Mongolia Project Notice - Sustainable Fodder Management


Project Notice

PNR 38818
Project Name Sustainable Fodder Management
Project Detail Project Name Sustainable Fodder Management Project Number 53035-001 Country Mongolia Project Status Active Project Type / Modality of Assistance Technical Assistance Source of Funding / Amount TA 9887-MON: Sustainable Fodder Management Japan Fund for Poverty Reduction US$ 1.00 million Strategic Agendas Environmentally sustainable growth Inclusive economic growth Drivers of Change Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships Sector / Subsector Agriculture, natural resources and rural development / Livestock Gender Equity and Mainstreaming Some gender elements Description The proposed knowledge and support technical assistance (TA) will support the Government of Mongolia to develop a sustainable and economically viable fodder industry. The TA will raise technical capacity and increase knowledge to address a range of issues including the fodder demand-supply gap, requirements for quality standards for production, processing, storage, and supply. The Government of Mongolia requested a TA from the Asian Development Bank (ADB) to support the sustainable development of its fodder industry. The TA is included in the country operations business plan, 2020-2021. Project Rationale and Linkage to Country/Regional Strategy Mongolia heavily relies on its agriculture sector which contributes over 12% of its gross domestic product. The share of livestock in agriculture output is 84.2%, it provides employment to one third of Mongolias economically active population and involves 230,800 herder households. Livestock numbers have reached 66.46 million with meat and milk as the primary products. The livestock industry remains an important priority to reduce rural poverty, boost incomes and diversify economic growth through food production and export of high-quality meat and wool products, yet productivity remains low. Degraded pastureland and the lack of an adequate quantity and quality of feed resources are among the major factors in poor livestock productivity. As with increasing livestock numbers, it is important to ensure feed resources are sufficient with a stable supply, and the production itself do not cause a decline in pastureland quality. Livestock fodder is provided as unprocessed or processed forms of native hay, planted hay from annual and perennial grasses and legumes, fodder crops such as barley, oats, corn, beans and sunflowers as well as crop by-products such as bran. Since the transition from the planned to market economy in 1990, with an extended absence of management and investment, the livestock product market and services that supported it have been drastically decreased with lost capacity in infrastructure and services, its transportation and seasonal pasture management. Responsibility was passed to herders whom did not have the skills to take up activities and faced additional constraints due to unfavorable weather conditions, limited production areas with inadequate infrastructure, outdated technology and equipment, and limited market opportunities. Currently fodder supply is insufficient, of low quality and unreliable. In 2016, an estimated 1.4 million tons of fodder were domestically supplied with a market value of $120 million (MNT321 billion), with an approximately similar amount imported (1.43 million tons worth $128 million). With the intensified livestock farming (dairy, beef, pig and poultry farms) set to increase the demand for additional feed types, beyond basic roughage to high-quality feed (concentrates, silage, high-protein feeds, green fodder, and grains) will furthermore increase demand beyond current levels. Current policy aims to support increasing domestic production rather than balancing fodder needs through imports. However, domestically produced fodder resources remain constrained by gaps in production, processing, and storage across the diverse agro-ecological regions, limited skills of fodder producers or incentives for farmers to grow fodder, outdated technology, equipment and infrastructure, lack of quality standards and an underdeveloped value chain. In the short-term, improved fodder production with appropriate postharvest handling practices can address the critical fodder quality and shortage problems. However, for long-term and sustainable industry development, an integrated approach to land, pasture and fodder management with improved herd management and increased resilience to climate change will be fundamental to the industrys resilience with emphasis on ensuring a sustainable balance between livestock numbers and pastureland quality and livestock feed availability. This will require increased knowledge, capabilities, and coordination among government agencies, fodder producers and herder groups. Institutional coordination to increase knowledge sharing and improve extension services are required to transfer the knowledge that presently remains with research centers and is not reaching producers and herders resulting in limited use of improved products and constrains industry development. There are little experiences and provisions for institutions and cooperatives to support the fodder value chain as the lack of monitoring and coordination in terms of fodder supply with livestock movements further limit the access to feed when needed, increase the transportation costs and exacerbate the lack of confidence in the industry. Raising awareness among stakeholders will help support organization and coordination of the industry as well as foster a positive attitude to engage in sustainable fodder management. Impact Sustainable and economically viable fodder industry in Mongolia improved (Mongolian Sustainable Development Vision 2030) Project Outcome Description of Outcome Sustainable fodder management practices (production, processing, storage, and supply) adopted Progress Toward Outcome Implementation Progress Description of Project Outputs Fodder production, supply, and demand assessed Technical solutions for sustainable fodder management developed Enabling policies and action plans formulated Status of Implementation Progress (Outputs, Activities, and Issues) Geographical Location Nation-wide Summary of Environmental and Social Aspects Environmental Aspects Involuntary Resettlement Indigenous Peoples Stakeholder Communication, Participation, and Consultation During Project Design During Project Implementation Business Opportunities Consulting Services ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. Procurement ADB will carry out procurement following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. Responsible ADB Officer Suzanne Robertson Responsible ADB Department East Asia Department Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD Executing Agencies Ministry of Food, Agriculture, and Light Industry (MOFALI) Strategic Planning and Policy Department MOFALI, Peace Avenue, Ulaanbaatar, Mongolia
Funded By Asian Development Bank (ADB)
Country Mongolia , Eastern Asia
Project Value MNT 1,000,000

Contact Information

Company Name Ministry of Food, Agriculture, and Light Industry (MOFALI)
Address Strategic Planning and Policy Department MOFALI, Peace Avenue, Ulaanbaatar, Mongolia
Web Site https://www.adb.org/projects/53035-001/main#project-pds

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