On May 27, 2024, Ya.Sodbaatar, Chief of Staff of the Office of the President, submitted the Parliament draft resolution “Actions to support the processing of livestock raw materials” to G.Zandanshatar, the Speaker of the Parliament. And relevant information has been given today.
Ya.Sodbaatar, Chief of Staff of the Office of the President:
- The President of Mongolia initiated the national program "White Gold". As a starting point of this program, the draft resolution was developed. Within the framework of the draft resolution, MNT 1.5 trillion loans and MNT 682 billion will be disbursed from the State budget. It was mentioned in the draft resolution that MNT 2.2 trillion funds will be released over a period of three years.
Z.Mendsaikhan, the Minister of Food, Agriculture and Light Industry:
- Within the framework of the "White Gold" program, we intend to double the processing capacity of cashmere and to process wool. However we have cloth and sock factories, we are importing all the threads. By supporting light industries, there will be an opportunity to expand the agricultural economy and increase the income of herders. The meaning of “White Gold” is that the raw materials and wealth created by herders should be like gold, which does not lose its value.
Mongolia has an annual average reserves of 49.8 thousand tons of wool and cashmere raw materials; 37,000 tons of sheep wool, 10,000 tons of goat cashmere, 2,000 tons of camel wool, and 400 tons of yak wool. 70% of wool and cashmere raw materials are exported only after washing.
In 2023, there were 64.6 million head of livestock in Mongolia. Due to the harsh winter and spring this year, 6.9 million livestock died; 0.003 million camels, 0.38 million horses, 0.6 million cattle, and 3.7 million sheep and 2.3 million goats, Based on this, the stock of sheep's wool will decrease to be 31.6 thousand tons and goat's cashmere to be 8.0 thousand tons.
As for the leather, there are an average of 18 million leather and leather raw material reserves per year, but less than 30% of it is processed and the rest cannot be processed. In particular in 2023, 3.3 million pieces of leather were semi-processed, 2.3 million pieces of leather were fully processed, a total of 5.5 million pieces were processed, and 12.5 million pieces of leather remained unprocessed.
In the leather industry, there are capacities of a total of 14.9 million pieces of semi-processed leather, 700,000 pieces of large cattle and 1.7 million pieces of small cattle fully-processed. There is a lack of capacity for fully-processing of leather.
Raw materials cannot be processed domestically and continue to lose potential income due to the weak capacity of domestic refineries, high interest rates and collateral requirements of commercial banks, high competition from foreign buyers in the raw material market, poor quality of raw materials, underdeveloped preparation system, and lack of legal framework.
Therefore, it is necessary to use “White Gold”, raw materials of livestock, completely and turn them into value-added products. In relevance, the draft resolution “Actions to support the processing of livestock raw materials” of the Parliament has been developed with the purpose of solving the above-mentioned problems and supporting the production of value-added products, within the framework of the "White Gold" movement initiated by the President of Mongolia.
On May 27, 2024, Ya.Sodbaatar, Chief of Staff of the Office of the President, submitted the Parliament draft resolution “Actions to support the processing of livestock raw materials” to G.Zandanshatar, the Speaker of the Parliament. And relevant information has been given today.
Ya.Sodbaatar, Chief of Staff of the Office of the President:
- The President of Mongolia initiated the national program "White Gold". As a starting point of this program, the draft resolution was developed. Within the framework of the draft resolution, MNT 1.5 trillion loans and MNT 682 billion will be disbursed from the State budget. It was mentioned in the draft resolution that MNT 2.2 trillion funds will be released over a period of three years.
Z.Mendsaikhan, the Minister of Food, Agriculture and Light Industry:
- Within the framework of the "White Gold" program, we intend to double the processing capacity of cashmere and to process wool. However we have cloth and sock factories, we are importing all the threads. By supporting light industries, there will be an opportunity to expand the agricultural economy and increase the income of herders. The meaning of “White Gold” is that the raw materials and wealth created by herders should be like gold, which does not lose its value.
Mongolia has an annual average reserves of 49.8 thousand tons of wool and cashmere raw materials; 37,000 tons of sheep wool, 10,000 tons of goat cashmere, 2,000 tons of camel wool, and 400 tons of yak wool. 70% of wool and cashmere raw materials are exported only after washing.
In 2023, there were 64.6 million head of livestock in Mongolia. Due to the harsh winter and spring this year, 6.9 million livestock died; 0.003 million camels, 0.38 million horses, 0.6 million cattle, and 3.7 million sheep and 2.3 million goats, Based on this, the stock of sheep's wool will decrease to be 31.6 thousand tons and goat's cashmere to be 8.0 thousand tons.
As for the leather, there are an average of 18 million leather and leather raw material reserves per year, but less than 30% of it is processed and the rest cannot be processed. In particular in 2023, 3.3 million pieces of leather were semi-processed, 2.3 million pieces of leather were fully processed, a total of 5.5 million pieces were processed, and 12.5 million pieces of leather remained unprocessed.
In the leather industry, there are capacities of a total of 14.9 million pieces of semi-processed leather, 700,000 pieces of large cattle and 1.7 million pieces of small cattle fully-processed. There is a lack of capacity for fully-processing of leather.
Raw materials cannot be processed domestically and continue to lose potential income due to the weak capacity of domestic refineries, high interest rates and collateral requirements of commercial banks, high competition from foreign buyers in the raw material market, poor quality of raw materials, underdeveloped preparation system, and lack of legal framework.
Therefore, it is necessary to use “White Gold”, raw materials of livestock, completely and turn them into value-added products. In relevance, the draft resolution “Actions to support the processing of livestock raw materials” of the Parliament has been developed with the purpose of solving the above-mentioned problems and supporting the production of value-added products, within the framework of the "White Gold" movement initiated by the President of Mongolia.