A Growing Market for Farmers in Mongolia

Photo: Thatcher Cook for Mercy Corps

Vegetable growers and dairy producers in Mongolia's Umnugobi province (or aimag) have begun supplying local produce to one of that country's largest mineral exploration operations.

The Bat-Amgalan Khurkh herder cooperative in the town of Nomgon soum, the Ankh San cooperative in Bulgan soum and the Aduut Gobi cooperative in Khurmen soum have made their first deliveries to Ivanhoe Mines’ Oyu Tolgoi gold and copper exploration site in Umnugobi.

The cooperatives – who have received technical assistance and training from the Mercy Corps Gobi Initiative project, which is funded by USAID – are supplying the 400-strong workforce with fresh soybean curds and a range of freshly grown produce.

Their first delivery of 20kg of curds, 200kg of potatoes, 200kg of onions, 150kg of carrots, 100kg of turnips, 100kg of tomatoes, 10kg of beets and 10kg of peppers on September 23 netted them more than 400,000 MNT - equivalent to about $400.

Mercy Corps Mongolia Country Director Steve Zimmerman said: “Since one of the main focus areas of our project is to link new and expanding rural businesses to local, regional and national markets, Ivanhoe, as a major Gobi-area consumer, represents a solid marketing opportunity for these rural businesses. Ivanhoe solidly endorses the practice of local procurement and Gobi-area producers are seeing the value of this business collaboration.

“The herders get immediate payment for their products, helping to eliminate an outdated barter system that has prevailed since the early 1990s.

“It’s all about linking producers to markets, where those markets pay them in real money and real time. Producer-consumer relationships like this benefit the small Gobi businesses and provide a large company like Ivanhoe with an opportunity to demonstrate very tangible support for the local economy.”