fao contribution to agriculture of mongolia “innovative agriculture finance opportunities”...
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FAO CONTRIBUTION TO AGRICULTURE OF MONGOLIA
“INNOVATIVE AGRICULTURE FINANCE OPPORTUNITIES”
CONFERENCE
FAO Representation in Mongolia
Food and Agriculture Organization of the United Nations
OUTLINEFAO’s Vision & Goals What FAO does globallyWhat FAO has been doing in Mongolia
– Achievements – Way forward: Country Programming Framework
What can be done to ensure sustainability
Food and Agriculture Organization of the United Nations
• Achieving food security for all is at the heart of FAO's efforts – to make sure people have regular access to enough high-quality food to lead active, healthy lives.
The three main goals:
Food and Agriculture Organization of the United Nations
1 • the eradication of hunger, food insecurity and malnutrition;
2• the elimination of poverty and the driving
forward of economic and social progress for all;
3• the sustainable management and utilization
of natural resources, including land, water, air, climate and genetic resources for the benefit of present and future generations.
Food and Agriculture Organization of the United Nations
Ensures the participation of smallholders, women, indigenous peoples and marginalized groups in each of these sectors.
Ensures the increased
productivity does not only
benefit the few
Applies innovative approaches to increase productivity, conserve natural resources, and use inputs sustainably and efficiently
Humanitarian aid
Agricultural land and
water resources
Fisheries Forestry
Agriculture
Food security
FAO IN MONGOLIA
1973-2008 2009-2014
13,443,467 US$
• Mongolia became a member of FAO in 1973, and was accredited through the FAOR office in China.
• The FAO office in Mongolia opened on 1 July 2009; facilitates projects implementation according to FAO rules and regulations.
• Up to date: 113 projects with the total value 38,694,394 $
66 47
25,250,918 US$
Number of projects
Food and Agriculture Organization of the United Nations
ACHIEVEMENTS …
• GCSP/MON/001/JPN “Increasing the supply of dairy products in Mongolia by reducing post-harvest losses and re-stocking” 2004-2007 (1.92 million USD)
• Six commercial dairy models covering each link in the cow-to-consumer dairy food chain were demonstrated with private and public sector partners.
Food and Agriculture Organization of the United Nations
16 model units demonstrating all aspects of this vertically-integrated industry – from dairy cow breeding to dairy sales centers
5 dairies in the capital
Collect milk from 1500 rural and nomadic families, then safely transport and sell it in cities.
“One-Stop Dairy Sales Centre”
In Ulaanbaatar
School nutrition programme
In 2006 in UB 110 000 children across the country and 2007 reaching 1 870 000 students in all.
National Dairy Vocational Training Centre
53 training activities for over 1 000 dairy operators. About 65% of the participants were women. Over 7 500 persons visited exhibitions and field days jointly sponsored by the project to promote dairy development activities in Mongolia.
GCSP/MON/001/JPN – II Phase 2008-2009– Government KR-2 fund, MoFA 2,12 billion MNT
• During the project lifetime, a new National Dairy Programme was approved by the government (2006).
• The three main project intervention areas of:– (i) milk production enhancement, – (ii) milk marketing enhancement and – (iii) dairy training/capacity building were
mainstreamed into the new National Dairy
Food and Agriculture Organization of the United Nations
ACHIEVEMENTS …
Lessons learnt related to the public & private sector
Public
Governments need to be cautious about interventions in the sector, especially pricing policies and dairy cow loan
schemes Government investment in large state-run processing does not work
and it is recognized that smallholder dairy development
needs to be target based on selected criteria
Graduation: from subsistence to commercial smallholder and/or
larger-scale milk production level occurs when the right policies and
strategies are adopted
Private
The private sector was not engaged soon enough: creative and carefully
thought out linkages by smallholders/smallholder groups with the private sector (including technical
assistance, financial support) can enable smallholders to move up the
marketing chainMilk quality and attractive product branding/presentation: are pre-
requisites for persuading modern urban consumers to switch from imports to milk produced by local
smallholdersValue addition: to enhance returns to dairying, selected smallholders close
both formal and informal markets should go into high value added ready-to-drink indigenous and niche products
Food and Agriculture Organization of the United Nations
Driver Categories with Sub-Factors
Demand Conditions
Market Structure & Governance
Factor Conditions
Related and Supporting Industries
Business Enabling Environment
Market size and growth
Domestic Market Herd Value-Added Processing
National
Consumption patterns
Governance Breed Transportation and
Distribution Sector Regulation
Sophistication of consumers
Market Chain Human Capacity Producer servcies Formal sector support
Receptivity to new products
Lead Firms Distribution-Infra
Capacity Specialized inputs Provincial/Local
Price elasticity Barriers to Entry &
Rents Processing
Specialized finance & credit
Formal Private Governance
Impact of market opening and imports on local demand International Market
Land Supply & Utilization
Relevant research capacity & utilization
Donor/NGO
Credit-Finance Market
External Economies Ref: Brian Dugdill, Dairy Development Specialist, FAO, Nancy Morgan, Livestock Policy Officer, FAO, Bangkok. Smallholder dairying in the Asia-Pacific region Based on synthesis of nine country lessons learned studies from Bangladesh, China, India, Mongolia, Pakistan the Philippines, Sri Lanka, Thailand and Viet Nam
Food and Agriculture Organization of the United Nations
Food and Agriculture Organization of the United Nations
PROSPECTS FAO IN MONGOLIA
CPF: a joint framework for strategic cooperation between the Government of Mongolia and FAO assistance in support of the attainment of the national development policy objectives in the fields of agriculture, fisheries, forestry, and natural resources, 2012-2016
Priority Area 1: Promotion of sustainable livestock development through improved quality, health, and productivity of livestock and increased pasture, feed, fodder, and water supply
Priority Area 3: Promotion of sustainable natural resource management as techniques for adaptation, mitigation, and management for the impacts of climate change
Priority Area 2: Introduction of environment-friendly technologies, better irrigation and rotation schemes, and crop diversification strategies to improve crop production
Priority Area 4: Development of value chain: improvement of food products, food safety standards, and food marketing
What can be done to ensure achievements and sustainability of agricultural development
Food and Agriculture Organization of the United Nations
Public & private service providers( through whole
chain)
More power and reduced vulnerability for small producers in Scenario B as opposed to Scenario A - as finance gives them staying and bargaining power, reduces their risks and enables them to get rewards/returns commensurate with and effort they put in. The “B” with more players and more choices
Value chain finance for agriculture a topic of interest for FAO and other development agencies
Value chain financing Food and Agriculture Organization of the United Nations
If designed well, AgVCF interventions can increase the competitiveness of small producers, and agribusiness enterprises
Consideration of previously started
…
Sustainability
CoordinationSector wise/ Inter
sectorial
Responsible governance
Coordination of donors
Research & extension
M &E mechanism
Investmentfor sustainable
AgVCdevelopment
FAO can facilitate
Food and Agriculture Organization of the United Nations
Food and Agriculture Organization of the United Nations
THANK YOU FOR YOUR ATTENTION