The Green Group is urging Mongolia’s national enterprises to unite and export renewable agricultural resources under a single-window policy. M.Sukhbaatar, Chairman of the Board, emphasized that Green Group is implementing this joint initiative with 2,000 suppliers from 10 aimags of Mongolia and is ready to export 14 types of products to the world market under the “Taliin Mongol” brand.
The Green Group is initiating the export-oriented singlewindow policy, which has successfully being implemented in the world, for the first time in Mongolia. Why should Mongolia implement this policy?
The basic principles of this policy, which has been successfully implemented in about 90 countries around the world, are the same regardless of the country. The basic principle is that all manufacturers in a country produce one brand according to one standard and export it under the name of their country.
For example, farmers solely need to focus on how to grow and harvest good quality seeds, not on sales, marketing, transportation, or warehousing. How is the single-window policy defined internationally?
This concept, which is internationally defined as a “single-window” or Cooperative, can be understood as a group of enterprises united by ethics, values, basic principles, and vision. Green Group, the national brand developer, intends to implement the single-window policy as part of our export targets. Although a new concept in Mongolia, it has already been successfully implemented by countries around the world. Companies united by vision and mission are taking global agricultural production to a new level. That’s why we call on all producers to export together, not one by one, through a single-window
- M.SUKHBAATAR Chairman of the Board Green Group
In other words, can it be understood as a proposal for producers and suppliers to unite under one brand and export to other countries through a “single-window”?
Most definitely. Every producer desires to export and reduce the dependence on the foreign currency. As the “single-window” export policy is already being successfully implemented around the world, we’re also calling on Mongolian producers to unite and work together. For example, “Fonterra” in New Zealand buys milk from 10,000 farmers and is responsible for approximately 30% of the world’s dairy exports. Farmers, on the other hand, own shares of the company. The company’s experience shows how to diversify labor and be more productive and successful. But what if all 10,000 farmers enter the world market? We have a lot of advantages, such as pastoralism, healthy soil, and the production of eco-friendly products, if the government policy and law are stable, and the origin and system of products are clear. The main thing here is to have a company to lead the cooperative.
WORLD MARKET CAPACITY
| Capacity | World | China | Mongolia | Green group /Export goal/ |
|
Dired noodle /MT/ |
64.828 | 10.1 | 0.018 | 0.03 |
| Meat /MT/ |
360.0 | 75.0 | 0.04* | 0.01* |
*2022-2023 онд Грийн Групп 30,000тн гоймон,
*10,000тн мах экспортлохоор төлөвлөж байна
What changes and reforms are needed in the legal framework to implement the single-window policy in Mongolia?
Currently, there is no single-window policy for exporting non-mining products, so the legal environment for our sector is unclear. Initiating and approving this type of bill is a big challenge in itself. It is important to clarify the laws and regulations related to the single -window policy. We have been focusing on this issue for the last six years, but there are still challenges. Looking back on 20 years of business experience, we only used to go abroad to buy and import something, but now I’m proud to say that we’re aiming to export. We have the advantage, but the most important thing is that government policies and regulations be stable. On the other hand, experts say that while we export our products under singlewindow and one brand, we now have a variety of brands for just one product, which hinders the implementation of this type of policy. For example, our well-known beekeepers produce a lot of individual brands. Not in the sense of one foundation, one concept, they have all tried to develop separately. But we can solve many problems, starting from saving time and money by exporting together under one brand hat, not one by one.
To what extent is it possible for companies and organizations to reach an agreement, create a cluster system, and export without waiting for a legal environment?
There is an opportunity. For example, we do not run our bee farm, but we can buy pure honey from suppliers in 10 provinces and export it under the “Taliin Mongol” brand name. Mongolian honey is one of the best in the world in terms of storage and nutrients. We are preparing to export the first batch of “Taliin Mongol” brand products with official permission and will soon continue to export steppe Mongolian meat to the Chinese market, as well as to Vietnam and Iran. Currently, we are supplying 14 types of products such as honey, pure ghee, noodle, and flour to the domestic market under the brand name “Taliin Mongol” in cooperation with suppliers from 10 provinces. The abovementioned 14 products will initially be exported to these three countries. The market demand of the buyers is ready
77%
Our factory alone supplies 77% of the Mongolian noodle market.
6.000
Iran demanded 6,000 tons of meat for export.
4.000
We received a request of export from Vietnam for 4,000 tons of meat.
30.000
Orders for 30,000 tons of children’s noodles were received from China.
What can be said about the benefits to the Mongolian economy of developing a cluster system and implementing a singlewindow policy?
Of course, the positive impact of following this is high as foreign exchange earnings are generated. For those of us who do business, the positive impact of the singlewindow export policy is assessed as immeasurable. Foreign businessmen who are engaged in only one type of production for 3-5 generations wonder how many industries we work in. But foreigners are turning to a market of more than 7 billion people with just one product. But when we make up 80 percent of our small market of 3 million people, the only way that’s left to expand the business is to either export or expand our business to another industry. We have a factory with a production capacity of 100 tons of noodles per day, which is enough to meet only 0.01 percent of the total Chinese noodle market. Therefore, it is necessary for domestic producers to unite and enter the world with a very good single-window export policy. There are many examples of successful implementation of the single-window export policy around the world.
FOREIGN TRADE OF MONGOLIA
WORLD’S BIGGEST AGRICULTURE COOPERATIVES
1. ZEN-NOH
The National Federation of Agricultural Cooperative Associations (Zen-Noh) is the largest agricultural cooperative in Japan and the world. It was formed on March 30, 1972, from the merger of 2 cooperatives namely ZENHAREN (National Marketing Federation of Agricultural Cooperative Associations) and ZENKOREN (National Purchasing Federation of Agricultural Cooperative Associations). By the time, the cooperative’s headquarters is in Tokyo and has representative and branch offices in several Japanese prefectures. In 2018, revenues from its business operations amounted to the 56.15 billion USD. Functionally, the cooperative has an important objective in protecting the agriculture sector in Japan by helping to improve the economic quality of the members i.e. farmers in Japan. With this institution, farmers can get a fair price and avoid the dominance of the market by middlemen and wholesalers that can harm farmers. Finally, with this cooperative, farmers can carry out the agricultural business activities securely because they have some guarantee of their market access, appropriate price, training, and agricultural capital.
2. NONGHYUP
The National Agricultural Cooperative Federation (NACF) is an alliance of several cooperatives in South Korea which was formed on August 15, 1961. The cooperative was originally formed as a result of the merger of Agricultural Cooperatives in South Korea (Agricultural Cooperatives) and Agricultural Bank (Agricultural Bank). To date, there are approximately 1,155 cooperative members and 2.4 million representative farmers in South Korea with a business turnover of up to 41.41 billion USD.
3. CENEX HARVEST STATE (CHS) INC.
This agriculture cooperative has a variety of agricultural business activities (diversified global agribusiness cooperative). It was founded in 1931 and headquartered in Invers Grovel Heights, Minnesota, the United States with employees reaching 10,495 people. Until 2018, the total revenue of these cooperatives reached the 32.68 billion USD. This America-based cooperative has diverse business units i.e. agronomy, energy, and marketing. In the field of agronomy, these cooperatives assist farmers in increasing the efficiency and effectiveness of their agricultural business activities including agricultural technology for members such as CHY Yield Points, providing agricultural production facilities such as seeds, fertilizers, and agricultural pesticides. Secondly, the energy division, provide fuel oil, lubricants, propane, and biofuels as well as equipment for the energy and mining business. Lastly, in marketing, this cooperative carries out distribution and marketing activities of agricultural products to several companies or countries partners in the world because this cooperative has marketing branches in various regions in the world, such as Europe, Asia Pacific, North and South America.
4. BAY WA
BayWa Aktiengesellschaft is one of the largest agricultural cooperatives in the world and Germany. It founded on January 17, 1923, and headquarters in Munich, Germany. The company grew gradually into an agricultural commodity trading institute in Germany that has multiple unit business. Operationally, this institution has several business units. First, agriculture, this company’s business unit includes the sale of agricultural products such as vegetables and fruits, agricultural machines, and inputs such as fertilizers, seeds, and pesticides. Secondly, building materials, this cooperative provides building materials, construction and renovation of housing as well as parks. Thirdly, in the energy sector, businesses in this area include planning, development, and construction for the development of renewable energy such as wind and solar energy. This institution also trades in the field of lubricants, wood pellets, and fuel. Lastly, agriculture digital innovation, this institution also makes several programs, software, or applications in agriculture in meeting to increase efficiency and effectiveness of agriculture.
5. LAND O’LAKES
Land O’Lakes is an agricultural cooperative based in Arden Hills, Minnesota, United States. Its business focuses on developing dairy farming. Since established on July 8, 1921, this cooperative has around 1,959 official members of cattle breeders, 759 unofficial members, and 10,000 employees. Many of the products produced by this cooperative include cheese, butter, chocolate, eggs, milk, and animal feed. In 2018, the turnover of this cooperative business reached the 14.94 billion USD. The cooperative annually controls the milk produced by the farmers. Its production is up to 12 billion pounds per year. With abundant quantities of raw materials, this cooperative became one of the largest producers of butter and cheese in the United States. With this power, its role has an impact on farmers and breeders, especially in terms of providing markets and capital for breeders.
6. FONTERRA CO-OPERATIVE GROUP LIMITED (FONTERRA)
This dairy cooperative originates from New Zealand which was established on October 16, 2001. This cooperative is the result of the merge of two largest cooperatives in New Zealand, between the New Zealand Dairy Group and the Kiwi Cooperatives Dairy. With a membership of 10,500 breeders and production of 2 billion liters of fresh milk each year, this cooperative is able to generate revenues of 14.15 billion USD in 2018. The cooperative exports some products to several countries with some diverse products not only milk but also cheese, butter, yoghurt, and ice cream.
7. HOKUREN FEDERATION OF AGRICULTURE COOPERATIVE
This cooperative is based in Hokkaido which helps Japanese farmers improve the economic situations of their members. This cooperative helps Japanese farmers in marketing products, capital assistance, and agricultural training. The various products produced by this cooperative include Japanese soybeans (edamame), various fruit products, vegetables, eggs, rice, yoghurt, and cow milk.
8. FRIESLAND CAMPINA
This is one of the largest cooperatives in Europe that has marketed its products to several countries. These sold products are milk-based and have distributed in some countries with the Frisian Flag Brand. Originally, this cooperative was founded in 2008, as a result of the merge between two cooperatives, namely Royal Friesland and Campina in December. Until now, the membership of this cooperative is very large, reaching 17,413 farmers which manage 11,476 dairy farms spread across Germany, Netherlands, and Belgium. Some of the product brands of this cooperatives are Alaska, Black and White, Bonnet Rouge, Frisian Flag, and various other brands. Until 2017, based on business performance, the cooperative’s turnover reached 13.65 billion USD.
9. DAIRY FARMERS OF AMERICA
This cooperative was founded in 1998 as a merger of 4 dairy and livestock cooperatives in America, namely The Southern Region of Associated Milk Producers, MidAmerica Dairymen Inc., Milk Marketing Inc., and Western Dairymen Cooperative Inc. This cooperative forms the base foundation of the dairy farmers in the United States by providing various marketing, training, and technology support to members. With a large number of cooperative memberships, many processing plants van process and store dairy products from farmers. Until now, its membership has reached more than 13,000 American farmers and breeders with a business turnover of 13.63 billion USD in 2018. In the United States, this cooperative provides benefits to its members who are farmers and cattle breeders, namely, the sharing the cooperative’s profits to the members, the existence of voting rights in cooperative membership, competitive prices for every liter of milk produced by farmers.
10. ARLA FOODS
Arla Food is a cooperative based in Denmark and becomes one of the producers of livestock products in the Scandinavian region. Since its establishment in the 1880s, this cooperative has a membership of around 11,200 people spread across Sweden and Denmark with total milk production of 13.7 billion kilograms per year. To carry out product processing operation, this cooperative has 60 processing factories, all of which are powered by environmentally friendly powered energy resources. From the marketing side, its products have been sold to 151 countries in the world. Some of the brands are Arla (milk, cheese, butter, mozzarella), Apetina (white, grill, cream, grated cheese), and Lurpak (margarine).
What can be said about the benefits to the Mongolian economy of developing a cluster system and implementing a singlewindow policy?
Of course, the positive impact of following this is high as foreign exchange earnings are generated. For those of us who do business, the positive impact of the singlewindow export policy is assessed as immeasurable. Foreign businessmen who are engaged in only one type of production for 3-5 generations wonder how many industries we work in. But foreigners are turning to a market of more than 7 billion people with just one product. But when we make up 80 percent of our small market of 3 million people, the only way that’s left to expand the business is to either export or expand our business to another industry. We have a factory with a production capacity of 100 tons of noodles per day, which is enough to meet only 0.01 percent of the total Chinese noodle market. Therefore, it is necessary for domestic producers to unite and enter the world with a very good single-window export policy. There are many examples of successful implementation of the single-window export policy around the world.
FOREIGN TRADE OF MONGOLIA
WORLD’S BIGGEST AGRICULTURE COOPERATIVES
1. ZEN-NOH
The National Federation of Agricultural Cooperative Associations (Zen-Noh) is the largest agricultural cooperative in Japan and the world. It was formed on March 30, 1972, from the merger of 2 cooperatives namely ZENHAREN (National Marketing Federation of Agricultural Cooperative Associations) and ZENKOREN (National Purchasing Federation of Agricultural Cooperative Associations). By the time, the cooperative’s headquarters is in Tokyo and has representative and branch offices in several Japanese prefectures. In 2018, revenues from its business operations amounted to the 56.15 billion USD. Functionally, the cooperative has an important objective in protecting the agriculture sector in Japan by helping to improve the economic quality of the members i.e. farmers in Japan. With this institution, farmers can get a fair price and avoid the dominance of the market by middlemen and wholesalers that can harm farmers. Finally, with this cooperative, farmers can carry out the agricultural business activities securely because they have some guarantee of their market access, appropriate price, training, and agricultural capital.
2. NONGHYUP
The National Agricultural Cooperative Federation (NACF) is an alliance of several cooperatives in South Korea which was formed on August 15, 1961. The cooperative was originally formed as a result of the merger of Agricultural Cooperatives in South Korea (Agricultural Cooperatives) and Agricultural Bank (Agricultural Bank). To date, there are approximately 1,155 cooperative members and 2.4 million representative farmers in South Korea with a business turnover of up to 41.41 billion USD.
3. CENEX HARVEST STATE (CHS) INC.
This agriculture cooperative has a variety of agricultural business activities (diversified global agribusiness cooperative). It was founded in 1931 and headquartered in Invers Grovel Heights, Minnesota, the United States with employees reaching 10,495 people. Until 2018, the total revenue of these cooperatives reached the 32.68 billion USD. This America-based cooperative has diverse business units i.e. agronomy, energy, and marketing. In the field of agronomy, these cooperatives assist farmers in increasing the efficiency and effectiveness of their agricultural business activities including agricultural technology for members such as CHY Yield Points, providing agricultural production facilities such as seeds, fertilizers, and agricultural pesticides. Secondly, the energy division, provide fuel oil, lubricants, propane, and biofuels as well as equipment for the energy and mining business. Lastly, in marketing, this cooperative carries out distribution and marketing activities of agricultural products to several companies or countries partners in the world because this cooperative has marketing branches in various regions in the world, such as Europe, Asia Pacific, North and South America.
4. BAY WA
BayWa Aktiengesellschaft is one of the largest agricultural cooperatives in the world and Germany. It founded on January 17, 1923, and headquarters in Munich, Germany. The company grew gradually into an agricultural commodity trading institute in Germany that has multiple unit business. Operationally, this institution has several business units. First, agriculture, this company’s business unit includes the sale of agricultural products such as vegetables and fruits, agricultural machines, and inputs such as fertilizers, seeds, and pesticides. Secondly, building materials, this cooperative provides building materials, construction and renovation of housing as well as parks. Thirdly, in the energy sector, businesses in this area include planning, development, and construction for the development of renewable energy such as wind and solar energy. This institution also trades in the field of lubricants, wood pellets, and fuel. Lastly, agriculture digital innovation, this institution also makes several programs, software, or applications in agriculture in meeting to increase efficiency and effectiveness of agriculture.
5. LAND O’LAKES
Land O’Lakes is an agricultural cooperative based in Arden Hills, Minnesota, United States. Its business focuses on developing dairy farming. Since established on July 8, 1921, this cooperative has around 1,959 official members of cattle breeders, 759 unofficial members, and 10,000 employees. Many of the products produced by this cooperative include cheese, butter, chocolate, eggs, milk, and animal feed. In 2018, the turnover of this cooperative business reached the 14.94 billion USD. The cooperative annually controls the milk produced by the farmers. Its production is up to 12 billion pounds per year. With abundant quantities of raw materials, this cooperative became one of the largest producers of butter and cheese in the United States. With this power, its role has an impact on farmers and breeders, especially in terms of providing markets and capital for breeders.
6. FONTERRA CO-OPERATIVE GROUP LIMITED (FONTERRA)
This dairy cooperative originates from New Zealand which was established on October 16, 2001. This cooperative is the result of the merge of two largest cooperatives in New Zealand, between the New Zealand Dairy Group and the Kiwi Cooperatives Dairy. With a membership of 10,500 breeders and production of 2 billion liters of fresh milk each year, this cooperative is able to generate revenues of 14.15 billion USD in 2018. The cooperative exports some products to several countries with some diverse products not only milk but also cheese, butter, yoghurt, and ice cream.
7. HOKUREN FEDERATION OF AGRICULTURE COOPERATIVE
This cooperative is based in Hokkaido which helps Japanese farmers improve the economic situations of their members. This cooperative helps Japanese farmers in marketing products, capital assistance, and agricultural training. The various products produced by this cooperative include Japanese soybeans (edamame), various fruit products, vegetables, eggs, rice, yoghurt, and cow milk.
8. FRIESLAND CAMPINA
This is one of the largest cooperatives in Europe that has marketed its products to several countries. These sold products are milk-based and have distributed in some countries with the Frisian Flag Brand. Originally, this cooperative was founded in 2008, as a result of the merge between two cooperatives, namely Royal Friesland and Campina in December. Until now, the membership of this cooperative is very large, reaching 17,413 farmers which manage 11,476 dairy farms spread across Germany, Netherlands, and Belgium. Some of the product brands of this cooperatives are Alaska, Black and White, Bonnet Rouge, Frisian Flag, and various other brands. Until 2017, based on business performance, the cooperative’s turnover reached 13.65 billion USD.
9. DAIRY FARMERS OF AMERICA
This cooperative was founded in 1998 as a merger of 4 dairy and livestock cooperatives in America, namely The Southern Region of Associated Milk Producers, MidAmerica Dairymen Inc., Milk Marketing Inc., and Western Dairymen Cooperative Inc. This cooperative forms the base foundation of the dairy farmers in the United States by providing various marketing, training, and technology support to members. With a large number of cooperative memberships, many processing plants van process and store dairy products from farmers. Until now, its membership has reached more than 13,000 American farmers and breeders with a business turnover of 13.63 billion USD in 2018. In the United States, this cooperative provides benefits to its members who are farmers and cattle breeders, namely, the sharing the cooperative’s profits to the members, the existence of voting rights in cooperative membership, competitive prices for every liter of milk produced by farmers.
10. ARLA FOODS
Arla Food is a cooperative based in Denmark and becomes one of the producers of livestock products in the Scandinavian region. Since its establishment in the 1880s, this cooperative has a membership of around 11,200 people spread across Sweden and Denmark with total milk production of 13.7 billion kilograms per year. To carry out product processing operation, this cooperative has 60 processing factories, all of which are powered by environmentally friendly powered energy resources. From the marketing side, its products have been sold to 151 countries in the world. Some of the brands are Arla (milk, cheese, butter, mozzarella), Apetina (white, grill, cream, grated cheese), and Lurpak (margarine).
