Asian Development Bank - Vegetable Production and Value Chains in Mongolia

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VEGETABLE PRODUCTION AND VALUE CHAINS IN MONGOLIA

AUGUST 2020

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

2020 Asian Development Bank

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

Tel +63 2 8632 4444; Fax +63 2 8636 2444

www.adb.org

Some rights reserved. Published in 2020.

ISBN 978-92-9262-320-3 (print); 978-92-9262-321-0 (electronic); 978-92-9262-322-7 (ebook)

Publication Stock No. TCS200222-2

DOI: http://dx.doi.org/10.22617/TCS200222-2

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess.

This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

Please contact if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.

Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda.

Note:

In this publication, $ refers to United States dollars.

On the cover: Vegetable market in Autumn Green Days expo in Ulaanbaatar (photo by Bold Bolorchimeg).

CONTENTS

TABLES AND FIGURES
FOREWORD
ACKNOWLEDGMENTS
ABBREVIATIONS
EXECUTIVE SUMMARY
	KEY FINDINGS
1.1	Current Situation and Prospects: Market and Value Chain
1.2	Potential Improvement: Models, Feasibility, High-Level Investment Assessment, and Business Models for Value Chain Players
1.2.1	Potential Improvements for the Community Grower Groups
1.2.2	Potential Improvements for Traders, Aggregators, and Wholesalers
1.2.3	Potential Improvements for Processors and Retailers
1.3	Recommendations for Approach to PublicPrivate Sector Engagement
1.3.1	Actionable Recommendations on How to Support Community Grower Groups
1.3.2	Identification of Types of Vertical and Horizontal Coordination Models
1.3.3	Actions to Facilitate Increased Value Chain Coordination
	MARKET ASSESSMENT
2.1	Sector Overview
2.1.1	Introduction
2.1.2	Historical Context
2.1.3	Policy Context
2.2	Demand Analysis: Who, Where, Products, Quantities, Qualities, Prices, Trends, and Prospects
2.2.1	Demand (Consumption)
2.2.2	Relevance of Food Safety Assurance and Quality Standards
2.3	Supply Analysis
2.3.1	Market Size: Where Is Produce Grown, How, and in What Quantity?
2.3.2	Supply Analysis: What Vegetables and Where From?
2.4	Drivers of Supply Performance
	VALUE CHAIN ANALYSIS
3.1	Value Chain Map: Marketing Channels, Revenues, Costs, Margins, and Trends
3.1.1	Description of the End-to-End Value Chain for Vegetables in Mongolia
3.2	Competitive Market Landscape: Shares of Domestic Suppliers, Imports, Nature of Competition, and Trends
3.2.1	Who Are the Major Suppliers of Promising Crops?
3.2.2	Analysis of Product Prices in Ulaanbaatar Markets
3.2.3	Distribution of Margins Across Segments of Relevant Value Chains
3.3	Strengths and Weaknesses of Value Chains in Meeting Market Needs for Volume, Price, and Quality
3.3.1	Discussions of Key Results
3.3.2	Procurement Sources, Producers, and Sources of Raw Materials
3.3.3	Evaluation of Imported Crops and Raw Materials, Prospects of Competition, and Scope for Import Substitution
3.3.4	Sources of Critical Inputs and Technologies
3.4	Role of Smallholder Farmers in Meeting Value Chain Needs
	TECHNICAL ANALYSIS: CONNECTING SMALLHOLDER FARMERS TO MARKETS
4.1	Introduction
4.2	Models for Potential Improvement of Smallholder Community Grower Groups in Project Soums to Meet Market Needs
4.2.1	Base Case Model
4.2.2	Alternative Crops Model
4.2.3	Value Chain Models
4.2.4	Key Constraints for Market Entry and Access to High-Value Markets
4.2.5	Actions to Overcome Constraints
4.2.6	Farm-Level Economic Analysis and Financial Requirements

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