of livestock sector is very important in the Mongolian economy, and this sector dominated on the
agriculture. The value added of agricultural sector is 18.8% of GDP of Mongolia. The livestock
products constitute 87.6% of total output of agriculture (NSO, 2006). In 2006, there were
421,400 herders, constituting almost half of the country’s economically active population (NSO,
2006).
Moreover, there are two main sectors in the food and agricultural sector such as livestock and
crop production. Those sectors encourage the rural development of Mongolia such as to provide
the economic growth. Agro-processing industries generate value addition by the processing of
agricultural raw materials, both food and non-food, into products, which are marketable, usable
or edible; have improved storability and / or nutritive value, and enhance income and
profitability for producers. An agro industrial system is modeled in order to illustrate the
marketing, the processing, the production of agricultural materials and consumption in any
countries (Salokhe, and Hicks, 2001).
The Mongolian people to lead a nomadic lifestyle based on pastoral animal husbandry. After
privatization, the intensive dairy farms became a significant issue, which is now on the political
agenda.
Keating, and McCown (2001) remarked that there are 2 main components in agricultural system
such as the production system and management system. Production system contains pastureland,
livestock animals, and the climate. Today, there are many significant problems such as the
degradation of grassland, desertification, soil erosion and the lack for fodder of livestock.
Moreover, the one of the problems is the impact of climate like drought and dzud (harsh winter).
Drought occurs once every 2-3 years in the Gobi region and every 10 years in other regions
(GOM&UNDP, 2000). Nationwide drought occurred in 1944 and in 1972 (MFA, 2001).
Management system generates the knowledge regarding general principles and theory involving
agricultural farms’ management like agricultural economics, animal science, agronomy, rural
sociology psychology, and engineering (Keating, and McCown, 2001).

1.3 Rationale
The livestock plays an important role in Mongolian agriculture and economy. Furthermore, meat
and milk foodstuffs are important in Mongolian food sector and it generates the employment and
income. Therefore, it is so important to know the past and current status, potentials, problems,
and constraints. After that, policies and strategies can be designed for better management and
improvements of this sector. Moreover, this study contributes to the development by providing
the information about status and problems of herder households and some intensive dairy farms.

2

In addition, Enkhjargal (1999) recommended that the government policy for livestock sector,
especially diary development should encourage and support research and development of dairy
breeding, stock, pasture and farm management. Involvements of farmers as producers need to be
extending into economic activities that could provide better returns to them. It should include
feeding, breeding, health caring, milk collecting, transporting, and processing.

1.4 Objectives
The major objective is to investigate Mongolian livestock sector in Tuv province. The specific
objectives are:
•
•
•
•

To evaluate the present situation of livestock sub sector of Mongolia, and to investigate
the agricultural food and non-food products related with livestock animals.
To analyze the future growth prospects of Mongolian livestock husbandry.
To present the environmental factors which affect the livestock sector
To conduct sector and SWOT analyses to identify strengths, weaknesses, opportunities,
and threats that the intensive and extensive livestock husbandry has been facing with.

1.5 Limitation
Because of unavailable of data for the whole country, this study was restricted only to Tuv
province. In addition, information is limited about the herder households and farmers. Therefore,
the study focuses on the main producers, which are herder households and some intensive dairy
farms.

3

CHAPTER II
LITERATURE REVIEW
2.1 The Current Situation of Livestock Husbandry in Mongolia
The main source of Mongolian economy is coming from the agricultural sector (MIF, 2006). The
agricultural sector of Mongolia divided two main subsectors such as livestock sector, and
cropping sector (MIF, 2006). At the end of 2006, approximately 40% of total population had
lived in the rural areas. Rural development is essential for Mongolia to achieve sustained
economic growth and poverty reduction. Livestock continues to provide rural households with an
important source of herders’ income, jobs and food security, and a means for investing and
storing their wealth (WB, 2006). Therefore, animal husbandry plays the important role of the
national economy.
Moreover, agriculture still accounts for more than a fifth of GDP. Some 40 per cent of the
Mongolian workforce employ in traditional nomadic livestock herding. Agriculture is produced
18.8 percent of GDP and contributed 30 percent of the total export of Mongolia. Figure 2.1
demonstrates the comparison of the portion of divisions to GDP in 2005 with 2006.

Figure 2.1 The comparison of the portion of divisions to GDP (NSO, 2005-2006)
The GDP growth due to contribution from all sectors was 9.9% in 2007, the average of GDP was
8.7% between 2003 and 2006. Especially agriculture sector provides almost half the population
had a strong year, extending by 16% and contributing 4% points to growth of GDP.
The data in Figure 2.2 shows that the ratio of GDP growth from 2003 to 2009. In addition, it
shows GDP for the forecast period in Mongolia. The forecasts assume that the price will be
comparatively higher for export goods (ADO, 2008).

4

Figure 2.2 GDP growth by percentage (NSO, 2007)
Enkhjargal (2005) noted that 35% of GDP and the agricultural sector contribute almost one
fourth goods for export. Moreover, approximately 50% of the total labor force is employed in
agricultural sector.
Barker (1997) remarked, ‘Mongolia is one of the few countries in Central Asia where people still
live a nomadic lifestyle despite the extreme climate’. In addition, Mongolian livestock sector
produces more than 90.1% of gross agricultural products and the source of income for more than
34% of all households in Mongolia. In 2006, there are 34.8 million livestock counted in
Mongolia. The livestock number increased by 4.4 million heads of livestock animals compared
to 2005 (NSO, 2006). Furthermore, as a result of census in 2006, there are 253,000 camels
2,114,000 horses, 2,167,000 cattle, 14,815,000 sheep and 15,451,000 goats counted in Mongolia.
The number of horses increased by 86,000 heads, cattle increased by 204,000, sheep and goat
increased by 2 million heads, respectively but the number of camel decreased by 0.7 thousand
heads compared with 2005 (AIP, 2006-2007).

Figure 2.3 The comparison of total livestock with number of privately owned livestock
Moreover, the statistical data shows (Figure 2.3) that almost 97% of the total livestock was
private owned in 2006, and 31% of herder households have more than 100 livestock animals.
.2.2 Brief history of livestock husbandry development in Mongolia.
5

Traditionally, five types of domestic livestock in Mongolia are sheep, goats, cattle, horses, and
camel. Pigs, hens and other birds seldom reared. Horse is the first animal in Mongolia to be
domesticated (Baasanjav, et al., 1999).
Shagdar (2001) remarked that the wild animals domesticated livestock animals such as sheep and
horses in Mongolia between the 8th and 3rd centuries B.C.
Shagdar (2001) argued that, Mongolian herder households began the nomadic form in the 13th
century and this system remained until present day. In those times, most livestock animals was
private owned of herders.
However, in 1951, the livestock animals transferred to the collective ownership form. This
collective ownership form was tended to develop more intensively managed production system.
This form gave diverse assistances to the herders. For example, to build the enclosures and wells,
to prepare hay (Shagdar, 2001). However, during the collectivization period, the share of private
livestock decreased to 17-30 of the total number of livestock (Shagdar, 2001).
The collective ownership form lasted till 1989. Due to tend of the decreasing livestock number,
Mongolian government privatized the livestock animals to the herders in 1991. Because of
privatization, 96.7 % of total livestock shifted private owned form and 31% of herder households
have more than 100 livestock animals. After privatization, the livestock number and number of
herders rapidly increased in Mongolia.

2.3 Regional Distribution
Mongolia divided 5 main regions named East, West, Central, Khangai, and Ulaanbaatar. Figure
2.4 shows the regional distribution of livestock in Mongolia (NSO, 2006). The forests and
mountainous areas of Khangai region, Central region, and West region of Mongolia are most
populous in terms of livestock.

Figure 2.4 Regional distribution of livestock in 2006
The livestock is relatively distributed in comparison with the population size of each region.
Sheep and goats are the majority livestock and respectively accounted for 42.5% and 44.4% of

6

the total number of livestock in every region in 2006. Camels account for only 0.7% of total
livestock and mainly rise in the southern part of the country (NSO, 2006). Overgrazing is
becoming problematic in areas close to major markets. For example, livestock density of
Orkhon-Uul, Darkhan and the capital city named of Ulaanbaatar, which is 5 to 10 times lower
than other regions.

2.4 Livestock Production
Mongolian major livestock products include meat and meat products, and milk and dairy
products. In addition, wool, hair, cashmere, hides, and skins are the key input for animal
processing industries (Shagdar, 2001).
Agricultural production comprises of 30% meat and meat products, 27% of them include milk
and dairy products, 2% skin and hides, 1% animal and plants oil, 31% flour and flour products,
2% fruit and vegetables, and 2% livestock feed and starches.

Figure 2.5 Share of domestic production versus imports in consumption of major products (AIP,
2006-2007).
From 1999 to 2004, all foodstuffs consumption except meat and milk has been below the
recommended level. Because of natural disasters such as drought and dzud in recent years, the
consumption of milk and meat products has declined during those years. However, the
consumption of flour, rise, eggs, potatoes, and vegetables has increased in 1999-2002.
Especially, consumptions of potatoes, vegetables, and fruits are significantly below the
recommendation (PRSP, 2004). Mongolia imports some non-meat food products from Russia,
China and others. Mongolia relies fully on imports for fruits and rice (WB, 2008).
Livestock production is entirely seasonal, taking place in harmony with the Mongolian climate.
For example, wool and hair collect in the late spring and early summer, while most livestock

7

slaughter in the late autumn and early winter. Milk and dairy products mainly produce during
summer (Shagdar, 2001).
a) Meat and meat products. On average, 7.5 million head of livestock slaughter for
consumption annually, accounting for approximately 25% of the total livestock herd counted at
the beginning of each year. This equals 250000-300000 tons of meat, which include mutton,
beef, goat meat, and horsemeat. Camel meat is not so popular and consumed mostly during the
winter. Meat and meat products taken from of 30% beef, 40% mutton, 10% goat meat, and 15%
horsemeat. (Shagdar, 2001)
b) Milk and dairy products. Annually, 250000-350000 tons milk produces in Mongolia. Cow’s
milk possesses more than 80% of the total of milk. Moreover, sheep and goat milk, and horse
milk accounting for about 10% and 8% respectively. In addition, more than 90% of all cows are
accounted by native Mongolian cows, which have an average milk yield of 1.9 liters per day in
steppe and forest region, and 1.3 liters in the Gobi region. (Shagdar, 2001) Dairy products
include yogurt, butter, dried curds, cheese etc. Particularly in the rural areas, milk consumes
directly and converts to a wide range of traditional products. Many of these have a long life and
are stored for consumption in the winter and spring (WB, 2003). Horse milk is used to produce
the popular drink, it contain a low alcohol that is similar the beer. Rich content of amino acids,
vitamins, and sugar found in horse milk makes airag a nutritious and healthy drink, which is also
low in fat. Therefore, it is used to treat many illnesses, including tuberculosis, diseases of
digestive organs, pharmaceutical toxicity, and fatigue. (Shagdar, 2001)
c) Wool, hair, and cashmere: Approximately, 25000 tons of wool, hair, and cashmere is
produced in Mongolia, annually, more than 70% of which is accounted for by sheep wool.
Mongolia is the second largest producer of raw cashmere in the world. Approximately, 3300 tons
of cashmere is produced annually. That is accounting for about 20% of the total global supply.
Therefore, cashmere is one of the main export commodities in Mongolia. In wool and cashmere
industry, the productions of major items include spun threat, camel wool blanket, carpet, felt etc.
(Shagdar, 2001)
d) Hides and skin: One of valuable resource for producing luxury consumer goods is hides and
skin. About 6.5-8.5 million individual hides and skin are produced in Mongolia, annually more
than 80% of these are sheep and goatskins which are supplied to processing industries or
exported. Traditionally, sheepskin was used for making warm winter coats and floor covering,
while various accessories for handling horses were made from cattle hides. (Shagdar, 2001)

8

CHAPTER III
METHODOLOGY
The study conducted in four main stages such as the data collection, analysis of the data, and
reporting, and conclusions and recommendation part. The general methodology used for specific
objectives of the study is shown in Figure 3.1.

Figure 3.1: Flow chart of methodology and procedure for survey and data collection.

9

3.1 Site selection
The sites for the study selected included three sub-provinces named Jargalant, Sumber, and
Bayanchandmani of Tuv province. It is nearest province with the capital city (Figure 3.2). The
site selection chose based on the following characteristics.
• Agricultural production
• The location of province
• Potentials for the development of livestock husbandry
• Financial constraints of the research
• Data availability
General information of Tuv province
Area: 77,300 sq km
Population: 96,500
Center: Zuunmod

Number of livestock: 1.598.000
Cropland: 318.100 hectare
Number of sub-provinces: 27

Tuv province is located in the centre of Mongolia. In addition, capital city named Ulaanbaatar
located in this province’s territory. Tuv province is one of the biggest and most productive
provinces, as this province is well positioned geographically to supply livestock production to
nearest areas with high demand. This province is situated 43 km from the capital city. Moreover,
the major intensive animal farms are located in Tuv province.
In this province, have 201 household farms; include dairy farms 152, pork farms 24, and chicken
farm 1, respectively (MFA, 2007). There are a total of 210,000 camels, 197,9 thousand head of
horses, 131,1 thousand head of cattle, 1040,8 thousand of sheep, and 801,3 thousand heads of
goats (NSO 2006).

3.3 Sampling Design and Procedures of Survey
Formal survey was conducted to collect the general information of herder households’
comprehension and the current development of agricultural products. Herder household and
farmers who own agribusiness were selected for interviews.
The number of herder households and number of farms in each province were determined by
following formula:

Where: n= Number of total sample
N= Total number of farms and herders households
E= Error (0.05)
80 herder households and 8 intensive farms from selected in Tuv province for this survey. This
size of samples of herders and farms provided statistical justification in order to generalize the
results.

10

Figure 3.2 Location of Tuv aimag

3.4 Data Collection
Data were collected from two sources.
(i) Secondary data was from the Mongolian National Statistical Office, Mongolian State
University of Agriculture and the Ministry of Food and Agriculture. Data used in this
study included:
Urban and rural population
Number of herder households (selected area)
Total number of livestock and livestock distribution
Land utilization
Main agricultural production

11

(ii) Primary data was collected through questionnaires distributed to the randomly selected
dairy farms and herder households in Tuv province and to determine the production,
processing and marketing (Appendix-A and B) Data collected in this part included:
Present situation and the growth prospect of Livestock husbandry.
The suggestions and comments of herders and farmers who responded in this
research.
The comments
The current problems faced by the herders and farmers.
The survey aimed to question 80 herding households from the Tuv province and 8 intensive
farmers of Tuv province were involved, but in practice, only 69 herders and 32 small and
medium scale intensive dairy farms were surveyed. Therefore, around 10 relevant people
including an official such as governor of soum and bag, coordinator of household livelihood
improvement related project, and livestock expert were given an additional questionnaire.

3.5 Data processing and analysis
3.5.1 Data processing
The data of this study collected from the herder households and farmers of Tuv province. The
draft were analyzed to know the development, future growth, the influencing factors and special
characteristics of the livestock sector, SWOT analysis. Around 80 questionnaires processed in
the SPSS package and Microsoft Excel by using descriptive statistics. Moreover, in the survey
investigated the herders and farmers’ opinions about the Mongolian livestock sub sector.

3.5.2 Data analysis
Data collections were analyzed quantitative and qualitative ways according to the field data. The
basis statistics data and the survey questionnaire results investigated the past and current
performance of Mongolian livestock husbandry, and calculated the future growth of livestock
animals in Mongolia by showing the form of table, figure, flowchart, mean, and percentile.

3.5.3 SWOT analysis
The statistical data and the results of questionnaire determine the external factors such as
Opportunity and Threat and internal factors such as Strength and Weakness of intensive and
extensive livestock husbandry of Mongolia. Moreover, SWOT analyses provided the
opportunity, weakness and other factors of Tuv province for the livestock sector.

12

CHAPTER IV
RESULT AND DISCUSSION
4.1 The current situation of Mongolian Animal Husbandry
Generally, Mongolian animal husbandry divided two main sectors: extensive animal husbandry
and intensive animal husbandry.
Barker (1997) said, ‘Mongolia is one of the few countries in Central Asia where people still live
a nomadic lifestyle despite the extreme climate’. The extensive livestock management system of
Mongolia includes main five species of livestock for most of the year. The some herders and
some relevant people believe that the extensive animal husbandry is most suitable sector in
Mongolia. The first reason is that, approximately 80% of total territories are grassy area in
Mongolia. This is one of the biggest scales of the world. Second, Mongolian livestock systems is
continuing with a long traditional nomadic livestock herding. Hence, the herders obtained the
great knowledge and experiments during the several centuries. Third, Mongolian herder
households are settled in the traditional pastoral system such as “khot ail” and “neg goliinhon”.
Two and more herder households including relatives and acquaintances called “khot ail” and
“neg goliinhon” live together. This system is most indigenous form. This form of living served
a variety of functions such as using pasture, and seasonal movement of households. Lastly, the
demand of livestock production is increasing during the last few years because of incomes of
family are increasing, and the increased demand from the neighbor countries. Furthermore, it has
become the foundation of Mongolian livestock revolution. Moreover, Mongolian climate is
suitable for the extensive animal husbandry.
On the other side, the government of Mongolia begun to support intensive livestock farms to
develop dairy and meat bread cattle, pork, and poultry. Some people said the intensive livestock
husbandry is better than the extensive livestock husbandry. There are several reasons for this
statement. The first significant reason is that the increasing livestock number of Mongolia.
According to some researches, it is possible to support around 38 million heads of livestock on
the Mongolian whole grasslands. However, the number of livestock already reached 42 million
heads in 2008. Therefore, the growth of livestock is creating the degradation of pastureland by
overgrazing in Mongolia. Secondly, since 1940 the average air temperature has been increasing
in Mongolia caused by the climate change of the world. Moreover, the arid land is increasing due
to decreasing of precipitation. Therefore, since last few years the yield of pasture is depleting
gradually. Thus grazing time of livestock is decreasing in Mongolia. Finally, the development of
extensive farms directly depends on the supply and safety of the food.
Presently, Mongolia is importing most of food products except the meat and meat products. That
is why the intensive animal husbandry is developing in some provinces, especially the nearest
provinces with the bigger cities such as Tuv, Selenge and Bulgan. According to research by the
Ministry of Food and Agriculture (2007), Mongolia has 750 intensive animal husbandries. Of
which 494 farms for dairy, 10 of them for meat cow, 15 sheep farms for meat and wool, 79 farms
with pigs, 111 farms with poultry and 40 farms with bees in Mongolia (Appendix.C)

13

4.2 The Present Status of Mongolian Livestock
Mongolian livestock reached 42195.8 thousand heads in 2008 and it increased by 4.8 percent
compared with 2007. Figure 4.1 shows the livestock numbers of Mongolia during last 18 years.
Sheep, goat, and cattle population has increased while those of camel and horse are decreasing in
Mongolia during the last few years (Appendix D and F).

Figure 4.1 The state of livestock number of Mongolia from 1990 to 2008.
According to Figure 4.1, the total number of livestock dramatically increased between 1990 and
1999. However, it decreased by 28.7% due to drought and Dzud during 2000 to 2002. During
that period, 3.5 million and 4.7 million heads of animals died in 2000 and 2001 respectively.
During the last 7 years, the number of livestock increased by 31%. By the way, the number of
livestock in 2008 reached highest number ever.

Figure 4.2 The comparison of the livestock structure in 2008 with 1990

14

Figure 4.2 shows the comparison of livestock structure (by type) during 2008 and 1990.
According to Figure 4.1, sheep were dominating in the livestock structure until 2003. However,
cattle and goats dominated the structure of livestock during the recent years. This is because of
cashmere become herder’s main income from livestock, due to free market economy. It
explained that after privatization, the herders prefer to herd productive kinds of livestock.
Although, the livestock resist Mongolian weather especially adopted for the cold season, the
productivity of livestock is low. Therefore, the some preparations such as to build warm shelters,
and to prepare and store hay and fodder are most significant principal elements during the
wintertime. Moreover, pastures are subjected to increased vulnerability to parasites and other
diseases. These issues affect the animal productivity.

4.3 Comparison of Actual and Estimated Livestock Number
Three different estimation including the average of number of livestock, comparison of actual
and estimated livestock number of Mongolia between 1990 and 2008, and livestock number in
2009 by using the Microsoft Excel (Appendix.G) are given below (Avdai et al, 1999).
Calculation 1.
The average number livestock in Mongolia from 1990 to 2008.

The average number of livestock estimated was 29550.1 thousand heads between 1990 and 2008.
Calculation 2.
The goal of this part is that to estimate the equalized livestock number (amount) on the actual
livestock amount by using the straight-line equation.
yt = a + bt
Where: t - period and a, b - the parametric constraints.

- (4.2)

To estimate, the parametric constraints can be solving by using the following method. The value
obtained by using equation (4.3). Table 4.1 shows the results of estimation. To solve this system
2
of equation, substitute ∑t = 0. Moreover, the estimated values such as Σ y; Σt ; and Σyt are
shown from the Table 4.1.

15

yt = 29785.64+571.45t
yt - estimated livestock amount
y –actual livestock amount
The estimated livestock amount and actual livestock number of Mongolia between 1990 and
2008 are shown in Figure 4.3.
Table 4.1 The calculation by using Equation 4.3
(thousand heads)

t

t2

y*t

25854.9
25527.9
25494.1
25174.7
26808.1
28572.3
29300.1
31292.3
32897.5
33596
30327.4
26075.2
23897.6
25427.7
28019.9
30398.8
34803
40263.8
42195.9

-9
-8
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

81
64
49
36
25
16
9
4
1
0
1
4
9
16
25
36
49
64
81

-232694.1
-204223.2
-178458.7
-151048.2
-134040.5
-114289.2
-87900.3
-62584.6
-32897.5
0
30327.4
52150.4
71692.8
101710.8
140099.5
182392.8
243621
322110.4
379763.1

TOTAL 565927.2

91

570

325731.9

y
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

16

yt=a+bt
24642.59
25214.04
25785.49
26356.94
26928.39
27499.84
28071.29
28642.74
29214.19
29785.64
30357.09
30928.54
31499.99
32071.44
32642.89
33214.34
33785.79
34357.24
34928.69
35500.14
36071.59
36643.04
37214.49
37785.94
38357.39
38928.84
826428.59

Figure 4.3 The actual number of livestock compared with the estimated number of livestock in
Mongolia from 1990 to 2008. (thousand heads)
•

Calculation 3.

The last estimation is that how many heads of Mongolian livestock will be reach in 2009 by
using the following Equation 4.4.
yt ± t α · δ y
-(4.4)
Where: yt - estimated amount of livestock on 2009 (see from previous Table 4.1)
tα – dispersion of Student
δy – standard deviation

y + tα = 35500.14+8346.68= 43846.82

y - tα =35500.14- 8346.68= 27153.46

Calculation shows that the livestock number of Mongolia will reach from 27153.4 to 43846.8
thousand heads animals in 2009. Below three steps shows the steps of calculation 3.
Step A. To calculate δy (standard deviation) can be solved by using following equation 4.5.
(4.5). Table 4.2 shows the result of this estimation by using Equation 4.5.
Where: n - total number of sample.

Step B. To find the dispersion of Student (Student is the name of person) (tα).
17

tα (q; k) = tα (0.05, 18)= 2.12 (Appendix I)
Where: k - degree of freedom k= n-1=18
q - significance level (Appendix I)
Step C.

tα · δy = 2.1 · 3974.61 = 8346.68
Table: 4.2 Estimation by using Equation 4.5

y
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

yt

y-yt

25854.9
25527.9
25494.1
25174.7
26808.1
28572.3
29300.1
31292.3
32897.5
33596
30327.4
26075.2
23897.6
25427.7
28019.9
30398.8
34803
40263.8
42195.9

24642.6
25214
25785.5
26356.9
26928.4
27499.8
28071.3
28642.7
29214.2
29785.6
30357.1
30928.5
31500
32071.4
32642.9
33214.3
33785.8
34357.2
34928.7

1212.3
313.9
-291.4
-1182.2
-120.3
1072.5
1228.8
2649.6
3683.3
3810.4
-29.7
-4853.3
-7602.4
-6643.7
-4623
-2815.5
1017.2
5906.6
7267.2

(y-yt)2
1469671.29
98533.21
84913.96
1397596.84
14472.09
1150256.25
1509949.44
7020380.16
13566698.89
14519148.16
882.09
23554520.89
57796485.76
44138749.69
21372129
7927040.25
1034695.84
34887923.56
52812195.84
284356243.2

4.4 Land Utilization
Mongolian total territory is 156411.6 thousand hectares. Of which, in total 74.2 % of total area
is used for the agriculture, 15.7 % used for state special land, 9.1 % of total area is comprised
forest land, 0.3 % land used for cities, rural town, and other settlements, 0.4 % land possesses
water resources, and 0.2 % of total land is covered by transportation and networks in 2006 (NSO,
2006).
Currently, Mongolian pastureland faced many significant problems such as grassland
degradation, soil erosion, and desertification. Main sources of them are overgrazing, water
18

source, and the population. According to some survey, approximately 120 million hectare land
(70 percent) of total Mongolian territory is degraded.

Figure 4.4 The comparison of utilized lands between 2000 and 2006 (by type)
Figure 4.4 shows utilization land between 2000 and 2006. For example, the agriculture land, and
forestland decreased by 9% and 4% in 2006 compared to 2000. Generally, the development of
crop production and destruction, the population’s migration to urban areas and the nomadic
livestock husbandry are leading to the overgrazing and degradation of the land.
Moreover, livestock number in Mongolia is increasing during the last few years. Especially in
2008, it reached the highest number of livestock for the first time in history. Even though, the
herders are facing the shortage of fodder. In addition, the land for the natural pasture has slightly
increased since 1989.
4.4.1 The Impacts for the Land Degradation
There are many environmental factors affect on the agricultural sector in complex ways. Most
scientists and experts agreed that factors of land degradation in Mongolia could be divided into
following two main categories including human and natural factors.
Today, many factors affect the land degradation caused by the human activities such as excessive
grazing, deforestation, poor irrigation, and inappropriate land tenure in all sector. The first
significant factor is overgrazing. Crop cultivation is one of the most important reasons of soil
erosion and overgrazing. Spring tilling coincides caused the seasonal higher speed wind and
most planted areas are lack of windbreaks like trees. For example, the average wind speed of
Gobi region is 3…4 meters per second, it is one of the significant cause of soil moisture loss and
erosion. According to some survey, an average of 35–50 tons of soils has been lost from each
19

hectare of cultivated land due to erosion during the past 30 years. Half of all cultivated land
degraded to some degree of erosion. Another factor of overgrazing is the vehicle-induced
degradation. The second significant factor is the deforestation due to clear-cutting the trees, fire,
and insect infestations. The third important factor is inappropriate land tenure like mining and
inadequate waste management. Shagdar (2001) estimated approximately 100,000 hectare of land
have been degraded by mining and quarrying. Moreover, another significant factor of land
degradation is bad or poor irrigation practices. Salinization of irrigated land in arid climates as a
result of poor drainage and evaporation and using highly toxic pesticide for vegetation protection
from insects causes depletion of soil productivity. The final factor of land degradation is the legal
provision of “openness of pastureland which is public property”. Because of this legal provision,
the utilizing of pastureland is free for everyone (UNDP & SIDA, 2003).
On the other hand, the land degradation of Mongolia depends directly on nature and weather
conditions. Most important impact is the location. It is located high above sea level and far away
from the ocean. Mongolia lies between 420, 520N, and almost 1200 E. Another principal factor
is the global warming and climatic change of the world. Climate change can affect weeds,
insects, plant diseases, and pathogens in the environment, especially in agricultural activities.
Another consequence on the pasture is the lack of rainfall. Mongolia has low precipitation and
short growing seasons, especially long and cold winter and short and hot summer. Therefore,
other significant causes are drought and Dzud in Mongolia. They are the keys determinants of
vulnerability of livestock to climate change. They affect the livelihood of herders’ household,
which is reduced livestock productivity, especially milk and destroy pasture (AIACC, 2006). The
natural disasters like dzud and drought have occurred around 30 times in Mongolia with different
level of harm (UNDP&SIDA, 2003) (Figure 4.5).

Figure 4.5 Different level of harm due to drought and dzud disasters in all provinces in Mongolia
(AIACC,2006)
During the disaster of harsh winter (dzud) in 1999- 2000, almost one third of the total livestock
died in 1999. Figure 4.6 shows that the losses adult animals between 2000 and 2006 in
Mongolia.

20

Figure 4.6 Losses adult animals of Mongolia (2000-2006)
thous.head
Moreover, there are many negative consequence such as mental stress (66%), destroyed health
(26%), be disabled (1.3%), running up a huge debt (18%), school children dropouts (17%),
shortage of food (10%), became family break up, involving in robbery and crime faced in
Mongolia, even suicide have been followed by the Dzud of 1999-2000 (AIACC, 2006).

4.5 Mongolian Livestock Production
Agricultural products especially livestock products is one of the main source of economy.
Almost 90% of the total agricultural production of Mongolia produced from livestock sector and
yielded approximately 980.3 million dollar in 2007. Today, all meat and meat products, and milk
and dairy products of food industry consume on the domestic market. However, Mongolia
exports high quality meat and meat products, other animal originated raw products such as hides,
skins, and wool.
The population is increasing every year and 50% of total population is working in the
agricultural sector in Mongolia. Agricultural production also should increase according to the
population growth rate. Figure 4.6 provides the details the percentage of livestock products in
total gross agricultural production output between 1990 and 2007. The largest contribution is
provided by the livestock sector overall years in Mongolia. The production of livestock has
increased by 11% from 1990 to 1995, last five years production of livestock sector dramatically
increased. Generally, gross agricultural output has decreased slightly from 2000 to 2004 caused
by drought and harsh winter (dzud).

Figure 4.7 The percentage of livestock products in agriculture (1990-2007)
21

In addition, difference in culture and geographical segmentation of Mongolian each provinces
reflect the ethnic and regional taste of livestock food products. Moreover, the statistical data
shows that every livestock types give to the economy different benefits (Figure 4.7).

Figure 4.8 The percentage of benefits from livestock types in economy (NSO, 2006)
Generally, milk and meat products are the most essential products for the food industry in
Mongolia. Productions differed by geographical location and it demonstrate different supply,
different demand condition and different market conditions. Figure 4.8 shows the output of
livestock products during the last 16 years in Mongolia.

Figure 4.9 Main livestock production of Mongolia (1990- 2006)
Agricultural food products deliver to Ulaanbaatar city from three main sources including
products from local producers, the private sellers, and the imported products.
4.5.1 Milk and dairy products
Milk and diary products are the traditional food of Mongolian people. Mongolia consumes a high
per capita of milk, about 3 times the average for Asia as whole. Even though, the supply of milk
is enough, the supply of the milk products is not enough due to excessive privatization. For
example, dairy products with huge demand include cheese and ice cream but it still has been
22

importing from other countries. While 138 kg of dairy products per capita is required, the urban
people consume only 50 kg of dairy products per year in Mongolia (Table 4.3).
Table: 4.3 Milk availability (FAO/UN, 2006)

Moreover, fresh milk and other traditional dairy products are also seasonal and we produce the
milk products for a short period of a year. Many of these products have a long life and are stored
for consumption in the winter and spring. During the winter and springtime, the intensive
housing farms produce milk and dairy products. However, those products are insufficient.
Moreover, the sterilized and unsterilized milk is selling in the city markets and especially in the
street. It creates some threat and hazard like unhygienic conditions and it depends on the price of
milk. Consumer perceived that low price of products is indicating bad quality of those products.
Nevertheless, imports of milk with carton are increasing during the last years.
Figure 4.9 shows the milk flow chart that link herders and dairy farmers with consumer in large
urban cities such as Ulaanbaatar, Erdenet, Darkhan, and Selenge.
Milk producer

Milk cooling
center
20%

Milk processing
plant
30%

Bakery &
restaurants
10%

Schools
40%

Food retail
market
40%

Retail stores &
shops
50%

Others
10%

Consumer

Figure 4.10 Milk flow chart
Mongolian dairy products made by using the traditional methods of processing and produced by
three main procedures named boiling with foam, curdling, and souring (fermentation).

23

Figure 4.11 The type of livestock which provide the milk products
At present, around 80 factories are working with producing milk and other milk products. Last
few years many companies have launched new factories, which can process and package in high
temperature and vacuum environment and produce high quality, long-term preserve able and
pasteurized products. Such as New Zealand –Mongolian joint venture company “NZM Food”,
“Mon Fresh Juice”, “GUM” LLC “Vitafit” Co.ltd, and “Mon Tarag” Co.ltd. They produce
around 40 kinds of traditional dairy products.
4.5.2 Meat and meat products
The meat processing industries work seasonally and the main working period is from October to
December, in that time the abattoirs operate at maximum capacity. There is potential to improve
the meat export and to compete with other neighbor For example, meat exported was 3846.8 tons
of cattle’s frozen meat and 7072.8 tons of horse meat to the some foreign countries such as
Russia, China, Japan, and some Arab countries such as Turkey and Jordan. Highest meat export
reached around 40,000 tonnes per annum in 1977 and 1978 (Batjavkhlan, 2008). The
collectivized state farms influenced the growth of meat export at that time.
Moreover, in 2007 Mongolia produced 1.8 million dollar from the cattle meat, 1.3 million dollar
from sheep meat, 2.5 million dollar from the horse meat, and 11623.9 dollar from pork meat
respectively. The annual meat consumption is 65 thousand tons and according to agricultural
products and consumption standard per capita by Mongolian Ministry of Health and Welfare,
meat standard consumption is 230 g per day, yearly 120 kg per person for the Mongolian
climate.
Table: 4.4 Meat consumption in Asian first five countries (FAO, Rome, 2004)
(kg. per person)

Mongolia
Singapore
Brunei Darussalam
China
Russian Federation

108.8
71.1
56.4
52.4
51

However, during the recent 9 years, livestock slaughtered for consumption has been gradually
decreasing after 2000 year’s harsh winter (dzud). Today, domestic demand of meat is increasing

24

due to urbanization and growth of population. During 2008, almost 50 percent of total livestock
slaughtered for consumption include sheep meat, 39 percent is include goat meat (Figure 4.11).

Figure 4.12 The percentage of total slaughtered livestock by types (thousand. tons).
In socialism time, the market distribution was regulated by the government managed commercial
system. After privatization, it changed to the free market. There are two main distribution roots
in meat distribution such as distribution by meat wholesaler market and meat production plants.
The government and Ministry of Health deal with the hygiene of meat produced and search for a
greater proportion of the slaughtering through abattoirs with set up hygiene standards. Mongolia
has around 30 medium and large sized slaughter houses. The capacity of them is about 85,000
tons of carcass meat, per year (AIP, 2006-2007). However, the slaughterhouses use just 29% of
the total capacity. Largest meat slaughtering companies, Makh Impex, Bagakhangai Darkhan
makh and Meat market are equipped with advanced and sophisticated facilities of modern meat
processing industry that meets international standards.
4.5.3 Animals raw materials
Animal originated raw materials are the base of the light industry of Mongolia. Mongolia
produced 17000 metric tones sheep wool, around 9 millions skins and hides, and 3000 tones
cashmere, per year. Figure 4.12 shows the output of animal originated raw materials during the
last 8 years. The cashmere of goats is a most important part of the herder’s income. After
privatization, the goat population increased dramatically, much faster than other animals.

Figure 4.13 The output of animal raw materials (1999-2006)

25

Mongolian cashmere has main five stages and every stage has substantial excess capacity still
remains: scouring (40% capacity utilization in 2004), dehairing (52%), spinning (42%), knitting
(77%), and weaving (52%) (Table 4.5). More than 50% of Mongolia’s production of raw
cashmere is smuggled to China without any processing. Table 4.5 shows cashmere Mongolian
production, export, and imports of cashmere by stage of processing in 2004 (EPRC, 2005).
Table: 4.5 The output of animal’s raw material in 2004 by stage (metric. tons)
(The project by the Textiles Institute)
Production

Raw/greasy cashmere
Scouring/ dehairing
Dieing/ spinning
Knitting
Weaving

Exports

Imports

Input to next
stage of
production

3200
800
147
312
30

Stage

1600
616
6
303
21

0
0
180
0
0

1600
184
341
0
0

Table 4.6 shows the main products of livestock commodities. The largest producers are Gobi
Corporation, and Buyan Company. Furthermore, there are many processing factors of
agricultural raw materials such as cashmere and other non-food materials in Ulaanbaatar,
Darkhan, Erdenet and Hovd cities.
Table: 4.6 Production of main livestock commodities (Shagdar, 2001)
2000
Spun threat, tons
Camel wool blanket, thous m
Scoured wool, thous tons
Carpet, thous sq.m
Knitted goods, thous pcs
Felt, thous.m
Felt boots, thous pairs
Woolen fabrics, thous running m

40.8
28.5
1.4
704.8
1233.5
113.9
34
21

2001

2002

45.6
43.1
2.1
614.8
2315.7
110.5
33.4
38

55.9
38.3
1.2
533.9
5563.6
112.9
16.1
32

2003

2004

2005

2006

55.1

57.4

69.7

38.5

27.4

36.8

33.5

34.4

0.5

1.8

0.9

1.1

663.1

690.4

586.9

606.3

51.48.1

7989.9

3448.5

4529.3

303

67.8

69.1

68.8

9

4.9

10.5

7.8

54.6

58.7

64.8

69.5

Mongolia exports the animal originated raw products with high quality such as hides, skins, and
wool (MIF, 2006).

4.6 Past Policies and Strategies
Agricultural development especially livestock sector directly influences on Mongolian economy.
Mongolian Government approved the policy named “Guidance and the State Policy on Rural
Development” in 1996 (Bataa, 2002). The purpose tended the improving the living condition of
herders and people of rural area. Moreover, the government extends many subsides to the
herding sector. For example, herders pay no taxes: rather they pay a very tax based on the
26

number of goats. They do not pay their dormitory and food expenses when they board at sum and
aimag schools and pay no social security or health fees: water is provided free from wells drilled
and maintained by local government units: and fodder has been subsidized.
The agricultural sector of Mongolia cooperate varied international organizations like FAO of the
UN, ADB, IFAD, UNDP, WFP, WB, European Union Program, also Russia, Japan, USA, China,
and Germany. Total 15 projects being implemented in the Mongolian agricultural sector.
Approximately 7 projects of them tended to the livestock sector (Table 4.7).
Table: 4.7 The implemented projects in livestock sector of Mongolia (Bataa, 2002)

4.7 The General View of Study Area
In this part, briefly outline of livestock situation of Tuv province and to investigate the results of
questionnaire, which is collected from the herder households’, and the owners of intensive diary
farms of Tuv province (Appendix Hand I) are included.
4.7.1 The situation of Tuv province
Tuv province includes 27 soums. According to the result of census by 2007, the livestock
number of Tuv province reached 2626.5 thousand heads. It has increased by 21% than 2006.
Three sub-provinces, named Bayanchandmani, Jargalant and Sumber of Tuv aimag, were
27

selected in this research. There is difference between the livestock numbers in those subprovinces. Bayanchandmani soum (sub-province) counted 44745 heads of livestock animals,
Jargalant and Sumber counted 90652 and 29046 heads of livestock animals, respectively in 2007
(Figure 4.13).

Figure 4.14 The livestock number of Tuv province, by soum.
Moreover, in Tuv province live 13475 herder households with 2.5 million livestock. Figure 4.14
shows that 11% of total households have less than 10 animals, 9% of them have 11 to 30
animals, 16% have 51-100 animals, 21% have 101-200, 21% have 201-500, 7% have 501-900,
and 2% have 1000-1499 animals. Moreover, around 45 households herd more than 1500
livestock animals each in Tuv province (Appendix-J).

Figure 4.15 The classification of herder's household of Tuv aimag
(by livestock number and percent of total)
According to some survey, the herder households with 200-300 livestock animals can provide
their own existence. It means they can supply only their own needs oriented living. Therefore,
Tuv province has almost 50% of herding households with less than 100 animals. They are poor
and unable to provide their own subsistence, because of countrywide drought and dzud.
Since 1996, the government implements the restocking program in order to define the suitable
28

2005
426692.1
2006
461923.5
2007
261710
1$= 1170 tugrug

Number of members

Involved in the
restocking
program
Number of households

Others

Local government's
and
aimag's
budget

Total budget
(thous.tug)

Foreign countries's
project
and
program's budget

of which

The number of animals which
provided in the restocking
program

incomes and to improve livelihood of herders. Total 29538 animals were providing support to
1899 herder households from 27 soums of Tuv province for the period of the last three years
(Table 4.8).
Table: 4.8 The result of restocking program in Tuv aimag in 2005 to 2007

35300 29162.7 362229.4
9167
574
2158
53895.5
1025
407011 12016
992
4286
38282
3600
219828
8355
333
1312
(The livestock census of Tuv aimag, 2007)

4.7.2 Herder Household’s Characteristics
4.7.2.1 Herder’s age and education level
In total, three soums selected from Tuv aimag and 69 herders participated in the survey, five of
them were family headed families. Their age, education, production environment, social, and
living condition were investigated. Almost half of the all herders are young people aged between
36-55 years old, herding experience was around more than 20 years (Figure 4.15).

Figure 4.16 Herders’ age group and education level
Generally, the level of education in rural area is lowers than urban area in Mongolia. According
to Table 4.9, the education level of herders is lower, especially people who aged between 36 and
55, and more than 55. The result shows 92 percent of herders aged between 36 and 55 had
finished the secondary school, other 8 percent of middle age group have no education.

29

Table: 4.9 The comparison the education level with herder’s age
Education
No
Secondary Technical
High school
University
education
school
school
16-35
36-55
55+
Total

19
1
1
21

0
1
1
2

4
23
7
34

7
0
0
7

Total

5
0
0
5

35
25
9
69

4.7.2.2 The herder households’ population and their livelihood situation
As a result, 26 % of respondent households had a family size of 1-5 members, 67% had a 5-10
members, and 7% had a more than 10 members. The survey revealed that 13% herders were poor
(with up to 100 head of livestock), 76.8% medium (between 100-499 head of livestock), and
10% high level (more than 500 head of livestock) of their livelihood situation (Table 4.10). The
livestock animals are a main source of their livelihood for the all herder households.
Table: 4.10 Households' population and livelihood situation
Livelihood situation
High
Medium
Poor

Total

1... 5

3

13

2

18

5... 10

4

38

4

46

10+

Households'
population

0

2

3

5

7

53

9

69

Total

Table 4.11 shows the livestock number of respondent households and livestock composition by
animal type. Amongst the 69-herder households, the average number of dairy animal was 216
animals and minimum and maximum numbers were 21 and 1652 animals, respectively.
Table: 4.11: The livestock composition of herder households (by animal type)

Total
Sheep
Goat
Cattle
Horse
Camel

No of
respondents
69

Min number
of animals
21

69
68
69
69
11

Max number
of animals
1652
5
4
7
3
2

30

690
520
54
379
10

Mean
216.88
103.36
61.85
19.41
32.41
4.73

In addition, 11.6% of herders had crossbred type of livestock, 31.9% are herd fresh bred
livestock, and 56.5% of them had improved bred type of livestock (Figure 4.16).

Figure 4.17 The kind of livestock of herder households
4.7.2.3 The marketing
Main products of the herder households are surely meat and milk products and animals’ raw
materials. More than half percent of respondents said their income from the livestock is enough
and around 49 percent of them said the income is not enough for their daily life. The respondents
who said income is not enough, they cannot sell their meat and dairy products in the market.
Some herders who have enough livestock animals sell their products to the market.
Generally, main market for the products is Ulaanbaatar city, and Tuv province. Main customer is
retailer. 37.7% of the herders sell their products in the own province, 34.8% of them sell in
Ulaanbaatar city and 15.9% of them sell their products in the nearest province (Table 4.12).
Table: 4.12 Main customer and customer area of herders

City market
Where
do u sell Nearest province
your
Other
products
Own province
Total
Percent

Who's your customer
Factory
Person
3
21
0
11
0
8
0
26
3
66
4.3
95.7

Total
24
11
8
26
69
100

Percent
34.8
15.9
11.6
37.7
100

Furthermore, most herders reported that they feel some problems in marketing (Figure 4.17).
Almost half of respondents reported the main problem of marketing is the competition between
herders. They sell their products direct to the market. Moreover, quality of products is another
major problem in the marketing for the herders’ households. The second main negative problem
faced by herders is that the price of dairy products. According to my survey, 16% of farmers and
herders responded that the price of dairy products is low. In addition, the prices of products
depend on the market size, and un-pasteurized form of milk. Therefore, the third main problem
of herders is the lack of transportation equipment. It is restricted herder households in expanding
their market. Moreover 43% of herders have motorcycle, 21% of them have own car or tractor,

31

other 36% of herders do not have any technical equipment. Besides those problems, herders
responded that other problems in the marketing are quality of products, small market, and
storage.

Figure 4.18 The problems of herders in marketing
On the other hand, 65% of total herders’ income level who sells their products in the market was
average. 20% of them said the income level is high and other around 15% of respondents said the
income is not enough for their life and just can provide their own subsistence (Figure 4.18).
Additionally, some herders want to start new business, but their income from the livestock
production is not enough for their daily life.

Figure 4.19 The income level of herders households
Furthermore, there are several problems faced by the herders. Figure 4.19 shows those problems.
Most significant problems of herders are the availability and quality of products, finance,
marketing of products, and availability of fodder. Furthermore, the lack of transportation means
restricted to expand their business.
There are some other problems such as the lack of winter and spring shelter, the lack of water
supply (not enough well), and decreasing arable land. Generally, most processing activities were
done manually and they use the public wells and operate them manually, too. Therefore, the
insufficient equipment level for primary processing of raw materials affects their income.

32

Figure 4.20 Major problems of herder households
4.7.2.4 The government support
Several activities like the restocking program, and improvement of wells and shelters were
implemented by the government. However, 41 percent of herders responded that the result is not
satisfied for them, 39 percent of them said that they are satisfied from those activities, and other
herders said had no comment. Thus, most herders are not satisfied with the government policies.
92.7% of all herder households loan the money from the bank. 20.3% of them would spend their
loans for preserving hay, well and shelters. Some herders interested in pursuing business besides
their livestock. Figure 4.20 shows use of the loan for different purpose. 21% of all respondents’
loan their animal husbandry production such as preserving hay, building wells and shelters, 19%
of them spent on food and households goods, and 17% of them used for other purposes.

Figure 4.21 Loan uses by herder households

33

4.7.3 Dairy Farms’ Characteristics
4.7.3.1 General information
As a result, from Ministry of Food and Agriculture (2007), Mongolia has around 750 intensive
farms including dairy farms, pig, poultry, bees and rabbit farm (Figure 4.21). Tuv aimag is one
of the biggest productive provinces in Mongolia (Figure 4.22).

Figure 4.22 Number of intensive farms of Mongolia

Figure 4.23 Number of intensive farms in Tuv province
Total 32 small and medium scale intensive dairy farms of Tuv aimag involved in this study.

34

4.7.3.2 The reason of establishment
Figure 4.23 (a) shows that most important factor, which encourages the establishment of the
farms, is the market demand. Profitability and family business came next with the percentage
response of 31% and 13%, respectively. Moreover, 72% of total farms were established between
1990 and 1999, and 25 percent of them were established after 2000 (Figure 4.22 b), (Appendix
H). After livestock privatization in 1991, there was a rapid increase in the number of farms. It
affected the increasing number of livestock animals and the output of livestock products.

Figure 4.24 Reason of establishment (a) and established year of dairy farms (b)
4.7.3.3 The technology of dairy farms
The technology used by small scale and medium scale dairy farms is mostly simple and
traditional techniques. According to survey, 71.9% of farms used half stationary and 28.1% of
them used stationary. Most processing activities are done manually.

Most of government supported programs tended to the farmers training. The farmers said that the
skilled workers are not so important to them, but they want to use the modern technology.
However, the resources and income are limited for the farmers.

35

Figure 4.25 The reason which to initiate the dairy farm.
As a result, (Figure 4.24) three major reasons given to initiate dairy farm are; potential profit,
market demand, and government supported programs.
4.7.3.4 The number of animals and the income of farms
Amongst the 32 dairy farms, the average number of dairy animal was 29 cows. The minimum
and maximum number was 13 and 62 cows, respectively. Average annual milk production is
1826 litres per cow. Minimum and maximum numbers of annual milk production are 400 and
3100 litres per cow, respectively (Appendix H). Furthermore, Table 4.13 shows that 81.2% of
32 dairy farms are recorded have non-dairy activities, 18.8% of them have some additional
activities, for example vegetable, mare milk and crop.
Table: 4.13 The income level of farms who include dairy activities and non-dairy activities
The farms who
include non dairy
activities
No
Yes
The
Enough (1076-1589$)
income Middle (512-974$)
Not enough (300-461$)
Total

8
12
6
26

6
0
0
6

Total

14
12
6
32

Around 53.2% of the owners of dairy farms answered that their income from the dairy (gross
income is between 1076 and 1589$) is enough for their family’s livelihood; 37.5% of them have
average (income is between 512 and 974$) and 18.8% of them have not enough income (between
300 and 461$) for sustaining family’s livelihood (Appendix-H).
4.7.3.5 Supplementary feeds
Availability of supplementary feeds is an essential problem for the herders and dairy farms.
36

Normal dairy supplementary feeds of the dairy farms are natural hay and bran, but they are not
adequate in the farms. Around 70% of expenditures of dairy farms are the fodder related.
It was revealed that 46.9% of 32 farms are buying the feeds and 53.1% of them prepare by own.
The cost of preparing 1 ton of hay by own is 23 $, buying 1 ton of hay cost is 39 $. (WB, 2003).
(1$=1160 tugrug) Therefore, it is very important to prepare the hay by own. However, there are
many problems in preparing the hay such as the lack of hayfields, and the lack of equipment.
Moreover, 59.4% of total respondents who prepare own hay do not have the haymaking
equipment and 40.6% of them have the haymaking equipment. 43.8% of total respondents buy
bran from the market, and 56.2% from the processor.
4.7.3.6 Marketing
Tuv province is the biggest milk-producing province. Market structure of Tuv province includes
the public or private enterprises and companies. All dairy farms targeted their products for the
domestic consumption. Supply of dairy products depends on the Mongolian seasons.
Farmers informed that main consumer area is Ulaanbaatar. According to survey, 69% of
respondent farms sell their products to the processor, 25% and 6% of farms sell their dairy
products to the trader and direct to the market, respectively (Figure 4.25 ).

Figure 4.26 Main customers of dairy farms
Generally, there are many factors affect in demand. The first significant factor is the quality. Of
course, consumer needs pure milk. According to survey, most farmers are satisfied their dairy
products because they have the high producing dairy cows. However, they want to increase the
milk production per cow. Besides the quality of milk, consumers expect low price products with
high quality products from the farms. Most of farmers said the price is negotiable to sell.
However, 26% of farmers and herders responded that the price of dairy products is low. That is
why; it needs to increase the price, due to develop their dairy business. Another significant factor
is distribution. Dairy products are widely available summer and autumn time in Mongolia.
Furthermore, the lack of transportation and packing system restricted farms in expanding their
market.

37

Moreover, as a result, all dairy farms are facing several problems in the market. Most important
problem is the competition between dairy farms, because most farms centralized in Tuv province
(Figure 4.26). However, farms success depends upon their ability to compete. Moreover, 16% of
them answered that the lack of modern technologies and equipments among dairy producers,
collectors and processors. Most dairy farms used a combination of few types of machineries,
because the cost of new and imported equipments is higher. Moreover, 13% of them reported
finance, and 6% and 3% of them reported small market and lack of feed, respectively.

Figure: 4.27 The problems which to faced by the farmers in marketing.
Lastly, the government will have to continue to provide the infrastructure of Tuv province such
as communication, public utility supply like water and electricity, information and extension
services, and public storage.

4.8 Veterinary Service
Today, all veterinary services privatized since 1997. Mongolian veterinary services organized
throughout Mongolia with 18 provinces, 4 towns, and 350 sums (MPVA site). Total, Mongolia
has around 380 veterinary service organizations. The service is fully dependent on their private
income, and currently there is no access to investment capital. Therefore, the current situation of
veterinary service faced several significant problems in Mongolia. According to the research
from Mongolian Private Veterinary Association identified following problems in Mongolian
veterinary sector. The first problem is the communication and location of the herders’
households. It means, Mongolian territory is huge and the distance between herders household is
far from the center of aimag and soum. The second problem is that a gap between veterinarians
and herders because of lack of communication and relationship based on veterinary services.

38

However, herders take care for their animals 3 times per year, regularly. According to my
research, 84% farmers and 64% herders responded that they can satisfied the veterinary service
and the quality of service, and other 16% farmers and 36% herders said that the veterinary
service is poor and they advised that the government provide to reform the veterinary sector from
old practices.
Summary, the veterinary service is good in Mongolia and quality of service is high. The
government supports to herders with provision of aid funds of free gift drugs and medicines. In
addition, many policies for the veterinary service tend to protect livestock animals by the western
union and other charity organizations.

4.9 Problems and Scope for Livestock Husbandry
Around 80 percent of total agricultural products related to the livestock sector in Mongolia.
However, there are many problems faced in this sector (Table 4.14).
Table 4.14: Problems and possibility of livestock sector’s for the future

39

4.10 Suggested Strategies for Future Expansion
The Mongolian government has been launching programs to encourage intensive and extensive
livestock sectors. Although, country’s resource assistances provide sufficient opportunities to
develop further in livestock sectors, according to this study almost half of herders responded that
they do not feel any support from the government. Moreover, they said that the favorable
policies of government should support farmers such as to improve productivity, to improve the
packaging, transportation facilities, and the loan facility. Therefore, the government keeps the
communication between the government, herders, and intensive animal farms and continue
improve infrastructures: roads, water supply, and electricity in rural areas.
As a result, herders and farmers had been expecting the policies about to control the products
price and reduce the fodder cost. Most farmers planned to expand their farms in the near future.
More than half percent of farmers responded that they want to increase their cow number,
upgrade cow quality, and improve feeding.

4.11 SWOT Analysis
The SWOT analysis deals with two main factors (internal factors and external factors) and then
by their dual positive and negative aspects (strengths and opportunities, as the internal factors,
with weaknesses and threats representing the external factors).

SWOT analysis on Extensive animal husbandry
Strengths
• Abundant grazing land
• Expenditure is low
• Pure natural products and products are manufactured at the lower cost
• Availability of experienced herders
• Uses low cost pastoral hay
• Availability of various raw material
Opportunities
• Less negative impact to environment
• Less input
• Availability to enhance the export
• Availability to supply for domestic resource and goods
Weaknesses
• Some small scale supplying products
• Seasonality of supply
• Lack of infrastructure
• Low income of farmers

40

•
•
•
•

The veterinary service is far from the households
Destroy to grassy land
The shortage of information of herders
Poor support of the government

Threats
• Climatic risky conditions like Dzud and drought
• Disasters which are caused by hail, heavy storm
• Overgrazing due to the increasing number of livestock
• Importing substitute products
SWOT Analysis on Intensive animal husbandry
Strengths
• Increasing of the quality and quantity of products.
• Milk consumption and availability is higher
• Labor force is abundant
Opportunities
• Effect from climatic condition is less
• Dairy cows with high quality
• Rapidly growing in urban market
• Potential to export milk and dairy products
Weaknesses
• Milk production is seasonal
• Obsolete equipment and technologies
• Poor support from the government
• Low level of education and technical skills
• Less opportunity at the international sales market
• The lack of information of herders
Threats
• Non natural products
• The competition from the imported milk and milk products
• Lack of capital to develop the dairy farms

41

SWOT analysis of Study area (Tuv province)
Strengths
• Lower risk about natural and climatic condition
• Nearest province with Ulaanbaatar city
• Transportation and information is higher
• Resources of agricultural machinery and equipment
• Marketing and sales management more developed.
• Veterinary service is good
Opportunities
• Availability to perform any project and research
• Availability of experienced workers
Weaknesses
• Increasing thefts number of animal
• Quality of products is low
Threats
• Overgrazing
• Water resources
• Increased market competition

42

CHAPTER V
CONCLUSIONS AND RECOMMENDATION

5.1 Conclusions
Mongolia is a predominantly agriculture country and livestock sector is the most significant
sector. Agriculture contributes around 19% of GDP and contributes 30 percent of the total
exported of Mongolia. The livestock products constitute 87.6% of total output of agriculture.
Moreover, 40% the workforce of the country’s population is directly employed in the agricultural
sector.
Mongolian livestock animal is adapted for the extensive livestock management system.
Moreover, after privatization in 1991, the intensive dairy farms became a significant issue. In
addition, the tendency of land usage leads modern farmers towards private and small to medium
scale farming over the last few years. According to my survey, the growth prospects of livestock
sector look more favorable in Mongolia. The potentiality for the development of livestock sector
both of intensive and extensive livestock husbandry is great in view of the availability of raw
materials, human resources, and the endowments.
However, this potential is limited due to unexpected natural disaster, and degradation of
pastureland caused by overgrazing, deforestation, and climate change. Moreover, the availability
of critical support like wells, and infrastructure, price fluctuation of livestock products, out of
date equipment and technology of processing and producing factories, the capital of intensive
farms, and a lack of information. Those consequences affect the livelihood of herders’
household, livestock productivity.
Tuv province is one of the big potentialized provinces. Because of the climatic hazard in this
province is lower than some other provinces. The infrastructure such as power, transportation,
and communication system in Tuv province has been improving compared to other provinces.
However, even though, there are many advantages of livestock sector in Tuv province, also there
are several problems faced by herders and intensive dairy farms such as land degradation, quality
of products, market competition, information, and extension service and the imported goods.
Based on present conditions it is necessary to provide the government endowments and proper
situation to expand the livestock sector. Although, Mongolian government is keeping to
continue, its efforts in terms of improving productivity of livestock both extensive and intensive
animal husbandry, but in the future, the role of government should be to give more attention to
the intensive and extensive animal husbandry.

43

5.2 Recommendations
The following research should be carried out to promote the development of livestock husbandry
in Mongolia.
• Further investigation should perform in other provinces of the country and in country as a
whole.
• More detailed research on potential of livestock products and to investigate the ways to
improve quality of meat and milk products, varieties for raw materials and producing
more value added products.
• To investigate the ways to combat with the land degradation and how to mitigate the
effects of natural disasters such as drought and harsh winter (dzud).

44

REFERENCES
AIACC Final Report Batima.P “Climate Change Vulnerability and Adaptation in the Livestock
Sector of Mongolia”, 2006. Institute of methodology and Hydrology, Ulaanbaatar, Mongolia.
Asia Invest Programme (AIP) 2006-2007 “Food technology, packaging and safety in
Mongolia” , Ulaanbaatar, Mongolia.
Avdai. Ch, Ayursed. J, Tseren. O, Tsendsuren. T “The general principle of research”, 1999.
Ulaanbaatar, Mongolia.
Baasanjav. Z, Batbayar.D, Boldbaatar.J and others, (1999). “History of Mongolia”. Ulaanbaatar
Admon
Bataagiin Bynie “The Country report on Animal Genetic Resources of Mongolia”, 2002.
Batjargal.Z “Desertification in Mongolia” National Agency for Meteorology, Hydrology and
Environment Monitoring”, Ulaanbaatar, Mongolia.
Batjavkhlan Dashdondog “Status and Potential of Improving Agro-Production in Mongolia”
2008. Master’s Thesis, AIT, Bangkok, Thailand.
Delgado,1999. Scott Waldron, Colin Brown et al, “China”s Livestock Revolution: Agribusiness
and Policy Developments in the Sheep Meat Industry”, p1, 2006.
Enkhjargal. Th “Institutional building for dairy-based farming and veterinary system in
Mongolia” 1999. Thesis No AC99-38, AIT, Bangkok, Thailand.
Enkhjargal. T “WTO membership agriculture in transition economies: Country Overview –
Mongolia”, 2005. Ulaanbaatar, Mongolia.
FAO/UN Dairy Food Project, Tsetsgee.S “Mongolia: Milk production, processing, consumption
& outlook 2010”, 2006. Ministry of Food & Agriculture, Ulaanbaatar, Mongolia.

45

GOM and UNDP (2000). Lesson Learned in the 1999-2000 Dzud, Research report complied
under the MON/00/302 Project funded by the Government of Mongolia and the UNDP,
Keating B.A, and McCown R.L. “Advances in farming systems analysis and intervention”,
2001, Agricultural System 70 (2001) 555-579.
Lor Lytour. “Status of Small and Medium Scale Agro-Industries in Phnom Penh, Cambodia”
Thesis No AE-03-3, AIT, Bangkok, Thailand.
Ministry of Food and Agriculture (MFA), 2001. “Livestock in the winter of 2000-2001”.
Mongolian Economic Policy Reform and Competitiveness Project (EPRC), “A value Chain
Analysis of the Mongolian Cashmere Industry”, 2005. Ulaanbaatar, Mongolia.
Mongolian Investors Forum (MIF), 2006. Food and Agriculture Sector, Ulaanbaatar, Mongolia.
Mongolian Travel Guide, 2007. Ulaanbaatar, Mongolia.
National Statistics Office (NSO), 1998-2007. Mongolian Statistics Yearbook, 1998-2007,
Poverty Reduction Strategy Paper (PRSP). “Economy growth support and poverty reduction
strategy”, 2004. Ulaanbaatar, Mongolia.
Salokhe V.M. and Alastair Hicks “Agribusiness Development through Agricultural Engineering
Apllications to Agricultural Products”, 2001. AIT. Bangkok, Thailand
Shagdar. E “The Mongolian livestock sector: Vital for the economy and people, but vulnerable to
natural Phenomena” 2001, Research division, ERINA.
Tsetsgee Ser-Od, “Small milk producers the key to dairy industry revival” 2007, Ministry of
Food and Agriculture, Ulaanbaatar, Mongolia.
UNDP/ SIDA and Ministry of Finance and Economy Poverty Research group “An Examination
of the Effectiveness of Herd Restocking Strategies in Building and Securing the Incomes and
the Livelihood of Herder households”, 2003. Ulaanbaatar, Mongolia.
46

World Bank (WB). “Semi- Intensive Dairy Sector in Mongolia”, 2003. East Asia and Pacific
Region, 1818H Street NW, Washington DC 20433.
World Bank’s Rural Strategy for Mongolia (WB),“Rural sector strategy and business plan”,
2006.
World Bank (WB). “Mongolia quarterly” 2008, Page 8.
Mongolian Developmant Gateway. Available online at:
http://www.gateway.mn/modules.php?name=News&file=article&sid=85
Mongolian Private Veterinary Service. Available online at: http://www.owc.org.mn/mpva/
FAO, Rome, 2004. Available online at:
http://www.asiafinest.com/forum/index.php?s=2d17e9f31d422ea47d5030c4249db497&sho
wtopic=180359&st=0&p=4010343&#entry4010343

APPENDIX. A
47

Questionnaire from the Livestock Herder Households for Livestock Industry
(English translation of Mongolian)
Name: ………………………………………………………
Location: ……………………………………………………
Date: ………………………………………………………..
Section 1: Personal data
1. Sex
a. Male
2. Present age
a. 16-35.
b. 36-55
c. 55+
3. Marital status
a. Married
c. Widowed
4. Education
a. No education
b. Secondary school
c. High school
d. Technical College
e. University
f. Others (specify)

b. Female

b. Unmarried
Divorced/separated

Section 2: Information of Household:
1. Family situation.
Education
No Name

Sex

Age

Technical High
University
college
school

1
2
3
4
5
TOTAL
2. The livelihood situation
a. Poor
b. Medium
c. High
3. Livelihood source
48

Work
Secondary experience
school

a. Animal husbandry
b. Pension, subsides,
c. Salaries
d. Production, service other than animal husbandry
e. Others
4. How many years have you been herding?
a. 1-5 years
b. 5-10 years
c. 10-15 years
d. More that 15
5. Does any household member belong to a farmer or other community organizations?
a. Yes
b. No
If yes, please give details
Member No

Organization

Since what year

Position
presently

held

6. Did you attend any project and training? (ur dung)
a. Yes
b. No
If yes, what name of project or training did you attend?
………………………………………………………………………………………
Project or training output
………………………………………………………………………………………

Section: 3 Information of Livestock
1. Total livestock number
Of which;
a. Sheep
b. Goat
c. Cattle
d. Horse
e. Camel
2. What type of livestock breeds do you raise?
a. Fresh bred livestock
b. Crossbred livestock
c. Improved bred animals
3. Reason of low production of your household?
a. Hay, fodder
b. Pasture management
49

c. Water
d. Bandit
e. Degenerate
4. During last 4 years, does any disease problem happen to your particular livestock?
a. Yes
b. No
5. Compared the situation of last four years with to last year (presently) how you would
express amount of economic lost due to disease.
a. Worst
b. No change
c. reduced a little bit
d. reduced substantially
6. Do you do prevention measure regularly or only irregular?
a. Regular
b. Irregular

Section: 4 Marketing
1. What are your main products?
a. Meat
b. Milk and dairy production.
c. Raw materials
2. How profitable your products for your herder household?
a. Profitable
b. Non- profitable
3. Where do you sell your products?
A. City market
B. Own province
C. Outside province
D. Others
4. What do think about the production price?
a. Low ……………….
b. Reasonable……………….
5. Do you feel any difficulties in marketing your products?
a. Yes
b. No
If yes, what are they?
- Small market
- Competition from counterparts
- Quality of product
- Storage
- Transportation
- Others (specify)
6. Who is your customer?
a. Factory
b. Person
7. Do you sell your products through middle men?
a. Yes
b. No
If yes, what are the roles of middle men?

50

………………………………………………………………………………………
………………………………………………………………………………………
8. How is your income?
a. Enough
b. Average
c. Not enough
9. In addition, do you have any possibilities for creating additional value?
a. Yes
b. No
10. Did you loan the money from the bank?
If yes, what was the interest…………per month.
Duration…………month.
What is your loan purpose?
a. Expenses associated with the sale of raw materials
b. Buying, any fixed asset. (vehicle, car and TV etc)
c. Working capital for trading activities
d. Animal husbandry production(hay making, veterinary, shelters, and wells)
e. School tuition
f. Buying food and household goods
g. Others
11. Do you have a debt?
a. Yes
b. No
12. Are there any major problems for your business? Please rank:
Availability and quality of pastures
Animal quality
Availability and quality of fodder
Animal shelters
Haymaking equipment
Veterinary service
Marketing of products
Finances
Availability of information

14. Where do you obtain the knowledge about the market economy new information of new
technology on livestock development and disease control?
………………………………………………………………………………………
APPENDIX. B

51

Questionnaire from the Intensive Dairy Farms for Livestock Industry
(English translation of Mongolian)
Country ………………………………………………………
Industry name…………………………………………………
Interviewer’s name ……………………………………………
Date of interview ……………………………………………..
Name of respondent …………………………………………..
a) Entrepreneur
b) Manager
c) Partner
d) Other (specify)

Section A: Information about the dairy farms.
1. Establishment of your farms
Year …………
2. Location of your farm
a. Town
b. Village
c. Other (specify)
3. How many dairy animals do you have? ............
4. Reason to initiate dairy farm.
a. Market demand
b. Profit potential
c. Availability of raw material
d. Techniques availability
e. Other (specify)
5. What is the technology you use?
a. Half stationary
b. Stationary
6. Which problems you encounter in application?
a. Taking too much time, (please specify the time)
b. Complicated procedure (please tell the procedure)
c. Seeking help from friends and acquaintances
d. Cost too much (specify)
e. Other (specify)
7. Does your farming include non-dairy activities?
Please, specify …………………………..
8. Is income from the dairy enough for sustaining family’s livelihood?
a. Enough
b. Middle
c. Not enough
9. Is there negative attitude from the people when you intend to set up the

52

enterprise?

a. Yes
b. No
10. What were the negative attitudes?
a. Not understandable
b. Persuaded not do so
c. Gossip from the people
d. Others (specify)
11. Are these negative attitudes still exist?
a. Yes
b. No
12. Among the total workers, can you tell in detail how many are skilled workers and
how many are unskillful workers?
a. Skilled workers (persons) ……………
b. Unskilled workers (persons) ……………
13. What was the cost of production of your enterprise last year?
a. Total ………………………………..
b. Raw material………………………...
c. Labor ………………………………..
d. Transportation……………………….
e. Water/Power ………………………..
f. Interest payment on loans……………
g. Other (specify) ………………………
14. What was the output value of the enterprise last year?

Section B: Marketing
1. Please tell the channel from which you acquire the supply of production material?
a. State
b. Market
c. Acquaintance and friends
d. Other (specify)
2. Estimated annual milk production per cow. (litres) …………….
3. Do you have any difficulty to get your production material?
a. Yes (cont Q.4)
b. No
If yes, what are the problems?
a. No adequate resource
b. No stable raw material source
c. Fluctuation of price
d. Others (specify)
4. Where do you sell your product?
a. City
b. Outside province
c. Own province
d. Others (specify)
5. To whom do you sell?

53

a. trader
b. processor
c. direct to market
6. Is your milk tested your quality
a. Yes…………….. b. No……………..
7. Are you satisfied with the testing system?
a. Yes…………….. b. No……………..
8. If your farm produced more milk, could you sell it?
a. Yes…………….. b. No……………..
9. Do you feel any difficulties in marketing your products?
a. Yes
b. No
If yes, what are they?
a. Small market
b. Market channel problems
c. Competition from counterparts
d. Quality of product
e. Transportation
f. Others (specify)
9. Do you think the current policy is good for the growth of agro industrial enterprise?
a. Yes…………….. b. No…………….. (cont Q.2)
11. What is your normal daily supplementary feed?
d. Hay
e. Bran
f. Other
12. How do you obtain hay?
a. By own
b. Buying
13. Do you have haymaking equipment?
14. Do you cultivate any fodder crops?
15. What veterinary service do you use?
16. How difficult is it to obtain all desired veterinary services?
17. Did you have experience to get artificial insemination for dairy cattle?
18. Where do you get information in need?
19. How would you like to develop your dairy business in the future?
a. Increase your cow numbers
b. Upgrade cow quality
c. Improve feeding
d. Mechanize milking

54

APPENDIX. C The number of intensive animal husbandry of Mongolia (by provinces)

55

APPENDIX. D The livestock number of Mongolia (by provinces)

56

APPENDIX. F Number of livestock and household animals

Years
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

Sheep
15083
14721
14657
13779.2
13786.6
13718.6
13560.6
14165.6
14694.2
15191.3
13876.4
11937.3
10636.6
10756.4
11686.4
12884.5
14815.1
16990.1
17898

Goat
5125.7
5249.6
5602.5
6107
7241.3
8520.7
9134.8
10265.3
11061.9
11033.9
10369.8
9591.3
9134.8
10652.9
12230
13267.4
15451.7
18347.8
19465.4

Cattle
2846.7
2822
2619.2
2730.5
3005.2
3317.1
3476.3
3612.8
3725.8
3824.7
3097.6
2069.6
1884.3
1792.8
1841.6
1963.6
2167.9
2425.8
2448.3

57

Horse
2262
2259.3
2200.2
2190.3
2408.9
2648.4
2770.5
2893.2
3059.1
3163.5
2660.7
2191.8
1988.9
1968.9
2005.3
2029.1
2114.8
2239.5
2122.4

Camel
537.5
476
415.2
367.7
366.1
367.5
357.9
355.4
356.5
355.6
322.9
285.2
253
256.7
256.6
254.2
253.5
260.6
261.8

Total
25854.9
25527.9
25494.1
25174.7
26808.1
28572.3
29300.1
31292.3
32897.5
33569
30327.4
26075.2
23897.6
25427.7
28019.9
30398.8
34803
40263.8
42195.9

APPENDIX. G
Table of the Mathematic Statistic
q

q

k
0.05
1
2
3
4
5
6
7
8
9
10
11
12
13

q

k
0.01

12.71
4.3
3.18
2.78
2.57
2.45
2.36
2.31
2.26
2.23
2.2
2.18
2.16

63.66
9.92
5.84
4.61
4.03
3.71
3.5
3.36
3.25
3.17
3.11
3.05
3.01

k
0.05

14
15
16
17
18
19
20
21
22
23
24
25
26

0.01

3.14
2.13
2.12
2.11
2.1
2.09
2.09
2.08
0.7
2.07
2.06
2.06
2.06

2.98
2.95
2.92
2.9
2.88
2.86
2.85
2.83
2.82
2.81
2.8
2.79
2.78

58

0.05
27
28
29
30
40
50
60
70
80
100
120
200
500

0.01

2.05
2.05
2.05
2.04
2.02
2.01
2
1.99
1.98
1.98
1.97
1.96
1.96

2.77
2.76
2.76
2.75
2.7
2.68
2.66
2.64
2.63
2.62
2.6
2.59
2.58

APPENDIX. H The brief information of respondent dairy farms
(1$=1170 tugrug)

59

APPENDIX. I The brief information of herder households

No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Herder's name
Bayartsogt. K
Tumurbaatar.D
Davaadorj.B
Boldhuyag. D
Amgalan.T
Bat-Erdene.S
Genden.D
Damrin.S
Chuluun-Erdene.A
Bolorgerel.G
Uhnaa.B
Boldkhuu.Y
Yadmaa.J
Jargalsaihan.L
Lhagvadorj.B
Tumen.H
Enkhtuvshin.R
Radnaabazar.J
Nyambayar.O
Sumyabazar. A
Otgonbaatar.N
Naranbaatar.N
Terbish.H
Myanganbaatar. E
Huushaan.M
Ochirzaan. L
Erdenekhuu.E
Batbaatar. B
Ayurzana. G
Gongor.T
Vaahchig. Z
Jantsan.U
Zolbayar. S
Myagmardorj.M
Surenhorol. A
Amgalanbaatar. C
Sergei.D
Doljinsuren. D
Batbaatar.S
Boldhet.L
Lhamsuren.Y
Radnaaragchaa. E
Khishigt

Livetsock number

Family
size

Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Sumber soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum

60

Total

Sheep

Goat

Cattle

Horse

5
6
5
8
3
6
5
5
7
4
9
11
3
6
7
3
3
5
10
5
6
5
7
4
8
5
8
3
6
3
5
5
12
7
8
5
5
11
6
2
6
5
3

Name of soum

323
758
425
105
77
374
509
489
190
72
128
41
813
65
90
150
386
175
31
60
430
72
155
170
66
84
167
53
92
726
67
151
72
63
41
290
123
85
130
510
161
1325
84

180
360
160
37
30
230
300
200
86
25
50
9
320
16
43
65
150
65
8
19
180
25
58
51
18
25
55
14
45
270
17
53
25
19
8
65
49
25
40
200
47
610
18

70
295
200
44
23
90
125
200
65
29
45
14
390
29
29
53
160
69
6
25
200
23
66
64
24
28
65
22
27
350
24
45
30
23
13
160
36
36
51
260
65
550
29

23
40
18
13
9
17
23
26
11
9
14
15
24
12
9
11
24
12
9
9
15
9
14
21
13
14
16
12
12
25
19
21
17
16
11
34
18
15
15
34
19
45
12

50
60
45
11
15
37
56
60
28
9
19
3
77
8
9
21
52
29
8
7
35
15
17
34
11
17
31
5
8
75
7
32
8
5
9
29
20
9
24
12
30
120
25

Camel

3
2

5
3

2

6

2

4

44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69

Norvilon.A
Zorigoo
Sainbayart.D
Dalhjav.N
Naidan.N
Dorjsuren. D
Tserenpil.Ts
Uuganbaatar.O
Tsogtgerel. D
Lkhasuren. U
Otgonbold.G
Ganbat.G
Tserendorj.J
Jargal.N
Nasanbayar.M
Dorligjav.O
Boldbayar.D
Boldhuyag. G
Nasanjargal.N
Enkhjav.A
Altangadas.U
Uragshlalt
Purevdorj. P
Sosorbaram.N
Batdorj. N
Munkhbaatar. D

Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Jargalant soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum
Bayanchandmani soum

61

7
7
3
9
10
5
5
7
4
8
6
9
4
5
6
5
3
8
6
5
2
9
5
4
5
6

41
170
80
180
27
125
180
1639
66
75
128
176
90
69
413
44
78
45
73
58
75
165
168
31
80
95

15
54
32
64
5
35
57
740
16
24
40
78
25
18
160
9
30
9
25
16
21
48
55
4
22
40

8
66
23
58
6
51
65
670
25
35
56
57
39
26
180
16
20
18
20
25
28
60
65
9
30
37

12
18
13
21
13
23
21
54
12
8
12
22
15
14
28
11
18
12
15
8
15
18
15
13
12
18

6
32
12
37
3
16
37
170
13
8
20
19
11
11
45
8
10
6
13
9
11
39
33
5
16
9

5

APPENDIX: J Selected social indicators of herdsmen households

62

Mongolia Livestock Analysis: A Case Study of Tuv Province

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