AGRICULTURAL MACHINERY and CUSTOM

HIRING POLICY

MINISTRY OF INDUSTRY AND AGRICULTURE, MONGOLIA

Geography: Northern Asia, between China and

Russia, landlocked

Territory: 1.566.500 sq. Km

Population: 2.754.685 (as of 2010)

Capital : Ulaanbaatar

GDP:

$8.506 billion

Per capita $3,042 (as of 2013)

Terrain: vast semi desert and desert plains, grassy

steppe, mountains in west and southwest;

Gobi Desert in south-central

Climate: continental (large daily and seasonal

temperature ranges: lowest -40oC;

highest 38oC)

Precipitation: 200-350 mm in a year

Land use:

arable land: 1%

permanent pastures: 80%

forests and woodland: 9%

other: 10%

COUNTRY PROFILE

ECONOMY

Mongolia's manufacturing sector of the economy are AGRICULTURE and MINING.

Agriculture sector is an intensively growing main traditional economic sector.

AGRICULTURAL SECTOR

Agricultural sector produces 21.7% of total GDP .

80% livestock and 20% crop sector.

40% of total working force is worked in agricultural sector.

Main crops are wheat-100% , potato -100%, vegetables-60% / local

market total consumption /

Meat , and dairy products -100%

Total livestock at the end of 2012 has reached approximately 44 million

herds.

Main agricultural export product: Leather, organic cashmere, meat, sheep

and camel wool .

AGRICULTURAL POLICY

The general agriculture policies are following:

Self sufficiency of the stable crop production such as

wheat, potato and main vegetable species

Sustainable supply of safety food and ecologically pure

crop production to the consumers

Reduction of the poverty in rural area through income

diversification due to engaging small vegetable and

fruit farming.

5.

POLICY FOR CROP PRODUCTION SECTOR

“Green Revolution” national programme /1998~2012/

State policy toward food and agriculture /2003~/

“Crop rehabilitation campaign-3” national programme for

development of crop production /2008~2010/

“Seabuckthorn” programme /2010~2016/

GREEN REVOLUTION

NATIONAL PROGRAM Goal:

Increasing income.

Reducing unemployment and poverty

Supply their own demand by establishing their own greenhouses and planting

potato, vegetable and fruit, which has high biological value.

Gradually replace imported vegetables through supplying the market with fresh

domestically planted vegetables.

and improve food supply through promoting more greenhouse fruit

cultivation for individuals, families and small cooperatives

Objective:

Reduce potato and vegetable shortage, which are rich in vitamins, decrease

import of the latter and improve both food supply and food safety.

Contribute in sustainable economic development through utilizing natural

resources sustainably.

PLANTED FIELD AND COLLECTED HARVEST OF POTATOES

12.2

6.2

7.8

8.8

10.2

8.7

9.7 9.710.5

11.6

12.312.5

13.8

131.1

51.958.8 58.1 51.8

7882.4 83.4

109113.6

142.1156

156.1

0

20

40

60

80

100

120

140

160

180

0

2

4

6

8

10

12

14

16

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Co

llec

ted

ha

rves

t th

ou

s.to

ns

Ha

rvest

ed

are

a t

ho

us.

ha

Planted field Collected harvest

PLANTED FIELD AND COLLECTED HARVEST OF VEGETABLES

3.63.2

5.45.6

7.1

6.1

5.65.8 5.8

6.1 6.4 6.5

6.9

41.7

27.3

43.9 44.539.7

58.9

50.6

62.5

70.479.1

80.681.5

90.5

0

10

20

30

40

50

60

70

80

90

100

0

1

2

3

4

5

6

7

8

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Co

llecte

d h

arv

est

th

ou

s.to

ns

Ha

rvest

ed

are

a t

ho

us.

ha

Planted field Collected harvest

481.4

356.5

194.7 199.6

263

208.9177.1

159126.2 122

155 255.5 260.4

718.3

216.4

142.1 142.2 125.9164.3

137.477

138.6114.7

205.8

392.9

338.8

0

100

200

300

400

500

600

700

800

0

100

200

300

400

500

600

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Co

ole

cted

ha

rves

t th

ou

s.to

ns

Harv

este

d a

rea t

hou

s.h

a

Planted field Collected harvest

HARVESTED AREA AND COLLECTED HARVEST OF WHEAT

20350

29597 29366

37567

173079213174

231759

273510

0

50000

100000

150000

200000

250000

300000

0

5000

10000

15000

20000

25000

30000

35000

40000

2007 2008 2009 2010

Co

ole

cted

ha

rves

t th

ou

s.to

ns

Ha

rves

ted

are

a t

ho

us.

ha

Irrigated area Harvest

IRRIGATED AREA AND COLLECTED HARVEST

0

100

200

300

400

500

600

700

800

2012 2013

2014 2015

2016

148.3 160 200

218 240

168.6 170 150 150 140

306 335 350 370 385

Chemical fallow land Mechanical fallow land Cultivation land

CURRENT CONDITION AND GOAL

AGRICULTURAL MACHINERY

40 %

5 %

40 %

55 %

20 %

40 % Current

Future goal

SET MACHINERY

FODDER PRODUCTION MACHINERY

VEGETABLE AND POTATO PRODUCTION MACHINERY

200,250HP TRACTORS FOR SMALL FARMERS

AND HERDERS

д

д

Техникийн

нэр төрөл

Тоо

хэмжээ

/шир/

Нэгж үнэ

/мян төг/

Бүгд үнэ

/мян төг/

1 Трактор 3150 3,807.0 11,992,050.0

2 Хадлангийн

иж бүрдэл 3150 1,134.0 3,572,100.0

ДҮН 15,564,150.0

FT-200 WITH HAY AND RACK

д

д

Техникийн

нэр

Тоо

хэмжээ

/шир/

Нэгж үнэ

/мян төг/

Бүгд үнэ

/мян төг/

1 Трактор 5250 3,942.0 20,695,500.0

2 Анжис 5250 275.4.0 1,455,850.0

ДҮН 22,141,350.0

250 WITH PLOUGH

FOTON LOVOL FT-200 FOTON LOVOL FT-250

8400 ps on 27,930,000 US$

TECHNICAL RENOVATION

Since 2007, technical renovation have made by 80% in tractor,

65% in harvest equipments. Harvesting time reduced by 10-12

days and it is done within 30-35 days with the assistance of

technical renovation. In 2014 will buy Foton tractors and

Combines on 12 million US$( China credit line)

CUSTOM HIRING OF AGRICULTURAL

MACHINERY

The Government of Mongolia, through the Ministry of Agriculture, is popularizing the concept of ‘custom hiring centers' as part of achieving the objective of farm mechanization through upgradation of technology for raising agriculture and horticulture crops. The Ministry is following a two-pronged strategy of encouraging big farmers or a group of farmers to come together for purchasing high cost machinery for running custom hiring centres or from Crop Supporting Fund. The custom hiring centres will give farm machinery on rental basis to farmers who cannot afford to purchase high-end agricultural machinery and equipment apart from servicing old machinery. CSF rents Machinery with 20-30% advance payment and get back rest payment by Crops within 3-5 years. The centres and CSF plays a pivotal role in introducing high technology agriculture machinery to even ordinary farmers with the objective to boost crop production and improve quality of agriculture operations.

CUSTOM HIRING

The government has set apart 7,7 billion tugriks for facilitating the

establishment of custom hiring centres in the 2009-12 year as part of

its efforts to set up the centres in every aimak in a phased manner in

the district. Last 4 years about 456 farmers were benefited by the

mechanisation initiatives of the government. A sum of 65 billion

tugriks was spent on farm mechanisation since 2008. Initially the

centres were set up in 36 agriculture divisions in the district but the

strategy is to set up a centre in each of the district. The second

strategy is to encourage individual farmers to dispense with manual

methods of land tilling, seeding, transplanting, harvesting and

processing of potato any other crop for that matter. Crop Supporting

Fund supplies budget funded machinery to Custom hiring centers .

Mostly farmers pay back its payment for machinery by wheat crop

to CSF within 3-5 years.(CSF owns 5 wheat storages with 150

thousand tons capacity)

Overall capacity of tractors and combines reduced planting time to 12-14 days and harvesting and cultivating fallow are in 35-38 days.

The quality of fallow is improved and the productivity from each hector increased by 0,6 tn in the last 2 years.

Transferred into no tillage technology from plowing technology. As a result, soil erosion decreased.

Reduced operation costs

RESULTS

Opportunity is created to assist to small farmers without any techniques for

running their businesses by installing public equipment. For example, public

service units which provide technical services were established in 54 soums of 14

provinces.

Interest to invest in crop production sector is increased (food and flour

processing etc)

Advanced technologies are being transferred from World leading brands such as

John Deere, Challenger, Sun Flower, Class, Morris and some companies opened

their dealer companies.

Improved soil moisture through

making straw cover by using wheat

combine and straw spreader at the

same time.

FUTURE OBJECTIVES

Technical renovation and advanced technology

Develop irrigated agriculture

Improve quality of seeds and its supply

Increase the capacity of storing facilities and elevators

Develop vegetable and fruit production

Capacity building of the sector

Attain self sufficiency with wheat, potatoes, vegetable and

develop crop production for export purpose.

Develop export oriented crop production

FUTURE OBJECTIVES

Improve the legal environment on crop land usage, ownership

Improve the legal condition to protect cropping area and harvest from livestock, to set up border area for integrated crop and livestock production

Create appropriate crop insurance system

Increase crop production through investment from the profit of mining sector

Support to establish Sea buckthorn processing factors, which can meet an international standard

GRAIN PRODUCTION DEVELOPMENT,

DIRECTION

171.8 thousand hectare

78.6 thousand

hectare

202.3 thousand hectare

Citizen-431

Entity-660

Total-1091

127.8

thousa

nd

hectare

≤ 500 hec. 501 -999

hec.

1000-2999 hec. 3000 hec. ≤

39

Entity

115 Citizen,

Entity

130 Entity

811 Citizen,

Entity

Adapt advanced technology for

over 40%

Distribution Field– 765.0 thousand hectare

Crop– 610.0 thousand hectare

Include and develop into a

cooperative for technology

renewal on a voluntary base

Include in renewal of Medium

performance technology

Include in renewal of High

Performance technology

Distribution Field– 622.9 thousand hectare

Crop– 475.9 thousand hectare

Current extent Goal

DEVELOP A VEGETABLE PROCESSING INDUSTRY IN ALL

HARVESTING PROVINCE

NEW DEVELOPING VEGETABLE PROCESSING INDUSTRY- 1500 TON/YEAR

NEW DEVELOPING POTATO PROCESSING INDUSTRY - 10 thousand ton/year

CURRENT WORKING INDUSTRIES

5

1

GREEN HOUSE MECHANIZATION

Хөрс боловсруулах Үрэлгээ Үрсэлгээ суулгагч

Green house mechanization

THANK YOU FOR YOUR

ATTENTION