BARLEY VALUE CHAIN ASSESSMENT REPORT FINAL REPORT ...
BARLEY VALUE CHAIN ASSESSMENT REPORT FINAL REPORT ...
BARLEY VALUE CHAIN ASSESSMENT REPORT FINAL REPORT ...
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<strong>BARLEY</strong> <strong>VALUE</strong> <strong>CHAIN</strong><br />
<strong>ASSESSMENT</strong> <strong>REPORT</strong><br />
<strong>FINAL</strong> <strong>REPORT</strong><br />
May 2008
Value Chain Study Report<br />
on Barley Production Sub-Sector<br />
Compiled by:<br />
G. Munkh-Erdene, Program Office in Govi-Altai aimag<br />
Ch. Tsetsegmaa, Consultant, Executive Manager, Altai Swiss Foundation<br />
D.Choijilsuren, PO for Agricultural Development<br />
Ulaanbaatar<br />
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Value Chain Study report on Barley subsector<br />
2008.03.11<br />
CONTENT<br />
1. INTRODUCTION ....................................................................................................................................................... 3<br />
3. SCOPE OF THE RESEARCH WORK ................................................................................................................ 4<br />
4. METHODOLOGY.................................................................................................................................................. 4<br />
5. CONSOLIDATION OF STUDY RESULTS............................................................................................................. 5<br />
5.1 INFORMATION ON SURVEY PARTICIPANTS................................................................................................................. 5<br />
5.2STUDY ON CROP PRODUCERS ..................................................................................................................................... 6<br />
5.3 <strong>BARLEY</strong> FLOUR RETAILERS ....................................................................................................................................... 7<br />
5.4 CONSUMERS.............................................................................................................................................................. 8<br />
5.5 PROCESSING COMPANIES......................................................................................................................................... 9<br />
5.6 INPUT SUPPLIERS....................................................................................................................................................... 9<br />
5.7 <strong>BARLEY</strong> PRICE ........................................................................................................................................................ 10<br />
6. <strong>BARLEY</strong> SUB SECTOR <strong>VALUE</strong> <strong>CHAIN</strong> MAPPING ......................................................................................... 11<br />
7. CONCLUSIONS........................................................................................................................................................ 12<br />
8. CONSTRAINTS AND OPPORTUNITIES FOR <strong>BARLEY</strong> SUB SECTOR <strong>VALUE</strong> <strong>CHAIN</strong>........................... 13<br />
8.1 OPPORTUNITIES FOR <strong>BARLEY</strong> PRODUCTION IN GOVI-ALTAI AIMAG ........................................................................ 13<br />
8.2 CONSTRAINTS FOR <strong>BARLEY</strong> SUB SECTOR AND POSSIBLE SOLUTIONS ....................................................................... 13<br />
8.3 EVALUATION FOR POSSIBLE SOLUTIONS................................................................................................................ 16<br />
8.4 THE MOST IMPORTANT SOLUTIONS FOR <strong>BARLEY</strong> SUB SECTOR DEVELOPMENT ...................................................... 16<br />
8.5 PROGRAM INTERVENTION FOR IMPLEMENTATION OF MOST EFFECTIVE SOLUTIONS........... ERROR! BOOKMARK NOT<br />
DEFINED.<br />
9. APPENDIX.................................................................................................................................................................. 21<br />
9.1 SURVEYED PEOPLE.................................................................................................................................................. 21<br />
9.2 NUMBER OF GOVI-ALTAI AIMAG <strong>BARLEY</strong> PRODUCERS AND ENTERPRISES, BY SOUMS ............................................ 21<br />
9.3 GOVI-ALTAI AIMAG <strong>BARLEY</strong> PRODUCTION FOR FOOD CONSUMPTION AND ITS YIELD ( 2004-2007) ........................ 21<br />
9.4 <strong>VALUE</strong> ESTIMATION FOR IRRIGATED <strong>BARLEY</strong> PRODUCTION .................................................................................... 22<br />
9.5 <strong>BARLEY</strong> FLOUR MAKING COST ................................................................................................................................22<br />
9.6 PICTURES ................................................................................................................................................................ 23<br />
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Value Chain Study report on Barley subsector<br />
1. Introduction<br />
Barley is a biologically unique product suitable for Mongolian soil and weather conditions that could grow in<br />
elevated cold mountainous area, steppe condition, even in arid Gobi regions. Barley is cultivated in almost<br />
all countries of five continents of the world and it occupies the fourth place in terms of plantation area<br />
following the wheat, rice and corn. It is the second plant in Mongolia with regard to plantation area going<br />
after the wheat. Our ancestors have used barley as a major foodstuff from the ancient times. It had been<br />
planted on 20 thousands hectares in 1960s and on 95,000 hectares in 1980s respectively in our country.<br />
During the socialist times, different types of vegetables such as potato, wheat and fodder were cultivated on<br />
3500-5000 hectares of land equipped with 15 irrigation systems in 10 soums of Govi-Altai aimag. However,<br />
as the country made its transition to market-oriented economy, the size of plantation area had been reduced<br />
year by year because the entities involved in crop production were privatized, financial capabilities of<br />
citizens and entities weakened, faced shortage of proper technology and equipment and lack of consolidated<br />
organization and management.<br />
In Govi-Altai, apart from a few professional growers, barley has been cultivated mainly at household and<br />
herder level in relatively small quantities. As of today, barley is planted in 11soums of Govi-Altai aimag. In<br />
Biger, Sharga, Taishir and Chandmani soums where our study was conducted, barley is cultivated by most<br />
number of households on the largest area (60% of total barley production). Out of 162 households, that<br />
grows barley, 80% plants on 0.5-3.0 hectares and 20% grew on 3 hectares and over. Biger, Sharga, Taishir<br />
and Chandmana soums, which were included in this study<br />
In accordance with the aimag's mid-term crop production program, Aimag Governor’s Decree and Green<br />
Revolution Committee’s resolution were issued and sent to soum governors requiring them to form a seed<br />
reserve from barley planted every year and increase plantation field by 20% annually with 15% for wheat<br />
and 5% for barley area.<br />
Barley plantation (2004-2007)<br />
Table 1<br />
№ Indicator 2004 2005 2006 2007<br />
1 Harvested field ha 124.1 93.6 104.2 177<br />
2<br />
Harvested yield<br />
ton 110.6 123.3 111.5 173<br />
3 Yield per ha ton 0.90 1.30 1.10 1.00<br />
Last years’ statistics show that crop amount has been increased and harvest yield from a unit is getting stable.<br />
From the above table we can see just figures related with the harvested field size but not the increase of<br />
plantation field. For example, “Tulga Altai” in Tsogt soum planted barley in 20 hectare in 2005 and 2006 but<br />
they could not get any harvest out of the field because of the water availability and their plantation field has<br />
not been included in this number.<br />
From the study, there is a tendency for individuals and entities to increase the size of plantation field in 2008.<br />
Govi-Altai aimag has harvested 129 tons of barley from 124-hectare areas over the last four years that means<br />
one ton of barley from one hectare irrigated area.<br />
Among the soums, Biger, Bugat, Taishir, Tugrug, Haliun, Chandmani and Sharga are the main barley<br />
growers producing flour using the traditional methods, selling at markets and consuming for household need.<br />
Barley sort and seed supply<br />
In western aimags barley has different names and sort such as barley, barley with husk or hojgor, rye (long<br />
bared barley), haltar arvai and zurgaadai and makes flour out of it for food consumption. There are also<br />
many local sorts and types of barley in different areas. For example: yellow barley (undefined barley sort<br />
with husk) and “hojgor” (local haltar arvai) barley are planted in Uvs aimag, Sutai sort barley in Hovd<br />
aimag, Bugtur huh sort in Haliun, Biger, and Chandmani soums in Govi-Altai aimag, ‘Huh mundruush” sort<br />
in Sharga soum, “Bujgar tsagaan” and “Haltar arvai” sort in Taishir soum, Govi-Altai aimag.<br />
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Value Chain Study report on Barley subsector<br />
An “Alag Erdene” and “Sutai” barley sort for food consumption is acclimatized in crop production areas of<br />
Mongolia but they have not been used frequently because of the poor seed resource. Therefore, any sort of<br />
barley and its mixture stored from the harvested yield usually has been planted locally.<br />
Main challenge for Govi-Altai aimag crop producers is a lack of high quality barley seed. Even they try to<br />
separate well ripened seed through traditional method of wind and seed weight from their harvest, during the<br />
sowing producers don’t pay attention on seed multiplication, so different varieties of barley sorts has a bad<br />
influence to the harvest and its ripening. Especially, different sorts of barleys by its maturity duration<br />
planted in irrigated area has a negative influence to the ripening, wastage of harvest, and vegetation disease.<br />
There is a high potential of supplying crop producers with high quality barley sort for food consumption<br />
through multiplying the seed in Hovd aimag Agricultural school and Uvs branch of Vegetation and Crop<br />
production research Institute. S.Saihanjargal, MC client, crop producer in Taishir soum, Govi-Altai aimag is<br />
working on seed multiplication of “Haltar arvai” sort and accumulated seed for three hectares as of 2007<br />
which showcase the good start of seed multiplication business among the crop producers.<br />
2. Study objectives<br />
Identify and evaluate Govi-Altai aimag barley production, communication and network among participants<br />
in barley value chain, value addition in a process from production to final consumers and constraints faced in<br />
these stages and sustainable solutions for overcoming these constraints, and program intervention for the<br />
implementation.<br />
Study team included:<br />
G. Munkh-Erdene, Program Officer<br />
Ch. Tsetsegmaa, Executive Manager, Altai Swiss Foundation<br />
Ch. Dashdeleg, Program Representative<br />
G. Batbold, Program Officer<br />
3. Scope of the Research Work<br />
In the research, Sharga, Biger, Taishir and Chandmani, the largest barley growing soums of Govi-Altai, were<br />
selected. Also, interviews were conducted with selected business entities such as Haltar Arvai Company,<br />
Tulga Altai Company and Altain Deej Cooperative during the research.<br />
4. Methodology<br />
We have conducted the study using the following methodology in accordance with a general 5-staged<br />
methodology for value chain study.<br />
Stage 1: Selection of sub-sector/value chain<br />
1. Barley sub sector was selected for the research by its tradition of citizens use barley for food<br />
consumption and its high health value, successful new product development activities due to<br />
support and assistance from Swiss Development Agency and Altai Swiss Foundation (ASF),<br />
product demand and its role in a local crop and food production sector.<br />
Stage 1: Sub-sector/Value chain study<br />
• The key data collected on barley production and sales (barley plantation area, amount of harvest,<br />
harvest per hectare), information obtained from government officer in charge of crop production,<br />
trade and service at Governor’s Office in Govi-Altai, statistical data from Department of Food and<br />
Agriculture as well as information gathered from other sources are used for the report.<br />
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Value Chain Study report on Barley subsector<br />
• Research on the barley production channels was made conducting surveys and interviews with<br />
barley growers, changers and some processors.<br />
• The constraints being encountered by growers and producers were identified through conducting<br />
focus group meeting, surveying and interviewing them.<br />
Based on the result of the study sub sector mapping was developed.<br />
Stage 3: Identify commercial or market solutions<br />
We focused on identification of sustainable commercial solutions and its implementers for overcoming main<br />
causes of defined constraints /opportunities/. We have selected through identification of the most feasible<br />
solutions.<br />
In order to identify commercial and market solutions, all encountered constraints faced were determined by<br />
conducting surveys and interviews, and the identified ones were divided into those associated with<br />
production and sales, with the specific solutions.<br />
Solutions were defined and categorized by the following four groups:<br />
−<br />
−<br />
−<br />
−<br />
Information<br />
Production/Technology<br />
Marketing/Product development<br />
Finance<br />
Stage 4: Evaluation of recommendations<br />
Once the commercial recommendations were identified, these were evaluated and prioritized using the<br />
following indicators:<br />
− Impact of solution<br />
− Feasibility to implement the solution<br />
Solutions were evaluated according to the methodology was developed by the Program. (Page 18)<br />
Stage 5: Program intervention and determination of activities to be implemented<br />
• Building upon identified potential organizations to implement activities in line with the<br />
recommendations with the highest impact and feasibility, its beneficiaries, program<br />
intervention and participation were determined.<br />
5. Consolidation of Study Results<br />
5.1 Information on survey participants<br />
15 growers participated in the survey including 6 growers from Sharga soum, 3 from Chandmani, 3 from<br />
Biger and 3 from Taishir and 19 consumers from Yesunbulag soum and 5 changers.<br />
1. “Haltar Arvai” company that operates in Govi-Altai aimag was also involved in the survey.<br />
Established in 2005 with a goal of processing local barley and producing barley flour and<br />
cookies, “Haltar Arvai” produced “Ashvai” brand product that became well known on the<br />
market and being successfully sold through chain stores in Ulaanbaatar. Because of the raw<br />
material, (barley) supply the company cannot run regular production activity. When the<br />
company made a market research, the capacity of Ulaanbaatar market has been identified to<br />
market 100 tons of barley per year and the company is selling one ton product to the market in<br />
order to keet its share in a market. Also starting from October 2007 the company is providing<br />
“Ashvai” cookie to the secondary school number 1 and 2 “Tea break” program on a weekly<br />
basis. “Haltar arvai” LLC has produced 27,1 tons of barley flour and 14.3 tons of “Ashvai”<br />
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Value Chain Study report on Barley subsector<br />
cookies over the last three years and 70% of the product was marketed to UB and 20% to the<br />
aimag market. In 2007, the company has bought 9 tons of barley from Sharga, Chandmana and<br />
Biger soums in Govi-Altai aiming and 11.5 tons of barley from Darvi and Manhan soums in<br />
Hovd aimag.<br />
2. “Gazriin Uguuj Hurimt” cooperative in Taishir soum (Head of the cooperative is S. Saihanjargal,<br />
State Best Crop Producer) plant barley in 10 hectares and harvest 1,5 tons from one hectare. In<br />
2008, he plans to double the barley planting area up to 20 hectares. This year, he stored 3 tons of<br />
barley for seed. He made flour from 10 tons of barley. The remaining 2 tons were used for<br />
family consumption, paying labor fees and gifts to relatives and friends.<br />
3. “Altain Deej” cooperative in Guulin bagh, Delger soum planted barley in 1 hectare of land. In<br />
2008, they wishes to expand plantation area to 5 hectares and making a study to export barley<br />
flour.<br />
4. “Hurhreen Dolgio” cooperative in Chandmani soum in addition to growing barley on own also<br />
buys barley from Biger soum residents, make flour and sell it on the market.<br />
5. “Tulga Altai” company in Tsogt soum is one of the biggest companies with a high finncial and<br />
production capacity in Tsogt soum which has 832 hectares of sirculating plantation areas where<br />
mostly wheat is planted. The company has made studies on barley product development and they<br />
were planting barley up to 20 hectares. In 2005 and 2006 the company lost its yield because of<br />
water availability. In 2007 the company planted barley in 1 hectare and this year's target is to<br />
grow barley on 10 hectares.<br />
5.2Study on crop producers<br />
At the aimag level, on average 163 households and 7 entities plants barley and receives certain revenue from<br />
its sales.<br />
15 barley growers who took part in the survey and are 9.2% of total crop producers, plant barley on 43<br />
hectares in 4 soums and they harvest 42 tons (on average 0.97 tons per hectare) of barley which means 24%<br />
of total planted area and harvested yield .<br />
Chart One. Current use of barley of survey respondents<br />
5% 10%<br />
85%<br />
Household consumption<br />
Stored as seed for next year<br />
Sold at markets<br />
Barley growers consumes 5% of harvested barley for own needs, stores 10% as seeds for next year's planting<br />
and the remaining portion or 85% sells on the market.<br />
If crop producers get 1.2 tons barley from one-hectare area, they keep 120 kg of unsorted seed and around 96<br />
kg of sorted seed and according to the technology of that region, this amount of seed is enough for onehectare<br />
area plantation.<br />
Chart Two. Sales distribution channels of the survey respondents<br />
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Value Chain Study report on Barley subsector<br />
Sales of harvested barley<br />
28%<br />
16%<br />
23%<br />
33%<br />
Processors<br />
Flour for aimag traders<br />
Barley for consumers<br />
Seed for own use<br />
According to the interview and questionnaire from producers, 23% of the respondents sell the barley to<br />
households and small factories produce flour, 28% of them market barley to consumers produce flour for<br />
their consumption by cash or mostly for livestock and vegetable. 33% of marketed barley was processed to<br />
flour and sold to aiming changers, shops and small sales points by a wholesale price and use 16% of<br />
harvested barley for their own consumption and seed for the next year’s plantation.<br />
In Govi-Altai aimag even all the crop production process is done manually except soil cultivation, the<br />
harvest yield is very low. On an average of last four years, crop producers are harvesting 1 ton of barley from<br />
one-hectare land and even we consider the specifically dry climate condition this is very unsatisfied figure.<br />
During the interview with producers they were talking that in 80s up to 3 tons barley was harvested from 1<br />
hectare area and even now some producers are harvesting 1,5 tons of barley from a hectare. In addition, most<br />
of the producers are having the circulated plantation in a land by 2-3 years that can be named an improved<br />
version of circulating crop production system of leaving land fallow. Field utilization is poor in Govi-Altai<br />
aimag and takes no actions on soil fertilization and enrichment.<br />
Because of the high crop production cost and lower yield, it is not so profitable to sell the barley as it is.<br />
Therefore, producers are interested to add value through producing flour by processing the barley. According<br />
to our estimation, cost for 1 kg barley is 831 MNT when there is 1 ton of yield from an irrigated field.<br />
(Appendix 9.4), cost for 1 kg of barley flour is 1238-1720 MNT depending on a flour output, (Appendix<br />
9.5), and these costs can be reduced by 60 MNT each if the barley is harvested by combine. From this, we<br />
can see that if producers sell the barley by less than 835 MNT there will be no profit. This happens often, but<br />
producers usually do not calculate labor fee of the family members in the cost. It is profitable for producers<br />
to sell the flour by 1800-2000 MNT wholesale prices once there is a demand for the flour in a market, so<br />
they have more interest to process the barley by themselves and market it. From the above estimation, it is<br />
necessary to increase harvest yield through improvement of plantation technology for barley production,<br />
usage of appropriate mechanization and local fertilizer, and improve rotation structure and irrigation<br />
technology.<br />
5.3 Barley flour retailers<br />
Total of 25-30 people including 9 dairy product vendors in the aimag “Ikh Ovoo” market and other small<br />
food shop point and grocery sellers buys barley flour by a wholesales price and sell it to the consumers.<br />
According to the vendors, barley flour is generally a demanding and it is easy for them to sell product. Also,<br />
compared to 2007 this year they have a regular flour supply in more amount. Herders like to use the flour for<br />
their food consumption during the high loaded offspring and cashmere-combing season, because of its time<br />
saving and high calorie specification. During “Tsagaan sar” holiday the barley flour sales has been increased<br />
because of the traditional use of barley for servings. In addition, local residents like to send and take barley<br />
to Ulaanbaatar and other aimags as a local brand product especially during the summer and this time of the<br />
year the flour demand gets comparatively high. During the peak season, vendors sell around 60 kg of flour<br />
per week. Taking into account this information, we are making estimation that four months of the year is<br />
high income and the sales will decrease by one fold in other months; one vendor will sell 10 kg of flour per<br />
day, 260 kg per month and 2800 kg per year. If we estimate 25 people to sell this type of product, it is able to<br />
sell 52 tons of flour totally. Flour sellers do not have a big challenge and they buy 1 kg of flour by 2000MNT<br />
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Value Chain Study report on Barley subsector<br />
and sell it by 2500 MNT. Sellers think that the Maintaining unique aroma, taste, color and pulveration of<br />
barley have to be a focus for producers.<br />
5.4 Consumers<br />
Totally 19 consumers in Yesunbulag soum were involved in a survey. All of them were consumers of barley<br />
flour in certain extent and 3 households or 16% of them are regular users and 84% of them use sometimes.<br />
47 % of consumers buy a flour from the market and 53% of them get the flour from the producers, relatives<br />
and through other channels which means the channel for flour to reach the customers is wider and aimag<br />
market can not be as a monopole source for them. 31% of consumers buy the flour as a gift for others,<br />
which verify the determination that the barley flour is sold for the gift purpose otherwise it shows that 69%<br />
of total respondents are real users. Current barley flour price is evaluated as reasonable by 53% of total<br />
consumers and 47% think that the flour is expensive which states that the flour is a demanding product. From<br />
the interview it is clear that most people especially children like to eat barley flour with butter and sugar but<br />
their consumption is restricted by rare purchase of flour. The main type of using the flour is to make dough<br />
with butter and sugar and drink tea with flour in it. “Ashvai” cookie made by “Hltar arvai” company is<br />
expensive and produced in a small amount so it is unable for consumers to use frequently. Therefore,<br />
development of new product made by barley flour is getting crucial which is cheap, tasty, and available for<br />
everyone’s use and has a long shelf life.<br />
In addition, traditional method of making barley flour storage period longer through keeping a dried curd<br />
in it can be tested and study possibility of consumption culture and make it easier for consumption by<br />
producing different shaped flour dough covered with chocolate.<br />
Chart Three. Barley flour demand<br />
Monthly barley flour consumption of consumers<br />
7%<br />
36%<br />
57%<br />
to 3 kg<br />
3-6 kg<br />
over 6 kg<br />
For demand estimation, we did not include herders and crop producers who have more usage of the<br />
flour.<br />
Demand for barley flour per year and raw material supply 1 Table 2<br />
Demand for<br />
flour demand<br />
ton<br />
Demand<br />
for barley Barley supply 2007<br />
Monthly<br />
demand<br />
(classified by<br />
survey)<br />
Estimated<br />
amount<br />
kg<br />
Percentage<br />
per total<br />
household<br />
%<br />
Number of<br />
households<br />
15600<br />
Per<br />
month<br />
Per<br />
year<br />
demand<br />
ton<br />
Amount<br />
ton %<br />
Up to 3 kg per<br />
month 1 57 8892 8.9 106.7 128.0<br />
3-6 kg 3 36 5616 16.8 202.2 242.6<br />
6kg< 6 7 1092 6.6 78.6 94.3<br />
Total demand 32.3 387.5 465.0 156 2 33.5<br />
1 Estimated the demand based on the demand of 19 consumers participated in a survey<br />
2 Subtracted seed demand from 2007 production<br />
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Value Chain Study report on Barley subsector<br />
If we take into account, current production size of 124 tons of barley flour in an aimag level,<br />
only 32% of total market demand is met. In order to produce barley flour in Govi-altai aimag, 465<br />
tons of food barley needed to be produced which results in necessity of increasing size of plantation<br />
field and seed amount. There are still certain market demand for companies produce barley products<br />
such as “Haltar arvai” company in Ulaanbaatar city, Zavkhan and Bayankhongor aimags. However,<br />
in order to meet this unmet demand, we should intensify and increase harvest yield from a unit not<br />
only through the production increase. It would meet today’s requirement, if at least 50% of unmet<br />
demand needs to be met through intensification and 50% by expanding production<br />
5.5 Processing companies<br />
We included barley flour and other production activities under the processing. We can include<br />
household producers who buy barley and produce flour by hand or by electric mill for selling it to<br />
aiming and soum consumers and retailers. Even we can include crop producers in this classification;<br />
we made a separate mapping for group of people who buy barley and add value by making flour.<br />
We have mentioned about “Haltar arvai” company. They buy barley by a wholesale price from<br />
producers in cash or in-kind (animal or vegetable etc), mill by hand and sell most of the flour to the<br />
aiming retailers and consumers live in soums where no barley production is. Burmaa, a resident in<br />
Chandmani soum and Natsagdorj in Sharga soum make flour by small size electric mill. It is heard<br />
that in Sharga soum flourmill with capacity to make 2 tons of flour per hour would be installed.<br />
This mill is not for the barley flour making purpose but in the case if needed it can be used for<br />
making barley flour.<br />
“Haltar arvai” company has been producing two types of products such as barley flour and cookie<br />
since 2005 and they have capacity to produce 15 tons of packaged barley flour and 54000 boxes or<br />
27 tons of “Ashvai” cookies if the company works in its normal capacity. The company cooperated<br />
with crop producers and ASF and provided 5 tons of seed in 2006 and 7 tons in 2007 by cash and<br />
loan in order to increase the raw material supply.<br />
5.6 Input suppliers<br />
The current main input supplier is ASF. ASF has provided 16.7 tons of seed to 59 crop producers in<br />
7 soums and small size combine worth 13.4 million MNT to Sharga, Guulin, Chandmani and<br />
Taishir soums by a loan through 2005-2007. Usage of these combines differs in each soum. Taishir<br />
and Chandmana soum producers are using the combine fully; Sharga soum sometimes and Guulin<br />
soum refused to get this combine so from the unreliable source it is heard that they gave it to Dariv<br />
soum in Hovd aimag. In a field with box type irrigation ditches it was difficult to harvest the barley<br />
by combine so Sharga soum producers harvested barley from over 10 hectare area by hand and<br />
threshed it by combine. These small size combines can be used in a field based on small water<br />
sources and field distribution and irrigation method need to be selected specifically for a normal<br />
operation of combines. Some producers sell extra seed to others or give by a loan. According to the<br />
local tradition if producer get the seed by a loan in spring they pay back it with 50-100% interest<br />
rate from their harvest in autumn. Besides preserving the seed for next year’s plantation local<br />
producers are also able to get the seed by a loan so they don’t face the lack of seed and only have<br />
seed quality problem. Crop producers apply to the bank if they need more investment but the bank<br />
loan condition is unfavorable for them with shorter loan duration and higher interest rate. However,<br />
52.9 million MNT loan given through ASF from 2006 is having a high importance for production<br />
restoration. Producers also get small size tractor and its accompanying spare parts through<br />
Ministry of Food and Agriculture according to the schedule. They buy fuel and other inputs such as<br />
spare parts for the machinery from the market, and do not use manure and pesticides. Most of the<br />
technology operations made by hand, working force is sometimes hired, and sometimes producers<br />
work together. In an average fee for one working day is 5000 MNT or 500 MNT per hour.<br />
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Value Chain Study report on Barley subsector<br />
5.7 Barley price<br />
There are three different types of product sales including barley, barley flour and ashvai. If we estimate that<br />
cost for 1 kg of barley is 831 MNT, if it is harvested by combine the cost is 767 MNT, and cost for 1 kg of<br />
barley flour made by the traditional method it is 1238-1720 3 MNT. Then producer can sell barley without<br />
processing by 700-800 MNT, processed barley flour by 1900-2000 MNT, and is able to get 280-380 MNT<br />
profit out of 1 kg flour. Retailers will get 200-500 MNT profit by selling 1 kg of flour by 2200-2500 MNT.<br />
Therefore, crop producers are interested to process barley and sell it as flour. As of 2008, “Haltar arvai”<br />
company is selling 1 box or 500 gram of cookie by 1800 MNT and one sack (0.5 kg) of flour is by 2000<br />
MNT.<br />
Before we mentioned that, there is a demand for flour but supply side is weak. Increase of the yield from a<br />
hectare is the main way of decreasing the price of barley and products made of barley and increasing the<br />
supply of market demand. Below chart shows the price increase for barley and barley flour.<br />
From the chart, you can see that price difference between barley and flour is 850-1300 MNT for each year<br />
and it is related with demand for flower and technology specification for making the flour (everyone can not<br />
produce the barley flour because of the special equipment and experience making flour).<br />
Chart Four. Barley and barley flour wholesale market price in Govi-Altai aimag<br />
(2005-2007)<br />
2500<br />
2000<br />
1800<br />
2000<br />
1500<br />
1000<br />
1200<br />
500<br />
700<br />
500<br />
350<br />
0<br />
2005 2006 2007<br />
barley price<br />
flour price<br />
3 Estimated flour yield by 80%, 85%, 90% and according to the producers flour yield is high from handmill and has low<br />
wastage.<br />
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Value Chain Study report on Barley subsector<br />
6. Barley sub sector value chain mapping<br />
Ulaanbaatar<br />
market<br />
Aimag and soum consumers<br />
(Govi-Altai)<br />
Consumers (Zavhan,<br />
Bayankhongor)<br />
5 т<br />
2 т<br />
43 т<br />
"Haltar arvai"<br />
LLC<br />
Retailers<br />
Household<br />
producers, smal<br />
size mill<br />
1 т<br />
9 т 48 т<br />
43 т<br />
31 т<br />
2 т<br />
Barley flour<br />
Barley<br />
Producer -<br />
Finance Seed Machinery Working<br />
force<br />
Based on research materials we developed harvest sales balance in 2007. We estimated harvested yield by<br />
173 tons, 16% or 28 tons of barley is for seed preservation and for their own consumption, and flour yield by<br />
80%. (Flour yield is 80% in a factory and according to people make flour the yield is more in homemade<br />
condition). There are three main sales channels including aimag retailers, small shops, electric mill and<br />
household producers, crop producers.<br />
One. Crop producers preserve the seed (most producers get seed out of their harvest) and use certain amount<br />
of barley for their own consumption from the harvested barley. They sell 1/3 of the crop to the consumers<br />
in-kind by a retail price. For example, a sack of potato, two yearling goat and sheep is bartered with around<br />
30 kg of barley. These sales take place according to “Demand based” principle. These consumers are usually<br />
herders, regular customers of barley flour. They make flour for their consumption by their own mill or<br />
borrow mill from their neighbors. Many herders and rural residents have these stone mills kept from their<br />
generation.<br />
Two: People make flour by hand mill (There are also electric mills in soum centers) and sell the flour, buy<br />
around 1/5 of barley for sale from crop producers by market price at that time. New harvest barley flour is<br />
sold in a market before crop producers finishes harvesting the barley.<br />
Three: Crop producers make flour by around 35% of total harvest for sale and sell it to the aiming wholesale<br />
buyers. We mentioned before about flour cost and price. Crop producers also have transportation cost for<br />
carrying the flour to the aimag center. The least amount of product is sold for Zavkhan, Bayankhongor aimag<br />
and Ulaanbaatar consumers. For example, “Altain deej” cooperative in Govi-Altai aimag makes the flour and<br />
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Value Chain Study report on Barley subsector<br />
sells it in Otgon, Shiluustei soums in Zavkhan aimag, in Hureemaral and Bayanbulag soums in Bayanhongor<br />
aimag. During the organized event such as trade fair some crop producers sell small amount of flour in<br />
Ulaanbaatar. For instance, “Gazriin Uguuj Hurimt” cooperative in Taishir soum participated in Tsagan sar<br />
trade fair in 2007 and 2008 and sold 1 ton of flour each year. In doing so, most crop producers have less<br />
animals and operate seasonal production so they are able to make and sell flour throughout the winter.<br />
Four: “Haltar arvai” company in cooperation with ASF is a main input supplier, however they can not have<br />
a big role for product sales. The company buys in an average 9 tons of barley from Govi-Altai producers and<br />
10 tons of barley from Hovd aimag producers and produces packaged flour and ‘Ashvai” cookie. 70% of<br />
their product is sold in Ulaanbaatar and 30% is sold in the aimags. Main reason for not supplying the barley<br />
to “Haltar arvai” company is product price (700-770 MNT/kg) proposed by the company. (Price for selling<br />
to herders and household barley flour producers is also not enough but it is usually goes in-kind throiugh<br />
“Demand based” principle. 1100-1200 MNT for selling the barley is a reasonable price for crop<br />
producers and it matches with our estimation. But you need to consider that our estimation is not<br />
based on very detailed written picture and just based on oral survey findings. From the other hand,<br />
production process of “Haltar arvai” company consists mostly from mechanic operations at the<br />
small size factory level so their products are produced with high value and raw material price<br />
increase makes difficult to increase the product price.<br />
Flour made by electric mill and in a factory loose its unique aroma and taste so consumers do not like to buy<br />
them. Therefore, opportunity to support and develop hand mill production needs to be explored.<br />
7. Conclusions<br />
Barley production<br />
• Barley is cultivated mostly at household level with predominated hand operations based on a poor<br />
water source.<br />
• Crop producers has rotational use of land by 3 years and make simple (surface) irrigation without<br />
any chemicals and herbicide and get one ton of yield in an average from one hectare area. Even this<br />
is a pure natural product; it is the most ineffective and high cost plantation.<br />
• Barley production has to be expanded based on market demand but special attention need to be paid<br />
on decreasing cost through increasing the yield from the unit not expanding the plantation area.<br />
• This traditional production is an initiative of local residents after the collapse of entities with<br />
mechanized production in 1990s and now there is almost no support from the local government side.<br />
• Based on water sources available locally, local government need support citizens initiative with a<br />
clear policy through making a study on size of available for plantation area, its purpose, and<br />
methodology.<br />
Plantation technology<br />
• Depending on a size of field, need to use different size of agricultural machinery and mechanize<br />
technology activities. Processing companies demand for raw materials such as “Haltar arvai”<br />
company, need to work more actively by establishing machinery service and rental group etc. which<br />
will result to reduction of raw material cost and expansion of production size.<br />
• Need to create an appropriate rotational use including perennials and vegetation for fodder,<br />
improve soil fertility by using local fertilizer, and cooperate with professional organizations<br />
on development and use of soil enrichment technology.<br />
• Aimag and soum government has to work with professional organizations to develop barley<br />
plantation technology, which is suitable for specific soil and climate characteristics of that region<br />
and improve knowledge and skill of crop producers.<br />
Barley processing and a new product<br />
• Support business initiative of establishing processing factories based on soums with highest number<br />
of barley production or on group of producers.<br />
• Study possibility of mechanization for household small production and provide them with relevant<br />
information. During the survey we had a meeting with Batjargal, a director for Tulga Altai LLC and<br />
according to him there are many different capacity electric mills (Appendix photo 9.6)<br />
• The main types of using barley flour are very limited with barley flour dough with butter and sugar<br />
and tea with flour in it, which is not so suitable for consumption especially for youth and children.<br />
Therefore, there is an opportunity to study and test new product development such as barley flour<br />
12
Value Chain Study report on Barley subsector<br />
sweet, barley flour mixture and aarts, and use traditional technology of long life storage by keeping<br />
dried curd in barley.<br />
8. Constraints and opportunities for barley sub sector value chain<br />
8.1 Opportunities for barley production in Govi-Altai aimag<br />
• Traditional irrigated barley production methodology and specific technology has<br />
been widely used<br />
• Crop producers and residents are working actively and with an initiative for<br />
having irrigated plantation<br />
• Favorable by its warm temperature and maturity duration<br />
• Big demand foe barley and barley flour<br />
• Certain limited number of water source availability and field appropriate for<br />
plantation based on these water sources<br />
• Different support and concession of Mongolian Government on crop production<br />
development<br />
• Able to get a support from International projects and programs (ASF)<br />
• Existing acclimatized barley sorts and samples for food consumption.<br />
Availability of barley production and supply (based on information sent by the soums)<br />
Table 3<br />
# Soum<br />
Average harvest<br />
Number of<br />
Size of plantation yield from the unit Total yield<br />
household able to<br />
area<br />
(centner-1<br />
Centner<br />
plant<br />
centner=100 kg)<br />
1 Biger 50 60 12 75<br />
2 Sharga 100 100 15 150<br />
3 Haliun 30 50 10 50<br />
4 Chandmana 30 50 16 80<br />
5 Taishir 20 100 12 120<br />
6 Tsogt 20 200 15 300<br />
7 Jargalan 15 30 10 30<br />
8 Tugrug 15 15 11 16,5<br />
9<br />
Bugat (Tahi<br />
steppe) 30 50 14 70<br />
10 Delger 20 30 10 30<br />
Total 330 685 12.5 8562.5<br />
From the above table, Govi-Altai aimag crop producers are able to produce 856,2 tons of barley in<br />
total. Nevertheless, this number can be reached when there is a favorable situation is created for<br />
work force, finance, machinery etc. 4<br />
8.2 Constraints for barley sub sector and possible solutions<br />
4 During the survey revision process, we have been informed that Sharga soum has possibility of plantation in 640<br />
hectare area. So more surveys need to be done with the support from professional organizations for accurate estimation.<br />
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Barley Value Chain Sub sector study report<br />
Constrains Reason of constraints Solutions<br />
1<br />
3<br />
Information<br />
Growers have limited access to<br />
information and knowledge<br />
where equipment and input for<br />
their production is sold at what<br />
price<br />
Growers can not get loan and<br />
participate in a bid announced<br />
by the government organization<br />
on crop production<br />
Production technology<br />
There is a lack of sufficient<br />
water source<br />
• They can not get any information<br />
because of the poor infrastructure and<br />
the farther distance<br />
• Growers do not have sufficient<br />
knowledge in developing project<br />
proposals and making sound financial<br />
projections even they wish to be in<br />
cluded in.<br />
• It gets unavailable to water the field<br />
according to the technology because of<br />
discharge of river, springs and ponds,<br />
break down or damage of irrigation<br />
points, systems, ditches, and channels;<br />
and increase of plantation area.<br />
1. At the local level, develop policy and disseminate information on<br />
appropriate use of machineries specific for the plantation of that region<br />
2. Disseminate information through BDS providers, projects and<br />
program<br />
3. Facilitate growers with BDS providers organize these types of<br />
trainings and services<br />
4. Local government needs to renovate field resource information able<br />
for irrigated plantation locally, repair irrigation system with water<br />
sources, build water collection constructions, repair or build new<br />
ditches and channels, support local initiatives, include them in<br />
Mongolian Government programs and provide low interest loan<br />
program<br />
4<br />
Most growers harvest manually<br />
and thresh the barley using<br />
horse, so it needs lots of labor,<br />
time, and cost and limits<br />
production expansion.<br />
• Lack of harvesting machinery and too<br />
many small fields are the reason for the<br />
constraint. Combines usually do not<br />
reach the farther small field, so growers<br />
plant barley on a small area considering<br />
their harvesting capacity. Even it is<br />
difficult to use small size tractor<br />
depending on irrigation methodology<br />
and field structure.<br />
5. With the participation of growers, local government has to organize<br />
and implement following activities: classify and group barley<br />
production field and develop mechanization policy suitable for the<br />
filed size at the local level, choose field classification and irrigation<br />
methodology depending on type of mechanized harvesting.<br />
6. Barley producers could combine funds and buy small and medium size<br />
combines.<br />
7. Central and local Government organizations need to support<br />
businesses provide services with its small and medium size combines<br />
for growers, create fund through financial support from the crop<br />
producers, involve them in low interest loan programs.<br />
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Value Chain Study report on Barley subsector<br />
5<br />
Plantation technology is poor<br />
and crop producers are inactive<br />
for technology renovation.<br />
Crop producers are keen to use traditional<br />
technology, and there are not sufficient<br />
promotional and training activities carried for<br />
them.<br />
8. Link crop producers to BDS providers organize technology trainings<br />
and consultancies, develop and disseminate handouts.<br />
6<br />
7<br />
Seed quality is poor and barley<br />
sort has been contaminated.<br />
Producers use mostly seeds<br />
named local with unclear origin.<br />
Marketing and product<br />
development ,<br />
There are not so many types of<br />
barley products, and these<br />
products can not be kept for<br />
longer period and have poor<br />
packaging.<br />
• There is no systematic national seed<br />
policy for plantation. Even there are<br />
available some localized barley sorts for<br />
food consumption, producers pay poor<br />
attention on seed stocking and renewal.<br />
They have poor knowledge on seed and<br />
sort and usually prefer seeds used for<br />
longer time in that region and consider<br />
them as the best one.<br />
• The main types of using barley flour are<br />
very limited with barley flour dough<br />
with butter and sugar and tea with flour<br />
in it, which is not suitable for frequent<br />
consumption. There is a product (called<br />
ashvai) made of barley flour but it is<br />
expensive and barley flour has less<br />
storage period.<br />
9. Link them with BDS providers capable to provide trainings and<br />
consultancies on seed, sort and plantation.<br />
10. Provide pure seed material to the entities and producers who has<br />
bigger field and interest to stock the seed and make agreement with<br />
them.<br />
11. Support businesses which will develop new product such as barley<br />
flour sweet, barley flour mixture with different ingredients, barley with<br />
dried curd which has longer shelf life and able for public use.<br />
8 Finance<br />
Growers do not have financial<br />
source to purchase equipment<br />
and machinery with sufficient<br />
capacity.<br />
• The main reason is that most of them<br />
are low-income people with a few<br />
number of livestock, plant barley at<br />
household scale, therefore could not<br />
buy expensive equipment by short<br />
maturity loan with higher interest rate.<br />
12. Purchase the needed equipment combining funds<br />
13. Engage in loan programs with soft lending terms<br />
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Barley Value Chain Sub sector study report<br />
8.3 Evaluation for possible solutions<br />
The following two criteria were used for evaluation of above-mentioned solutions and selected<br />
them according to their ability to indicate result after implementing the solutions.<br />
1. Feasibility of solutions<br />
2. Number of beneficiaries<br />
While these two indicators were placed in matrix vertical and horizontal axis, solutions were placed<br />
and evaluated in three levels<br />
Feasibility of solutions<br />
12<br />
3, 10,14<br />
7,<br />
High<br />
6, 11, 1, 5, 8, 2, 4,<br />
Medium<br />
Low<br />
9,<br />
Limited<br />
Medium<br />
Wide<br />
range<br />
Framework of beneficiaries<br />
8.4 The most important solutions for barley sub sector development<br />
Solution 4:<br />
Definition of the solution:<br />
Local government needs to renovate field resource information able for irrigated plantation locally, repair<br />
irrigation system with water sources, build water collection constructions, repair or build new ditches and<br />
channels, support local initiatives, include them in Mongolian Government programs and provide low<br />
interest loan program with soft lending terms<br />
Problems for solution:<br />
There is a limited water source available for irrigated plantation. Currently at the local level the plantation is<br />
based in fields were used as an irrigated field during 1980s and 1990s. Capacity of these systems has been<br />
decreased which were caused by dryness and climate change and its capacity is now unclear. Everyone say<br />
different figures on for how many hectare areas are is it able to irrigate. Even many people want to have a<br />
crop production they do not have an access to the irrigated field and some places have unused field with<br />
enough water resources if needed constructions will be built.<br />
Potential solution providers:<br />
• Commercial banks and non bank financial institutions operate locally<br />
• Ministry of Food and Agriculture and Aiming Agriculture office<br />
16
Value Chain Study report on Barley subsector<br />
• Local Government organizations<br />
• Hydrological professional organizations<br />
• ASF, other projects and program<br />
• Local crop producers group, cooperative and producers<br />
Constraints to implement the solution:<br />
• People will use water may not have an organized activity and not be responsible. Because of that, no<br />
one can take care of this activity with no action.<br />
• Financial capability to get assistance from professional organizations<br />
• Financial constraint for making calculations, project and plan development.<br />
• Inactive participation from local government side<br />
Sustainable impact: Barley plantation will be expanded and product production will be increased through<br />
making a concrete estimation for irrigated plantation and repairing the main water collection points. More<br />
working places will be created thus workers live quality will be improved. Supply of barley, barley flour and<br />
flour product will be improved.<br />
Solution 7<br />
Definition of the solution:<br />
• Central and local Government organizations need to support businesses provide services with its<br />
small and medium size combines for growers, create fund through financial support from the crop<br />
producers, involve them in low interest loan programs.<br />
Problems for solution:<br />
• Most growers harvest manually and thresh the barley using horse, so it needs lots of labor, time, and<br />
cost and limits production expansion.<br />
Potential solution providers:<br />
• Commercial banks and non bank financial institutions operate locally<br />
• Ministry of Food and Agriculture and Aiming Agriculture office<br />
• Soum Government organizations<br />
• ASF, other projects and program<br />
• Local crop producers group, cooperative and producers<br />
Constraints for solution implementation:<br />
• Financial problem. Crop producers may not trust to each other for creating combined fund to<br />
purchase comparatively expensive medium size combine.<br />
• Businesses initiated to provide the service may not have enough collateral for getting loans with soft<br />
lending terms through Government and Programs’ support.<br />
• Communication. Lack of communication and information for selection and purchase of appropriate<br />
capacity techniques<br />
Sustainable impact: Barley plantation size, yield and market supply will be increased through having<br />
businesses and crop producers who have combines with capacity to harvest all crop yield in the soums within<br />
the technology period. Combine harvest will result to less work overload and product cost reduction. Due to<br />
this, supply of raw material to barley producers and as well as product development and its types will be<br />
increased and cost will be decreased.<br />
Solution 10<br />
Definition of the solution:<br />
• Provide pure seed material to the entities and producers who has bigger field and interest to multiply<br />
the seed and make agreement with them.<br />
Problems for solution:<br />
17
Value Chain Study report on Barley subsector<br />
Seed quality is poor and barley sort has been contaminated. Producers use mostly seeds named local with<br />
unclear origin.<br />
Potential solution providers:<br />
• Ministry of Food and Agriculture and Aiming Agriculture office<br />
• ASF, other projects and program<br />
• Scientific organizations work on crop plantation selection and seed stocking.<br />
Problems for solution:<br />
• Lack of high quality pure sort seed suitable for specific soil and climate condition of that region<br />
• Crop producers and residents may not be interested to multiply the pure seed and plant the seed<br />
without mixing different seed.<br />
• Seed multiplier may prepare poor quality seed because of insufficient knowledge on seed plantation<br />
requirement, may lack necessary techniques and equipment for seed purification and sorting; and<br />
may use seed for consumption but not for production<br />
Sustainable impact: Total and unit crop yield and crop quality will be improved if crop producers use<br />
acclimatized sort and good quality seed for sowing. Further, everyone who has a big or small plantation<br />
field do not need to prepare seed and there will operate some qualified businesses with seed multiplication<br />
and supply purpose techniques and warehouses.<br />
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Value Chain Study report on Barley subsector<br />
8.5 Program intervention for implementation of most effective solutions<br />
Solutions Program intervention Conclusions<br />
• Link with BDS providers that provide<br />
services on business plan development,<br />
plan and document development and<br />
training provision.<br />
• Involve interested businesses in loan<br />
programs with soft lending terms,<br />
according to the rules and requirement.<br />
• Propose “Irrigated plantation<br />
opportunity” survey to the local Citizens<br />
Representative Hurals.<br />
Local government needs to renovate field<br />
resource information able for irrigated<br />
plantation locally, repair irrigation system<br />
with water sources, build water collection<br />
constructions, repair or build new ditches<br />
and channels, support local initiatives,<br />
include them in Mongolian Government<br />
programs and provide low interest loan<br />
program with soft lending terms<br />
• Crop producers will gain skill and knowledge on project<br />
and tender material development. By receiving project and<br />
program development service, they woul be able to<br />
participate in Government annonced programs and have<br />
financial sources for irrigation system renovation and<br />
building.<br />
• They will be able to increase size of irrigated field and<br />
expand crop production.<br />
• Survey on identification of irrigated field availability<br />
would be reflected in a work plan of relevant organization<br />
and have opportunity to be implemented.<br />
Central and local Government organizations<br />
need to support businesses provide services<br />
with its small and medium size combines for<br />
growers, create fund through financial<br />
support from the crop producers, involve<br />
them in low interest loan programs.<br />
• Provide information on appropriate<br />
small and medium size combines and<br />
facilitate them to the supplier.<br />
• Link them with BDS provider and<br />
provide trainings and consultancies on<br />
irrigated plantation technology, crop<br />
harvest and machinery and equipment<br />
maintenance.<br />
• Develop and disseminate handout on<br />
irrigation methodology and technology<br />
• Involve interested businesses in loan<br />
programs based on their business plan<br />
and cost analysis.<br />
• The condition, to select and purchase combines<br />
appropriate for production size and specifics, will be<br />
created.<br />
• Crop producers will be able to select and use appropriate<br />
irrigation technology and machinery, taking into<br />
consideration the harvest technology.<br />
• Crop producers will be able to ease their labor, buy<br />
interested combines, increase working capacity and<br />
expand production by purchasing the needed combines.<br />
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Value Chain Study report on Barley subsector<br />
Provide pure seed material to the entities and<br />
producers who has bigger field and interest<br />
to multiply the seed and make agreement<br />
with them.<br />
• Link interested entities and producers<br />
with Scientific Organizations and<br />
facilitate to create high quality seed<br />
suitable for specific types of climate<br />
condition in the region, which gives high<br />
yield barley for food consumption.<br />
• Link them with BDS providers and<br />
provide seed plantation technology, seed<br />
and sort quality trainings and<br />
consultancies.<br />
• By the request of businesses who met<br />
the requirement, make an agreement to<br />
multiply the seed.<br />
• Original seed source of sorts appropriate for local<br />
condition will be created.<br />
• Knowledge of crop producers on seed and sorting will be<br />
improved and it will help to have a sustainable mechanism<br />
of seed multiplication and supply, thus seed quality will be<br />
improved.<br />
• Seed supply for food consumption barley will be<br />
improved.<br />
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Barley Value Chain Sub sector study report<br />
9. Appendix<br />
9.1 Surveyed people<br />
Table 1<br />
Soum Number of surveyed people Field size Yield size<br />
Sharga 6 20 19.8<br />
Biger 3 4 2.3<br />
Chandmana 3 13.5 13.6<br />
Taishir 3 5.5 5.3<br />
Total 15 43 42<br />
9.2 Number of Govi-Altai aimag barley producers and enterprises, by soums<br />
Table 2<br />
Soum Number of households plant barley Number of entities<br />
Sharga 80<br />
Biger 32<br />
Chandmani 18 1<br />
Haliun 12 2<br />
Taishir 10 1<br />
Delger 5 1<br />
Tsogt 6 1<br />
Bugat 10 1<br />
Total 162 7<br />
9.3 Govi-Altai aimag barley production for food consumption and its yield ( 2004-2007)<br />
Table 3<br />
# Soum<br />
1 Altai<br />
2 Bayan-Uul<br />
2004 2005 2006 2007 2004-2007 %<br />
Field<br />
Yield ton<br />
Field<br />
Yield ton<br />
Field<br />
Yield ton<br />
Field<br />
Yield ton<br />
Field<br />
Yield ton<br />
ha Total 1 ha ha Total 1 ha ha Total 1 ha ha Total 1 ha ha Total 1 ha<br />
3 Biger 12 12.8 1.1 13 17 1.3 8 11 1.4 7 9.5 1.4 10.0 12.6 1.3 8.0<br />
4 Bugat 24 24 1.0 3.5 3.5 1.0 8 9 1.1 11 1.7 0.2 11.6 9.6 0.8 9.3<br />
5 Dariv<br />
6 Delger 1 1 1.0 10 2 0.2 2.8 0.8 0.3 2.2<br />
7 Jargalan 3 2.3 0.8 0.7 0.9 1.3 0.7 0.5 0.7 0.75 0.7 0.9 1.3 1.1 0.9 1.0<br />
8 Taishir 8 7.2 0.9 5.8 7.1 1.2 11.6 12.3 1.1 14.5 12.6 0.9 10.0 9.8 1.0 8.0<br />
9 Tonhil 1 1.6 1.6 0.3 0.4 1.6 0.2<br />
10 Tugrug 3.2 0.8 0.3 6 3.6 0.6 2.3 2.1 0.9 0.9 0.9 1.0 3.1 1.9 0.6 2.5<br />
11 Haliun 7.5 4.2 0.6 20.6 37 1.8 12.1 12.8 1.1 13.1 9.8 0.7 13.3 16.0 1.2 10.7<br />
21<br />
Field<br />
ha
Value Chain Study report on Barley subsector<br />
12 Huhmorit 4 7 1.8 1.0 1.8 1.8 0.8<br />
13 Tsogt 4 0.0 10 10 1.0 36 43 1.2 12.5 13.3 1.1 10.0<br />
14 Tseel<br />
15 Chandmani 21 13.5 0.6 17.6 13.6 0.8 10.2 10 1.0 34.9 35 1.0 20.9 18.0 0.9 16.8<br />
16 Sharga 40 44 1.1 25 39 1.6 38 40 1.1 40 45 1.1 35.8 42.0 1.2 28.7<br />
17 Erdene 0.3 0.7 2.3 0.1 0.2 2.3 0.1<br />
18 Yesunbulag 1.4 1.8 1.3 1.4 1.6 1.1 2.3 2.8 1.2 3.5 3.9 1.1 2.2 2.5 1.2 1.7<br />
Total 124.1 110.6 0.9 93.6 123.3 1.3 104.2 111.5 1.1 176.95 173.4 1.0 124.7 129.7 1.0 100.0<br />
9.4 Value estimation for irrigated barley production<br />
Table 4<br />
# Technology activities Unit Amount<br />
Cost ¥<br />
Per unit Amount<br />
1 Ditch building Person/hour 50 500 25000<br />
2 Fencing repair Person/hour 40 500 20000<br />
3 Plough 1 90000 90000<br />
4 Box making 1 10000 10000<br />
5 Seedling Person/hour 2 500 1000<br />
6 Repair box Person/hour 96 500 48000<br />
7 Irrigation Person/hour 360 500 180000<br />
8 Guard Quarter 43000<br />
9 Hand harvesting Person/hour 96 500 48000<br />
10 Harvesting by combine ha 1 90000<br />
11 Make tsan Person/hour 48 500 24000<br />
12 Grain drying Person/hour 36 500 18000<br />
13 Horse rent Horse 8 3000 24000<br />
14 Peeling (hire assistant) Person/hour 48 500 24000<br />
15 Cleaning Person/hour 32 500 16000<br />
16 Put in a sack Person/hour 4 500 2000<br />
17 Barley transportation 15000<br />
18 Transportation for workers Times 10 10000 100000<br />
19 Own transportation Times 30 1560 46800<br />
20 Seed Kg 100 900 90000<br />
21 Sack pcs 24 250 6000<br />
22 Land rent 1200<br />
Total cost<br />
Harvest by hand 830800<br />
Harvest by combine 766800<br />
Cost for 1 kg barley<br />
Harvest by hand 831<br />
Harvest by combine 767<br />
9.5 Barley flour making cost<br />
Cost for making a flour by hand mill<br />
Barley 10 kg<br />
Flour yield 90%, 85%,80%<br />
Table 5<br />
Cost ¥<br />
¹ Type of expense Unit Amount Per<br />
Amount<br />
unit<br />
1 Barley kg 10 831 8308<br />
22
Value Chain Study report on Barley subsector<br />
2 Fuel Sack 1 1200 1200<br />
3 Barley cleaning Person /hour 0.5 500 250<br />
4 Fry the barley Person /hour 1 500 500<br />
5 Peel the barley 1 500 500<br />
6 Mill the barley Person /hour 6 500 3000<br />
Total cost 13758<br />
Flour yield 90% 1238<br />
Cost for 1 kg barley flour Flour yield 85% 1619<br />
Flour yield 80% 1720<br />
Explanation: Estimated by barley value harvested by hand<br />
9.6 Pictures<br />
Picture 1: Barley flourmill 5<br />
Generator: 220 V<br />
Capacity: 5kg/hour<br />
Picture Two. Medium size combine produced in Autonomous Republic of Shinjan and Uigur, Republic of<br />
China.<br />
- Mark 4LD2A<br />
- Jatok width 2,3 m<br />
- Thresh capacity 2-2,5 kg/sec<br />
- Weight 4360 kg<br />
5 According to the introduction by Batjargal, General director for Tulga-Altai LLC<br />
23
Value Chain Study report on Barley subsector<br />
24