CAMEL MILK VALUE CHAIN ASSESSMENT REPORT FINAL ...
CAMEL MILK VALUE CHAIN ASSESSMENT REPORT FINAL ...
CAMEL MILK VALUE CHAIN ASSESSMENT REPORT FINAL ...
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>CAMEL</strong> <strong>MILK</strong> <strong>VALUE</strong> <strong>CHAIN</strong><br />
<strong>ASSESSMENT</strong> <strong>REPORT</strong><br />
<strong>FINAL</strong> <strong>REPORT</strong><br />
May 2008
<strong>CAMEL</strong> <strong>MILK</strong> SUB-SECTOR<br />
<strong>VALUE</strong> <strong>CHAIN</strong> <strong>ASSESSMENT</strong> <strong>REPORT</strong><br />
Corps<br />
Corps<br />
Report developed by: Ch.Tsetsegmaa, Executive director of Altai-Swiss Foundation<br />
D. Altaibayar, Program Officer of Altai-Swiss Foundation<br />
P. Dolgorsuren, Program Officer of Altai-Swiss Foundation<br />
G. Munh-Erdene, Program Officer of Gobi Initiative/Mercy<br />
U. Erdenebileg, Senior Agricultural Officer of RASP/Mercy
Content 2<br />
I. Brief introduction 3<br />
1.1 Camel milk production in Govi-Altai aimag 3<br />
1.2 Goal and methodology of survey 5<br />
II. Specifics of camel milk sub-sector 7<br />
2.1 Final consumer of camel milk products 7<br />
2.2 Chart of camel milk sub-sector 9<br />
2.3 Main participants of camel milk value chain, links 9<br />
III. Main opportunities and obstacles facing camel milk sub-sector/value chain11<br />
IV. Commercial solutions to camel milk sub-sector obstacles 11<br />
V. Evaluation of solutions to camel milk sub-sector obstacles 14<br />
VI. Program intervention 18<br />
List of sources 19<br />
2
I. BRIEF INTRODUCTION<br />
1.1 Current camel milk production in Govi-Altai aimag<br />
Govi-Altai aimag herders have long been raising camels in Mongolian Altai region and camel<br />
milk has always been a main raw material of food anda source of income for local herders.<br />
Table 1: Growth of camel population in Govi-Altai soums where camel milk is produced<br />
and sold on the market<br />
Soums 2003 2004 2005 2006 2007<br />
Biger 1179 1271 1302 1339 1492<br />
Haliun 2022 1993 2098 2301 2435<br />
Tugrug 2130 2208 2324 2503 2729<br />
Sharga 3160 3113 2998 3045 3273<br />
Aimag 23800 24400 25000 26000 27300<br />
According to the above table camel population has been steadily rising during the past few<br />
years. Govi-Altai has 27 thousand camels and 7.5 thousand or 29.5% of all camels are cow<br />
camels. 90% of all cow camels are being used for milk production.<br />
Percentage of cow camels in Sharga gobi soums<br />
Biger<br />
5% Khaliun<br />
9% Tugrug<br />
12%<br />
Other<br />
soums<br />
58%<br />
Sharga<br />
16%<br />
The region with the highest density of camels in<br />
the aimag and most favourable conditions for production and sales of camel milk is situated in<br />
area of Sharga, Tugrug, Haliun and Biger soums. These soums are located relatively close to<br />
the market (45-125 km from aimag center) and 42% of all cow camels are being raised here.<br />
The herders from these soums have been raising camels in the area near Sharga, Tuhum,<br />
Tungalag rivers, producing and selling a part of their camel milk in the aimag center and other<br />
markets. Other soums have relatively small population of camels and are located far from<br />
central markets. The camel herders from other soums produce and sell milk for soum center<br />
residents and a few neigboring soums.<br />
3
Below is a calculation table of potential production levels of camel milk in the whole aimag<br />
and above mentioned soums.<br />
4
Table 2: Potential level of camel milk production in Govi-Altai aimag, in liters<br />
Soums 2004 2005 2006 2007<br />
Biger 37,942 41,391 44,150 59,097<br />
Haliun 71,974 73,584 77,033 89,910<br />
Tugrug 54,728 70,365 75,884 58,637<br />
Sharga 113,825 110,376 112,216 126,473<br />
Total 278,469 295,716 309,283 334,117<br />
in the aimag 852,863 874,372 918,946 1,020,708<br />
Explanation: according to studies of milk sold on the market, herders use an average of 740<br />
mm of milk from one cow camel per day to sell on the market.<br />
Some studies of camel milk suggest the milking season lasts an average 17.5 months and the<br />
output of milk is 319,8±1,04 /174,7-576,3.<br />
The camel milk contains 18.6% of dry ingredients, 2.1% of fat, 3.1% of lactose and 10.8% of<br />
protein including 1.75% of casein and 1.32% of ash. There are 8.6 mg% of vitamin C and 0.18<br />
mg% of calcium in the milk. (Dashdendev, 1963) Camel milk contains 20-21 types of<br />
aminoacids (Osorhaan, 1979). One kg of camel milk is capable of supplying 100% of daily<br />
human needs for calcium and phosphorus, 57.6% of human needs for potassium, 40% for<br />
iron, copper, zinc and magnesium, and 24% for sodium. (Batsuh, 1994). Fat globules are 3.7<br />
microns across, melting temperature is 44.8 0 C, coagulation temperature is 25 0 С.<br />
Saturated acids make up 60.9% including palmitin (27%), stearin (14.7%), myristic acid<br />
(12.4%). Amount of kapron and capric acid is very low, only 0.8%. (Indra, 1989). Camel milk<br />
fat contains 69.1% of unsaturated acid.<br />
Camel milk can be useful for treating some liver diseases. Clinical tests proved that camel<br />
milk can lower bilirubin, have positive effect on metabolism on human cell level, alleviate<br />
vitamin deficiency and loss of nutrients, improve immunity and digestion. (Jadambaa, Batsuh,<br />
Baigalmaa, 2000)<br />
According to Osorhaan's research in 1979 fermented camel milk has an average 90-110 Т 0 of<br />
acidity, 0.3 of alcohol, 12.4% of dry ingredients, 4.8% of fat, 3.63% of protein, 0.12 mg/kg of<br />
carotene, 56 mg/kg of vitamin C. One kg of fermented camel milk can provide 766 kcl of<br />
energy.<br />
3 liters of fermented milk is used to produce 1 kg of curd. This output is twice lower than curd<br />
made from sheep, goat and cow milk. 100 l of camel milk can be used to produce 15 pieces of<br />
dried curd with 6-7% of moisture and 38-50% of fat. (Tserenpuntsag, 1987). Processing 100<br />
kg of camel milk in temperatures between 50-55 0 С can yield 9-10 kg of sour cream with 66%<br />
5
of fat. Processing the same amount of camel milk in temperatures between 45-55 0 С can<br />
generate 12-14 kg of sour cream with 35-40% of fat. (Indraa, Osorhaan, 1987)<br />
1 kg of curds is derived from six liters of camel milk, one kg of dried curd is produced from<br />
9.06 l of milk, one kg of melted butter with 98% of fat is made from 15 liters of milk with<br />
5.66% of fat, one kg of sour cream with 76.8% of fat is made from 13.5 l of milk with 5.66%<br />
of fat. Fermented camel milk is made of pure starter culture. It must be stirred 5000-6000<br />
times by electrical beaters every 3 hours. Fermentation starts at temperatures of 20-25 degrees<br />
for the first 24 hours, after that the temperature should be cooled down to 18-20 0 and<br />
fermentation will be complete after 6 hours. The fermented milk can be kept for 60 days in<br />
dark bottle at a temperature of 4-5 0 C and becomes ready for consumption. Carbonated<br />
fermented milk can be preserved for up to 90 days.<br />
Curd, dried curd, butter produced from milk fermented by industrial methods had more<br />
nutritional value than the same products made from traditionally fermented milk. It's possible<br />
to produce 1.2-1.3 kg of dry milk with 28.9% of protein content, 25.66% of fat, 36.34% of<br />
lactose, 94% of solubility and 15T 0 of acidity out of 10 liters if milk with 5.66% of fat.<br />
Establishing dairy camel farm is the best way to produce dairy products from camel milk.<br />
(Osorhaan, 1975)<br />
A survey was conducted among 34 herders from Biger, Haliun, Tugrug and Sharga<br />
soums. According to this survey 6 herders or 17.6% of respondents milk their camels for 1-6<br />
months, 9 herders (26.4%) milk for 6-9 months, the remaining 19 herders (55.8%) indicated<br />
they milk their camels for over 11 months. 80% of respondents get 0.5-0.8 liters of milk from<br />
one time milking activity during summer season and 0.3-0.5 l of milk during cold season. A<br />
female camel is milked for 365 days a year and produces an average of 0.74 l of milk per day.<br />
Number of camels milked by one household ranges from 5 to 30 camels. But herders<br />
producing and selling camel milk on the market milk an average of 13 camels per household.<br />
Table 3: Current camel milk production in Govi-Altai aimag<br />
Daily<br />
Number<br />
average<br />
Number of of<br />
Location<br />
milk<br />
households milking<br />
output,<br />
camels<br />
mm<br />
Milk<br />
production<br />
duration,<br />
days<br />
Current<br />
production,<br />
liters<br />
Amount<br />
sold on<br />
market,<br />
liters<br />
Haliun /Olon Bulag/ 15 13 0.74 365 52669.5 35288.6<br />
Tugrug /Uguumur/ 10 13 0.74 365 35113 23525.7<br />
Sharga /near soum center/ 10 13 0.74 365 35113 23525.7<br />
Tugrug /Tuhum/ 13 13 0.74 365 45646.9 30583.4<br />
Tugrug /Tungalag/ 12 13 0.74 365 42135.6 28230.9<br />
Sharga /near Eev/ 12 15 0.74 365 48618 32574.1<br />
Total 259,296 173,728<br />
6
Govi-Altai aimag producers and suppliers of camel milk are concentrated in specific<br />
area and most of these herders raise more than 5 cow camels. These herders sell 67-70% of all<br />
products on the market.<br />
1.2 Goal and methodology of the survey<br />
Goal of survey: study and identify obstacles to production and sales of camel milk, improve<br />
competetiveness of camel milk sector by developing camel milk business and services.<br />
Methodology of survey<br />
Scope of survey. Biger, Haliun, Tugrug and Sharga soums of Govi-Altai aimag were selected<br />
to conduct camel milk sub-sector survey. The following criteria was applied when selecting<br />
these soums: proximity to aimag center (no more than 150 km from aimag center), number of<br />
camels, experience of herders to produce and sell camel milk products. Total of 56 people<br />
were interviewed during the survey including 15 customers from the aimag center, 29 herders,<br />
12 retailers from Eev hotel in Sharga soum, aimag center market, Burgast Bulag cooperative<br />
in Tugrug soum.<br />
Methodology of survey<br />
1st stage: selection of sub-sector/value chain<br />
Camel milk is one of sources of income for Govi-Altai herders and its market value is<br />
constantly rising. Contribution of camel milk to local economy, potential for more<br />
participation of local businesses in this type of production, number of participants in this<br />
business are main factors for selecting this value chain.<br />
2nd stage: Survey of sub-sector/value chain<br />
During this stage the first step we took was to gather all digital and print information<br />
related to sub-sector/value chain, data from secondary sources including previous surveys,<br />
statistical information, agricultural researches, political agendas of aimag and soum<br />
governors, short-term and long-term development programs, customs statistics. All<br />
this information was consolidated and necessary information was used for our survey.<br />
Next step was to organize interviews and discussions with main participants of the value<br />
chain (people making decisions regarding this sub-sector), conduct simple questionnaire<br />
surveys to verify some digital information. During the survey we identified main<br />
participants of the sub-sector, their vertical and horizontal relationship with each other,<br />
what they supply and buy from each other, how deep are their relationship, what<br />
percentage of market do the participants account for. Based on the results of the survey we<br />
created a chart of sub-sector/value chain.<br />
Discussions and interviews have been conducted on the following subjects when we<br />
identified main obstacles and opportunities:<br />
7
• Technology/product development<br />
• Market<br />
• Input supply<br />
• Management, organization<br />
• Policy coordination<br />
• Finance<br />
• Infrastructure<br />
During the survey we attempted to a) identify impact of relationships in the sub-sector/value<br />
chain b) reveal cooperation between businesses involved in horizontal and vertical<br />
relationship c) compare international and local requirements on the specific product<br />
3rd stage: identification of commercial or market solutions<br />
In this stage we identified causes of obstacles/opportunities and proposed business solutions to<br />
address these problems. We consider identification of who will implement sustainable<br />
commercial solutions as business solutions. We did not approach this matter from the<br />
program's interest.<br />
We selected the best solutions among many potential solutions and listed them according to<br />
level of importance.<br />
4th stage: Evaluation of solutions<br />
During the assessment we organized meetings on the aimag level to evaluate commercial<br />
solutions: who will benefit from the solutions, who will implement these solutions, how to pay<br />
for implementing the solutions.<br />
5th stage: Program intervention or identification of activities to be implemented<br />
Based on information collected during the previous stage we developed a work plan which<br />
identifed problems and obstacles facing beneficiaries and implementing organizations of these<br />
solutions and outlined intervention measures in these activities.<br />
Survey team<br />
The survey team consisted of the following members.<br />
• Ch. Tsetsegmaa, Executive director of Altai-Swiss Foundation in Govi-Altai aimag<br />
• D. Altaibayar, Financial manager<br />
• P. Dolgorsuren, Project officer<br />
• G. Munh-Erden, Program officer, Gobi Initiative/Mercy Corps<br />
• B. Elbegjargal, Officer in charge of Agricultural Policy at Govi-Altai aimag<br />
Governor's Office<br />
• V. Davaadorj, Chief of Animal Breeding Office of Aimag Agriculture Department<br />
8
II. SPECIFICS OF <strong>CAMEL</strong> <strong>MILK</strong> SUB-SECTOR<br />
2.1 Final consumer of camel milk products<br />
Production of camel milk and milk products is limited depending on area and population of<br />
camels. Camel milk has very high content of vitamin C and easily digestable alkalines and<br />
acids. Camel milk is sold in the form of fermented milk for medicinal purposes and demand<br />
for this product is high. Below is the list of main camel milk selling outlets.<br />
Table 4: Current camel milk selling outlets<br />
Sales outlets<br />
Amount,<br />
liters<br />
%<br />
Soum schools 4800 2.6<br />
Soum hospital 3600 2.0<br />
soum center residents 16000 8.8<br />
Road canteens 79500 43.7<br />
Aimag center 68300 37.6<br />
Buraat Bulag cooperative 4560 2.5<br />
Kidney treating<br />
sanatorium<br />
5000 2.8<br />
181,760 100.0<br />
Sales channel for camel milk<br />
3% 3%<br />
3% 2%<br />
9%<br />
35%<br />
45%<br />
Soum school<br />
Soum consumer<br />
Aimag center<br />
Kidney sanatorium<br />
Soum hospital<br />
Canteens<br />
"Buraat bulag" cooperative<br />
The table 4 and the chart shows that most of Govi-Altai camel milk trade or 45% of all trade<br />
takes place near Eev and Sharga bridge located on the roads going to the west. Small retailers<br />
manage this trade on western roads. 35% of milk sales happen in the aimag center, 2-9% of all<br />
9
milk is sold at soum centers, schools, hospitals. The sub-sector chart has more details about<br />
activities of these outlets, their links and interrelationship with each other.<br />
We tried to find out what kind of camel dairy products are sold on the market by studying 34<br />
herders from Biger, Haliun, Tugrug and Sharga soums. They produced and sold a total of<br />
76286 liters of camel milk in various forms of dairy products. We assumed that 1 kg of curd is<br />
made from 6 liters of milk, 1 kg of dried curd is made from 9 l of milk and 1 kg of cream<br />
products is made from 15 liters of milk.<br />
3500<br />
3000<br />
3000<br />
2500<br />
2000<br />
2000<br />
1500<br />
1500<br />
1500<br />
1000<br />
500<br />
1000<br />
600<br />
1200<br />
800<br />
700<br />
1000<br />
800<br />
0<br />
2005 2006 2007<br />
Camel milk beverage Camel milk wet curd<br />
Camel milk<br />
Other products<br />
70% of all camel milk is sold on the market. This chart indicates that most camel milk is sold<br />
on the market in the form of fermented milk - 61% of all sales. 15% of milk is sold as curd,<br />
11% as raw milk, 6% as dried curds and remaining 7% as cream and other products.<br />
There are several reasons why 61% of all camel milk is sold as fermented milk:<br />
• Fermented milk is easy and simple to produce. There is no need for special technology.<br />
Consumers prefer to use fermented milk.<br />
• Other dairy products use a lot of milk but output is low. For example 6 kg of curd is made<br />
from 20 l of milk.<br />
• The price of other dairy products is cheap though they use a lot of milk.<br />
• Dried curd made from camel milk is not firm and easily crumbles. It doesn't dry<br />
completely, so people don't buy it.<br />
10
Types and percentage of products sold at market<br />
Creamy<br />
products<br />
7%<br />
Wet curd<br />
15%<br />
Dried curd<br />
6%<br />
Milk<br />
11%<br />
Ferm ented<br />
milk<br />
61%<br />
Camel dairy products are in great demand and current production is not able to meet this<br />
demand. So prices rise every year. Camel dairy product prices grew up by 33.3-200% during<br />
the last 2-3 years. For example raw milk price rose by 33.3%, fermented milk by 150%,<br />
creamy products by 66.6%, curd by 200%. Even though the prices went up, the market<br />
demand is still great.<br />
According to Byambaa who sells camel milk<br />
in Eev hotel in Sharga soum, 6 households<br />
nearby sell every day 40-50 l of fermented<br />
2.2 milk Camel to travelers. milk sub-sector But sometimes chart suppliers<br />
run out of camel milk which causes<br />
shortages. Number of consumers steadily<br />
rises each year.<br />
11
Ulaanbaatar consumers<br />
Recipient<br />
Aimag<br />
consumers -58<br />
tons<br />
Western<br />
aimag<br />
consumers<br />
Soum schools,<br />
sanatorium, hospital<br />
-13,6 tons<br />
Soum center-<br />
16 tons<br />
School tea<br />
Break<br />
program -<br />
aimag<br />
center<br />
Milk retailers<br />
Aimag center<br />
market-6 people-<br />
1,5-2,0 tons<br />
Road hotels -9<br />
people - 80 tons<br />
Buraat Bulag coop-<br />
4,6 tons<br />
Camel milk<br />
producers<br />
Household needs,<br />
fodder for young<br />
animals-152 tons<br />
Households with<br />
less than 5 female<br />
camels -74 tons<br />
Households with<br />
more than 5 female<br />
camels - 260 tons<br />
Input suppliers<br />
Breeding sire<br />
supplier<br />
Veterinary<br />
services -8<br />
Information<br />
Mobicom<br />
2.3 Current participants of camel milk value chain, communication and information<br />
Input suppliers: in order to raise productivity and improve quality of camels, elite camel<br />
bulls are bought and used for breeding. World Vision international organization bought 150<br />
camels for MNT 80 million and donated them to herders of Tugrug, Sharga, Haliun, Biger and<br />
Tsogt soums. These camels included 30 Galba Gobi red bulls and 45 cow camels, 75<br />
Hoszogdor cow camels from Tugrug soum<br />
Veterinary service. There are 8 veterinary organizations working in Tugrug, Sharga, Haliun<br />
and Biger soums which provide veterinary services to camels. One camel gets an average of<br />
MNT 3000-3500 of veterinary services.<br />
Information dissemination service. Mobicom cell phone services are used to exchange<br />
information about buying and selling camel milk. Buraat Bulag cooperative and small retailers<br />
12
in road hotels and restaurants receive information by cell phones. Herders also send milk sales<br />
information by cell phones.<br />
Producers. Herders are divided into herders with less than 5 cow camels and more than 5 cow<br />
camels. Herders with less than 5 cow camels don’t sell milk and supply only own needs and<br />
needs of their relatives. This milk accounts for 30% of total milk production. Herders with<br />
more than 5 cow camels sell surplus of milk on the market. 94.2% of herders who participated<br />
in the survey owned 10 and more cow camels. The herder household with the biggest<br />
population of female camels could milk up to 50 camels a year, but due to lack of labor force<br />
they were not able to milk them all. Herder households produce camel milk drinks using<br />
traditional methods and sell them to aimag and soum residents as well as to travelers and<br />
drivers.<br />
Camel milk retailers. Retailers sell not only camel milk products. Dairy traders in the aimag<br />
center black market sell camel milk with other dairy products. However supply of camel milk<br />
is limited and only 1-2 tons of camel dairy products are sold annually. Camel milk is bought<br />
from herders and sold to consumers for 300-600 MNT higher. Camel milk is bought between<br />
October and March for 800-1000 MNT and sold at 1500-1800 MNT. Main Sharga soum<br />
retailers of camel milk products are not in the aimag center. They are 6 households operating<br />
Eev road hotel and 3 households operating restaurant near Sharga bridge. Local herders sell<br />
their camel milk for 1000 MNT to these retailers and the retailers sell for 1500-1800 MNT to<br />
travelers going to Hovd, Uvs and Bayan-Ulgii aimag. During winter and autumn when supply<br />
is sufficient, the retailers manage to sell 240-300 l of camel milk a day. These two locations<br />
sell about 33% of all produced camel milk.<br />
Residents of aimag center and soums, and travelers buy dairy products without any<br />
complaint. They buy in smaller quantities for own consumption. Camel milk curd is sold<br />
mostly to travelers. It's possible to use travelers to promote camel milk products and expand<br />
market.<br />
Kidney treating sanatorium. Herders of Biger soum sell their camel milk products to Kidney<br />
Treating Sanatorium. This sanatorium serves over 250 patients every day in June and July.<br />
The daily norm for patients is 1 liter of camel milk per patient. Kidney sanatorium receives<br />
clients from all over Mongolia including Ulaanbaatar. Camel fermented milk can reduce<br />
swelling, lower blood pressure, decrease loss of protein, relieve urination problems. The<br />
camel herders of Biger soum concluded agreements with the sanatorium to supply 6.4<br />
thousand liters of camel milk products during 2 months.<br />
There is one business in Govi-Altai that processes camel milk and makes "butsalgaa" or<br />
"huurtsug". This business is Buraat Bulag cooperative from Tugrug soum. This cooperative<br />
concluded a contract to supply camel milk products to 715 students of elementary classes of<br />
two schools at the aimag center as a part of Tea Break Program. According to the contract the<br />
cooperative will provide 150g of fermented camel milk per child every week. One serving<br />
costs 300 MNT, and one liter of milk costs 1900 MNT. Total amount of products for the Tea<br />
Break Program will be 4.6 thousand liters of camel milk during school season. The schools<br />
buy camel milk drink from cooperative members and other herders for 1000 MNT per liter.<br />
13
The cooperative manages all transportation issues and deliver more than 100 l of milk to the<br />
aimag center every week. The cooperative member herders camp on the distance of 145 km<br />
from aimag center and 30-40 km from the soum center. They bring the contracted camel milk<br />
in their own vehicles.<br />
Types<br />
Technology/product<br />
development<br />
Market<br />
III. MAIN OPPORTUNITIES AND OBSTACLES<br />
OF <strong>CAMEL</strong> <strong>MILK</strong> SUB-SECTOR/<strong>VALUE</strong> <strong>CHAIN</strong><br />
Obstacles/opportunities<br />
• Due to lack of proper processing technology, only fermented<br />
camel milk is produced<br />
• Quality of fermented camel milk easily deteriorates during<br />
summer time, so it becomes difficult to sell<br />
• Herders don't know how to add value to camel milk<br />
• Sales are slow because residents of urban places don't<br />
understand value of camel milk<br />
• Camel milk is used for medicinal purposes, so it's difficult to<br />
sell them in large quantities<br />
• Sales of camel milk products are low due to short supply<br />
Input supply • Pasture capacity, vegetation output is deteriorating. This causes<br />
production of camel milk drop during winter and spring.<br />
Management/organization • Herders are not able to make sales of dairy products in<br />
organized way<br />
• Some herders besides producing and selling own products<br />
procure camel milk from neighboring soums<br />
• Govi-Altai camel herders concentrate in certain area<br />
Policy/Coordination • No government policy to raise value of camel milk products<br />
• We support providing camel milk products to school children<br />
once a week within the Tea Break Program<br />
Infrastructure<br />
• Roads and communication are poorly developed. It's expensive<br />
to get dairy products to markets<br />
• Herders don't assist each other in selling dairy products. This is<br />
the reason why expenses are high<br />
Finance • Herders sell dairy products cheap due to shortage of cash<br />
14
IV. COMMERCIAL SOLUTIONS TO <strong>CAMEL</strong> <strong>MILK</strong> SUB-SECTOR OBSTACLES<br />
Problems Commercial solutions Solution providers<br />
1. Assist to obtain<br />
technologies for processing<br />
camel milk and production of<br />
value added products<br />
There is no technology to<br />
process camel milk and<br />
produce different kinds of<br />
dairy products. This is the<br />
reason why herders make<br />
only fermented camel milk.<br />
2. Assist with obtaining loans<br />
and equipment to establish<br />
small businesses to produce<br />
camel milk products<br />
3. Support production and<br />
sales of value added camel<br />
milk products such as dried<br />
worm curd, solid butter,<br />
fermented and carbonated<br />
camel milk, bottled<br />
"butsalgaa" and etc<br />
Local business support<br />
organization, Altai-Swiss<br />
Foundation, Agricultural<br />
Extension Center, University<br />
of Science and Technology,<br />
commercial banks<br />
Camel milk is easily spoiled<br />
during summer, and it<br />
becomes difficult to sell it<br />
Herders don't know how to<br />
add value to their product<br />
Residents of urban areas don't<br />
understand importance and<br />
value of camel milk, so sales<br />
4. Assist with development of<br />
new products such as dried<br />
curd with barley<br />
5. Support establishment of<br />
large water cooling storages<br />
near herder households<br />
selling camel milk<br />
6. Assist with delivery of<br />
camel milk to processing<br />
plants in special vehicles with<br />
refrigerators<br />
7. Assist herders to learn<br />
solid butter and fermented<br />
milk production technology,<br />
8. Help herders find<br />
equipment for extracting milk<br />
fat<br />
9. Assist with production of<br />
print materials to promote<br />
value of camel milk products<br />
Business support<br />
organizations, Food Research<br />
Institute, University of<br />
Science and technology,<br />
business operators,<br />
Agricultural Extension<br />
Center, Altai-Swiss<br />
Foundation<br />
Business support<br />
organizations,<br />
Agricultural Extension<br />
Center,<br />
Government organization in<br />
charge of Agriculture<br />
Altai-Swiss Foundation<br />
Local business support<br />
organizations,<br />
Altai-Swiss Foundation,<br />
15
of milk are slow<br />
Camel milk is used for<br />
medicinal purposes, so it's not<br />
possible to sell them in big<br />
quantities<br />
Sales of camel milk products<br />
are low due to shortage of<br />
dairy products<br />
Production of camel milk is<br />
low during winter and spring<br />
due to insufficient capacity of<br />
pastures, poor growth of<br />
vegetation<br />
Herders are not able to sell<br />
dairy products in organized<br />
way<br />
There is no government<br />
policy to raise value of camel<br />
milk products<br />
10. Support production and<br />
bottling of fermented camel<br />
milk with low fat in small<br />
bottles (250-500ml)<br />
11. Assist with linking<br />
Sharga soum retailers to local<br />
herders and concluding a<br />
contract to supply camel milk<br />
products<br />
12. Assist with safe bottling<br />
of camel milk at retail outlet<br />
13. Help herders raise their<br />
income new services such as<br />
offering camel milk, boiled<br />
milk, hot fermented camel<br />
milk to travelers<br />
14. Help herders raise output<br />
of camel milk during winter<br />
and spring by providing<br />
additional fodder to the<br />
animals<br />
15. Provide information on<br />
fodder traders and fodder<br />
price, help to connect with<br />
fodder traders<br />
16. Assist herders to supply<br />
camel milk to certain selling<br />
outlets near potential camel<br />
raising area (Haliun Olon<br />
Bulag, Tugrugiin Tuhum,<br />
Tungalag, Uguumur, Sharga<br />
gol). Help herders employ a<br />
trading agent to supply camel<br />
milk to processing factories<br />
17. Help producers and<br />
processors meet and discuss<br />
camel milk processing issues,<br />
raising price and value of<br />
dairy products<br />
Professional associations<br />
Local business support<br />
organizations,<br />
Altai-Swiss Foundation,<br />
Agricultural Extension<br />
Center,<br />
commercial banks<br />
Business operators,<br />
local business support<br />
organizations,<br />
Altai-Swiss Foundation<br />
Local business support<br />
organizations,<br />
business operators,<br />
Agricultural Extension<br />
Center,<br />
Altai-Swiss Foundation<br />
Altai-Swiss Foundation,<br />
Local BDS providers,<br />
Government organization,<br />
Professional associations<br />
Business operators,<br />
Government organization,<br />
NGO<br />
Support supply of camel milk 18. Introduce camel milk Agricultural Extension<br />
16
products to school children<br />
once a week as a part of Tea<br />
Break Program<br />
Delivery of camel milk<br />
products to markets are<br />
expensive due to poor road<br />
conditions and bad<br />
communication<br />
Herders do't cooperate with<br />
each other to sell dairy<br />
products. This raises overall<br />
costs<br />
Herders are short in cash<br />
which makes them sell their<br />
dairy products cheap.<br />
products bottled in 150-200<br />
mg plastic bottles and offered<br />
for Tea Break Program for<br />
market<br />
19. Assist herders camping<br />
near each other to establish<br />
herder cooperatives to jointly<br />
sell camel milk products<br />
20. Help herder groups to<br />
establish contacts with<br />
processors and retailers<br />
21 Assist herders to<br />
get advance payments for<br />
their products putting them as<br />
collateral<br />
Center,<br />
Professional associations,<br />
local business support<br />
organizations<br />
Business support<br />
organizations,<br />
Agricultural Extension<br />
Center,<br />
Government organization in<br />
charge of Agriculture,<br />
Business support<br />
organizations,<br />
Business operators,<br />
Altai-Swiss Foundation<br />
Selection Matrix of commercial solutions to camel milk sub-sector obstacles<br />
As a result of focus group discussions and questionnaires 22 commercial solutions to camel<br />
milk subsector obstacles have been identified. A special selection method was used to choose<br />
the best solution.<br />
The following two criteria was used for selection.<br />
• Income of participants grows as a result of this solution<br />
• Impact of solution reaches many people<br />
Income raising opportunities<br />
High 1 2; 3; 5; 6; 7; 8<br />
Medium 4; 8; 9; 10; 11; 14; 19; 16<br />
Low 12; 17; 18;21;15<br />
Low Medium High<br />
Number of beneficiaries<br />
17
V. EVALUATION AND INDICATORS OF COMMERCIAL SOLUTIONS<br />
TO <strong>CAMEL</strong> <strong>MILK</strong> SUB-SECTOR OBSTACLES<br />
Solution # 1<br />
Definition of solution.<br />
Assist to obtain technologies for processing camel milk and production of value added<br />
products<br />
Obstacle.<br />
Herders don't possess technology to process camel milk and produce different kinds of dairy<br />
products other than fermented camel milk. This hampers growth of herders' income<br />
Potential solution providers:<br />
• Local business support organization<br />
• Altai-Swiss Foundation<br />
• Agricultural Extension Center<br />
• University of Science and Technology<br />
• Commercial banks<br />
• Buraat Bulag cooperative<br />
Other market information related to the solution:<br />
Buraat Bulag cooperative participates in the Tea Break Program and annually produces 4600 l<br />
of camel milk products and supplies them to school children in Govi-Altai aimag center. It's<br />
possible to introduce camel milk processing technology based on Buraat Bulag cooperative<br />
and develop local small dairy processing plants. The industrial technology to process camel<br />
milk exists but dairy industry hasn't been able to introduce it into their operations yet.<br />
.<br />
Threats<br />
• Lack of skilled human resources with knowledge of camel milk processing technology<br />
• High costs of introducing technology<br />
Sustainable result:<br />
Volume of processed camel milk and sales income of businesses and herders will grow,<br />
business operations will begin to stabilize<br />
Evaluation indicators of solution provision:<br />
• Number of businesses using camel milk processing technology, growth of their<br />
income<br />
18
Solution #2<br />
Definition of solution.<br />
Assist with obtaining loans and equipment to establish small businesses to produce camel milk<br />
products<br />
Obstacle<br />
Herders don't possess technology to process camel milk and produce different kinds of dairy<br />
products other than fermented camel milk. This hampers growth of herders' income<br />
Potential solution providers:<br />
• Local business support organization<br />
• Business entity,<br />
• Altai-Swiss Foundation<br />
• Agricultural Extension Center<br />
• University of Science and Technology<br />
• Commercial banks<br />
Other market information related to the solution:<br />
Currently herders sell one liter of fermented camel milk for 1000 MNT and retailers add 500-<br />
800 MNT per liter without adding any value<br />
.<br />
Threats:<br />
• Sales of camel milk products are low due to poor promotion and product recognition<br />
• Difficult to select proper equipment<br />
Sustainable results:<br />
More commercial deals between processors and herders, growth of camel milk production,<br />
expansion of business activities<br />
Evaluation indicators of solution provision:<br />
Amount of camel milk supplied to processing plants, number of herder groups and<br />
cooperatives supplying milk, sales income<br />
Solution #3<br />
Definition of solution<br />
Support production and sales of value added camel milk products such as as worm dried curd,<br />
solid butter, fermented and carbonated camel milk, packaged "butsalgaa" and etc<br />
Obstacle.<br />
Herders don't possess technology to process camel milk and produce different kinds of dairy<br />
products other than fermented camel milk. This hampers growth of herders' income<br />
Potential solution providers:<br />
• Local business support organization<br />
19
• Business entity<br />
• Altai-Swiss Foundation<br />
• Agricultural Extension Center<br />
• University of Science and Technology<br />
• Commercial banks<br />
Other market information related to the solution:<br />
There are available technologies to use extracted fat from camel milk for production of<br />
cosmetic and beauty products, use fat free camel milk for production of dried worm curd and<br />
pasteurized fermented milk. These technologies can be used by local processing plants.<br />
Threats:<br />
• It's difficult to link camel milk products to big markets<br />
• Poor consumer recognition of the product<br />
Sustainable results:<br />
Establishing mutually beneficially links between processors and herders will increase<br />
production and profit of camel milk products<br />
Evaluation indicators of solution provision:<br />
• Types of products, amount of sales<br />
• Number of herder suppliers of raw materials, amount of sales income<br />
Solution #5<br />
Definition of solution<br />
Support establishment of several refigerators with water cooling system near herder groups<br />
selling camel milk products<br />
Obstacle. Fermented camel milk can be easily spoiled during summer<br />
Potential solution providers:<br />
• Business support organizations, Food Research Institute, Technical University<br />
• Business operators<br />
• Agricultural Extension Center<br />
• Altai-Swiss Foundation<br />
Other market information related to the solution:<br />
Establishing milk cooling storages with natural or artificial cooling systems will allow to cool<br />
camel milk down to 2 0 C and keep for 24-36 hours during summer. Each small retail outlet will<br />
be able to receive 400-500 l of camel milk and dairy products at one time.<br />
Threats:<br />
• It could become difficult to procure raw materials because suppliers are not organized.<br />
20
• Herder might supply products not meeting production standards<br />
Sustainable results:<br />
Paying cash to herders makes them more interested in selling dairy products further.<br />
Processors will have a stable supply of raw materials<br />
Evaluation indicators of solution provision:<br />
Number of retal outlets, amount of products received, amount of sales<br />
Solution #6<br />
Definition of solution<br />
Assist to transport dairy products from cooling storages to processing plants in vehicles with<br />
refrigerators<br />
Obstacle<br />
Camel milk is easily spoiled during summer so it becomes impossible to transport it.<br />
Potential solution providers:<br />
• Business support organizations, Food Research Institute, Technical University<br />
• Business operators<br />
• Agricultural Extension Center<br />
• Altai-Swiss Foundation<br />
Other market information related to the solution:<br />
Camel milk can be transported in vehicles with 2-3 ton capacity refigerators to the market.<br />
This service should be provided by separate business organizations or a processing plant.<br />
Threats:<br />
• Transportation costs rise<br />
• Need to transport dairy products separately by their types might arise<br />
Sustainable results:<br />
Transportation services will be provided by interested businesses or processors on commercial<br />
terms<br />
Evaluation criteria of solution provision:<br />
Number of businesses engaged in transportation of products in refrigerators, their sales<br />
income<br />
21
Solution #7<br />
Definition of solution.<br />
Help herders to learn technology to make solid butter from camel milk and produce fermented<br />
camel milk from fat free milk<br />
Obstacle<br />
Herders don't know how to add value to their products and lose opportunity to raise their<br />
income<br />
Potential solution providers:<br />
• Business support organizations,<br />
• Agricultural Extension Center<br />
• Government organization in charge of Agriculture<br />
• Altai-Swiss Foundation<br />
Other market information related to the solution:<br />
Herders can extractfat from camel milk and produce solid butter in household conditions, sell<br />
the product on the market cooperating with other sellers and maximize their profits.<br />
Threats:<br />
• Herders don't possess technology to extract fat and make solid butter<br />
• Herders don't have knowledge to make fermented camel milk from fat free milk<br />
Sustainable results:<br />
Buying solid butter from herders will encourage them to produce more products and raise<br />
their income<br />
Evaluation criteria of solution provision:<br />
Amount of solid butter produced and sold on the market, sales income<br />
Solution #8<br />
Definition of solution.<br />
Help herders purchase fat extracting equipment<br />
Obstacle.<br />
Herders don't know how to process milk and add value, so they lose opportunity to raise their<br />
income<br />
Potential solution providers:<br />
‣ Business support organizations,<br />
‣ Agricultural Extension Center<br />
‣ Government organization in charge of Agriculture<br />
22
‣ Altai-Swiss Foundation<br />
Other market information related to the solution:<br />
Herders will be able to raise their income from dairy products by extracting milk fat and<br />
producing solid butter<br />
Threats:<br />
- Lack of equipment to 1extract fat from milk, lack of knowledge to operate such an<br />
equipment<br />
Sustainable results<br />
Evaluation criteria of solution provision:<br />
- Amount of solid butter sold, growth of sales income<br />
23
Proposal to improve camel milk value chain<br />
VI. PROGRAM INTERVENTION<br />
Recipient<br />
Aimag<br />
center<br />
Nomin,<br />
Minii<br />
Delguur<br />
Moncream<br />
Tea Break,<br />
aimag<br />
Camel milk<br />
products<br />
Pasteurized<br />
fermented<br />
camel milk-<br />
0,5 l<br />
Carbonated<br />
fermentd milk-<br />
0,5 l<br />
Dried worm<br />
curd<br />
Solid butter Huurtsug - 0,2<br />
l<br />
Camel milk<br />
processor<br />
Buraat Bulag cooperative- Camel milk<br />
processing plant<br />
Dried curd with<br />
20% barley<br />
Transportation of milk in refrigerators<br />
Related<br />
services<br />
Cooling point<br />
Cooling point Cooling point Cooling point<br />
Primary processing<br />
of camel milk<br />
Solid butter<br />
Fat free fermented milk<br />
Pure milk<br />
Camel milk<br />
producers<br />
HALIUN<br />
/Olon Bulag/<br />
camel herder<br />
groupsг-20<br />
households<br />
TUGRUG<br />
/Uguumur/<br />
camel herder<br />
groups -9<br />
TUGRUG<br />
/Tuhum/<br />
Camel herder<br />
groups -13<br />
TUGRUG<br />
/Tungalag/<br />
Camel herder<br />
groups-12<br />
SHARGA<br />
Camel herder<br />
groups-10<br />
Input suppliers<br />
Supplier of camel<br />
bull<br />
Supplier of<br />
fodder<br />
Veterinary service<br />
- 8<br />
Information<br />
Mobicom<br />
24
Solutions<br />
Facilitate introduction of<br />
technology to produce value<br />
added camel milk products.<br />
Assist with acquiring loans,<br />
equipment and technology to<br />
establish camel milk processing<br />
small plants.<br />
Support production and sales of<br />
value added camel milk<br />
products such as worm dried<br />
curd, solid butter, fermented<br />
and carbonated camel milk,<br />
bottled "butsalgaa" and etc<br />
Support establishment of water<br />
cooling storages near herder<br />
groups engaged in production<br />
and sales of camel milk<br />
products<br />
Assist to transport dairy<br />
products from cooling storages<br />
to processing plants in vehicles<br />
with refrigerators<br />
Help herders to obtain<br />
equipment to extract fat from<br />
camel milk<br />
Potential program intervention<br />
• Help herders to conduct primary processing of camel<br />
milk. For example organize trainings for herders on<br />
extraction of fat from milk, production of solid butter<br />
and fat free fermented camel milk<br />
• Support establishment of camel milk processing plants<br />
based on current dairy businesses. Develop profitable<br />
dairy production project. Facilitate purchase of dairy<br />
equipment.<br />
• Teach herders to feed camels during spring season when<br />
output of milk falls. Support fodder supply businesses<br />
• Improve technology for production of value added<br />
camel milk products<br />
• Link finished products to big markets. For example<br />
assist with getting access to Moncream or trade<br />
networks<br />
• Produce new products, promote them for the market<br />
• Support neighboring herders from Olon Bulag in<br />
Haliun, Uguumur, Tuhum, Tungalag, Sharga river in<br />
Tugrug soum to establish herder cooperatives and<br />
partnership with the purpose of jointly selling products<br />
on the market.<br />
• Support establishment of cooling storages for receiving<br />
and preserving camel milk. Support businesses engaged<br />
in receiving and preserving these products.<br />
• Support transportation of camel milk products from<br />
cooling storages to processors in vehicles with<br />
refrigerators. Provide necessary information to<br />
interested parties about vehicles with refrigerators<br />
• Provide market information about milk fat extracting<br />
equipment and its suppliers. Teach to use equipment<br />
25
Literature<br />
1. Dashdendev D. 1967. Research of some physical and chemical charateristics of camel milk<br />
during milking season<br />
Written by University of Agriculture, No 9, page.-25-30.<br />
2. Jadambaa Sh., Batsuh Ts., Baigalmaa P. 2000 Research on use of camel milk to treat liver<br />
diseases.<br />
Product of Technical University, No 8, page 17-21<br />
3. Indra R, Magash A, Biichee N. 1998. Camel Research. Ulaanbaatar., page 303<br />
4. Indra R., Osorhaan I.1987. Industrial processing of camel milk. Agricultural magazine, No1<br />
5. Luvsan B. Camel farming in Mongolian People's Republic. UB., 1975, 112 pages.<br />
26