Annual report 2018 for GGAHP ENG

1. GREEN GOLD ANIMAL HEALTH PROJECT
JANUARY - DECEMBER 2018
ULAANBAATAR 2018

2. CONTENTS
ABBREVATIONS..........................................................................................................................3
BRIEF ABOUT THE GG AHP.......................................................................................................4
SUMMARY.....................................................................................................................................5
OUTPUTS AND PERFORMANCE ACCORDING TO YEARLY PLAN
OF OPERATION 2018...................................................................................................................7
Outcome 1: Sustainable rangeland management is ensured through increased and
improved pasture user groups and rangeland use agreements............................................7
Output 1.1 Consolidation of PUG/RUA approach in 11 existing aimags ..............................7
Output 1.2 Up scale of the PUG/RUA approach is supported in 7 new aimags .................14
Output 1.3 Support establishment and management of RUA database.............................18
Output 1.4 Support institutional capacity development of the PUG system .......................20
Outcome 2: Income of HH is increased through collective market access and
improved quality of livestock products (veterinary services)..............................................23
Output 2.1 Facilitated linkages between PUGs led cooperatives and processors.............23
Output 2.2 Enhanced capacities of PUG based cooperatives ............................................27
Output 2.3 Improved quality of selected products ...............................................................31
Output 2.4 Improved access of veterinary services in selected aimags.............................34
Outcome 3: Conducive policy environment for effective animal health system and
sustainable rangeland management are supported..............................................................36
Output 3.1 Support legal environment for animal health and rangeland ............................36
Output 3.2 Support specific policy measures based on the demand by Ministries (VABA,
ALMCG, MoFALI) ........................................................................................................................38

3. ABBREVATIONS
ALMGC Agency for Land Management, Geodesy and Cartography
AFeds Aimag Federation of Pasture User Groups
APUG Soum Association of Pasture User Goups
PUG Pasture User Group
WG Working Group
SDC Swiss Agency for Development and Cooperation
GGAHP Green Gold - Animal Health Project
CRH Citizens Representative Hural
NFPUG Mongolian National Federation of Pasture User Groups of
herders
NAMEM National Agency for Metereology and Environmental
Monitoring
MoFALI Ministry of Food, Agriculture and Light Industry
ADFA Aimag Department of Food and Agriculture
SVU Soum Veterinary Unit
MALI Mongolian Association of Leather Industry
MWCA Mongolian wool and cashmere association
SLM Soum Land Manager
RUA Rangeland Use Agreement
SRRMA State Reserve Rangeland Management Administration
GAVS
SCVL
General Authority of Veterinary Service
State Central Veterinary Laboratory
MULS
NAEC
Mongolian university of life science
National Agency of Extension service
RMWG Rangeland Management Working Group
ESD Ecological Site Description
TNC The Nature Conservancy
SRB Strenthenining representative bodies Project
MF Matching Funds
MALI Mongolian Association of Leather Industry
MWCA Mongolian Wool and Cashmere Association

4. BRIEF ABOUT THE GG AHP
Reporting period 1 January - 31 December 2018
Planned budget 2,933,300 CHF
Actual spending 2,401,854 CHF
Financial delivery 81.8%
Overall goal Contribute to improved livelihood of herder households through sus-
tainable rangeland management, better marketing and a conducive legal
and policy environment.
Outcomes/Outputs 1. Outcome 1: Sustainable rangeland management is ensured
through pasture user groups (PUG) and rangeland use
agreements (RUA)
1.1 Output 1.1. Consolidation of PUG/RUA in 11 existing aimags
1.2 Output 1.2. Upscale PUG/RUA approach is supported in re-
maining 7 aimags
1.3 Output 1.3. Support technical skills and database development
at national and local level state agencies for RUA
1.4 Output 1.4. Support institutional capacity development of PUG
system
2. Outcome 2: Income of herder’s households is increased through
collective market access and improved quality of livestock
products thanks to improved veterinary services
2.1 Output 2.1: Facilitated linkag-es between PUG-led coopera-tives
and processors
2.2 Output 2.2.: Enhanced capaci-ties of PUG based coopera-tives
2.3 Output 2.3: Improved product quality of selected livestock
products
2.4 Output 2.4: Improved access to veterinary services in se-lected
aimags
3. Outcome 3: Conducive policy environment for effective animal
health system and sustaina-ble rangeland are supported
3.1 Output 3.1.: Support legal en-vironment for animal health and
rangeland
3.2 Output 3.2.: Support policy measures based on demand by
ministries/agencies
Beneficiaries 80’000 herder households (320’000 people, 50%F); 7’000 herders’
leaders (30%F), civil servants (15%F), and elected khural members
(10%F); 25’000 herder households (100’000 people) with access to micro
grants through matching funds or credit and saving cooperatives; 500
members (30%F) of 100 cooperatives; veterinarians/agricultural officers
(20%F); owners of processing companies (50%F);
Partners MoFALI, National and Aimag Federation of PUGs, NAMEM, ALMGC,
VABA, MSUA, NUM, NAEC, aimag, soum governments, PUGs, herders,
Mongolian wool and cashmete association, Mongolian Associaiton of
Leather Industry, private sector stakeholders
SDC Contribution 9.8 Mio CHF

5. SUMMARY
2018 marks the lowest rate of annual livestock growth in the past decade which stands at 0.4%.
It has been 8-10% on average. According to the MoFALI, the lower growth rate of animal
numbers is due to following main factors: herders controlling animals birth rate as preceding
summer was dry thus taking preventive measures for possible difficulties in following winter,
increased animal sales due to higher price of meat and better market opportunities for export,
and changing attitude of herders not to increase number of animals rather focus on productivity
enhancement per head of livestock. In 2018, Mongolia has seen the record of meat export in the
past 20 years reaching 54.9 thousand tons (4.4 Million animals). Majority of the export was made
to China. However, due to outbreak of animal diseases in 15 out of 18 aimags in early summer,
many processing plants forced to cancel supply contracts.
According to findings of the second edition of National Rangeland health assessment, overall
rangeland health has stabilized even reduced from 65% to 57% and researchers attribute this
positive trend to high recovery capacity of Mongolian rangelands to reduced grazing pressure,
and commitmentofherders to improve their grazing management practices. However, compared
to the conditions assessed in 2014, the previous reporting year, the proportion of sites that were
classified to a non to slightly degraded level has decreased by up to 10% while sites classified
to heavily or fully degraded level has increased by 4.3-5.9%. At present, there are ample
opportunities for changes in management and policy that improve rangeland health. But it is
important to act decisively and promptly before those opportunities are lost.
In the consolidation phase GG AHP aims to ensure best practices and results of the project are
sustained and continued thanks to institutionalized capacity development of local partners. The
project has identified three main outcomes. Outcome 1 is to ensure sustainable rangeland
management through increased and improved pasture user groups and rangeland use
agreements. In 2018, GG AHP has supported Mongolian National Federation of PUGs, ALMGC,
NAMEM and MoFALI to up scale the PUG RUA approach into 183 soums of 18 aimags which
constitute 51% of total national soums. As of December, 76’800 herder households have joined
1445 PUGs, 830 of which established RUAs for responsible and sustainable management of
their common rangelands. The PUGs have altogether invested 600.0 Million MNT in various
projects to improve their rangelands. There are 156 Soum Associations of PUGs and 18 Aimag
Federations of APUGs formed. Increasing number of PUGs are signing second level RUA
including de stocking arrangements. In 2018, 20 PUGs from 7 aimags (Bayanhongor, Zavkhan,
Arkhangai, Hovd, Gobi-Altai, Uvurkhangai and South Gobi) have advanced into second level
RUA with the conditions to reduce stocking rate, and established Rangeland risk funds from
voluntary grazing fee collected from members worth 228.0 Million MNT. This shows that herders
are willing to pay grazing fee provided that the funds will be managed and used locally.
The initiative of GG AHP to empower PUGs and Bag Citizens Hural to develop Rangeland
management regulations and lobby all the way to Aimag government and Aimag Citizens Hural
for approval is successfully y the National PUG Federation. In 2018, 47 soums of 9 aimags have
adopted soum rangeland regulations. Rangeland regulations approved by Soum and Aimag
Citizens Hural provide a legal and policy framework to enforce institutionalization of PUG RUA
approach and sustainable rangeland management practices. The PUG RUA approach is one of
the main tools of the regulations. In order to internalize necessary capacity and skills
development for the implementation of soum and aimag rangeland regulations and
institutionalization of PUG RUA approach for sustainability, GG AHP has facilitated formation
and operations of Aimag and Soum Rangeland Working groups composed of core professionals
of relevant government agencies.
Under the Outcome 1 GG AHP has tested and institionalized the enforcement mechanisms in
the ALMGC while creating grazing impact photo monitoring system where each of four seasonal
rangelands is annually assessed with three indicators of international standards which are
change in palatable species, basal cover and productivity. As of December 2018, soum land
managers in cooperation with PUG and APUG leaders have identified and installed about 4700
photomonitoing spots.

6. GG AHP Outcome 2 aims to increase herder households’ income through collective market
access and improved quality of livestock products (including better veterinary services). Under
outcome 2, GG AHP aims to strengthen marketing cooperatives established next to APUGs and
Aimag Federations. With the support from GG AHP to improve leadership skills and
organizational capacity and governance, herders marketing cooperatives are increasingly
gaining financial and operational strength. This has resulted in increasing membership and
market access for herders. In 2018, total gross sales income of 75 APUG and Aimag federation
based cooperatives has reached 11,9 billion MNT which 57% higher than last year. Mature
herders MFs are up grading into SCCs. In 2018, GG AHP has provided technical assistance to
10 mature MFs to transform into SCCs and qualify to obtain a special licence from State Financial
Regulatory Committee.
Based on the institutional set up of PUG RUA, GG AHP and National PUG Federation has
developed a livestock raw material quality traceability system since 2017 which is one of the
important pre conditions to expand marketing opportunities beyond Mongolia. The system has
been tested for yak and baby camel wool and cashmere in the domestic market and in order to
expand marketing opportunities, GG AHP has made a contract with European and local software
companies to develop it into international standards. The meat traceability is being tested in 15
pilot soums of 5 aimags benefitting herder households and processing companes. In 2018, 17
APUG cooperetives have facilitated sales of 49138 livestock through traceability system
providing customers meat, the origin of which is validated, healthy and no drug residual. For the
creation of traceability of animal health and with no drug residual, GG AHP has assisted the
State Central Veterinary Laboratory to expand its “veterinary integrated laboratory information
system” into 330 soums enabling to monitor veterinary services provided to herders, disease
outbreak and provide validation for drug residual test. Animal health traceability system is handed
over to the GAVS for up scaling. In 2018, GAVS has committed 300.0 milllion MNT and MoFALI
3 billion MNT for up scaling of the animal health traceability.
Ouctome 3 is to facilitate conducive policy environment for effective animal health system and
sustainable rangeland management. GG AHP has partnered closely with MoFALI on the
formulation and development of current the Draft Rangeland law. The concept of the law
integrates three key elements of GG AHP: PUG RUA approach that herders form collective group
based on the traditional rangeland boundaries and use rangelands on the basis of user
agreement with local government and grazing fee to be collected, but the spending of it to be
managed locally. GG AHP has played a central role in the support of lobby group in the
Parliament and constructive awareness raising evens at the national, aimag and soum levels.
The Rangeland law has been prepared by the MoFALI and however due to political turmoil and
instability the law has not been submitted. At the appointment of MoFALI new Minister in January
2019, several MPs have requested to put priority on the submission of the Rangeland law in this
spring session.
SDCGG AHP has supported two rounds of consultation among herders in cooperation with FAO
Mongolia on the draft rangeland law in 2016 and 2018. According to surveys made among about
1400 herders during consultation meetings, 70 per cent of participants responded that the
Rangeland law is urgently needed in order to regulate current open access regimeand to control
the increasing number of animal. At the 8th
Meeting of Global Sustainable Livestock Agenda
held in June in Ulaanbaatar which was co hosted by SDC and National PUG Federation of PUGs
with other partners, several presentations and inputs weremade on the state of rangeland
degradation and the urgency of improving regulatory environment while adopting Rangeland law.
Keynote presentationы on Rangeland ecosystem and herders’ perspective on sustainable
rangeland and herding practices were prepared by the GG AHP. The recommendation of the
GASL included urgent adoption of Rangeland law of Mongolia in order to curb increasing
rangeland degradation.
In 2018, MoFALI has put the priority in the implementation of newly adopted Animal Health law,
yet because of changes in the MoFALI leadership, development and approval of important
secondary legislations and creation of necessary aimag and soum structure were delayed. GG
AHP has provided technical assistance to MoFALI and GAVS in the formulation and adoption of
116 secondary legislations and acts.

7. OUTPUTS AND PERFORMANCE ACCORDING TO YEARLY PLAN OF
OPERATION 2018
Outcome 1: Sustainable rangeland management is ensured through increased and
improved pasture user groups and rangeland use agreements
Output 1.1 Consolidation of PUG/RUA approach in 11 existing aimags
Output 1.2 Up scale of the PUG/RUA approach is supported in 7 new aimags
Output 1.3 Support establishment and management of RUA database
Output 1.4 Support institutional capacity development of PUG system
Outcome 1: Sustainable rangeland management is ensured through increased
and improved pasture user groups and rangeland use agreements
Output 1.1 Consolidation of PUG/RUAapproach in 11 existing aimags
As of December 2018, 70% of all herder households from 7 old aimags have been organized
into PUGs. In the mid level 4 aimags which have been covered since 2015, the Aimag APUGs
Federation in cooperatin with ALMGC and Aimag department of Agriculture, and NAMEM have
facilitated the establishment of 76 PUG in 2018. This makes PUGs covering 13 soums from 20
pilot soums in the mid level aimags.
In 2018, GG AHP and National PUG Federation has focused on capacity and skill development
with the aimag and soum level government agencies and Aimag Federation of APUGs in old and
mid level 11 aimags on the enforcement and monitoring mechanisms of RUA, and creation of
supportive policy and legal environment in cooperation with the aimag governments. In order to
ensure coordination and cooperation of soum and aimag level key institutions involved
in different issues of sustainable rangeland management Aimag and soum Rangeland
management working groups are operating in 151 soums and 18 aimags involving all
relevant stakeholders. This is a very important platform to ensure sustainability of PUG
RUA approach, and institionalization of sustainable rangeland management practices at
the aimag and soum levels. In 2018, Aimag and Soum Rangeland working groups have
facilitated establishment of RUA with 76 PUGs in 11 aimags.
In 2018, GG AHP in cooperation with soums APUGs, Aimag Federations and Aimag
Land department and soum land managers have installed additional photo monitoring
spots in 2731 spots in four seasonal grazing lands of old and newly created PUGs. This
makes photo monitoring spots of 4700 covering all soums nationwide (Picture 1). GG
AHP has supported 2 serial training for soum land managers in cooperation with the
ALMGC and MULS of all 11 aimags. Yet, with frequent changes of soum land managers
makes it challenging to see steady improvement in capacity development of soum land
managers. Rangeland annual photo monitoring is a crucial part of RUA enforcement
measuring the impact of annual grazing management of seasonal rangelands of PUGs.
Picture 1: Rangeland health photomonitoring spots installed nationwide.

8. In order to improve the capacity of ALMCG to monitor the enforcementof RUAs and annual trend
of rangeland health, spot heavily degraded rangelands and prevent healthy rangelands from
degradation, GG AHP has provided technical assistance to link rangeland ecological capacity
maps with maps of vegetation and soil data at the national scale and corrected mistakes
identified in the mapping of ecological regions. This new updated rangeland ecological capacity
map has been developed since 2017 and handed over to the ALMCG in 2018 (Picture 2).
Picture 2. National rangeland ecological capacity map
GG AHP has tested mobile phone app to use in
rangeland health photo monitoring and data
transmission in cooperation with ALAMG and National
PUG Federation. The idea is to carry out the rangeland
health photo monitoring in a less costly and less time
consuming way, and to reduce work pressure of soum
land managers. This application could use Google
Play Store at no cost, and it is possible to load in
Smartphones. It can work normally regardless if there
is mobile phone network and internet access. It will be
loaded with photomonitoring spots, and land
managers may find the monitoring spots with
coordinates and name of the location. The advantage of this application is that with the help of
GPS it can locate the photo monitoring spots when there is no mobile network nor internet is
available. Upon connection of the phone with internet and mobile network data is automatically
inserted into the database in the computer.
Rangeland health monitoring database created at the NAMEM is getting upgraded in terms of
structure, information and services to meet the demand of different customers, herders, land
managers and policy makers at the national level. Within preparation of second edition of
National Rangeland health assessment, in order to improve the accuracy of recovery classes,
rangeland health assessmentdot map is added with coordinates of the monitoring spots (Picture
3). The recovery classes continue getting validated and used by more and more local research
institutes. In 2018, the Institite of Botany of the Academy of Science of Mongolia has
recommended rangeland recovery classes as a scientifically proven tool and which provides
trend of rangeland degradation.

9. Picture 3. Up dated rangeland health reference and recovery map of eastern region.
In 2018, this exercise was done in the aimags
with the heaviest rangeland degradation, Henty,
Dornod, Sukhbaatar and Dorno-gobi aimags
which enabled to define the size of rangelands
that are about to pass the threshold of
regeneration and turning into deserts. National
PUG federation and GG AHP has provided this
information to aimag government leaders
warning to take decisive measures soon.
The new edition of National Rangeland health assessment was released in October 2018
showing the changes and trends of rangeland health from the baseline created in 2014 with the
support of GG AHP. Compared to baseline of 2014, percentage of degraded rangelands has
declined from 65% to 57% (Picture 5). The researchers attribute this positive trend to high
rccovery capacity of Mongolian rangelands to reduced grazing pressure, and commitment of
herders to improve their better grazing management practices.
Picture 4. National rangeland health monitoring map.
According to the national rangeland health assessment, among 57% of degraded rangelands,
13.5 % in slightly degraded, 21.1 % in moderately degraded; 12.8 % in heavily degraded and
10.3 % in fully degraded level. Comparing to the conditions in 2014, the previous reporting year,
the degree of degradation has increased in last two years; the proportion of sites that were non
to slightly degraded level has decreased by up to 10 % while the sites classified to a heavily or
fully degraded level has increased by 4.3-5.9 percent; rangeland communities are shifting to
more degraded states. High proportion of these sites are observed in Arkhangai, Tuv, Selenge
and Dundgobi aimags shifted to higher degradation levels, and the aimags featuring the highest
proportion of highly degraded (IV, V) sites were Sukhbaatar and Dornogobi aimags (Picture 5).

10. Picture 5. Spread of heavily and completely degraded rangelands
Based on an evaluation of the ecological processes causing degradation, the previous National
Report concluded that changes to grazing management could result in complete recovery or
significant improvement within 10 years for a majority of monitoring sites, representing more than
half of Mongolian rangelands. Based on 2018 data, there is still a great opportunity for recovery
through improved grazing management, but the number of monitoring sites that will require more
than 10 years for recovery, or that may prove to be irrecoverable, has been increased by 5
percent.
Having soums and aimags adopting rangeland management regulations integrating PUG RUA
approach and ESD based rangeland health monitoring is one of the main strategies to ensure
sustainable management of rangelands. These include ESD based participatory rangeland
health assessment and monitoring, responsible management of shared rangelands through
PUGs, establishment and enforcement of RUAs, estimation of current carrying capacity of
rangelands based on ESD data and grazing impact photo monitoring thus to inform herders
about number of livestock exceeding current carrying capacity of rangelands, the need for
additional hay and forage for the next winter and spring, in some cases introduction of voluntary
grazing fee schemes, management of Rangeland Risk Fund established from grazing fee.
According to current legal framework, soums and aimags may adopt rangeland management
regulations with the approval of respective levels of citizens hurals. The initiative of Bayanhongor
aimag to organize a public consultation of Rangeland management regulation by herders and
approval by soum and aimag citizens hural has been replicated in Zavkhan, Arkhangai, Gobi-
Altai and Uvs aimags. The main objective of this Regulaiton as identified by herders and local
government is to ensure sustainable use of rangelands within its carrying capacity and herders
pay grazing fee on the animals that are above the carrying capacity which will be collected in a
Soum Rangeland Risk Fund and invested back in sustainable rangeland management practices.
As of December 2018, 5 aimags and 47 soums had rangeland management regulations
approved by respective Citizens Hurals. In addition, Hovd aimag federation of PUGs in
cooperation with WWF, The Nature Conservancy and “Mercy Co” International NGO has
supported 8 soums to adopt soum Rangeland management regulations. Consultation meetings
among herders and soums having disputes with access to shared rangelands have resulted in
an agreement defining and respecting mutual grazing boundaries. Immediate results have been
that 14 PUGs of 4 soums of Hovd aimag have freed heavily degraded summer rangelands from
animal grazing, introduced better stocking density management in autumn rangelands. members
of PUGs had to mobilize watchmen among themselves around rested rangelands to monitor the
compliance of herders/members. These 4 soums created and operating soum rangeland risk
funds. Based on the experiences and good practices so far, Hovd aimag APUGs federation
lobbied the Aimag Government to develop aimag rangeland policy, and adopt aimag rangeland
management planning and regulations to implement a aimag rangeland policy.
In Bayan-olgy aimag, PUGs grazing boundaries have been defined by the Aimag Federation
don’t match with the methodology adopted by the ALMGC with the support of GG AHP. Many
of the PUGs made of herder households only share winter and spiring rangelands. Summer and
autumn rangelans still remain under open access regime for all soum herders. In 2018, GG AHP
in cooperation with ALAMG and National PUG Federation, has provided series of training and
demos to all soum land managers and aimag engineers of Bayan-Olgy aimag on how to integrate

11. summer and autumn rangelands into existing PUGs. In 2018, four soum PUG boundaries have
been updated with the concensus of members.
In the olf 7 aimags, more and more PUGs are committed to enforce the RUAs, improve
their grazing management practices, rest degraded rangelands in a critical time to let it
recover. In 2018, in 7 old and 4 middle level aimags herders and PUGs have rested from
animal grazing about 9 million hectars of heavily degraded rangelands for recovery.
Photomonitoring documents of rangelands recovering with improved grazing
management and reduced stocking density are recorded in ALMGC grazing impact
monitoring database and National PUG federation database. GG AHP and National PUG
Federation use these evidences in training and awareness raising activities. For
instance, the picture below shows the example of rangeland recovery in Tsahir soum of
Arkhangai aimag where herders have agreed to free heavily overstocked rangelands
due to unresolved dispute between herders of two neighboring soums. According to
photomonitoring of rangeland health the cover, percentage of palatable species has
increased (Picture 6).
Picture 6: Comparision of rangeland recovery between August 2017 and August 2018.
In 2018, GG AHP and National PUG Federation has developed a plan on expanding second
level RUA. The main objective of the second level agreement is to enforce binding conditions to
reduce the stocking rate gradually and balance with current carrying capacity of rangelands.
According to research assessment made by local specialists, the ideal take- off rate is between
8-15% annually. In order to support PUGs and herders signed second level RUAs, Nat PUG
Federation in cooperation with local government implemented following measures; 1) provide
simple manuals to herders on how to make selective breeding within the herd to improve
productivity per head and maintain proper ratio between male and breeding animals; 2) facilitate
market access for animals and meat; 3) facilitate collection of voluntary grazing free which is
saved Rangeland risk fund; 4) encourage herders to increase savings while selling more animals
in their Savings and Credit cooperatives.
By July 2018, members of 20 PUGs from 7 aimags have paid grazing fee totallig 142,4 Million
MNT (Table 1). In order to promote and spread good practices of grazing fee collection, GG AHP
and National PUG Federation are documenting various local initiatives of grazing fee collection,
management and spending of grazing fee. For instance, in Bayanhongor aimag herders have
paid to pay a flat grazing fee per each head of animal, whereas in Arkhangai aimag a grazing
fee is imposed different for large and small animals.
In terms of management, at the Bagh and soum hural meeting, herders have agreed to set to
Rangeland Risk Fund from grazing fee. The Fund will be managed collectively by Bagh Hural
and Soum Association of PUGs which is entrusted with facilitation of collection of proposals from
herders who paid grazing fee what is the most priority projects to invest of public invest. Then,
proposals are discussed at the Bagh hural and those collected the most vote are selected to get
funding. For example, in Arkhangai aimag, herders have prioritized to spend on the most urgent
5 projects whicn include rehabilitation of wells, protection of hay making area, rodents control
and making bridgdes to access to remote rangelands, and buying high productivity breeding
animals.
In order to promote herders to consolidate this good practices of collecting grazing fee and
investing back into sustainable rangeland management initiatives, in 2018, GG AHP, National

12. PUG Federation and local government have co financed about 19 projects herders have
contributed the grazing fee of 142.4 Million MNT, and local government has contributed from
local budget and LDF 44.0 Million MNT.
Table 1: Grazing fee paid voluntarily by herders in 2018 (MNT)
Mrs Damdinsuren APUG leader of Shiluuestei soum of Zavkhan
aimag: In the soum rangeland management regulation we included
collection of grazing fee of 50MNT per head of an animal from each of
herder households. In the Rangeland risk fund, herders paid about 8,7
million MNT as a grazing fee and soum government contributed 5 milion
from LDF. The first year, members of Risk management fund has
agreed to finance forage planting and rehabilitation of manual wells in
summer rangelands. I think it is a very good start of herders taking
responsibility for their future.
In the soums where herders organized into PUGs and signed RUAs, they demand for
constructive change from the government and results in increased appropriation of funding to
address the needs of herders. In 2018, public investment from soums and aimags on rangeland
management issues have increasedby 3 folds and herders’ investment by 10 times. Co financing
and overall investment from herders and local government on sustainable rangeland
management practices has increased from 167.0 million MNT in 2017 to 587.0 million in 2018 in
7 old and 4 mid level aimags. Majority of investment was spent on the rehabilitation of wells,
protecting hay making areas, combating rodents, forage plantation and improving roads to ease
access to difficult rangelands.
№ Aimags Soums Herder households Total grazing fee paid
1 Uvs Davst 150 3,955,000
2 Bukhmurun 100 1,503,000
3 Bayan-Olgy Altai 80 565,000
4 Bugat 75 660,000
5 Bulgan 60 575,000
6 Deluun 75 750,000
7 Ulaankhus 120 2,570,000
8 Tsengel 350 19,666,564
9 Buyant 135 1,480,000
10 Hovd Munkhhairhan 250 14,400,000
11 Chandmana 160 8,000,000
12 Duut 287 13,800,000
13 Erdeneburen 350 8,000,000
14 Mankhan 320 35,600,000
15 Zavkhan Tes 151 6,000,000
16 Santmargats 280 11,500,000
17 Ider 151 1,000,000
18 Asgat 110 4,000,000
19 Shiluustei 150 8,400,000
Total 142,424,564

13. Mr N. Amgalan, PUG leader of Naituur of Haliun soum of
Gobi-Altai aimag: Our PUG has 23 herder families. Since 2013
we have introduced collective rotational grazing plan that all
members comply with. We established RUA with soum
government for 15 years. One of the main challenges to improve
grazing management is the lack of water resources. During
soviet time, we had two deep water wells, both were broken. In
2014 with the support of GG AHP and local government, we have rehabilitated one of them, and
this has been tremendous help to expand grazing areas so that we can manage stocking density
better. This well is used by 5000 animals and our PUG members are able to use 2000 hectars
of rangelands previously not being used.
With additional funding fropm SDC, GG AHP is enabled to implement a joint project since 2018
to develop extension messages in cooperation with the school of Animal husbandry and
biotechnology of MULS to support PUGs and herders on how to transform quantity driven herd
management (over grazed rangelands and decreasing livestock productivity) to quality and
market demand driven commercial herd management within carrying capacity of rangelands.
The project is being implemented in 12 PUGs from 5 soums of 9 aimags which signed second
level RUAs with local government to reduce stocking rate by 10% annually. PUGs have been
implementing stocking rate plans as agreed in the second level RUAs and used often as a demo
site in the region. The main objective of the project is to demonstrate to herder households if
they maintain healthy rangelands, well fed and productive livestock of a fewer numbers (350-
500 heads) the same level of income could be earned than having more than 500 heads of
livestock. The project consists of several measures:
- Assessment of current herd structure at the herder household and PUG levels
- Participatory development with members of the PUGs quality and higher productivity
driven improved herd structure
- Estimate annual take off rates
- Facilitate market access for annual take offs (with registration on animal health
traceability system, establishment of purchase contracts with processing companies and
buyers)
- Faciltate creation of nuclear breeding herd at the PUGs. The joint team of specialists from
MULS, GGAHP and Mongolian National PUG Federation carried out an assessment on
740 male and 1500 female breeding animals of the PUGs. Under the guidance of
specialists, PUGs have created nuclear breeding herd of all 6 types of animals including
yak.
- Provide training on controlled and selective breeding for higher quality cashmere, wool
and meat for herder families in cooperation with local specialists
- Preparation of forage menu and norms for breeding animals
- Training of herders and cooperative leaders on the management of nuclear herd
Alongside, based on the results of this project, GG AHP and MULS has extended the project in
connection with enactment of new Animal health law and Animal breeding law to define
veterinary and breeding service needs and optimal organizational structure of new veterinary
unit and animal breeding unit being established at the soum level, and how APUGs and
cooperatives may cooperate to facilitate reaching out the information and services from the units
to herder households. The experience and results of this joint project is shared with the MoFALI
in the development of relevant secondary legislations and capacity development activities for
effective operations of vetetinary service units and animal breeding at the soum levels.

14. Output 1.2 Up scale of the PUG/RUAapproach is supported in 7 new aimags
In 2018, National PUG Federation has facilitated formation of 120 PUGs among 16’800 herder
households in the new aimags: Bulgan, Dundgobi, Selenge, Tuv, Uvurkhangai, Sukhbaatar,
Henty, Dorno-gobi and South Gobi. This makes, as of December 2018, total number of PUGs
1445 with membership of 76’800 herder families operating in 174 soums of 18 aimags. In 2018,
63 PUGs from newly formed PUGs established RUA. There are additional 46 PUGs in the
pipeline which have prepared all necessary documentations for the establishment of RUAs in
2019. In 2018, MNPUGs extended training on sustainable rangeland and herd management
practices for 18’958 herder men and women and 832 local governmant officials and specialists
(Figure 1). With the additional credit made available from SDC, National PUG Federation were
able to provide training to 5000 herder men and women on PUG RUA approach in remote soums
and install photo monitoring spots in the sessonal rangelands of 50 PUGs (200 spots) to
demonstrate the impact of reduced stocking density to herders. Sukhbaatar aimag is the worst
affected by rangeland degradation and one of the clear symptoms is increasing rodents
population. With additional credit two soums in Sukhbaatar aimag were provided with technical
support from National PUG Federation to apply traditional method of rodents control flooding the
rodents holes in early spring and late autumn and according to herders there is a visible declne.
According to herders’ feedback of newly covered aimags by GG AHP and National PUG
Federation, in the past two decades, government activities and policy for rangeland
management have only been limted to 1-2 issues mainly building new wells or some rodents
control measures. Awareness raising activities and engagements at the grass roots level with
herders of the National PUG Federation such as the assessment of rangeland health,
participatory monitoring of rangeland degradation, regeneration potentials and depletion of
regeneration capacity, estimation of current carrying capacity, over stocking rate, forming PUGs
among herder families for planned and regulated use of common rangelands, recommendations
for improving grazing management have initiated broad discussions and change of attitude
among aimag and soum government leaders towards rangeland management. For instance,
disputes between herders and crop farmers in Selenge, Bulgan and Tuv aimags which have long
been ignored were brought to the notice of aimag top level management.
Figure 1. Training coverage in 2018 (gender disaggregated)
While facilitating creation of PUGs, MNPUGs organized innovative awareness raising campaigns
on the urgency of preventing rangeland degradation and possible risks associatedif regeneration
capacity of rangelands is depleted, recovery potentials with improved grazing management, up
scaling PUG RUA approach at the entire aimag level and importance of introducing grazing fee.
In cooperation with Eagle TV, and broadcasted nationwide by 3 channels with high number of
viewers in the rural areas. The content was delivered by famous and highly respected persons
who were born in respective aimags, and reached about 500 000 views nationwide (Picture 7)

15. Picture 7. Presentation of aimag rangeland health by Aimag well known and famous persons
In order to support effective up scaling of PUG RUA approach into new aimags and consolidate
best practices of training approaches, National PUG Federation has developed 29 videos, 2
comic books and 3 animations, and 4 working manuals on various topics of sustainable
rangeland management, PUG RUA approach, institutional development of PUGs, APUGs and
Aimag Federation, animal health, cooperative development and raw material quality
improvement and traceability (Picture 8). According to internal survey, these materials have
reached 195000 herder families, local specialists and other stakeholders. Making training
materials user friendly and easy to understand and accessible to herder families, and women in
particular have been one of the priortities of the Nat PUG federation in 2018. Thus, training
content and tools have been upgraded to be more innovative and pertinent to the specifics of the
baghs and soums ecological conditions and community background.
There are 9,507 women attended the training making 39% of total participants. In order to ensure
participation of women, MNPUGs organized training at the herder families so that women don’t
need to leave family and children behind. Morever, PUG, APUGs and Aimag federation leaders
are requested to report on the participation of women in the training organized which is included
in their contract with MNPUGs.
Picture 8. Animated video training for herders on PUGs/RUA approach

16. National PUG Federation has grouped similar soums nationwide in terms of ecological conditons
and rangeland degradation, community structure among old GG AHP soum and up scaling
soums and facilitate sharing experience and learning events among local government leaders
and herder households. Development of grazing impact monitoring system and capacity at the
ALMCG has incentivized herders and land managers to establish and implement RUA in order
to improve grazing management to prevent from further degradation. RUA is getting more and
more appreciacted by users as herders and policy makers at the aimag and national level.
In order to support up scaling process in the new aimags, GG AHP and National PUG Federation
organized competitive grant projects for Soum and Aimag Citizens Hurals in cooperation with
the UNDP/SDC Strenthening Representative Bodies project. National PUG Federation has
selected 19 projects submitted by members of soum and aimag hurals to increase the awareness
and capacity of local hurals to ensure sustainable management of rangelands. selected projects
were implemented in following areas and led by Soum and aimag Hural members: capacity
development of PUGs as a primary CSOs,increaseawareness on rangeland degradation among
soum and aimag hural representatives and role of PUGs and RUAs to ensure participation of
herders in sustainable rangeland management practices and formulation of Rangeland
management regulations. National PUG Federation has made available 61.4 million MNT to co
finance these 19 projects.
One of the best example was that Soum Citizens Hural of
Buren soum of Tuv aimag organized one week campaign
called “Let’s listen to our herders”. They interviewed 300
herders (80% of total herders) and findings and feedback
were heared at the Soum Citizens Hural. As a result, Soum
citizens hural made revisions on the regulation to issue
ownership of land underneath winter camp. During the
interview, herders were asked if it is necessaryto introduce
grazing fee to which 80% of herders responded positively.
National PUG Federation has set up a small investment fund for new 7 and mid level 4 aimag
herders and PUGs from where innovative projects to support up scaling into new soums on
selected areas of sustainable rangeland management are financed for herders, PUGs, APUGs
and Aimag Federation with the condition to pay back. In 2018, 49 small action projects have
been selected and financed from 35 soums of 12 aimags worth 174’700’000 MNT (Table 2). One
of the main conditions to be eligible for small action is to be member of PUGs and established
RUA. This model has been initiated by the GG AHP and continued by National PUG Federation
to use economic incentives for herders to establish RUAs. This approach has also been used to
promote investment on rangeland management issues from soum budget and LDF. In order to
get funding support from LDFs, herders and PUGs need to co finance up to 30% of total needed
funding. When the cash is not available, herders and PUGs could borrow from the investment
fund and compensate it back. The project implementation duration is 0.5-1 year and the funds
need to be paid back to the Investment fund at the National PUG Federation without interest rate
so that more beneficiaries may access to the fund.

17. Table 2. Projects selected from 11 aimags for co finance to support up scaling into new soums
№ Aimag Soum PUG Funding
Herders Local
government
GGAHP
1 Arkhangai Jargalant Mukhar elged 4,057,000 2,000,000
2 Ikhtamir Khunuin gol 6,000,000 2,000,000
3 Chuluut Tsogtsumber 2,500,000 2,500,000
4 Ikhtamir Khongor Ovoo 2,000,000 2,000,000
5 Bayankhongor Bogd Nariin khar 6,300,000 3,000,000
6 Bogd Zuun bogd 1,600,000 1,600,000
7 Jinst Ovoot tsagaan 1,380,000 1,000,000
8 Jinst Aashnai jinst
khairkhan
1,500,000 1,000,000
9 Bayanlig Baga bayan 1,600,000 1,000,000
10 Bayanlig Chandmani 500,000 500,000
11 Bayanlig Malchnii hothon 500,000 500,000
12 Bayanlig Bichigt 500,000 400,000
13 Uvs Davst Tun mend 1,500,000 1,500,000
14 Uvs Davst Bichigthad 1,500,000 1,500,000
15 Gobi-Altai Khaliun Naituur 1,700,000 1,500,000
16 Khovd Munkhkhairkhan 2 PUGs 3,000,000
17 Uench 3 PUGs 3,000,000 2,000,000
18 Chandmani 1 PUG 8,000,000 5,000,000 6,000,000
19 Duut 2 PUGs 2,300,000
20 Erdeneburen 2 PUGs 2,000,000
Total 51,437,000 7,000,000 28,000,000
Figure 2. Investment projects supported to enforce PUG RUAs

18. Output 1.3 Support establishment and management of RUA database
After getting RUA signed the next important step is to prepare for the registration in national land
management database LM at the ALMGC. In the absence of legal environment to protect user
rights of herders to their traditional rangelands, registration at the LM database is a second best
option to protect herders from violation of their traditional user rights. In 2018, 381 PUG RUAs
from consolidation aimags, Uvs, Zavkhan, Arkhangai, Bayanhongor and Gobi-Altai were
registered which is 200 more than previous year. As a result of active participation and committed
work of soum APUGs, Aimag federarions and soum land managers, all complementary
documents of 668 RUAs out of total 830 were prepared for the registration in the national LM
database at the ALMGC: PUG grazing boundary coordinates, grazing area electronic maps,
rangeland health photomonitoring spots, rangeland health STMs and resolutions issued by Bag
Governor and Soum Governors, and copy of signed RUAs and members of PUGs (husband and
wife) (Figiure 2).
Aimag land cadaster specialists and engineers and soum land managers from all 18 aimags
were trained on how to monitor enforcement and implementation of conditions in the PUG RUA
regsistered in the LM database using photo monitoring data. For everyday management and
operations of the PUG RUA database and monitoring, aimag level engineers and soum land
managers need to master skills to revise PUG seasonal grazing coordinates and maps, identify
functional species of rangelands, register quantitative data of rangeland yield, and calculate
carrying capacity and stocking rates to assess the implementation of PUGs RUA. For this
purpose, GG AHP assisted to develop sub systems on “Rangeland use agreement” and
“Rangeland health photo monitoring (Picture 9).
Picture 9. Registration of PUG grazing area, and seasonal grazing areas and photo monitoring
spots
At the request of MoFALI, for the purpose of improving monitoring and controlling the stocking
rate in inter aimag reserve rangelands, GG AHP has provided technical assistance to State
Reserve land administration to introduce ESD based rangeland health assessment and photo
monitoring system and PUG RUA approach. In 2018, GG AHP has covered 5 state administered
reserve rangelands located in the territory of Henty, Gobi Altai, Zavkhan and Gobi sumber
aimags. The Reserve rangelands are the most degraded due to uncontrolled use in the past.
The purpose of the reserve rangelands is to use during emergency of natural disasters such as
dzud or draught, yet because of poor management, the productivity has declined dramatically in
the past years. With better grazing and stocking rate management, State reserve rangeland
administration aims to increase productivity and reduce degradation to improve preparedness
for natural disasters. Through PUG RUA approach and rangeland health monitoring, the State
reserve rangeland administration is enabled to practice controlled grazing and rest degraded
rangelands.
The State reserve rangeland administration officers are creating rangeland health database and
grazing impact monitoring system as a sub group of ALMCG database (Picture 10). Database
will provide important information on annual basis on the state of rangeland health, and plan in
advance in case of emergency how many livestock the reserve rangelands can accomodate.

19. Within the cooperation agreement with the GG AHP, State Reserve Rangeland Administration
had established with the resolution of the MoFALI Minister Technical working group for the
purposes of stopping unregulated use of reserve rangelands. The technical working group has
developed a methodology for developing and enforcing annual reserve land use plan based on
the new data, which is backed by the resolution of the MoFALI Minister. With this official
methodology, the State Reserve Rangeland Administration is empowered to enforce critical
measures such as freeing reserve rangelands during critical vegetation growing season and
installing rangeland health photomonitoring spots in the parts with the heaviest degradation and
free from livestock grazing for 3 years.
With the new webbased software and database, State Reserve Rangeland Administration staff
members are enabled to monitor the state of rangeland health and plan and manage the
movements of animals in and out of the reserve area. This software and database is also linked
into databases at the ALMGC and NAMEM. With the assistance of GG AHP, State reserve
rangeland administration signed a cooperation agreement with the State Veterinary Authority to
establish mobile veterinary units to prevent and control potential risk of animal disease outbreak
in reserve rangelands. If animals come from soums and locations where infectious disease is
identified, State reserve rangeland administration, can ban these herder households from
entering the reserve areas.
Picture 10. State Reserve Rangeland Adminstration subdata base linked to national database at
the ALMGC

20. Output 1.4 Support institutional capacity development of the PUG system
One of the main goal of the Exit/Legacy strategy of GG AHP is to build the institutional capacity
of Soum, Aimag and National Federations of PUGs to enable them to continue the consolidation
of best practices of the project. As of December 2018, there are 18 Aimag Federation of PUGs
in each aimag and 156 Soum Associaiton of PUGs operating. Strong and sustainale PUGs,
Soum APUGs and Aimag federations are the founding stone of National PUG Federation. In
2018, National PUG Federation has facilitated participatory mid term (5 year) strategic
operational and business plan development for 45 soum APUGs and 7 Aimag Federations. The
plan has four pillars, services and functions, internal regulations and governance financial
sustainability and partnership development.
According to experiences, APUGs and Aimag Federations appreciate networking and “learning
from each other” events between mature and new aimags and soums.Thus, National Federation
provides platforms at every occasions of regional events such as Yak, camel festivals, joint
regional or national trainings and workshops and match making events between herders, PUGs,
APUGs and cooperatives and processing companies for herders, PUGs, APUGs and Aimag
Federation exchange of experiences for mutual learning. These events play a very important role
in the consolidation of social capital and trust created among members of the National
Federation. In order to support networking and cooperation among APUGs and Aimag
federations and support their capacity, GG AHP has facilitated cooperation agreements with
mobile and internet operator Unitel company to install high speed “Ger” internet in 61 APUGs
(with 365GB data right). GG AHP has negotiated to reduce the installation cost by 40% as a
collective rate for the APUGs (Picture 11). It will be installed in 100 APUGs/Soums till 2020
(Picture soums with Ger internet as of 2018). The internet costis shared between SCCs,APUGs,
cooperatives, soum veterinary and breeding unts. It is highly appreciated by PUG and APUG
leaders and herders as previously they often had to ask the Bank branches to send information
and reports to aimag center and Ulaanbaatar. They were allowed to use Bank internet once in a
month, and in some occasions refused by the Banks to use their private internet network.
Connection and speed is as high as in Ulaanbaatar. This has made possible for the National
PUG federation and GG AHP to organize on line trainings for APUGs and Aimag federations and
communications have improved significantly.
Picture 11. Installation of high speed “Ger” internet at the soum APUGs.
MoFALI is the strategic partner of the National PUG Federation to create suitable policy and legal
environment for sustainable management of rangelands. National PUG federation has partnered
with MoFALI on several major events as the largest collective institution of herders. These
include organization of Annual Herders Assembly, Regional Consultation of livestock sector,
Second National Rangeland Forum and Global Agenda for Sustainable Livestock international
conference. National PUG Federation and GG AHP has taken an initiative to organize focused
debate and panels on rangeland management issues in Mongolian and this has provided good
opportunities to flagship the urgency of addressing rangeland degradation and specifically the

21. enactment of rangeland policy in order to create policy and legal environment. Inputs and
steering of discussions led by the GG AHP and National PUG federation has resulted in the
development of final draft Rangeland law built on the consensus of all relevant stakeholders and
made ready for submission to the Parliament. Yet dur to recent political turbulences have
postponed the submission.
National PUG Federation being the largest Civil society organization of Mongolian herders with
membershipof about 80 000 herder households and thanks to its steady development, is getting
widely recognized by domestic and internaitonal stakeholders. In the past 3 years, National PUG
federation has established contracts with various national and international organizations such
as MoFALI, State Reserve Rangeland Administration, National Agricultural Extension Center,
UNDP, FAO Mongolia, EU and United Nations University based in Iceland, ALMGC, NAMEM
and IFAD worth 500.0 Million MNT. The largest is to up scale and consolidate PUG RUA
approach and PUGs and APUGs institutional capacity with the mandate from IFAD in 18 soums
of 4 aimags.
СБАХ
One of the outstanding project highly
appreciated by international and domestic
partners is the establishment of dynamic
database of nomadic herders of Mongolia
funded by FAO Mongolia. The main objective
of setting up the database is to capacitate the
National PUG Federation to create platforms to
communicate demand and challenges of
herders to decision makers, research
community and others interested stakeholders to
provide constructive support. Through the network
of PUG and APUGs, National PUG federation has
collected information from 100 000
herder families of 333 soums of 21 aimags
including districts of three cities Ulaanbaatar,
Darkhan and Erdenet. The "Pastoralist Knowledge
Hub" at the FAO HQ in Rome has recently made
an assessment on database creation and
Mongolian project among three selected countries;
Chada and Argentin marked as high quality and efficient as it has applied much less economic
resources because of the PUGs network.
In 2018, National PUG Federation was selected to host
training of the “Reducing land degradation” program of the
United Naitons University in Iceland on “Natural resource
management: Capacity development of data processing
and reporting” in Mongolia for rangeland practioners and
researchers. This training will be organized in Mongolia
annually for 5 years. In the first traing organized in 2018,
GG AHP has facilitated participation of key technical
officials from ALMGC, NAMEM and MULS, and Mongolian
Academy of Science.

22. Lessons learned and Implications:
 To ensure the sustainability of PUG RUA approach, institutionalization in the Soum and
Aimag Rangeland regulations incorporating PUG and RUAs and their principles has been
very effective. The regulation has been a meeting point between local governments’ need
to address the rangeland degradation issue and willingness of herder community
organized into PUGs and established RUAs to take part in the implementation of
regulations. GG AHP and National PUG Federation has therefore made a focused effort
in relevant capacity development of aimag and soum governments in the implementation
of the rangeland regulation. Moreover, in order to not to lose the momentum, GG AHP
has supported the aimags advanced with adoption and enforcement of rangeland
management regulation while co financing of some of the key activities included in the
regulations such as organizing consultative workshop among herders to fix grazing fee
and innovative communication and awareness raising activities.
 In general, in the new aimags and soums, according to herders’ feedback in the past two
decades rangeland management issues have been neglected and limted only to 1-2
issues such as building new wells and rodents control measures. Therefore, National
PUG Federation while engaging at the grassroots level with herders organizing them
into PUGs, conducting rangeland health assessment, training local specialists, needed
to organize a number of communication and lobby events to reach out to aimag
government leadership to pay attention into rangeland management issues.
 In 2018, GG AHP and National PUG Federation has facilitated technical assistance to
some soums, baghs and PUGs to start introduction of grazing fee to demonstrate the
willingness of herder community to pay and their wish to spend it locally. These best
practices and stories were documented and communicated directly by herders, shared
via public and social media. About 150 herder men and women from about 50 different
soums have provided a feedback on the grazing fee, increasing rangeland degradation
and the need to regulate current open access regime. This has been a very influencial
communicationproject to pave the way for the submissionof the Rangeland law including
grazing fee to the Parliament.
 Close implementation of RUAs is showing new challenges for herders to reduce animal
numbers such as there are too many old and poor-quality animals in the herd that don’t
meet the market requirements. Processing companies therefore pay lower price to these
animals, yet herders refuse to sell rather prefer to keep it. Besides, for export market
processingplants need to buy young animals (1 or 1 and half year old lambs and cattle),
yet traditionally herders are reluctant to sell young animals.
 Herders’s active participation and willingness to reduce stocking rate is creating new
dynamics in the government services at the local evel. In the soums where PUG RUAs
are well enforced, herders asks for better and relevant knowledge from local level
specialists for instance from veterinarians and breeding specialists and economists as
per how to increase productivity and earn the same income while keeping lower number
of animals, how to prevent from raw materials such as cashmere,yak wool and skins and
hides getting damaged from disease and insects and etc., Herders’ active participation
and willingness to reduce stocking rates creating new dynamics in the government
services at the local level.
 Continious change of soum land managers is impeding steady growth of skills and
capacity development of soum land managers who play an important role in the
enforcement and assessment of RUAs. Capacity development and training are still
needed for soum land managers.
 As more and more donors and other stakeholders have an increasing interest in grazing
impact monitoring data base created by the GG AHP, there is overwhelming demand to
produce data and information. ALMGC managamement is worried about the increasing
work pressure at all levels of land managers from soum to aimag and central level. Land
managers are paid the lowest of salary scale.

23. Outcome 2: Income of HH is increased through collective market access and improved
quality of livestock products (veterinary services)
Output 2.1 Facilitated linkages between PUGs led cooperatives and processors
Output 2.2 Enhanced capacities of PUG based cooperatives
Output 2.3 Improved product quality of selected livestock products
Output 2.4 Improved access to veterinary services in selected aimags
Outcome 2: Income of HH is increased through collective market access and
improved quality of livestock products (veterinary services)
Output 2.1 Facilitated linkages between PUGs led cooperatives and processors
With improving partnership with processingcompanies and integration in the value chain PUGs
and APUGs cooperatives are increasingly gaining economic strength and capacity. In 2018,
sales income of APUG cooperatives has increased by 57% reaching 6.8 Billion MNT from the
baseline of last year 11.9 Billion MNT (Figure 3).
Figure 3. APUGc cooperative sales income in 2018.
APUG cooperatives basically control supply of combed yak wool and baby camel wool
nationwide. They supply altogether 80% of total combedyak wool and 80% of total combedbaby
camel wool to domestic processing companies. The experience of GG AHP’s long term
engagement facilitating yak and baby camel wool value chain development is often used as an
examplery case of how herders, cooperatives and processors work in partnership without
middlemen at the government workshops, policy debale and private sector gatherings. In 2018,
APUG cooperatives have facilitated supply of 71.1 tons of yak wool to 7 domestic processing
companies which has exceeded the contractual amount by 17 tons (Figure 4). This means that
yak herders have earned 1.7 billion MNT from sales of combed yak wool. The price per kg of yak
wool has doubled in 2018 from last year reaching 24 000 MNT and herders have earned 20 000
MNT per kg of yak wool on average. In comparision to 12 years back when Green Gold started
with a small action project testing the new method of combing to yak to harvest down wool, the
price per kg of yak wool has increased from 500 MNT/kg to 20000MNT/kg, the volume from
hardly 1 ton to 70 tons, and herders’ income from 500 000 MNT to 1.7 billion MNT.
11
28
5
9
2.7
32
3.7 0.8
6.7
0.3 0.8
Cooperative sales income, %
Arkhangai
Zavkhan
Bayankhongor
Bayan-Ulgii
Uvs
Khovd
Govi-Altai
Uvurkhangai
Khuvsgul
Dornogovi
Tuv
1762
2469
748
3337
1701
511 46 126
Cooperative sales income by type, mln
tugrig
Yak wool
Sheep
wool
Camel
wool
Goat
cashmere
Meat

24. Figure 4. APUG cooperatives supply of yak down in 2018
Combed baby camel wool has the same
potential as combedyak wool. GG AHP has
started introducing baby camel combing
since 2015. In 2018, camel herders have
marketed 5.2 tons of combed baby camel
wool which is 25% higher than last year
(Figure 5). The price of baby camel wool
has increased by 2000 MNT per kg from
last year to 12 000 MNT per kg.
One of the main reasons of poor quality
preparation of raw materials is the lack of
warehouse facilities to store raw materials
in door. SDC has appropriated additional
funding for GG AHP in 2018 to co finance establishment of warehouse facilities for APUG
cooperatives. This year, with the additional credit from GG AHP, 11 raw material warehouses
have been built with in kind labor contribution and materials from cooperative members in
following aimags: Uvurhangai (2), Huvsgul (4), Bayan-Olgy (3) and Dorno-gobi and Hovd. 30-50
per cent of construction cost was paid by cooperatives and members the remaining was
contributed from GG AHP. These herder cooperatives have been selected on a competitive basis
for the amount of raw materials supplied on contractual basis, sales income and services
provided to members (Picture 12).
Picture 12. New raw material warehouses of APUG cooperatives.
In terms of animal and meat sales, more and more cooperatives are interested to take part in the
supply chain. In 2018, secondary marketing cooperatives facilitated supply of 49138 animals
altogether which accounts for 30% of total national livestock sales (Table 3). 3 main meat
processing plants that exported meat supplied their through 28 APUG cooperatives. One of the
main attractions of APUG cooperatives is that they started introducing animal health traceability
system and give better guarantee in terms of volume and quality of meat.
54
71
0
10
20
30
40
50
60
70
80
By contract Supplies
Yak down,by ton
38
3.7
6.5
7.6
1.5 5.3
3.1
5.4
Yak down preparation by aimags
Arkhangai
Zavkhan
Bayankhongor
Bayan-Ulgii
Uvs
Khovd
Uvurkhangai
Khuvsgul
0.25
2
2
1
Baby camel wool preparation by ton
Zavkhan
Bayankhongor
Uvs
Dornogobi

25. Table 3. Partner companies of APUGs cooperatives of livestock/meat supply in 2018
Aimag and soums supplied
meat
Companies supplied meat to Livestock, head
Bayankhongor: Gurvanbulag
soum
Sayan-Uul LLC 5730
Bayankhongor: Jinst, Bogd
soums
Lavai market 42
Bayankhongor: Zag soum Makh market LLC 1400
Arkhangai aimag: Tariat
soum
Sayan Uul, Makh market, Khangain Khuns LLC 2530
Arkhangai aimag: Ikhtamir,
Undur-ulaan soums
Makh market LLC 60
Arkhangai aimag: Chuluut
soum
Makh market LLC 450
Khuvsgul: Arbulag soum Erdenet makh market 366
Khuvsgul: Tsetserleg Erdenet Makh market 410
Khuvsgul: Tsagaan Uul Erdenet Makh market 900
Zavkhan aimag Zavkhan khuns, Makh market 10250
Khovd aimag Makh Maket, Iov LLC 27000
Total 49138
Figure 5. Increase of livestock sales in 2018
With additional credit of SDC, in 2018 GG AHP was able top validate best practices of yak and
camel wool quality control and traceability and tes in new products: meat, skins/hides and milk
for better market access and value addition.
The pilot project on animal health traceabilty of GG AHP has attracted huge interest from
customers,private sector stakeholders and government policy makers.The pilot which has been
successfully tested in 2017 in two soums of Arkhangai aimag is up scaled now into 15 model
soums with advanced PUGs and cooperatives thanks to additional credit. The 15 model soums
are in Hovd, Zavkhan, Huvsgul, Arkhangai, Bayanhongor and Tuv aimags.
This is the first time ever in Mongolia the meat traceability system has been implemented where
customers can access information on the origin and quality of meat such as health status,
veterinary services provided and drug residual. The main objective of developing traceability
system was to improve market access of herder households and transparency in meat supply
chain. The smartphone application was developed so that customers canscan from their phone
the code on the piece of meat and know where the meat comes from all the way down to PUGs
and herder households. The system provides customers with the most demanded three
information about meat: the origin, the animal health and drug residual. In order to provide
information on drug residual, GG AHP has provided technical assistance to the State Central
Veterinary laboratory in the preparation of expanding its database into 330 soums. With this new
1200 640 271
3040
7172
10250
27000
1676
0
5000
10000
15000
20000
25000
30000
2017 2018

26. capacity, the traceability system can provide now information on the drug residual at the origin
(at the bagh and PUG level) for meat sold in the market.
The pilot project was implemented successfully and it has benefited herders and processing
companies in many ways. For herders: supply contracts made with processing companies in
advance (quality and price expectations); processing companies collected animals from soums;
better cooperation with soum veterinarians. For processors, with supply contracts, specifies
quality of animals (age, live weight, healthy etc.,); specify the origin (which aimag and soum);
supply is guaranteed; agreed on the price in advance; first time ever sold meat cuts with
identification to customers (new image); guarantee on animal health (no drug residual); better
cooperation with herders’ cooperatives, soum veterinarians
GG AHP has also provided technical assistance to GAVS with tools to test the drug residual in
15 soums introducing traceability system. These simple tools can also be used at the herder
camp.These tools are designed to make a test in 1500 samples which are fed into the veterinary
lab database at the soum level the result of which will processedreal time at the State Veterinary
laboratory and provide results on the spot to soum veterinary units.
GG AHP has also provided technical assistance to SCVL to make a research in the 15 models
soums about the residual of most common drugs, anti biotics and ivomac providing financial
support in the collection of samples: 800 in 2018 and 1200 planned in 2019. This is in
complimentary to new equipment SCVL has introduced from Germany, Korea and USA.
In order to create the awareness about meat of livestock registered in the traceability system,
the public launching events were organized in cooperation with MoFALI in E mart, Nomic
supermarket, at the Misheel expo 2018 and it has received overwhelming interest from
customers. Following the launching the MoFALI has promoted the introduction of the system to
main supermarket chains and meat supply chain of state organizations such as kindergartens,
schools, hospitals and military camps (Picture 13).
Picture 13. Consumer awareness and promotion activities in supermarkets
The system registers all veterinary services provided to the animal from its birth till the end. With
this registration, it is possible to trace animal health status and issuea certificate based on actual
services and data, and to monitor quality of services provided by soum veterinary units. It will
eventually assist soums and aimags free of animal diseases to enjoy better market access thus
better premium price for herders and cooperatives.
Based on the traceabiliity system, GG AHP has developed a new supply system that customers
can give an order on line to buy traceable meat from 15 pilot soums where they can specify
type, quality, amount and price of meat. Cooperatives are now supplying meat as per the demand
of customers through this system in Ulaanbaatar and Darkhan city. There are more and more
customers prefer to buy directly from herders’ cooperatives.
The National Agricultural Extension Center (NAEC) within its demo training set up, up scaled the
meat traceability experience into milk in two soums of Tuv aimag with selected semi sedentary
herder households (Bornuur and Sumber). The National Agricultural Extension Center facilitated
skills and technology training for 400 herders and local specialists representing key stakeholders,
General Veterinary Authority, Animal registration department of MoFALI, Animal Genetics Fund,
milk processing plants, Milk producers’ association, National PUG Federation and soum

27. veterinary units and rangeland and breeding departments. Through this training platform, NAEC
has identified the role of each related stakeholders to further develop milk traceability system.
As of December, soum veterinary units and breeding specialists registered 1000 milking cows in
the animal health traceability system. Milk supplied through traceability system has been
supplied to one of the main milk brands “UIziit” from which they produced yoghurt and liquid milk
for infants and young age children. The product has been tested with selected customers and
“Ulziit” milk factory plans to up scale the traceable milk supply in cooperation with these semi
sedentary herder households and market these new produtcs by 1 June 2019.
After testing the system, GG AHP handed over the software to the General Veterinary Authority
(GVAS) for further up scaling. GG AHP has also been promoting aimag government to reflect in
their local budget up scaling of animal health traceability system and two aimags, Zavkhah and
Hovd has appropriated about 200.0 Million MNT for 2019 to introduce the system into additional
soums on top of GG AHP 2 pilot soums. GAVS has planned 300.0 million for 2019 in capacity
development and skills training of soum level veterinary units to prepare for the introduction of
the system. GAVS with the assistance of GG AHP has created 3 technical groups of
professionals to work in the aimags to create awareness and provide skills training for aimag and
soum veterinary units. In 2018, the Technical groups provided training with GG AHP support in
7 aimags and 20 soums.
Output 2.2 Enhanced capacities of PUG based cooperatives
In 2018, 10 new herders’ marketing cooperatives have been established at the Soum APUGs
which makes a total of 78 APUGs based cooperatives. Total membership is about 26 000 herder
households, and there are 153 women working in cooperative leadership, 19 of whom are
working as cooperative director, and 134 are active in the cooperative steering committees.
Compared to 2017, per centage of women in cooperative leadership has increased by 12%.
National PUG Federation mobilized experienced and successful cooperative leaders to work as
trainers. In 2018, with the support of GG AHP, selected 13 cooperative leaders provided training
to over 5000 herder households and new and young cooperative leaders on the topics they
demanded. This include cooperative governance, financial planning, cash flow and how to make
contracts with buyers and training for members on the quality standards requested from
processing companies and buyers. For the new 40 soums of 9 aimags GG AHP
has donated 3000 combs and 500 bags made according to new standards of processing
companies as a sample. In order to document best practices and reduce training cost, GG AHP
has developed video training serials on yak and baby camel wool which was broadcasted on
local TVs and Herder TV stations, the most viewed by herders. This has been very effective. In
the new aimags, National PUG Federation has organized demonstration training in the field for
1105 herders (710 women and 395 men) on yak and baby camel wool combing. In cooperation
with the Mongolian Association of Leather Industry, online video training was developed on
“Small animal skin preparation” and “Large animal skin preparation” for herders and shared via
social media and local TV stations. According to data recording, the videos have been shared
2000 times.
With the enforcement of new law on Animal
Genetics, Soum Association of PUGs and
cooperatives may establish and register
“breeding herd” and provide paid services to
herders. One of the main objective of the new law
is to limit and stop gradually unregulated and
random use of breeding animals. According to the
law herders will use breeding animals onlt from
registered breeding cooperatives and entities. In
cooperation with the MULS and aimag
department of Agriculture, GG AHP and National PUG federation has provided technical
assistance to set up model sheep and yak breeding herd units at the APUGs cooperative in
Zavkhan and Arkhangai, Dornod aimags. The selection of breeding animals is organized in a
participatory manner that cooperative members identify the best breeding animals and sell to the
cooperative on the condition that they will only use these animals from the unit for breeding.

28. According to the first results, the first year new born lambs that are parented by selected breeding
animals weight maximmum 35kgs which is higher on average by 10kgs of lambs of the same
age lambs parented by regular breeds. These first year new borns will be used as breeding
animals. National PUG federation is working on business model how to run such a local unit at
the soum level financially and operationally sustainable based on the pilot projects and results
will be shared with local governments and MoFALI.
In cooperation with MALI and MWCA, National PUG Federation has facilitated member
companies to organize study tours for herders at the processing plants and demomsrate how
quality of end products depends on the quality of raw materials supplied. For instance, study
tours at the leather processing plants have left herders visited with a deep understanding how
poor animal health in particular skin parasites affect quality of skin. Althogether, 4 leather
processing companies and 6 cashmere and wool processing companies participated in the
organization of study tour for 250 herder men and women.
Within the objective of up-grading skin and hides supply chain based on PUGs and APUGs
cooperatives, GG AHP has been promoting close cooperation with the Mongolian Association of
Leather Industry and National PUG Federation. Mongolian Associaiton of Leather has facilitated
series of match making events between APUG cooperatives and leather processing plants.
Training videos and manuals developed and distributed to herders both through classroom and
on line training, and study tour of herders to leather processing plants have been very effective.
About 20 APUGs cooperatives have become a cerifiied soum agents for 3 leather processing
plants with the support from MALI and establiched supply contracts.
Since 2017, APUG cooperatives have been making contacts to supply international buyers and
in 2018, 4 APUG cooperatives have secured contracts to suppl cashmere, yak wool and baby
camel wool to 5 buyers in USA, Europe and Nepal. Quality of the raw materials have been
assessed as good and in 2019, with the support of traceability system, GG AHP and National
PUG Federation aims to market products as environmentally and rangeland friendly.
In 2018, MoFALI has made assessment among 3020 herders and rural cooperatives out of total
nationwide cooperatives of 3060 for five caterogies: cooperative governance, finance,
production, marketing and membership. The have been assessed at four levels: non active,
activating, developing and sustainable developing. According to this assessment, 1324 (43.8%)
cooperatives are assessed non active, 877 (29.0%) activating, 580 (19.2%) developing and 239
(7.9%) is sustainable developing. All 69 APUG cooperatives have been included in this
assessment. 43 APUG cooperatives out of total 69 have been assessed as activating,
developing and sustainable operating and 26 cooperatives are assessedas non active. In detail,
9% is assessed as sustainably operating, 28% developing and 3% activating. National PUG
Federation and GG AHP has provided the assessment results to APUG cooperatives and it will
be become the basis of 2019/2020 planning of activities (Table 5).
Table 5. Assessment results of APUGs based cooperatives by MoFALI.
Locally registered
cooperatives
PUG based cooperatives
Number Percentage Number Percentage
Active 1324 43.8% 18 29.5%
Non active 877 29.0% 20 32.8%
Developing 580 19.2% 17 27.9%
Sustainably operating 239 7.9% 6 9.8%
Coverage 3020 98.7% 61 88.4%
Not evaluated 40 1.3% 8 11.6%
Total 3060 69
Between 2004-2018 with the support of GG AHP, there are 226 MFs have been established with
membership of 982 PUGs. As of December 2018, from GG AHP total contribution to MFs worth
1’095 million MNT for 23’621 herder households.

29. Matching Fund has been one of the main instruments to promote cooperation among herders
and join PUGs for team work to manage their shared rangelands in a planned way to reduce and
prevent from degradation. GG AHP has developed a general template for MFs management and
monitoring regulation in consultation with the regulation issued by the Ministry of Finance of
Mongolia regarding community driven financial fund management and operation. Each of the
PUGs use these general regulation as a basis to formulate their own regulations for the
management and monitoring as per specific circumstances of their community.
From 2017, SDC GG AHP has been gradually building the capacity of National PUG Federation
to hand over the management and monitoring of herders MFs. In 2018, GG AHP in cooperation
with National PUG Federation has updated the MF regulation as per community lending
procedures, interest rate calculation and on line accounting system operation. Follow up
classroom and on line training has been provided to all Aimag Federation accountants and Soum
APUG leaders.
Since 2017, 31 soums were added, and as of December, 2018, there are 232 MFs operating of
982 PUGs and 3.3 billion MNT is accumulated. The MFs funds have increased by 8.7% (266.2
Million MNT) from previous year. All together PUGs MFs have earned 939.2 million MNT as an
interest income, 788,2 of which was spent on various projects and to cover operations cost of
PUG leaders.
National PUG Federation has made survey on the main spending of short term loans they receive
from MFs: hay making, forage plantation and payment for school and university expenses of
children.
In 2018, with the support from GG AHP, National PUG federation organized training on
transformation of MFs into SCCs in 10 soums of 8 aimags covering 1198 herders (44.1%
women). This year, 10 SCCs have obtained their special licences from State Financial regulatory
committee making SCCs created with GG AHP support 24 as of December 2018 (Table 6).
Newly created 10 SCCs were provided with portable computer, printers, SCC software and
training. In 10 new SCCs 440.70 million MNT of 4185 herder families were transferred
successfully. With transformation into SCCs according to feedback from herders and local
stakeholders, management of MFs has become more transparent. Thanks to professional
management and accounting system. SCCs have more trust from members. Some members-
herders see the advantage of having SCCis that they can sell more animals and save the income
in savings account of their SCC. This is more secure form of keeping assets. One of the first
SCCs transformed from MFs into SCC in 2017 in Durgun soum of Hovd aimag, has created 3
full time jobs, paid 3.7 Million MNT tax to local government, and paid back to herders 18.0 million
MNT deposits interest rate and 12.5 millon MNT dividends (

30. Online training videos and manuals developed for PUGs on SCCs:
With advancement of MFs into SCCs, there several advantages to ensure sustainability. SCCs
are monitored regularly in terms of operational status and financial sustainability and follow up
training provided by the Mongolian Union of SCCs and State Financial Regulatory Committee.
All MFs transformed into SCCs carry out regular monthly Steering committee meeting and
Annual All members meeting makes it more participatory and transparent.
In 2018, based on the field experience and good practices, GG AHP and National PUG
Federation has provided a feedback on the revision of regulation by the State Financial
Regulatory Committee on SCCs on the issues of operational regulation, criteria for financial
sustaibanility, and divisions of responsibilities between members, Steering committee and
exectutice team.
A joint team of GG AHP, SDC and National PUG Federation has made an assessment on MFs
to prepare transformation of management and monitoring tasks to the National PUG Federation
which has elaborated follow up activities to ensure sustainability for each of three categories:
1) MFs in early stage of development; 2) MFs with challenges; 3) Mature MFs transforming into
SCCs.
Table 6. Number of SCCs successfully established and got licence in 2018
Donor projects and local governments are interested in MF and SCC experiences and severak
international NGOs: WWF and The Nature Conservancy (international NGO), and Tuv, Selenge
and Dundgobi aimag governments have requested GG AHP and National PUG Federation to
provide a demo training in the soums with mature MFs and SCC in their region. WWF and The
Nature Conservancy financed a training and setting up MFs in 5 new soums.
Aimag CSCs established Total
2016 2017 2018
Arkhangai 2 2
Bayankhongor 1 1
Bayan-Ulgii 6 6
Khovd 1 4 5
Uvs 3 3
Zavkhan 1 1
Gobi-Altai 4 4
Tuv 1 1
MNFPUG 1 1
Total 7 7 10 24

31. Output 2.3 Improved quality of selected products
In the Exit/Legacy stratregy for 2017-2020, one of the main strategy of GG AHP is to facilitate a
coordination and cooperation among professional associations to establish strong lobby group
for sustainable livestock sector development. For this purpose, GG AHP promotes close
cooperation among Nat PUG Federation, MWCA and MALI.
Within the objective of up-grading cashmere, wool, skin and hides supply chain based on PUGs
and APUGs cooperatives, GG AHP has been promoting close cooperation among Mongolian
Association of Leather Industry, Mongolian Cashmere and Wool Association and National PUG
Federation. GG AHP promotes creation of strategic alliance between National PUG Federation,
Mongolian wool cashmere association and Mongolian association of leather (MALI) to jointly
lobby for better policy environment for value chain development of livestock driven raw materials.
Three associations were invited to join the Working group at the MoFALI “Value chain
development of livestock products and traceability system”. At the Working group they jointly
prepared documentation of best practices in 15 pilot soums introducing animal health traceability
system where skins/hides of animals supplied through this system are sent to leather factory for
processing and meat to supermarkets. The quality of skin/hides of animals prepared at the meat
processing plants has increased signicantly and according to experts, damage is much less.
According to one of the processing plants which bought the skins of sheep and yaks supplied
through traceability system of the National PUG federation and with improved veterinary care,
damage on skin is reduced by 60 per cent in terms of footprints of germs and no cuts by knife
(most damage of skins is due to manual preparation of the animals). Leather processing plants
paid to herders who supplied skins and hides though traceability system 15% higher price
because of better quality. MALI has documented the product development from those skins/hides
till the end products and showed the differences between end products made of good and bad
quality skin/hides. Videos made on raw material preparation and traceability by GG AHP and
National PUG federation, and MALI and MWCA were distributed by MoFALI through national TV
channels.
Since 2017, GG AHP has been handing over the management of all match making events to
three associations, Mongolian Association of Leather Industry, Mongolian Cashmere and Wool
Association and National PUG Federation. In 2018, three associations jointly hosted three
regional match making and training events. Training videos and manuals developed and
distributed to herders both through classroom and on line training, and study tours of herders to
leather and cashmere and wool processing plants have been very effective. MALI has designed
wooden tables for cleaning and stretching skins/hides, scaletop measure skins size, and special
knives to remove fat layer of skin for cooperatives. Training has been provided to cooperative
managers and PUG leaders on how to apply the tools to improve quality of skins. This focused
support has been provided to GG AHP model soums with advanced PUGs and cooperatives to
improve supply chain of skins and leather.
With the support of GG AHP MALI provides marketing advice to selected 6 leather processing
plants to develop new products based on the story provided through traceability system on
animals, skin quality, rangelands and PUGs and RUA. Four different products have been
selected: wallet for men, sports jacket and rug made of yak skin processed with its hair for luxury
users and shoes fo horse riding. MALI has facilitated testing of new processing technology at the
leather processing plants to improve quality of end products and more environment friendly
technology to improve marketability of products.
With the support of GG AHP, MALI first time ever organized attendance of local leather
processingplants in the exhibition of eco labelled leather products in Russiaand China, two main
current market destinations of Mongolian final leather products. Leather processing sector is
lagging behind in terms of market development compared to wool and cashmere sector.
GG AHP has supported MALI to develop and manage the approval of standards for semi
processed pickled leather which makes 50% of total export by State Standardization Office. This
new standard has integrated contemporary market standards and eco friendly processing
technology and do not to use any chemical elements harmful to the environment. All semi
processed pickled leather will be checked against this standard, and those don’t meet
requirments of the standards will be banned from export to protect the reputation of domestic

32. leather processing industry. This is first ever eco standard and MALI considers that it will
significantly contribute to up grade local leather prcessing industry and monitor quality of
processing.
GG AHP has been providing capacity development support to Mongolian Wool and cashmere
Association (MWCA) to promote Mongolian products in the international market. Since 2017,
MWCA has been processing application of Mongolian processing companies to certify for
OEKOTEKS-100 standards pursued in Europe. In 2018, two processing plants obtained the
OEKOTEKS-100 certificate. This cerficate has been introduced since 1992 and certify that the
processing plant has met 15 international standards for labour protection and no usage of
chemicalelements to damage the environment and human health. While organizing certification
process, the MWCA has developed its capacity to assist more processing plants which aims to
apply for OEKOTEKS-100. More and more international buyer requires processing companies
to meet certain environmental standards such as OEKTEKS-100. This certificate opens
opportunities promote Mongolian wool and cashmere products in the international market.
With the support from GG AHP, MWCA has developed and approved new standards for washed
sheep wool, cashmere, yak wool and camel wool in cooperation with the State Standards office
and Customs office to prevent smuggling raw materials to China. As of now, 70% of Mongolian
raw cashmere is exported to China illegally as washed cashmere. This was mainly due to
absence of proper state standards and control mechanisms to ensure that cashmere and wool
is washed according to approved technology and standards.
Another area of support from GG AHP for MWCA is to improve its capacity to manage
participation of domestic companies in the international exhibitions and trade fairs. With
co-funding from GG AHP, 15 domestic yak wool, baby camel wool and cashmere processors
were enabled to promote their products under united name of “Mongolian wool and cashmere”
in two international trade fairs in Tokyo and New York. From both trade fairs, all 15 processing
plants secured contracts for further cooperation. For Tokyo trade fair, MWCA collaborated with
Mongolian Embassy in Japan and Mongolian Students Assocation in Japan to mobilise young
Mongolian students to coach companies which attended the trade fair on service and
communication skills expected from Japanese customers. Mongolian Embassy has provided
assistance for coverage on media with 6 journals, 2 daily newspapers and 2 TV stations
broadcasting special news on the Mongolian cashmere and wool processing companies.
In order to increase marketing opportunities of yak wool and baby camel wool and other raw
materials from herders such as cashmere, meat, skins/hides National PUG Federation with the
technical support from Green Gold Animal Health Project has started to develop a
comprehensive IT based livestock raw materials traceability system (LRMT) since May 2017
inclusive of rangeland and animal health, and animal welfare indicators in cooperation with the
National Agency of Meteorology and Environmental Monitoring (NAMEM), Agency of Land
Management, Geodesy and Cartography (ALMGC), State Veterinary Authority and Mongolian
wool and cashmere association and Mongolian Association of Leather industry. While
incorporating all the elements of producing livestock raw materials, rangelands, animal welfare,
animal health, quality of livestock of raw materials and herder gate price (how muchherder family
gains out of per kg of raw materials), the LRMT will enable to standardize sustainable/responsible
sourcing of raw materials from herders. The ultimate objective of the LRMT is to expand market
access and increase income of herder households and PUGs. To further the competitiveness
and unique selling points of Mongolian livestock products on the international market, GG AHP
identified the need to setup a traceability and market place system with an innovative and user-
friendly digital technology that allows for validation and increasing accessibility of sustainably
sourced products. This should lead to an increase of the international demand for sustainably
sourced livestock products of Mongolian origin.

33. Online animated training videos developed to show the advantage of traceability to herders and
local veterinarians:
Since November 2017, with the support of Digital Medic Company of Mongolia, ChainPoint
Company from Germany, National Federation of PUGs and GG AHP project in cooperation with
key national stakeholders, have been developing a raw material traceability system based on
the PUGs system. SDC GG AHP has facilitated the assessment mission on the traceability
system from Chain Point Company from Germany which has a long standing experience on
supply chain traceability system development such as Better cotton initiatves, Agroforestry
alliance to assess database created with the local agencies on rangeland, herd management,
raw material quality control system and IT capacity of local partners. According to their
assessment quality of database and IT capacity is satisfactory to facilitate link into EU market
platforms.
The pilot system developed for yak wool and baby camel wool quality traceability has been
successfuland being up scaled into 5 aimags with yak herd and 4 aimags with camel population.
Processing companies and buyers are more and more interested to supply the materials from
PUG, APUGs and cooperatives which has introduced the system to ensure better quality and
reliability of raw materials. The number of processing companies and buyers has increased from
3 yak wool processing companies in 2015 to 8 processing companies and 2 international buyers.
The system enables herders supplying higher quality raw materials and prove to be reliable
partners over the period thus get premium price and make a future contract with processing
companies and buyers, and receive deposits prior to harvesting season. As of September, 2018,
there are about 2000 herder families regularly supplying their yak wool and baby camel wool
through the traceability system operated by National PUG Federation. So far the system
traceability system has achieved following results:
 Web based software is developed and has been tested in the example if yak wool, baby
camel wool and meat/animals
 Animal health traceability database is created in cooperation with the State Veterinary
department
 Rangeland health monitoring data is integrated into the software
 PUG and RUA data is integrated into the software
 Raw material quality standards data base is agreed and integrated in cooperation with
Mongolian wool and cashmere association (cashmere, sheep wool) and Mongolian
leather association (skins/hides)
This comprehensive IT based livestock raw material traceability is to standardize “Responsible
Nomads” so that herders and PUG will maintain sustainable rangeland and herd management
practices as well as produce the best quality livestock raw materials (yak wool, camel wool,
cashmere, skin/hides) and receive economic incentive and premium price. We foresee that
“Responsible Nomads” standard would be composed of following indicators:

34. Ultimately, the system has to be operationalized in the domestic market and eventually link into
international market platforms in cooperation with the Chain Point and selected local IT company,
Digital Medic. National PUG Federation has organized an open tender between 26th
September-
7th
October2018 to select a suitable local IT company to get technical assistanceto build its own
capacity to manage the system in cooperation with the Chain Point.
Output 2.4 Improved access of veterinary services in selected aimags
Capitalizing on the soums with advanced PUGs and cooperatives, GG AHP is providing technical
assistance to GAVS to create model soum veterinary units and services as indicated in the new
Animal Health law. This was suggested by the MoFALI and aimag government leaders as
rangeland and animal health management issues are inter- connected.
GG AHP has facilitated cooperation agreement among GAVS, SCVL and Veterinary school of
MULS to use these model soums as demo training sites in the region in the Action plan for 2020
for the implementation of new Animal Health law.
In 2018, the model soum veterinary units have been capacitated in following areas: create animal
health database by herder households, capacity to provide veterinary clinical services, cool
storage for safety of medicine and vaccines, and technical capacity to make primary diagonosis
of infectious diseaseand test drug residuals. A joint training has been organized for model soums
with two steps. First step training focused on defining the roles and responsibilities of each of the
stakeholders involved in the implementation of new Animal health law, service needs and job
descrtipions of veterinary units, and capacity and skill development needs and action plans for
2018-2019. Second step training was organized using the new tools and equipment provided
jointly from GG AHP and GAVS based on the operations of veterinary units in the model soums
to herders as per the requirements of new Animal Health law.
According to reports and feedback from GAVS, with improved capacity and skills, model soum
herders and soum veterinary units are increasingly paying attention to preventive measures.
According to an internal assessment,98.6 per cent of animals of 15 model soums had undergone
vaccination. Majority of herder households taken deworming measures. This is an important pre
condition to certify that animals from model soums healthy and also monitor drug residual.
One of the main challenges in the veterinary sector are is the need provision for continues on
job training and skills of working veterinarians at the soum levels. At the same time, training for
Responsible
Nomads
Rangeland
management
Animal Health
Animal welfare
Raw material
quality
Herders
participation
Wildlife friendly
 Raw material quality
 Rangeland health
 Animal health
 Animal welfare
 Herders participation PUGs RUA
 Wildlife friendly