BUSINESS DEVELOPMENT SERVICE ASSESSMENT REPORT

company uses local laboratory for hygienic testing. For export meat,
there are some basic requirements such as compliance of standards
in slaughter process, hygiene testing before slaughter and cutting
carcasses into pieces. The company procures meat between August
and November every year and its representatives travel to herder
gers to buy directly from herders. Its procurement totals 2,000 horses,
2,000 cattle, and 10,000 small ruminants through direct procurement
or through representatives working in the soums. There are cases
that herders also bring their animals to company for sale. The
company buys cattle and horses mainly from Undurhangai, Zuungobi,
Zuunhangai and Tes soums and buy small ruminants directly from
changers or representatives in all soums. Company selects the area
where to buy animals based on information disseminated by Aimag
Agricultural Department on spread of communicable animal diseases,
with its main requirement of buying live animals with meat yield of no
less than 18 kilograms. Due to some reason, the company has to buy
animals with meat yield of 12-20 kilograms, sometimes. There are
seldom cases that animals do not meet requirements. The company
is interested in buying effective from June, but the only possibility is
that herders start selling in August.
The company also has a capacity of producing a tonne of sausage
per month (30-5 kg a day). Further renovation is required for
processing of by-products like head and legs. The company is
planning to process about 1000 sheep heads as a pilot project. For
sausage making business, company invited an expert from Russia
paying 55USD per diem and 6000 USD salary for two months. Under
the contract with Ulaangom college, company will have students
working as an apprentice between December to April some will be
employed. Totally the company employs about 40 people.
For the meat procurement, the company gets down payment from
Russian counterparts as well as get 150 million MNT loan from Khan
Bank with 1.3% of interest per month.
8. Raw material changers - Dorjderem
Local changers procure cashmere worth 3.1 billion MNT per year and
sell to Goyo company, one of the biggest cashmere producers. As
there is no need to sort cashmere, changers mix Ulgii red goat
cashmere (fine cashmere) with Bayan-Ulgii black goat coarse
cashmere. Aside from cashmere they also buy and sell 300 million
MNT skin and hide to UB, from there sold to China. They also sell
over 100 tones of meat to Russia (about 200 million MNT). Compared
to large processing company, they buy animals for longer period
November to January. They also have their own storage houses in
where a Russian appointed veterinarian comes and checks for the
quality. Jast company also buys meat for state reserve so changers
sometimes provide the company with 100-150 tones of meat if the
price that Jast offers suits them. Sometimes herders also come to sell
animals, so the company does not have to travel to countryside for
buying animals.