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1 SUPPORT TO EMPLOYMENT CREATION IN MONGOLIA (SECiM) Component 2: Piloting quality private sector work in selected livestock and vegetable value chains project PROJECT PROGRESS REPORT 1 February 2019 – 31 January 2020 PROJECT TITLE: Support to Employment Creation in Mongolia (SECiM) Component 2: Piloting Quality Private Sector in Selected Livestock and Vegetable Value Chains PROJECT NO: GCP/MON/014/EC, TPC/MON/3606 & TCP/MON/3706 REPORTING PERIOD: Feb 2019-Jan 2020 TOTAL BUDGET: EUR 4, 450,000 EU contribution : EUR 4, 150,000 FAO contribution : EUR 300,000 UNIDO contribution: In-kind USD 150,000 EXPENDITURE DURING REPORTING PERIOD: EUR 1,806,052.06 REPORT PREPARED BY: PROJECT IMPLEMENTATION UNIT OF FAO and UNIDO March 2020 Ulaanbaatar, Mongolia

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Page 1: PROJECT PROGRESS REPORT - UNIDO...Component 2: Piloting quality private sector work in selected livestock and vegetable value chains project PROJECT PROGRESS REPORT 1 February 2019

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SUPPORT TO EMPLOYMENT CREATION IN MONGOLIA (SECiM)

Component 2: Piloting quality private sector work in selected livestock and vegetable value chains project

PROJECT PROGRESS REPORT 1 February 2019 – 31 January 2020

PROJECT TITLE: Support to Employment Creation in Mongolia (SECiM) Component 2: Piloting Quality Private Sector in Selected Livestock and Vegetable Value Chains

PROJECT NO: GCP/MON/014/EC, TPC/MON/3606 & TCP/MON/3706

REPORTING PERIOD: Feb 2019-Jan 2020

TOTAL BUDGET: EUR 4, 450,000

EU contribution : EUR 4, 150,000

FAO contribution : EUR 300,000

UNIDO contribution: In-kind USD 150,000

EXPENDITURE DURING REPORTING PERIOD:

EUR 1,806,052.06

REPORT PREPARED BY: PROJECT IMPLEMENTATION UNIT OF FAO and UNIDO

March 2020 Ulaanbaatar, Mongolia

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Table of Contents

ACRONYMS .............................................................................................................................................. 3

PROJECT PROFILE ........................................................................................................................................ 5

Acknowledgement ...................................................................................................................................... 6

1. EXECUTIVE SUMMARY ........................................................................................................................ 8

2. SUB-COMPONENT 2.1: MEAT VALUE CHAIN ........................................................................................ 16

3. SUB-COMPONENT 2.2 DAIRY VALUE CHAIN ......................................................................................... 24

4. SUB-COMPONENT 2.3 TEXTILE VALUE CHAIN .................................................................................. 33

5. SUB-COMPONENT 2.4 LEATHER VALUE CHAIN ................................................................................ 42

6. SUB-COMPONENT 2.5 VEGETABLE VALUE CHAIN ............................................................................ 46

7. SUB-COMPONENT 2.6: COORDINATION AND MANAGEMENT .............................................. 49

8. PROJECT RESULTS TRACKING ...................................................................................................... 51

9. FINANCIAL DELIVERY ............................................................................................................................. 53

10. PROJECT COMMUNICATION & VISIBILITY ACTIVITIES ....................................................... 55

11. KEY ACHIEVEMENTS AND PROBLEMS ENCOUNTERED ....................................................................... 58

Upcoming Activities .............................................................................................................................. 60

Appendix 1 Project technical documents, guidelines and advocacy materials .................................... 61

Appendix 2 Photo Illustrations / Achievements In 2019 ...................................................................... 67

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ACRONYMS

AM Advocacy materials AUO Altain Uulsiin Orgil herder’s union CLE Council of Leather Exports D Documents including toolkits, guidelines and interactive training materials BDS Business Development Services EU European Union EUR Euro EBRD European Bank for Reconstruction and Development FAO Food and Agriculture Organization of the United Nations FMD Foot and Mouth Disease FSCS Food Safety System Certification FSMS Food Safety Management System FCM Food Contact Material FPE Footwear Pattern Engineering MFIA Mongolian Food Industry Association GASI Government Agency for Specialized Inspection GAVS General Authority of Veterinary Service GC Global Communities international NGO GDP Gross Domestic Product GHP Good Hygienic Practice GMP Good Manufacturing Practice GoM Government of Mongolia HACCP Hazard Analysis and Critical Control Point H2S Hydrogen Sulphide Gas ILO International Labour Organization IFC International Finance Corporation ISID Inclusive and Sustainable Industrial Development ISO International Organization for Standardization INGO International Non-Governmental Organization IULTCS International Union of Leather Technologist and Chemists Societies JICA Japan International Cooperation Agency KPIs Key Performance Indicators LHSC Labour Health and Safety Center LMS Learning Management System LTO Lead Technical Officer of FAO LoA Letter of Agreement LWG Leather Working Group MACU Mongolian Artisanal Cheese Union MAP Mongolian Atmosphere Packaging MASM Mongolian Agency for Standards and Methrology MAMI Mongolian Association of Meat Industry MAVM Mongolian Association of Veterinary Medicine MMA Mongolian Meat Association MFA Ministry of Foreign Affairs MoFALI Ministry of Food, Agriculture and Light Industry MoH Ministry of Health MoLSP Ministry of Labour and Social Protection

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MoU Memorandum of Understanding MFARD Mongolian Farmers’ Association for Rural Development MRCS Mongolian Red Cross Society MULS Mongolian University of Life Science MUPA Mongolian United Packaging Industry Association MULS Mongolian University of Life Science MUST Mongolian University of Sciences and Technology MWTA Mongolian Wool and Cashmere Association MWTA Mongolian Wool and Textile Association MUST Mongolia University of Science and Technology NGO Non-Governmental Organization NTG Natural Textile Group OIE World Organization for Animal Health OIE OSH Occupational Safety and Health PDU Pilot Demonstration Units PIU Project Implementing Unit PMU Project Management Unit PPP Public-private partnership PSC Project Steering Committee QA Quality Assessment RFID Radio Frequency Identification RDILI Research and Development Institute of Light Industry SCAA Shearing Contractors’ Association of Australia SDG Sustainable Development Goals SFF Static Flaying Frame SLM Sustainable Leather Manufacturing SME Small and Medium Enterprise SOPs Standard Operating Procedures SS Sheap Shearing SDC Swiss Agency for Development Cooperation SECiM Support to Employment Creation in Mongolia ToT Training of trainers TR Technical Report TTLMs Teaching, training and learning materials TVET Technical and Vocational Education and Training UB Ulaanbaatar UNIDO United Nations Industrial Development Organization VC Value Chain VCS Veterinary Certification System

WB World Bank WPO World Packaging Organization WSMD World School Milk Day

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PROJECT PROFILE

Country:

Mongolia

Project Symbol

GCP/MON/014/EC

Project Title Support to Employment Creation in Mongolia (SECiM) Component 2: Piloting Quality Private Sector in Selected Livestock and Vegetable Value Chains

Resource Partner

European Union

Reporting Period

1 February 2019 – 31 January 2020 (Project Implementation Year-4)

Actual EOD

February 2016

Actual NTE

January 2021

Budget Holder

Dr Vinod Ahuja FAO Representative in Mongolia

Lead Technical Officer

Dr Sridhar Dharmapuri, Senior Food Safety and Nutrition Officer, FAO Regional Office for Asia and the Pacific

Participating Organizations

Ministry of Food, Agriculture and Light Industry and Ministry of Labour and Social Protection

Implementing Partners (List): Name Type (NGO/CBO/Gov.) Total Funds Transferred

UNIDO UN agency EUR 1,569,305 (UN-UN agreement) EUR 1,250,000 (transferred amount)

Mongolian Farmers’ Association for Rural Development

NGO EUR 80,675 (LoA amount) EUR 48,829 (transferred amount)

Mongolian Food Industry Association NGO EUR 22,066 (LoA amount) EUR 17,638 (transferred amount)

“Khamtiin urgats” cooperative Coop EUR 23,458 (LoA amount) EUR 18,766 (transferred amount)

Contribution to Programmatic Framework

Organizational Outcome SO4/OO2

Regional Priority Area/Initiative Fostering agricultural production and rural development *

Country Outcome CPF Priority Area 4

UNDAF Outcome(s) (or those from an equivalent UN common country programme document)

Outcome 1 *

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UNIDO Background

Project Title 140197: Support to Employment Creation in

Mongolia 1

Implementing agency:

United Nations Industrial Development Organization (UNIDO)

Project Contact: Name:

Mr. Ivan Král, Project Manager, UNIDO Mr. Ali Badarneh , Project Manager, UNIDO Mr. Riccardo Savigliano, Allotment Holder, UNIDO Mr. Ralf Bredel, UNIDO Representative OiC Ms. Munkhbolor Gungaa, National Project Coordinator, UNIDO

Phone: Email:

+796 7018 0180 [email protected]

Annual Report Type: Second Annual report Reporting Period Project Outcome

1 February 2019 – 31 January 2020 SDG9 primarly

The SECiM has two components: Component 1 (C1) aims to reform employment policy and provide institutional support and Component 2 (C2) pilots employment creation in five specific food and non-food value chains, namely: (i) meat, (ii) dairy, (iii) textile (cashmere, camel and yak hair, wool), (iv) leather and (v) vegetables. UNIDO, under an UN-UN Agreement with FAO, implements a part of C2 in meat, dairy, textiles and leather components with an emphasis on textile fibers and leather value chains. This report covers UNIDO inputs for C2. While productivity, competitiveness and employment creation are the overall objectives of the action, especially for vulnerable rural people and women and youth, the ‘decent work’ concept makes both components interdependent for overall success. The C2 partners are line ministries for agriculture and labour including Ministry of Food and Agriculture Light Industry (MOFALI) and Ministry of Labour and Social Protection (MoLSP) but also includes other stakeholders such as, governmental agencies (e.g. General Agency for Specialized Inspection (GASI) and Mongolian Agency for Standards and Meteorology (MASM)), local governments and support institutions and services, research institutions, think tanks, academic and vocational training institutions, business/trade associations and private sector companies operating in all five value chains. Project beneficiaries are owners and staff of private sector entities, small and large (including cooperatives) operating in the value chains, local administrates; municipal, aimag (province) and soum (district) governments and support institutions as NGOs and local civil society and organizations, academic, research and vocational education and training institutions. Expected result of the C2: Conditions and capacity for private sector employment creation strengthened in specific value chains. As set out in the Action Fiche12 The main activities include: (i) Participatory analysis of the selected value chains, (ii) strengthening capacity for coordinated action to enhance the added value, and (iii) identifying and assessing options for specific measures to assist value chain actors in overcoming obstacles for expansion of activities/increasing value added.

Acknowledgement

1See project document GCP/MON/014/Support to Employment Creation in Mongolia Component 2:Piloting quality private sector

work in selected livestock and vegetable value chains 2 Annex 1 to Financing Agreement No. 2014/037-454 Technical and Administrative Provisions (December 2013).

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FAO report was prepared by the project implementation unit of FAO, Ms Amgalan Aruinbold Technical Advisor of FAO Mongolia and Sridhar Dharmapuri Senior Food Safety and Nutrition Officer, FAO Regional Office for Asia and the Pacific, Lead Technical Officer of SECIM project.

UNIDO report was prepared by the UNIDO National Project Team including Ms. Munkhbolor Gungaa (National Project Coordinator), Ms. Tsetseg-Ulzii Yadamsuren (eLearning Expert), Ms. Khongorzul Boldbaatar (Textile Industry Expert), Ms. Purevdulam Jamiyansuren (National Monitoring and Evaluation Expert), Mr. Kadirbyek Dagys (National Meat and Dairy Expert) and Ms. Odontuya Tsetsegdelger (Translator). Special thanks to UNIDO Project Managers Mr. Ivan Kral, Mr. Ali Badarneh and project assistants Mr. Sebastian Hochwallner and Ms. Shen Yiyi supporting from UNIDO Headquarters in Vienna and UNIDO Representative for Mongolia, Mr. Ralf Bredel.

In 2019, the project worked closely with the Mongolian Ministry of Food, Agriculture and Light Industry (MoFALI), especially with the Department of Policy Planning, Department of Light Industry Policy Coordination Implementation, Department of Food Industry Policy Coordination and Division of International Cooperation.

The project focal points Mr. M.Enkh-Amar, Director-General of Policy Planning Mr. B.Batkhuu, Director-General of Light Industry Development, Mr. D.Gantogtokh, Director-General of Food Industry Policy Implementation and Coordination and Mr. D.Badruun, Director of International Cooperation as well as Mr. Ch.Ulaan, Minister and Ms. J.Saulye, Vice Minister provided continuous encouragement and guidance to ensure the project supports MoFALI’s policies and programmes.

Thanks to our joint efforts through public and private partnerships we have begun to yield expected results.

For the project information, please contact: [email protected]

Project Facebook page: @unidosecim Youtube channel: https://www.youtube.com/channel/UCZb9I62dbH8d_GwaZ4xdSJg Website: www.unido.org

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1. EXECUTIVE SUMMARY Support to employment creation in Mongolia (SECiM) Component 2: Piloting Quality Private sector in Selected Livestock and Vegetable Value Chains, co-funded by EU and FAO, was launched on 1 February 2016. The Ministry of Food, Agriculture and Light Industry (MoFALI), FAO and UNIDO are the implementing partners for the project. In the reporting period, the Project Management Unit (PMU): provided overall management to ensure that every planned activity is carried out in timely and effective manner; and took necessary measures to keep project on track. The current report reflects project status from 1 Febuary 2019 to 31 January 2020: outcomes and outputs achieved in five project subcomponents designed to create decent employment and income opportunities along the meat, dairy, textile (wool and cashmere), leather and vegetable value chains. UN-UN Agency Agreement, between FAO and UNIDO for provision of support to implementation of the Sub-Component 2.3 (Textile) and Sub-Component 2.4 (Leather) as well as provide technical inputs on large scale dairy plants and large scale meat processing plants within Sub-Component 2.1 and Sub-component 2.2 of the GCP/MON/014/EC project was signed on 6 June 2017. UNIDO is implementing the SECIM C2 focusing on the livestock value chains alongside with carrying out sub-component activities, which are designed to make sure that decent employment and income opportunities are generated in the meat, dairy, wool and cashmere, and leather value chains. UNIDO provided a separate annual progress report from 1 February 2019 to 31 January 2020 which included in this compiled report. UNIDO’s component of the European Union funded “Support to Employment Creation in Mongolia” (SECiMC2) project started on 1 March 2018. The main focus areas are meat, dairy, textile and leather sectors. The project has been implemented within the framework of its objectives in close coherence with the Ministry of Food, Agriculture and Light Industry’s (MoFALI) programmes and priorities. Overall, the project outcomes are contributing to the SDG9 primarily and UNIDO’s mandate of Inclusive and Sustainable Industrial Development. This report covers the period of 1 February 2019 throughout 31 January 2020 and builds on results from 2018 in accordance with the UN-UN Agreement.

In 2019 numbers of Pilot Demonstration Units (PDU) - technology transfers, trainings, innovations and proof of concept actions were undertaken in the selected livestock value chains including:

● Hides and skin flaying knives and locally produced static flaying frame (hide puller) which have

reduced knife damages to almost zero defect;

● Deboning knives for quicker work and higher productivity;

● Electric sheep shearing, sorting and baling to improve the productivity and quality of wool supply and

transportation;

These innovations are affordable, scale-able, locally available or locally produced. MoFALI has expressed its plans to scale up these achievements in number of soums, and if possible throughout 330 soums of the country.

● Upgraded textile knitwear wet finishing procedure with international standards. Incubator Center for

Textile Finishing was established at Research and Development Institute of Light Industry (RDILI) that

provided open access for small and medium enterprises (SMEs) to get professional trainings and

knitting services;

● Numerous capacity building and institutional strengthening activities provided for four

subcomponents and cross-cutting sectors. Notably, Leather Working Group pre-auditing, Food safety

management system (FSMS) inspection, Packaging and labelling as well as product development and

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marketing training and on-site assessments were conducted for the industries, which resulted to

foster innovative ideas and knowledge of international standards.

● Professional and technical eLearning courses, including occupational safety and health (OSH), have

been developed to support these initiatives.

Besides planned activities of the SECiM Work plan, the project team built a number of business and market linkages through huge networking and communication. For instance, organized on-site visits for buyers from the US (Khangai Mountain Textiles Co.Ltd) to RDILI and textile enterprises and from India (Arkay Leather Co.Ltd) to leather processing enterprises. Over 30 Mongolian ambassadors overseas visited the leather industry (Buligaar factory) to understand the needs for export promotion. The newly appointed UN Resident Coordinator also visited MALI, Mongol Shevro tannery and MS Garment factory to better understand the industry and provide required support. Mongolian Artisan Cheese Union has always been promoted in terms of potential artisanal cheese exports. The artisanal cheese from Mongolian nomadic dairy has been promoted through various stakeholders and occasions including MoFALI, MNB TV, ambassadors’ visit, Minister of MoFALI’s meeting with the DG of UNIDO and SECIM related training events.

Besides regular communication and coordination with the line ministry MoFALI, the project team maintained proactive coordination with MoLSP (partnered with LHSC on OSH) and EU funded projects such as SECiMC1 (built synergy with MoLSP on OSH aspects) and TRAM (facilitated the project to identify appropriate international technical experts for leather sector via UNIDO’s experts’ pool) were maintained.

The project implementation unit was formed up with a multi-faceted team members including the National Project Coordinator, National Textile Industry Expert, National eLearning Expert, National Monitoring and Evaluation Expert and Translator as well as short term National Leather, Meat and Dairy experts. The senior project managers from UNIDO HQ in Vienna provided strong guidance, backstopping and support to implement the planned work plan in a timely manner. Visual report of the SECiMC2 project under UNIDO component can be found here: https://www.youtube.com/watch?v=TlQ0zWBQwcc

2.1 Decent employment and income opportunities along meat value chain are generated.

Project focuses on supporting employment creation through increasing aggregate production of meat, value adding in meat production and diversification of products. The project supported 10,730 herders generated income and 753 new employment in the meat value chain since the project started. The project contributed the increase of the local small abbatoir and processor’s capacity. As part of its commitment to increase the carcass weight, the project demonstrated an emerging technology that uses electromagnetic radiation for castration of lambs and calves to veterinarians, veterinary technicians and herders in 6 project aimags. As per Mr Nilbaatar, local veterinarian and inventor of this new technology, this new method is pain and stress free and helps young animals to gain weight rapidly. The carcass weight of lamb (8 month old) castrated in this way was equal to that of hogget (18 month old). The governor’s office of Bayandelger soum in Tuv aimag pilots this technology by castrating 316 lambs using EMR emitter, and set them off grazing to gain weight. The conventional methods, particularly the one that uses knife to remove spermatic cord and testicles causes more sustained pain in lambs and it takes time for them to recover and get back on feed, affecting rapid weight gain. China and Japan keep their eyes on this technology. Home slaughter of livestock is widely practiced in rural areas, and the meat, which doesn’t comply with basic hygiene requirements are sold at aimag and soum based food markets. Project established small scale abattoir, fully complying with the meat hygiene standards that apply to establishments, in Erdenebulgan soum of Khuvsgul aimag. This abattoir has all the equipment necessary for slaughtering process, such as stunning box, stunning gun, cattle hoist, hide puller, carcass splitting saw, evisceration platform, carts, sticking and skinning knives, chain hoist, etc. The meat can be packaged at the abattoir. The design of this low capacity (5

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cattle a day) abattoir that encompasses all elements of animal slaughter processes that are found in high capacity slaughterhouses is ideal for soums. Currently, Erdenebulgan is the only soum that has modern abattoir, which reduces pre-slaughter stresses of animals, and supplies meat, that complies with hygiene standards, for local consumption. Having this kind of modern facility minimizes the burden of transporting or driving live animals for meat to urban centers, which affects the quality of meat and well-being of animals. Along with food safety of meat products, project also focuses on improvement of meat quality and value adding in meat production. Due to the absence of chilling facilities, the large scale abattoirs in Mongolia use blast freezers, which is a strong determinant of poor meat quality. Chewiness, dryness and poor taste are the common characteristics of factory slaughtered meat, and this is why some calls Mongolian beef and mutton ‘a meat from athlete animals’. To address this technological gap, the project supported establishment of chilling (10 whole carcasses of cattle) and freezing (20 tons) rooms at abattoir in Erdenebulgan soum and Shinemurun food market in Murun soum (both in Khuvsgul). The consumers in these two soums can not only have tender and juicy beef, but also choose meats for their cooking needs, for example, the restaurants and eateries now have a place to buy fatless beef for steak (tenderloin, sirloin, rib eye, etc). Unavailability of high quality beef at domestic markets affects the quality of some dishes in local eateries in Mongolia, and businesses, that are well aware of this gap, started beef import from Australia, New Zealand and other countries to fill the gap. The introduction of chilling technologies in meat value chain can reduce beef import. Along with introduction of new technologies, project also supports improvement of performance and installed capacity of existing establishments to save and create more jobs in meat value chains. In this regard, project provided Baruun Mongol International LLC in Khovd aimag with carcass tackle hoist and equipment for scalding and dehairing of sheep and goat. In the reporting period, project organized trainings on technologies for ‘Increasing carcass weight of animal using castration method of lambs and calves by Electromagnetic radiation (waves)’, ‘Dressing cattle and small ruminants carcass and grading for cooking needs’, and ‘Introduction to meat hygiene principles and GMP for meat establishments’, in joint efforts with MoFALI and “Mash Sain San” NGO. Also, a regional consultative meeting and training for Intensive livestock farmers, and the conference of development leaders in meat and dairy sectors, jointly with MOFALI, IFC, Mercy Corp Mongolia and American Chamber of Commerce, which were attended by more than 400 people. The project created 405 employment for rural people and contributed to their income creation. In a unique country like Mongolia, which has over 66 million livestock against its tiny population of 3 million people, driving growth in meat export can singlehandedly lead to multiple environmental and socio economic consequences, such as better restoration of overgrazed and degraded rangelands, improved herders livelihood through commercialization of livestock at scale, and better employment creation. However, country’s meat and livestock export potential is seriously undermined by the persistence of transmissible

animal diseases in the country, especially Foot and Mouth Disease (FMD). Gaining disease free status for a country or specific area (zone) can grant access to lucrative international markets. In the same vein, it comes with challenges of resource mobilization and time. An alternative is application of compartments, which must comply with requirements of World Organization for Animal Health (OIE) Terrestrial Animal Health Code (Section 4). Project has been supporting the establishment of compartment in Mongolia from its beginning, and completed, in the reporting period, a draft of model compartment project, and associated cost & benefit analysis, based on Darkhan Meat Foods LLC. The proposed area for compartment zone covers 4,5 ha in the radius of 30 km, in Darkhan Uul aimag.

2.2 Decent employment and income opportunities along dairy value chain are generated.

To deliver on its commitment to create decent employment and income opportunities in the dairy sector, the project focused primarily on strengthening cold chains established with project resources, saving existing jobs and creating more jobs, in the reporting period. The project supported increasing milk collection through the established cold chain and establishing milk collection centers, 331 herders generated income supplying milk to the collection centers and processors and

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130 new employment in the dairy value chain since the project started. The project contributed increasing dairy processor’s capacity 2 times through the technical assistance and its support. Despite the growing dairy production in recent years, barely 30% of installed capacity in dairy sector is being utilized. The underlying causes include, herders’ failure to see dairy as marketable products, underdevelopment of dairy collection systems in rural areas, and the failure to take up best practices. The largest dairy companies in Mongolia, such as Suu, APU, TESO, Vitafit and Monfresh have collection network extending to only 250 km from Ulaanbaatar. Beyond this borderline, there is no functioning dairy collection infrastructure. To compensate limited seasonal availability of dairy especially in winter, these companies choose to rely on imported milk powder, and refuse to invest in development of infrastructure just to collect summer milk. Increasing milk supply and extending working range of collection network beyond 250 km up to 300-600 km can reduce unused capacity and help dairy sector to rebound. The consequences include increased production of import substitute products, improved employment creation, commercialization of unutilized milk. In joint effort to make dairy business more appealing, the project works closely with national dairy companies to develop cold chain in dairy sector. Project is now in the process of developing milk supply scheme that connects primary producers with large dairy companies to ensure smooth supply of safe and high quality milks. The important link in this scheme is primary producers, who are accountable for proper collection of milk and storing it in cooling tanks before sending to dairy processors. In the previous years of implementation, the project assisted in the formation of 11 dairy producers groups, providing 3 units of 1 ton capacity cooling tanks for the use by group of herder households, and 2 units of 5 ton capacity tanks for milk hauling to milk processors. Project supported establishment of 4 cooling centers with combined capacity of 14.2 tons, in Khongor (Darkhan uul), Tarialan and Murun (Khuvsgul), and Kholonbuir (Dornod) soums, and linked them with Vitafit, Titanic, and Onkhoodoi dairy processors. With the additional technical and financial supports from the project, 6 more cooling tanks were provided for herder households’ use, 6 small scale dairy processing units with daily capacity of 500 liters and 3 dairy sales points were established. All these demonstrate greater potential for liaison between primary milk producer groups and large dairy processors, on the cost sharing basis. To solidify the results achieved in earlier stages, during the reporting period, the project organized trainings on ‘milk hygiene requirements for cold chains’, ‘good practices for dairy farms’ and ‘theoretical and practical training on production of cheese and curds cheese’ in project aimags. Total of 90 people participated in the trainings. World milk day was celebrated in Mongolia for the 4th time. The project organized World milk day in Ulaanbaatar, Tuv, and Khuvsgul aimags to raise the consumption and recognition of milk as important food. Local governments continue scaling up project best practices. World School Milk Day (WSMD)was celebrated in Mongolia for the second time. The local government and project organized the WSMD in Selenge and Khovd provinces. A dairy processing SME with daily capacity of 500 liter was established in Renchinlhumbe soum (Khuvsgul) with public investment by Food and Agricultural Department of Khuvsgul aimag. As part of its commitment to this small enterprise, project provided 5-day training on production of new products. The 3rd edition of Dairy processing handbook was published in 500 copies and distributed to dairy specialists, dairy producers, and dairy processors. Intrigued by the role and impacts of dairy sale points in development of dairy value chains in isolated rural places, the project provided financial and technical assistance to the establishment of dairy sale points, accommodated in 12 x 5 meter building, in Murun (Khuvsgul) and Jargalant (Khovd) soums. These sale points sell range of dairy products produced by 18 local SMEs to end consumers. Milk vending machine installed in dairy sale point in Khovd. Cooling chambers (-18 Co) were also provided to improve products quality and market linkages of dairy value chain players in these two aimags. The project created 305 new employment for rural women and vulnerable groups.

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2.3 Decent employment and income opportunities in textile value chain and leather value chain The cornerstone of the SECiM C2 project is empowering the decent employment and income generation opportunities by enabling the conversion of locally available resources into competitive value added and exportable products in terms of increasing local producers’ participation in the formal local and international markets. To date, the key achievements in 2019 in terms of innovative and proof of concept oriented activities in the selected livestock value chains in Mongolia are as follows:

Capacity building and institutional strengthening: within the context of primary objective - private sector

employment creation and decent work practice, project intervention focused on numbers of capacity building

activities in the sphere of direct and indirect categorization. With international best practice and know-how

shared contribution to the job creation and decent employment, classroom and practical training sessions

were delivered to 1210 (54% women) and followed by online training for 326 (40% women) and overseas

workshop activities for 4 (25% women) beneficiaries respectively in 2019 as shown in table 1.

Furthermore, the provided direct activities were exercised by project implementing unit (PIU) with project resources i.e. international and national experts, while indirect activities were organized by project beneficiary partners who received the direct interventions as capacity building and institutional strengthening. It is noteworthy that the project achieved to provide the institutional capacity building so as it was outreached to 320 indirect beneficiaries after the year 1 of project cycle. The overall 35 practical training sessions and workshops were organized in the four subcomponents and cross-cutting categories. The participants totaled 1210 persons of whom 647 (53.5%) were women. With about half proportion (632 attendees (52%)) of total participants, the capacity building training was consolidated each sub-components beneficiaries and recipients while market linkage related activities were delivered to around 30 numbers of beneficiaries as shown below table. In parallel to the in-class, or on-site training, the project implemented eLearning on 2 learning management systems2 (LMS) to promote the blended training approach. Total of 453 online users are learning online in 4 different courses since the project inception (Table 3). The 1-module H2S course can run fully online, and it automatically issues a Certificate for learners when they meet 4 criteria. 74% of completion rate (Table 4) is significantly higher than the eLearning benchmark, and the reason is that the project team organized blended training on H2S in tanneries.

Within the reporting period, 9 international experts worked in Mongolia for a total of 127 days. They visited 72 institutions including 49 factories (overlapping numbers), professional associations, TVET, scientific institutions3; Ministries and government organizations. While executing their onsite visit & assessments, international experts provided professional consultancies to institutions, answered their questions, and introduced trends. During a consequent training, experts highlighted the common issues and questions.

Technology of transfer in the livestock value chain:

o Hides and skins quality improvement with flaying equipment including flaying knives and tools in the peri-slaughter phase (raw material preparation) introduced and transferred to 30 tanneries4 that contributed to reduce the fat flesh defects by 36% in sheep skins and 32% in cattle hides within one year according to the project monitoring assessment report in 2019. Increased productivity and quality of raw materials was a key impact. MALI acquired new skills and capacity of MALI was enhanced and now this institution is capable of assisting with hides and skins quality improvement.

2 eLearning platform of UNIDO https://learning.unido.org/login/index.php, and Urlakh Erdem fashion design institute http://online.urlakh.edu.mn/ 3 Detailed list of institutions is available upon request. 4 Detailed list of the tanneries and other recipients of the knife tools is available upon request. It is attached to the final report of MALI, January 2020.

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o The static flaying frame (SFF) with direct design assistance of an international expert was assembled in Mongolia and proved the concept of reducing damages and defects - almost zero-flaying defects during the peri-slaughter process. Significant impacts on productivity and yield were progressively exposed in the industry. The quality improvements are expected to make leather more competitive. All technologies are affordable, scalable and locally available (e.g. no need to procure with donor assistance). This is a key technology which MoFALI intends to scale up. Contribution to potential new employment with static flaying frame is estimated at over 1200 positions (4 jobs/soum) at about 1 million tugrik per job, when scaled up.

o Transfer of technology, training, establishment of PDU and improvements in the wool supply chain

that introduced electric shearing, wool sorting, baling and labelling for traceability methods had beneficial effects on productivity, quality and yield. For example, traditional scissor cutting requires 10-15 minutes while mechanical shearing is just 3-5 minutes. The mechanically sheared and sorted pelts demanded twice the price due to better quality (e.g. clean, sorted, consistent length, bailed). This is a key technology which MoFALI intends to scale up. Contribution to income generation: With support of given PDU a typical shearer had an increase in income of 32,644MNT (about USD12) per day which is considered good income for the time of year. Contribution to potential job creation: the possibility of at least 4 seasonal jobs per bagh (about 4,000 jobs) when this equipment scaled up. Potential new employment with mobile shearing business is estimated at over 1,500 jobs throughout Mongolia. At about 3 million tugrik per job. This is a key technology which MoFALI intends to scale up.

o Knitwear wet finishing technology to improve the knitwear performance: After installed proper

training base of wet finishing equipment (scouring, hydro-extracting, drying and steam ironing), the SOP for cashmere, sheep wool and yak wool knitted products was developed. Total 7 engineers and operators of selected 3 knitting factories (Bayalag Ulzii in Ulaanbaatar, Erdenet Cashmere in Orkhon and Jinst Murun in Khuvsgul) were trained and gained deep knowledge and practiced in knitwear finishing technology. This training resulted in improved knitted products performance including upgraded quality of the wool and cashmere softness and pilling up to grade 3-4. The equipment and training are affordable and highly effective. Quality improvements are expected to fit consumers’ demand. Standard operating procedures were developed and introduced both for wool supply chain and finishing of knitwear products. Incubator Center for Textile Finishing was established at the Research and Development Institute of Light Industry that provided open access for SMEs to get professional training and knitting services.

o Innovative PHAROS software for managing the business operations was introduced for cheese and

meat factories. Two enterprises started piloting the software.

o Pre-inspections were undertaken by internationally recognized auditor with focus on compliance of ISO, HACCP, Halal, FSSC standards within the framework of food safety management system. The enterprises requested advanced training and pre-auditing in 2020.

o Packaging and labelling as well as product development and marketing training and on-site

assessments were conducted for the industries, which resulted in increased innovative ideas and knowledge of international standards.

1. Total 70,500 Euro value of assets transferred in;

o Meat sub-component: Professional knives and tools- 30,600 Euro o Textile sub-component: Knitwear finishing equipment- 13,130 Euro; Electric sheep shearing machine

and equipment- 12,240 Euro. Subtotal: 25,370 o Leather sub-component: Professional knives and tools- 12,350 Euro; Safety equipment- 2,180 Euro.

Subtotal: 14,530.

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2. Cross-cutting: International training on “Occupational Safety and Health in the Leather industry” was organized. A participatory workshop “Business models for blended training” was organized amongst trainers of training partners navigating them to share resources for blended training.

3. Technical series and toolkits were produced within the reporting period as follows: o Twelve volumes of the technical series were produced including;

- International experts’ technical reports (7) based on the mission for leather, dairy and meat sub-components as well as OSH in leather industry and Packaging for Dairy and Meat sectors;

- National experts’ technical reports (3) for leather, meat and dairy sub-components; - Contract performance reports (2) for textile and leather (also covered meat) sub-projects.

o Toolkits and Guidelines (4) “Shearer’s manual”, “Handbook for Moodle LMS administrators of Urlakh Erdem FDI”, “Standard Operating Procedures for Hides and Skins for the Tanning Industry in Mongolia” and “Standard Operating Procedures for Knitwear Wet Finishing in the Textile Industry in Mongolia”.

o Interactive training materials for blended learning “The First Aid at Workplace” (8 modules), “Sustainable Leather Manufacturing” (5 modules) and “Footwear Pattern Engineering” (10 additional modules).

o Outreach and visibility materials (over 80) were released including: - Journal articles and newsletter including SECiMC2 newsletter, success stories and monthly

articles on Mongol Malchin (Mongolian Herder) Journal, which is distributed to all 330 soums in the country (7)

- Press release, banner & standee for each international trainings and workshops (38) - Project video for raising awareness on the project implementation and achievements (5) - TV broadcasting including interviews and news programs (8) - Online news both local and international websites (23)Please see detailed information from

Appendix I.

2.5 Decent employment and income opportunity along vegetable value chain are generated.

The project focused on promoting contract farming and planned production among potato and vegetable growers, to help them increase their income by creating self-employed jobs. The project supported increasing vegetable production through the capacity building and planned production of 549 farmers and 128 new employment generated in the vegetable value chain since the project started. The project transferred total of 4 new technologies which helped local farmers to increase their income and generated self employment. Project works closely with 549 growers from 28 farmers groups, 6 farmers cooperatives and 7 companies in the framework of contract farm promotion. It is not only linking farmers to processing industries, but also providing them with qualified seeds for agricultural production. In the reporting period, it provided farmers in Tuv, Selenge, Khuvsgul and Darkhan-Uul, total of 6,324 kg of seed materials for potato and 9 different released and promising varieties of vegetable crops, 15 plastic greenhouses and 3 vegetable dry brush cleaning equipment and vegetable sorters to 3 collection centers. Classroom training combined with field demonstration on vegetable production technologies were conducted for project farmers in 6 aimags jointly with Mongolian Farmers Association for Rural Development. Total number of training participants was 303. The project created 172 new employment and improved income of 214 farmers. The project organized total 79 trainings; 31 trainings on meat value chain, 25 training on dairy value chain and 23 training on vegetable value chain implementations in project target area. The project supported 5049 herders, farmers and professionals; male 2424 and female 2625 through the training and technical assistance activities.The SECiM project used the traditional and modern training methods to provide the technology knowledge through hands-on and on the job training to the meat, dairy and vegetable value chain beneficiaries. These activities improved their knowledge and gained practical skills.

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2.6: Coordination and project management

• The project management unit organized two Project Steering Committee (PSC) meetings in March and Sep 2019 where it presented 2018 project progress report, 2019 annual work plan and the budget and semi-annual project progress report and budget expenditure. Project steering committee members also endorsed PMU’s request to extend project timeframe by one more year without increasing approved budget line, to strengthen project results and impact. Mongolian Ministry of Finance, a signee of the Agreement between EU and Government of Mongolia, submitted official request for project extension to European Union delegation to Mongolia, the funding agency, as recommended by the PSC.

• The European Union delegation to Mongolia agreed to the no-cost extension of the project until 31 of January 2021.The project implementation is extended until 31st of Jan 2021.

• 2019 work plan and the annual budget (EUR 1.8 million) for the Component 2 “Piloting quality private sector works in selected livestock and vegetable value chains” have been approved on March 5, 2019 by the Project steering committee and the actual delivery was EUR 1,806,052.06 in the reporting period.

• The project is technically backstopped by Lead Technical Officer and expert team from FAO. Ms Amgalan Ariunbold, Plant Production Specialist, provided a technical backstopping support and participated in the Project Steering Committee meeting in March 2019. During the reporting period, Mr Sridhar Dharmapuri, Senior Food Safety and Nutrition Officer, Mr Sharbendu Banerjee, Technology and Innovation Consultant, FAO Regional Office for Asia and the Pacific provided a technical backstopping support.

• Mr Gankhulug Ganbat resigned from the national project coordinator position and Ms Zolzaya Baljinnyam was appointed as a new coordinator in August 2019.

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2. SUB-COMPONENT 2.1: MEAT VALUE CHAIN

Output 2.1.1: Improved quality livestock production and traceability Project focuses on supporting employment creation through increasing aggregate production of meat, value adding in meat production and diversification of products. The project supported 10,730 herders generated income and 753 new jobs in the meat value chain since the project started. The project contributed the increase of the local small abbatoir and processor’s capacity. The project is being implemented within the Government of Mongolia Action Program 2016-2020 and contributing to the improvement of the national food safety and food security. The project joined workgroup established by the decree of the State Secretary of MOFALI several times to elaborate the draft of “Technical regulation on meat production and marketing”, which is currently under review. If this technical regulation is approved by the GoM, it will contribute to the improvement of meat products produced by the meat processing companies at the national level. General Agency of Veterinary Services (GAVS) piloted Veterinary certification system (VCS) ensuring hygiene and food safety of products of animal origin in Western province. GAVS is adopting the VCS for the purpose of ensuring strengthening of collaboration between public and private veterinary services and enforcement of laws on animal health, food and food safety.

In collaboration with GAVS a veterinary congress was organized in the Government House on 1st of November, 2019. The congress was attended by more than 850 delegates representing all 21 provinces and the capital city, including 215 veterinary officers from 6 project targeted provinces. The veterinarians developed recommendation to upscale implementing VCS until 2025 in Mongolia. In its efforts to support adoption of Veterinary certification system, SECiM provided electronic ear tag reader (RFID) and veterinary certificate printer to 12 private veterinary units of 4 baghs in Darkhan-Uul aimag. Training on operation of veterinary certification system and equipment provided was organized jointly with Darkhan-Uul provincial veterinary department and Digital medic LLC. Institutional take up of VCS in Darkhan-Uul now started. MoFALI is implementing the national program of the veterinary drug residue control. Within the framework of the national

program, the project has been organizing the capacity building activities for government and private veterinarians and inspectors of the meat processing companies. The project trained government veterinarians and provided 12 units of Premi®Test Start Kit, and 1200 test ampoules of Premi®Test (7,815 US$) for screening of veterinary antibiotics residue by veterinary laboratories of provincial veterinary departments and slaughterhouses (Darkhan Erdene Makh combinat, Khuvsgul Makhmarket, Baruun Mongol International Co.ldt, Erdenekhuns Co.ldt, Bayandelger Khuns Co.ldt, Makhimpex company) in 6 project aimags. The project training on the use of test kit for detection, sample preparation, and determination of results was organized for 12 veterinary officers from project stakeholders.The aimag veterinary department established capacity to detect the antibiotic residues in meat and meat products. Project commitment to foster obtaining recognition of disease free status of Mongolia led the project to develop model project, by the request of Darkhan meat foods LLC, the local slaughterhouse, and establishment of a disease free compartment in cross border area of three soums in Tuv aimag (Argalant, Bayantsogt and Bayanchandmani) over a radius of 30 km, with 4,478 ha area cordoned off in the vicinity of compartment. Project hired short term national consultants, Dr. Lkhagvasuren, a veterinary consultant, and Mr Kadirbyek, an economist, to develop model business plan for a disease free compartment in dual language,

Figure 1 Vet is testing meat products tested by PremiTest

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which was highly appreciated by requesting agency. An estimated cost of establishment of disease free compartment is US$ 15 million, according to model plan. The project joined the working group, established by the MoFALI State secretary order A-77, to review feasibility study of “Development of meat processing cluster with slaughter and quarantine facilities, and technological renovation” project to be funded with soft loan from Government of China. The project hired Dr. McFadden, an international consultant and Dr Odontsetseg, a national consultant based on LTO’s approval for recruitment of international consultant to conduct a consultancy to MOFALI and General Agency for Veterinary Services on requirements and practical application of compartmentalization to facilitate export of Mongolian meat products, and a national consultant to work with international consultant. International consultant met and exchanged opinions with relevant authorities of MOFALI, GASV and GASI. Mr. McFaddden worked at Darkhan meat foods LLC two days, and participated in the project organized discussion on “Opportunities to increase meat export through establishment of disease free compartment”, which was attended by 48 officials, specialists from GAVS, GASI, State Central Veterinary Laboratory, donor agencies and international projects . Translated by a national consultant, Mr. McFadden’s report and recommendation on requirements for practical application of the World Organization for Animal Health (OIE) Terrestrial Animal Health Code concept of compartmentatlization as part of FMD control now await to be handed over to GAVS and relevant authorities of MoFALI. Project translated into Mongolian the Section 4: General recommendations on the principles of zoning and compartmentalization, of OIE’s Terresterial Animal Health Code to facilitate common understanding of compartmentalization, including the terminologies used, among stakeholders, and in collaboration with GAVS and International Finance Corporation, it organized two discussion forums on the compartmentalization, its terminology and application. Total of 33 representatives of government officials and stakeholders attended forums and agreed on Mongolian equivalent of 126 English terms widely used in compartmentalization contexts. The project has been providing the technical assistance to establishment of disease-free areas to the newly established GAVS since the beginning of the project implementation.GAVS is planning to establish the disease-free zone in Western Region in 2020.

2.1.1.4: Provide producers with technical advice on improved animal productivity (quality, animal

health, fodder production, etc.)

As part of its commitment to increase the carcass weight, the project demonstrated an emerging technology

that uses electromagnetic radiation for castration of lambs and calves to herders and veterinarians. Unlike

traditional castration methods such as banding, pulling testicles and crushing spermatic cords, this novel

technology is pain and stress free method that helps young animals to gain weight rapidly, says Ch. Nilbaatar,

a local veterinarian and an inventor of this technology. The carcass weight of lamb (8 month old) castrated in

EMR way was equal to that of hogget (18 month old).

Jointly with ‘Mash Sains’, the local science-production and service fund, the project organized training on “"Use of electrocautery castration method for increased carcass weight of lamb and calf” for total of 45 trainees, including veterinarians, animal breeders and farmers from 6 project soums, and representatives of Bayandelger soum of Tuv aimag . Twelve trainees from project aimags were certified as Trainer, who are expected to, under overall technical guidance of ‘Mash Sains’ advocate and disseminate knowledge about existence, nature and application, etc, of electromagnetic cauterization as castration method.

Figure 2. Dr Nilbaatar is teaching EMR technology

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As result of training, 316 young male lambs of 6 herders in Bayandelger soum, under bilateral contract between Mash Sains and Bayandelger governor’s office, were castrated using electrocautery, subsequently separating them from dams in August, and sold to slaughterhouses of Makhimpex and Precom LLC, at market price, before being exported to Islamic republic of Iran. Average carcass weight of 7 month old lambs, gained weight through grazing, reached 15.5 kg, making MNT 26 million income for six herders. The soum government has a plan to castrate using electromagnetic cautery 6,000 young male lambs for mutton in the year of 2020. The Tuv provincial governmen initiated to implement “Young Animal-Lean Meat” program increasing income of herders following the project best practice in 2020.

To raise public awareness of potentially increased carcass weight of weaning lambs and calves that’re castrated by electromagnetic cauterization method, project financed making of documentary, titled ‘Opportunities to increase dressed weight of weaning lambs and calves’.

Jointly with MOFALI, project led the organization of two regional training workshops of intensive livestock farmers. First workshop in March was held in Darkhan-Uul, and attended by 120 farmers from Tuv, Bulgan, Orkhon, Selenge and Darkhan-uul aimags. In May, second workshop took place in Dornod aimag for 117 farmers in the eastern region: Dornod, Khentii, Sukhbaatar and Dornogobi. At the workshops, the National program for intensive farming development, its principles and activity plan, approved by resolution 2018/400 of Mongolian government were introduced to participants for discussion and feedbacks on effective implementation of the program. Workshops included training sessions on herding practices, hygiene, fodder production, feed preparation and mixing for intensive farms. Lecturers/research scientists of Mongolian University of Life Sciences and Institute of Veterinary medicine led the sessions.

Sub-component 2.1: Output 2.1.2: Participation in the formal market improved

The project provided technical consultancy for establsihment of model cattle slaughterhouse with meat cutting and packing facility at “Amuu buudai” LLC’s beef cattle feedlot in Erdenebulgan soum, Khuvsgul province. Project beneficiary invested US$ 5,630 in infrastructure development: construction of building facility, connection facility to power grid, water supply and sewer system: sewer manhole construction and internal wall coverage. The project invested US$ 33,000 for technological line and equipment for cooling room. All technological equipment are installed and operational, the test run: two cows slaughtered, carcasses halved, dressed and cut after aging completed in cooling chamber. The cattle slaugtherhouse is a model for soum level processing which meets the national standard of the food safety and food security in the central region of Mongolia. Meat is aging and stored at the chamber in Murun, KhuvsgulThe Khuvsgul provincial center has population of 134,000 people. Majority of consumers purchase meat products without proper cooling and storage at the

market. Project invested US$ 23,630 in construction of 135 m2 cooling and aging chamber (7.5x7.5 m), frozen meat storage room at the ‘Shine Murun’ shopping center in Murun city, Khuvsgul province. Another US$ 5,352 was contributed by Mon Devsh LLC, a beneficiary entity, for land acquisition for building facility and electricity connection. Freezer, carcass hanging hooks and pallets were also contributed by Mon Devsh LLC. Emergence of properly built and managed meat cold chain in aimag center began to offer several advantages to both local consumers and meat processors, including improved access to fresh meat that comply with quality and hygiene requirements, and an ability to store meat products in proper regime to extend storage life. The freezer and cooler rooms became operational, 3 more jobs were created at Mon Devsh, with

number of contractors and service users greatly increased. As of end of reporting period, Mon Devsh sold over

Figure 3. Meat ages in the cooling and freezing room in Khuvsgul

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20 tons of meat properly stored to local consumers. Project invested US$ 12,200 in the procurement of gambrel with function of small ruminants skinning and dressing, along with 500 hooks for the line slaughter of ruminants of “Baruun Mongol international” LLC in Khovd, to take its capacity up to 1,000 ruminants a day,

resulting in 10 more jobs created. As of Dec 2019, fourty thousand sheep were slaughtered for export in Baruun Mongol slaughterhouse.

The project invested US$ 2,900 in the meat processing facility, deboning and packing equipment for each of the beneficiaries: ‘Kherlen Foods’ of Dornod, ‘Tsast Bulgankhairkhan’ of Selenge and ‘Bayandelger Khuns’ of Tuv. Totaling of US$ 8,000, the procurement was followed by technology trainings at all three beneficiary plants, on how to prepare special meat cuts for various cooking methods including steak cuts, in compliance with international standards, by using equipment provided. These interventions contribute to creation of 8 more jobs and achievement of specific project goal for development

of meat value chain that fosters the change in dietary habits of consumers by offering a range of cuts suitable for different methods and needs. Quite an effect did these interventions produce that they may bolster linkages, needs and interests among value chain players: producers, processors and consumers.

The project supported Erdene TVET school’s opening of new class to train workforce for meat processing industry and provide trainees sufficient opportunity for practical training. Technical assistance was provided for the refurbishment, in compliance with respective rules and requirements, of training facility for meat processing. The project invested US$ 16,780 equipment for in-class room and practical meat processing plant. The project consultant trained usage of equipment during training on deboning and sorting up for further cutting, and for experimental production of 3 types of sausages, jointly with TVET’s teaching staff. The project technically assisted development of curricula for meat sector staff training short courses (14-day), which was used to train 25 new personnel as requested by ‘Erdene Khuns’ LLC in Tuv. An opening ceremony of meat

processing training center and plant was attended by H.E. Mr. Traian Laurentiu Hristea, EU ambassador to Mongolia, and Vinod Ahuja, FAO Representative in Mongolia. Four-minute documentary developed at raising awareness of the effectiveness of project intervention for strengthened PPP, and producers-processors relationship. The documentary shared with public at raising awareness of best practice of Erdene TVET school. The project provided Good Manufacturing Practice consultancy to a small scale beneficiary slaughterhouse of Amuu Buudai LLC in Erdenebulgan of Khuvsgul, and two meat processing plants of Bayandelger Khuns LLC in Tuv, and Kherlen foods LLC in Dornod. The project provided technical assistance development of production plant layout (floor plan), for 5 small scale meat establishments in Khuvsgul (Amuu buudai LLC), Dornod (Zulgensor LLC), Mandal and Saikhan soums of Selenge, compliance with national GMP requirements.

A technology training on deboning and sorting up, for end consumers, of carcass and meat of cattle and small ruminants was organized in Khuvsgul, Dornod, Tuv, Darkhan-Uul and Selenge aimags. Trainings provided 105 participants, representing slaughterhouses, meat processors, food services, and meat retailers, sufficient insights into emerging market demands for meat cuts, applicable standards, and income generating potentials of such activities.

Figure 4. Technological training on deboning and cutting

Figure 5. TVET students cook meat cuts and sausage prepared at meat processing center

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‘Meat hygiene and Good Manufacturing Practices’ training was organized for meat traders and meat establishment 45 employees in Darkhan-Uul, in June 2019. Onsite technical support was given for the establishment of veterinary hygiene laboratory at Darkhan-Erdene slaughterhouse.‘Good hygiene practices, food safety monitoring, and hygiene at meat establishments’ training was organized at ‘Erdenekhuns Samo’ and ‘Bayandelger Khuns’, the local entities in Tuv, providing theoretical and practical knowledge to ensure good hygiene of the facility and equipment. Training was attended by 33 employees of entities, including teaching staff from Erdene TVET. Trainees were provided with proper knowledge of GMP requirements, activities, monitoring, record

keeping and certification, applicable to ones’ plants.

The project assisted in development of pilot project document for establishment of “Disease free compartment” for the use of ‘Darkhan Meat Foods’ LLC as support document for credit appraisal by banks and financial institutions. An establishment of small scale slaughterhouse at Zulgensor cattle feedlot in Dornod was supported with hygiene consultancy service by meat value chain consultant, based on which, a recipient organization is working on finalization of feasibility study of a slaughterhouse.

Output 2.1.3: Decent work and capacity building expanded for the meat sub-sector, including BDS staff and technicians at aimag/soum level.

Pursuant to Memorandum of Understanding by and between SECiM and Erdene TVET, project provided financial and technical support for establishment of meat processing training center, as stated in paragraph 17 herein. Moreover, 4 teachers of Erdene TVET school were trained through ‘GMP and hygiene’ and ’Deboning and cutting of cattle and small ruminants carcass and meat’ trainings at Erdene Khuns Samo and Bayandelger Khuns LLC. TVET school’s meat processing teachers trained as trainer to produce properly cut and packed meat, smoked and pre-cooked sausages, so as to provide relevant theoretical and practical knowledge to students and trainees.

The meat processing new class with enabled practical trainings for meat students opens up an opportunity to address workforce skills gap at meat establishments. For example, in 2019, Erdenekhuns LLC in Tuv requested TVET school to train 12 of its employees through recently developed short training course for workers of slaughterhouses and meat processing plants. Total of twenty five people had also access to short training course by the initiative of local labor and welfare department. Starting from 2020, TVET school plans to start day class to train skilled workers for slaughterhouses and processing plants.

‘Pioneers in beef and dairy development in Mongolia’ workshop was organized by SECiM C2 in collaboration with International Finance Corporation (IFC), American Chamber of Commerce in Mongolia and Mercy Corps Mongolia INGO, which was attended by more than 60 representatives of government officials, beef and dairy companies, banks, financial institutions and project beneficiaries. At this knowledge sharing workshop, participants were actively engaged in discussion on range of topics including feedlot operation, raising beef cattle, animal breeding, as well as an accessibility of financial services for livestock and agricultural entrepreneurs. Donor agencies developed the position paper on Competent Beef and Dairy Sector shared it with decision makers of GoM and relevant authorities to support the meat and dairy processing industries.

Figure 6. Meat processing center opening ceremony at Erdene TVET

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This section below provides an overview of SECiM C2 UNIDO project activities in each sub-components within the reporting period. As shown below, the project interventions as drawn in indicative objectives are being implemented in a variety of contexts covering four sub-components and cross-cutting activities. As a result, these activities brought significant positive changes in the value chain development and some insightful impacts on local producers and project beneficiaries.

Table 1 Progress towards Outputs (See UN-UN Agreement)

# Sub Component 2.1 MEAT VALUE CHAIN

Results and Impact

Note. WPO’s work is cross-cutting for meat and dairy. Output 2.1.2: Participation in the formal market improved. Output 2.2.1: Improved milk production, collection, storage, processing and marketing system Assessment, recommendations and training for Packaging and Labelling for the Dairy and Meat sectors in Mongolia’- by Soha Atallah & Johannes Bergmair on August 20 – 31, 2019. Detailed Technical Report is available - refer to TR 9

● Onsite Visit & Assessments: The WPO experts visited and pre-assessed 6 dairy factories, 2 meat factories, 3 markets and supermarkets, 3 professional associations in dairy, meat, and packaging, 4 companies in packaging and labeling in Ulaanbaatar, and met with relevant ministries (refer to photo 7 in appendix 1).

● Training at MACU for cheese producers: International best practices and solutions for Mongolian artisan cheese in improved packaging and labelling with focus on exporting to EU, China, Russia and Middle East markets

● Training at MoFALI for dairy, meat and packaging industries: Technical and marketing-branding solutions for meat and dairy sector with focus on exporting to EU, China, Russia and Middle East markets

WPO and UNIDO Experts proposed the following recommendations based on conducted fact-finding assessment mission in Mongolia:

● Food Contact Material (FCM): MOFALI is advised to issue new law on Food Contact Material or regulations that will prohibit the use of non-food grade packaging materials to come in direct contact with food. UNIDO Project is also advised to increase the awareness among producers and consumers on FCM.

● Organic Certification: Dairy and meat companies are encouraged to shift to organic production and to seek certification especially that the local and international demand is high for organic products.

● MAP (Modified Atmosphere Packaging): factories are advised to explore the possibility to use MAP that will support them to extend the shelf life of their products and thus making their products more suitable to be exported to international markets.

● Labelling Information: As for export activities, companies are strongly advised to check the labelling requirements at the export markets especially regarding language issues and other mandatory requirements such as weight, nutrition fact, address of manufacturer and list of ingredients and allergens as they differ from one country to another (refer to TR 9).

Output 2.1.2: Participation in the formal market

Onsite Visit & Assessments: as part of international expert’s mission, number of selected slaughterhouses and meat processors in three locations; Ulaanbaatar, Khovd and Bayan-Ulgii provinces

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improved. Activity 2.1.2.2: Coordinate with animal health and food safety monitoring services to support and advise all stakeholders in the large scale meat industry. Food Safety Compliance Assessment for Dairy & Meat Processing Sectors – by Issa A. Beitouni, Senior International Food Safety System Expert between November 9th, and December 3rd, 2019. Detailed technical report is available – refer to TR17.

received immediate pre-inspection and recommendations on their food safety management system compliance. Findings and challenges:

● Infrastructure were not in comply with the GMP requirements and international food safety requirements

● Incompliance level identified were mainly related to Slaughterhouse design & layout, process flow, separation between process and personnel facilities between clean and dirty areas.

● Missing of effective cleaning & Sanitation Programmes on all levels of slaughterhouses and no monitoring activities for such issues

● Hygiene culture between company personnel was totally missed.

● Complete traceability system within the required scope were not available

● Lack of effective Quality & Food safety System

● Very outdated technology used, especially in rural enterprises

● Lack of qualified skills: the big challenge that we have noticed during the whole assessment was the lack of skilled and qualified labor on the level of technical activities as well as on the level of food safety and hygiene qualification.

● Lack of effective implementation and understanding of GMP, GHP & GDP

● Lack of HALAL practices & recognized certification

● Lack of animal welfare Recommendations:

● Meat processing & slaughterhouses need to be provided with technical assistance and help regarding their facility design either through redesign of their old facility and those who want to build a new facility.

● Build the capacity of Mongolian company staff in the area of GMP, GHP & GDP either through conducting more tailored training courses according to their needs

● Help industrial association to build a specific oriented guideline and industry best practices references including visuals materials

● More capacity building for the meat industry related to food safety & quality international standards and requirements.

Training & Capacity Building: “Food Safety Management System & International Standards” aimed to Make Participant Aware & Build their Capacity in the context of food safety concept and related international standards such as (GMP, GHP, HACCP, HALAL, FSSC22000, & ISO22000) with concentration on dairy and meat related issues (refer to photo 5 in appendix 1). With a total 86 numbers of attendance, a 3-day course including one day practice in abattoir was delivered to the diversified

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participants of meat processing and slaughterhouses, cooperatives and universities from 11 provinces of Mongolia. As a result of the training the participants obtained thorough and up to date knowledge on the international food safety management systems, received training materials and recommendations. Number of enterprises requested to repeat the training in 2020 and proposed to build national capacity for international certification services.

Output 2.1.2: Participation in the formal market improved. Activity 2.1.2.1: Provide assistance to pilot slaughterhouses and meat processing units. Output 2.1.3: Decent work and capacity building expanded for the meat sub-sector, including BDS staff and technicians at aimag/soum level. Activity 2.1.3.3: Contribute to development of curricula and train staff of the meat processing industry and introduce AV training tools for meat processing including socially relevant topics such as gender issues, decent work and anti-child labour. Technology of transfer with flaying equipment including flaying knives and tools to meat processing actors in the value chain Detailed technical report is available – TR15; AV11 in appendix 1.

[Progress from previous reporting period - 2018 included: - In cooperation with MoFALI, abattoirs were selected for

assessment and establishment of the PDU with training of using professional knives and other tools for appropriate hides and skins flaying and meat cutting.

- Procurement of the tools was done. - Assessment on quality of hides and skins at the abattoirs was

launched] Within the context of modernizing meat processing technologies for improved downstream capacity utilization and returns, the project transferred 972 pieces of professional flaying and deboning knives and tools5 (refer to photo 1 in appendix 1) to 8 big meat processing units and factories based on the assessed priority as well as over 30 member factories of MALI. The follow-up assessment analyzed the effectiveness and utility of distributed knives and tools among direct beneficiaries; 4 slaughterhouses as well as 3 tanneries. Study revealed that the quality of distributed tools was rated 4.3 and ease of use was rated 4.2 points out of 5 in average. Additionally, beneficiaries emphasized less slippery during the process of flaying and fleshing as well as reduced frequency of knife-sharpening (refer to TR 15 in appendix 1). In addition, Bolortsetseg.L, general technologist of Darkhan Meat Foods LLC highlighted that “It was an excellent example of technology transfer in particular to different types of knives, 2 stage electric knife sharpening machine and Sharpening Butcher’s Steel have exceptionally contributed to improve the workers’ productivity”.

5 Detailed list of slaughterhouses and other recipients of the knife and tools is available upon request. It is attached to the final report of MALI, January 2020.

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3. SUB-COMPONENT 2.2 DAIRY VALUE CHAIN

Operational outputs 2.2.1 Improved milk production, collection, storage, processing and marketing

system and employment opportunities

To deliver on its commitment to create decent employment and income opportunities in the dairy sector, the project focused primarily on strengthening cold chains established with project resources, saving existing jobs and creating more jobs, in the reporting period. The project supported increasing milk collection through the established cold chain and establishing milk collection centers, 331 herders generated income supplying milk to the collection centers and processors and 130 new employment in the dairy value chain since the project started. The project contributed increasing dairy processor’s capacity 2 times through the technical assistance and its support. Project focuses on supporting employment creation through increasing milk collection, dairy processing and diversification of products.

The FAO Mongolia has signed a Letter of Agreement with the Mongolian Food Industry Association,

and the quality-based payment system is being tested and the methodology is being developed. As

a result of this research, the Mongolian dairy sector will have a medium-term plan; thereby, the

“Milk” national programme will be formulated and the conditions for implementaon will be set.

In addition, implementation of the "Quality Based Milk Payment System", which is to be completed

within the framework of the contract, will increase the supply of milk by milk processing factories,

which meet the standards. It sets the basic criteria for awarding subsidies, given by the Government

of Mongolia, which is calculated on fresh milk per liter, prepared and supplied as raw material.

Despite the growing dairy production in recent years, barely 30% of installed capacity in dairy sector

is being utilized. The underlying causes include, herders’ failure to see dairy as marketable products,

underdevelopment of dairy collection systems in rural areas, and the failure to take up best

practices. The largest dairy companies in

Mongolia, such as Suu, APU, TESO, Vitafit

and Monfresh have collection network

extending to only 250 km from

Ulaanbaatar. Beyond this borderline,

there is no functioning dairy collection

infrastructure. To compensate limited

seasonal availability of dairy especially in

winter, these companies choose to rely

on imported milk powder, and refuse to

invest in development of infrastructure

just to collect summer milk. Increasing

milk supply and extending working range of collection network beyond 250 km up to 300-600 km

can reduce unused capacity and help dairy sector to rebound. The consequences include increased

production of import substitute products, improved employment creation, commercialization of

unutilized milk.

In order to collect and cool the milk from herders in remote areas, to generate regular and reliable

income, and create job opportunities for herders, the project provided support to Tarialan soum and

Murun soum of Khuvsgul provinces with milk cooling tanks of 5 tons and 2 tons, respectively, in 2018.

Training for initiating these tank operations and ensuring supply of quality milk to the cooling centers

was held on March 27, 2019 with 38 participants and on March 28, 2019 with 40 participants in

Figure 7 Milk collection center established in Khuvsgul

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Tarialan soum.

The Dairy Value Chain consultant supervised these two training sessions, gave four lectures each day

for two days, and demonstrated the methods of initial milk analysis through experiments. The local

government of Tarialan soum has decided to invest 4,500 US$ for the electric power transmission

lines (380V) of the cooling center and

they have provided additional 450 US$

for the transportation costs and

delivered it to local communities.

Moreover, within the framework of the

project, we have shown support for 5

ton milk cooling tank, after determining

the milk supply of the herders around

the Zulzagyn Gol in Khongor soum,

Darkhan-Uul aimag. Works were

organized to allow a local entity “Ariun

Eh Bulag Suu” LLC to use the tank and

supply the collected milk to one of the

national manufacturer “Vitafit Milk” LLC. “Ariun Eh Bulag Suu” LLC has invested 6,300 US$ to connect

the above-mentioned cooling center to the electricity grid, to build the cooling center and to prepare

the equipment needed to ensure the smooth running of other operations.

“Did you drink a glass of milk?” was the catch phrase of the platform meeting among professional

organizations and beneficiaries, organized on June 5, 2019 in Buudai Hotel of Darkhan City for the

purpose of showing support to the operations of this cooling center, enhancing the cooperation and

drawing attention of the local authorities. Favorable attitude of the local community ensured the

smooth and uninterrupted operation of the cooling center. Representatives of the local officials, 50

participants, including the officer from the Ministry of Food and Agriculture and Light industry, Ms.

Sarandagina, Director of Production of Vitafit Milk LLC, Mr. Sainbileg, and the Head of Milk

Preparatory Office, Ms. Ichinkhorloo, have attended the event.

Furthermore, the project has successfully held training sessions in Zulzagyn Gol of Khongor soum for

dairy farmer women, who will supply milk to the cooling center on June 7, 2019 and the Dairy Value

Chain consultant has given lectures on “Requirements on milk supplied to milk cooling centers” and

“The initial analysis of the milk”. There were 150 dairy producers and herders in total.

The project provided support in order to maintain the stable operations of the 5 tons cooling center

in Tarialan soum of Khuvsgul aimag and Khongor soum of Darkhan-Uul aimag, provided in 2018, and

helped them link with the milk processing factory of “Vitafit Milk” in the capital city. The project

provided support with two milk transportation tanks of 5 tons capacity. These two tanks were given

to “Ariun Ekh Bulag Suu” LLC of Darkhan-Uul aimag and Vitafit Milk LLC. This will increase the benefits

of the previous year’s investment and support, and increase employment and income.

On March 20-21 of 2019, the project has successfully organized Good agriculture practice training

and technical assistance services of dairy farming in dairy farms in the intensive dairy farm of “Bayan-

Simmental” LLC in Bayan soum, Tuv aimag. During this training, aside from the dairy farmers from

the intensive dairy farm, 12 representatives from Erdene and Bayantsogt soums, Tuv aimag

participated as well.

With the MoFALI cooperation, we have held consultation meeting to introduce the National

Programme on “Supporting Intensive Livestock Development”, approved by the Resolution No. 400

Figure 8. Ms Tamjid received milk from herder at the collection center

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of Government of Mongolia in 2018, and to discuss the implementation plan on January 29, and

February 27 of 2019 in the conference hall of MoFALI. There were 220 participants, in total.

Moreover, the project organized a meeting on March 26 in Murun soum of Khuvsgul aimag with 150

participants from semi-intensified livestock farms.

As a result of the above mentioned three meetings, the project successfully introduced the National

Programme on “Supporting Intensive Livestock Development”, finalized the implementation plan

after discussing it with representatives of intensified livestock farmers and the plan was approved

under the Order A/120 of Minister of MoFALI.

To introduce and ensure the implementation of the National Programme on Supporting Intensive

Livestock Development, two regional consultation workshops were held on April 12 and May 24,

2019 in Darkhan-Uul aimag and Dornod aimag, respectively.

In these two-regional training-conferences, a total of 220 intensive and semi-intensive livestock

farmers, policymakers, veterinary department and breeding organizations from 10 aimags have

participated. The project consultant presented on challenges facing the intensified livestock farms

and market-based solutions during the consultations.

The contract has been signed to define the development policies of the dairy sector and to develop

a long-term and medium-term strategy, and comprehensive survey of the Milk sector is being made.

Within the framework of supporting policy measures implemented by the Government of Mongolia,

National Programme on Supporting Intensive Livestock Development published 1,200 copies of the

programme implementation plan, submitted it to the Department of Livestock Policy

Implementation and Coordination of MoFALI and was distributed to the participants from the two

regions.

To increase milk consumption and promote

the benefits, the "World Milk Day" event was

held in Mongolia for the 4th year in

Ulaanbaatar, Tuv and Khuvsgul aimags.

During this event, the project developed

event programs, budgets, scenarios,

honorary visitor’s names, speech projects,

coordination relations of the Dairy Value

Chain participants, a special project paper

for the World Milk Day, and published 500

copies on daily newspapers and prepared

honored guests greeting on national daily

newspapers.The World School Milk Day was

successfully organized in Khovd and Selenge,

for the second time in Mongolia. During the

event, Tapan Mishra Residential Coordinator from the UN in Mongolia, Vinod Ahuja FAOR, G.

Nyamjargal Assitant FAOR, B. Dugerjav Governor of the Khovd aimag, Sh.Orgil Governor of the

Selenge aimag and other representatives of aimags and school staff have participated. Children and

their parents received knowledge and information on nutrition benefits of dairy products, and the

advantages of using milk and dairy products frequently in their daily diet.

On October 16, 2019, World Food Day was celebrated in the Central Square of Ulaanbaatar. The

project participated in the event and promoted the advantages of using milk and dairy products

Figure 9. During World Milk, Day dairy sector development discussed with decision makers and officials

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frequently in their daily diet. The project beneficaries participated in the event sharing information

about their activities and products.

Operational outputs 2.2.2: Expanded employment and market access for quality cow, yak, camel,

goat and sheep milk products.

The project aimed in particular to increase the income of rural women through value addition and job creation along the dairy value chain. Targeting the rural economy in this manner is important in Mongolia because the processing of dairy products is typically undertaken by women. Yet, many women become unemployed and lose the ability to generate income when they become mothers as they accompany their children attend the school at soum/bagh (sub-district) centers in Mongolia.

The project supported the activities of small-scale dairy processing plants (Ger Kitchen) in 6 soums

of 4 provinces and disseminated its best practices. These six small-scale dairy processing plants

created 142 jobs. Total 22 women formally employed and processed 63,424 liters of milk. 120

women supplied the milk to six processing plants and generated total of 34,700 Euro income in 2019.

Total of 142 women increased their income by 34,700 Euro in 2019 (29,650 Euro income generated

in 2018) because processing plant increased their capacity. A training was conducted by the project

consultant from 24 to 29 June 2019, on introducing technology for three Small-scale plants, which

process 500 liters of milk per day as well as new dairy products.

Furthermore, "Undur Khedermeg" dairy producer’s cooperative of Erdenebulgan soum of Khuvsgul

province and "Baigalyn Buram" dairy producer’s cooperative of Sumber soum of Tuv province have

expanded their production with technical assistance. The project consultant calibirated the dairy

processing equipment for two cooperatives and successfully organized technological training on

processing. As a result of these activities, a total of 13 new jobs have been created in two

cooperatives. Quality dairy products produced comply with national standard and are supplied to

the national super market chain.

The above training provided training for technicians at the SSMPP provided labor safety,

technological procedures, standard compliance, GMP, and GHPs.

Within the framework of these trainings, in addition to the theorical and practical training of dairy

products, GMP and GHP records and validation documents have been developed and adjusted to

the industry conditions.

Moreover, the project upscaled best

practice and built two small-scale

dairy processing plant, investing US$

3,750 which were cost shared with

the Governor's Office of Khovd and

the Governor’s office of Khuvsgul

province in 2019. The project

invested 4500 US$ supplying 12 milk

processing equipment for two

processing plants. The project

successfully organized re-trainings

on GMP and GHP for technologists of

project beneficiaries from

"Onkhoodoi Undur" LLC and "Orum" LLC of Dornod aimag on October 22-24, 2019. During the

training, good practices of implementing labor safety, technological procedures, standard

Figure 10. Dairy technological training conducted for local dairy producers

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compliance, GMP and GHPs were taught to the technologists.

To increase the efficiency of the Dairy Value Chain in remote areas and ensure sustainability, two

"Dairy Product Sales Centers" with 12x5 m were built and furnished with equipment in Murun soum

of Khuvsgul province and Jargalan soum of Khovd province. Dairy products Sales centers created 10

employment and dairy products from 18 dairy processing entities directly sold to consumers.

Dairy Product Sales center in Khovd

Aimag, automatic milk vending

machine installed and supply quality

and fresh milk to the local consumers

with market price.To improve the

product quality of the Dairy Value

Chain participants in Khovd and

Khuvsgul provinces and enhance the

market connection, the project

provided freezing rooms for dairy

products with temperature of -18°C

degrees. As a result, the Undur

Khedermeg cooperative of

Erdenebulgan soum, Khuvsgul province collects traditional curds from 212 herder households in

Tsagaan-Uul, Erdenebulgan and Chandmani soums, and produces value-added products and

supplies it to a large national milk processing factory TESO LLC. Consequently, 212 herder households

in 3 soums will receive a total income of US$ 15,600.

Dairy processing plant Baigaliin Buram was establsihed in Sumber soum of Tuv. The project provided

with technilogical training and technical assistance and supplied equipments and handbooks. As a

consequence, product series were increased, its market linkage was elaborated, they began to

supply products to Darkhan-Uul, Baruun Kharaa, Erdenet aimags and Ulaanbaatar city, made sales

contract with Nomin Holding LLC and supplied its products

to 15 supermarkets. By involving female workers of this

dairy plant on 3 times professional training, they are able

to exceed its production which contributed to increase

income and 6 new employment have been created.

Moreover, the project worked to enhance the benefits of

the Dairy Value Chain, to help the producers develop new

product ranges and to improve market linkages, with the

aim to produce brand products by re-packaging the project

beneficiaries' curd and butter and introducing coffee

cream with 10% of fat. Thus, the project supported 18

small-scale dairy processing plants, which are going to

supply curd and butter that would support their income

generation year around. Those dairy products could help

replace imported butter and coffee milk in the tourism

industry. “Orkhon Agit" LLC is an experienced local dairy

processing company, which has started supplying its’ curd

and butter to TESO LLC from 2011. Since 2018, the Orkhon Agit company sent eezgii (hard cheese)

and curd samples to South Korea for testing in order to propose such export products. The project

has been providing technical assistance to produce Mongolian brand dairy products. The company

Figure 12. Milk wending machine supplies fresh and quality milk to consumers in Khovd

Figure 11 Dairy Sales point established in Khovd

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receives 2,000-3,000 liters of milk daily. The small scale dairy producers supply high-quality curd and

butter to the Orkhon Agit company and contribute to income generation of 500 herder households

in the project provinces.

The Orkhon Agit company invested 75,000 US$ to purchase the building and connection to the water

supply and sewer system. The project invested 120,000 US$ in the procurement of dairy processing

equipment. The company is going to produce the products as soon as milking season starts.

Within the framework of cooperation on preparing Dairy Value Chain professional staff, re-training

and developing their capacity, the project organized a theoretical and practical training to train milk

trainers and students from Erdene TVET school on yogurt, curd and cheese production. The project

provided the training materials and technological demonstration charts at the dairy class room.

Furthermore, training and consultation service on installation, start-up, and usage of the yogurt

filling and sealing machine supplied from the project was organized in “Ariun Ekh Tsatsal” LLC of

Darkhan-Uul aimag on March 22nd and also in Erdene soum of Tuv aimag on March 11th of 2019.

Outputs 2.2.3: Professional advisory team established and trained

The project has been collaborating with the Dairy Professional Council of Mongolian Food Industry

Association. The project contributed to the training of professional consultants and experts on dairy

processing at the national level.

In collaboration with the consultant of National Diary Development Board, PhD. A. Bat-Erdene, and

Prof. Ch. Narangerel, the project prepared the 3rd edition of the "Milk processing" 550 pages of book

and published 500 copies in high quality. This book includes integrated key concepts of modern dairy

processing techniques and technology, and is widely used by engineers and technologists around the

world.The “Milk processing”book launched during the "World Milk day 2019" with the Chairman of

the Standing Committee of the Parliament of Mongolia , President of MFIA Mr. D. Terbishdagva,

Member of Parliament and Government, Minister of MOFALI Mr. Ch. Ulaan, Ambassador of the

European Union to Mongolia Mr. Traian Laurentiu Hristea and Dr Vinod Ahuja FAO Representative

in Mongolia. Hundred copies of the book handed over to MFIA member milk processing companies

and rest of copies were given to beneficaries of the Dairy Value Chain from Darkhan-Uul, Selenge,

Khovd, Tuv, Khuvsgul and Dornod provinces and the Institute of Technology.

Figure 13. TVET staff and students attended dairy technological training

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# Sub component 2.2 DAIRY VALUE CHAIN

Results and Impact by UNIDO

Output 2.2.1: Improved milk production, collection, storage, processing and marketing system and employment opportunities. Activity 2.2.1.3: Provide technical advice on improved milk collection, including dairy value chain SOPs based on GAPs, GMPs & good decent work practices. On-site assessment on technology and production for dairy industry and provide recommendations on product diversification and market access - by Karl Schebesta, Senior international dairy expert on September 09-14, 2019 Detailed technical report is available – TR8. Training workshop covering dairy technology, production, product diversification and market access for dairy companies. Activity 2.2.1.4. Assist to

8 dairy factories were assessed on-site (namely, Vitafit IMPEX LLC, Institute of Technology - Food Technology College - Khan Brand, Monfresh Milk Co, LLC, Suu Joint Stock Company, Teso Milko LLC, APU Dairy, Enkh Suu Nav Farm, Ulemj Organic LLC) and Main Findings as follows;

● The enterprises have modern technologies in place supplied from international renowned technology suppliers.

● All of them have more than 60% overcapacity.

● All of the big ones (Vitafit. APU, SUU) are utilizing milk powder to balance the needs of raw material.

● Milk Collection is a challenge to all of them in regard to no farm extension program, not placed of quality based payment system for raw milk and less source of renewable energy.

● The processing facilities are in most cases outdated and placed in heavy industry areas which are not really ideal for food processing which needs a clean and open environment.

● The establishment of village milk collection centers and also direct collection from bigger farms is necessary.

● At the moment it deems that the quality of the raw milk is damaged on its way from the farms to the processors.

● Unmaintained collection tank trucks, collection centers with no or little cooling capacity are prevailing.

● Most of the enterprises have international acceptable QA programs in place and are certified.

● No reliable public food safety system in place.

● Packaging is only partially used as a marketing tool. Recommendations:

● To study the international best practices as a model- i.e. Bangladesh to learn about the improvements of the collection system and also the betterments for the farmers to Kazakhstan.

● To follow up on the improvements in the milk collection system suggesting the village milk collection as applied in Bangladesh and follow up with WB on the livestock commercialization project.

2-day training for the dairy companies on product diversification and market access was conducted at the premises of the MOFALI.

● Overall 56 persons participated and out of whom 39 were female.

● With interactive participatory the reaction to training was evaluated 3.5 points on average out of 4. Highlighted the importance of international standards and production development along with marketing and labelling diversification.

2 enterprises (MACU LLC for cheese and Makh Market LLC for meat) were assessed and piloted with demo innovative PHAROS

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implement the improved national food safety & animal health legal framework in large scale dairy industry. Introduce, assess and map the pilot Agri-SMEs against enterprise model realised in PHAROSAgri-Business Navigator for the evaluation of the new technology tool applicability in Mongolia food industry – by Mr. Serguei Golovanov, UNIDO International Expert on 10-18 January 2020 Detailed technical report is available - TR 18.

software for managing the business operations. Following actions were taken:

● Collected the necessary information and data needed for the setup of the pilots.

● Instructed, coached and supervised enterprise teams formed to support the data collection and integration.

● Simulated pilots, verified and validated the data available at the enterprises

● Provided digital technology awareness training to the enterprise staff and management

● Run public awareness workshop for entrepreneurs, consulting and system integration providing companies and public bodies

Main Findings as follows:

● Most of Agro-SMEs in Mongolia do not have enterprise-wide digital solutions supporting daily operational management in the holistic manner.

● There was no feedback from the enterprises regarding the use of the guide and practical steps for the data preparation. The obvious reason is that such implementation requires prior awareness vocational training and relevant team setup which clarify and justify the aims and results of the effort by the employees who are engaged in daily activities at their enterprises and have relevant responsibilities.

● Both companies do not have other automated systems and IoT that could allow effective use of advanced Pharos ABN capacity for automatic data collection from large number of heterogenous sensors, meters, detectors and digital interfaces of third-party systems.

Recommendations

● Develop the Programme “Fostering sustainability, resilience, compliance and investment in Agro-Industries with digital transformation” (provisional name) as technical assistance service package by UNIDO as specialized agency and technical service provider in the United Nations system

● Implement online public access to Digital Twin of Cheese Factory as real time application demonstrating the Pharos ABN technology functionality to potential users at Agro-SMEs and NBOs.

● Update the content of the reference page for UNIDO Pharos software in relation to the project achievements with the focus on Agro-Industrial Digital Transformation and add there the link to the SAP 140197 “Support to employment creation in Mongolia”, Component 2 Mission 1 Report – Serguei Golovanov 15 Cheese Factory online demo. The consultant is ready to provide the page content draft formulation upon the confirmation by the Project manager.

Half day workshop on “Applying Pharos digital transformation instrument for Agro-industrial SMEs” was organized at MoFALI with over 80 participants from multi-stakeholders. The international expert Mr. Serguei Golovanov provided an overview

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of Pharos ABN technology and its applications. The two enterprises shared their first experience using the technology in their businesses.

Effectiveness of the demo and training: The introduction of the demo PHAROS digital twin resulted in practical implementation of new scalable and replicable digital transformation technology capable to foster achievement of multiple long-term objectives such as enhancing food security and introducing new qualified jobs, improving sustainable economic growth in the Agri-Industries, productivity, competitiveness, resilience to impacts (changes in climate, markets, etc), quality, resource efficiency, access to markets and reducing poverty in Mongolia.

Output 2.2.3: Professional advisory team established and trained. Activity 2.2.3.2: Train advisors on modern technologies, Hazard Analysis and HACCP, quality assurance systems and decent work practices to serve the dairy and food industry. Food Safety Compliance Assessment for Dairy & Meat Processing Sectors – by Issa A. Beitouni, Senior International Food Safety System Expert between November 9th, and December 3rd, 2019. Detailed technical report is available – TR17.

Onsite Visit & Assessments: as part of an international expert’s mission, number of selected dairy factories and companies - 6 were located in Ulaanbaatar and Tuv and 1 was in Khovd province. Findings and challenges at (Mini Dairy plant level – at province)

● Lack of testing and process monitoring;

● Needs for infrastructure Maintenance;

● Need improvement of packaging & Machinery level; Findings and challenges at (Mini Dairies plants level) – MACU cheese plant while others are dairy factories)

● The visited dairies plant, MACU in UB have higher readiness & compliance level for export in terms of international food safety standards requirements

● Most of visited dairy factories and companies have already applied international Standards such (HACCP, ISO22000 & FSSC22000) and they have valid certificate and system

● Big investment was available as well as high and modern technology used

However, certain challenges were;

● Lack of sufficient milk supply in terms of quality, safety and quantity

● Lack of updated system as per the latest version of international food safety standards:

● Lack of food safety awareness and hygiene in small part of the companies

● Lack of skilled labor mainly in cheese manufacturing side

● Absence of Sector organization mainly on the level of raw milk production

Recommendations:

● Help industrial association to build a specific oriented guideline and industry best practices references including visuals materials on the level of milk farming activities

● More capacity building for the dairy industry related to food safety & quality international standards and requirements.

● Developing more technical programs for dairy and cheese industries with a full concentration on the Mongolian market needs (such special technical diploma in cheese technology, in meat technology, etc.)

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● Helping Companies to update their current systems: dairy companies already implement several food safety systems but in accordance with the latest version and need help and technical assistance in this regard.

Training & Capacity Building ● “Food Safety Management System & International

Standards” aimed to Make Participant Aware & Build their Capacity in the context of food safety concept and related international standards such as (GMP, GHP, HACCP, HALAL, FSSC22000, & ISO22000) with concentration on dairy and meat related issues.

● With a total 51 numbers of attendance, the 3-day course was delivered to the diversified participants of cheese factories, private dairy companies, veterinary service, inspection department, food association, cooperatives and universities from 11 provinces of Mongolia.

● Effectiveness of training: – pre- and post-test with 25 questions was conducted to evaluate the training effectiveness. According to the assessment test, the level of trainees knowledge about food safety management system and international standards was increased by 20%.

4. SUB-COMPONENT 2.3 TEXTILE VALUE CHAIN

This second annual report presents the implementation and results of SECiM C2 / UNIDO: Piloting quality private sector work in selected livestock value chains during the period February 1, 2019 through January 31, 2020. The cornerstone of the SECiM C2 project is empowering the decent employment and income generation opportunities by enabling the conversion of locally available resources into competitive value added and exportable products in terms of increasing local producers’ participation in the formal local and international markets. To date, the key achievements in 2019 in terms of innovative and proof of concept oriented activities in the selected livestock value chains in Mongolia are as follows:

Capacity building and institutional strengthening: within the context of primary objective - private

sector employment creation and decent work practice, project intervention focused on numbers of

capacity building activities in the sphere of direct and indirect categorization. With international best

practice and know-how shared contribution to the job creation and decent employment, classroom

and practical training sessions were delivered to 1210 (54% women) and followed by online training

for 326 (40% women) and overseas workshop activities for 4 (25% women) beneficiaries respectively

in 2019 as shown in table 1.

Furthermore, the provided direct activities were exercised by project implementing unit (PIU) with project resources i.e. international and national experts, while indirect activities were organized by project beneficiary partners who received the direct interventions as capacity building and institutional strengthening. It is noteworthy that the project achieved to provide the institutional capacity building so as it was outreached to 320 indirect beneficiaries after the year 1 of project cycle.

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Table 2 Capacity building and institutional strengthening

Type of capacity building activities

Total participants Women Percentage

Year1* Year2* Total Year1 Year2 Total Year1 Year2 Total

Classroom and practical training

644 1,210 1,854 326 648 974 51% 54% 53%

Indirect training (by training partners)

- 320 320 - 153 153 - 48% 48%

Online training 127 326 453 48 131 179 38% 40% 40%

Overseas training and workshops

15 4 19 5 1 6 33% 25% 32%

Total participants 786 1,860 2,646 379 933 1,312

48% 50% 50%

* Year 1 is 2018 and Year 2 is 2019

The overall 35 practical training sessions and workshops were organized in the four subcomponents and cross-cutting categories. The participants totaled 1210 persons of whom 647 (53.5%) were women. With about half proportion (632 attendees (52%)) of total participants, the capacity building training was consolidated each sub-components beneficiaries and recipients while market linkage related activities were delivered to around 30 numbers of beneficiaries as shown below table. Table 3 Classroom and practical on-site training

Category

Participants Total participants Meat Dairy Textile Leather Cross-

sector

Capacity building training

127 152 72 200 11 562

PDU/Technology transfer

80 - 64 80 - 224

Introduce innovation

12 6 40 35 28 121

Participation and advocacy

20 27 58 - 51 156

Market linkages - - - 33 - 33

Sharing best practice

- 15 40 39 20 114

Total 239 200 274 387 110 1210

In parallel to the in-class, or on-site training, the project implemented eLearning on 2 learning management systems6 (LMS) to promote the blended training approach. Total of 453 online users are learning online in 4 different courses since the project inception (Table 3).

6 eLearning platform of UNIDO https://learning.unido.org/login/index.php, and Urlakh Erdem fashion design institute http://online.urlakh.edu.mn/

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Table 4 Online training

Type of capacity building activities

Total participants Women Percentage

Year1 Year2 Total Year1 Year2 Total Year1 Year2 Total

How to deal with H2S gas?

97 138 235 35 38 73 36% 28% 31%

Footwear pattern engineering

30 56 86 13 40 53 43% 71% 62%

The first aid at workplace

- 84 84 - 34 34 - 40% 40%

Sustainable leather manufacturing

- 48 48 - 19 19 - 40% 40%

Total participants 127 326 453 48 131 179 38% 40% 40%

The 1-module H2S course can run fully online, and it automatically issues a Certificate for learners when they meet 4 criteria. 74% of completion rate (Table 4) is significantly higher than the eLearning benchmark, and the reason is that the project team organized blended training on H2S in tanneries.

Table 5 Completion rate of H2S online course

Learning performance of H2S course 2018.04.01-2019.01.31

2019.02.01-2020.01.31

Total

Online learners 97 138 235

Completed learners (Certified) 72 102 174

Completion rate 74% 74% 74%

To achieve the overarching objectives in line with expected impacts, the implemented sub-projects under countersigned service contracts. Within the reporting period, the following institutions at the local level were supported in terms of enhancing their active involvement in the project implementation and giving opportunity for them to build their institutional capacity. This would eventually help sustainability of the project outcomes at the same time those institutions would be able to provide the services independently. Three organizations named in below Table 5 implemented key activities of the project with respect to organizing training and workshops, as well as establishment of PDUs via technology transfer and training in the industry value chain development. Table 6 Project beneficiary institutions

# Institution Provision of service Relevance to Objective

1 Mongolian Association of Leather Industry (MALI) and members

Hides and Skins Quality Improvement Training in Selected abattoirs and tanneries

Leather and meat sub-Components 2.1, 2.4

2 Research and Development Institute of Light Industry (RDILI)

Development and implementation of knitwear finishing training courses and standard operating procedure for textile industry

Textile sub-Component 2.3

3 Altain Uulsiin Orgil (AUO) herders’ union NGO and members

Training on sheep wool quality improvement

Wool and Cashmere sub-Component 2.3

4 Urlakh Erdem Fashion Design Institute

Technical support for implementing Blended Learning (LMS, FPE course, professional textbooks and magazines, ToT)

Leather sub-Component 2.4.3.2

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5 Mongolian Red Cross Society

Technical support for implementing Blended Learning (First Aid at Workplace course, brochure, Tutors handbook, ToT, market linkages)

Leather sub-Component 2.4.3.1

6 Labour Safety and Health Center and OSH training institutions

Professional development (training on OSH in leather industry, First Aid at the Workplace)

Leather sub-Component 2.4.3.1

7 Water Supply and Sewerage Authority of UB city

Professional development (training on H2S, First Aid at the Workplace, Business models for Blended training)

Leather sub-Component 2.4.3.1

8 Mongolian Food Industry Association and members

Technology transfer, professional development

Meat sub-Component 2.1 Dairy sub-Component 2.2

9 Mongolian Artisan Cheesemakers Union (MACU)

Innovation, professional development, market linkages

Dairy sub-Component 2.2

10 Mongolian United Packaging Industry Association and members

Professional development, market linkages

Meat sub-Component 2.1 Dairy sub-Component 2.2

11 Mongolian Wool and Cashmere Association and members

Technology transfer, professional development

Textile sub-Component 2.3

12 Mongolian Wool and Textile Association and members

Technology transfer, professional development

Textile sub-Component 2.3

13 General Authority for Veterinary Services

Technology transfer, professional development

14 MoFALI Advocacy, Government programs and plans, formulating the “Leather” national program, facilitating the OSH committee

Within the reporting period, 9 international experts worked in Mongolia for a total of 127 days. They visited 72 institutions including 49 factories (overlapping numbers), professional associations, TVET, scientific institutions7; Ministries and government organizations. While executing their on-site visit & assessments, international experts provided professional consultancies to institutions, answered their questions, and introduced trends. During a consequent training, experts highlighted the common issues and questions.

Technology of transfer in the livestock value chain:

o Hides and skins quality improvement with flaying equipment including flaying knives and tools in the peri-slaughter phase (raw material preparation) introduced and transferred to 30 tanneries8 that contributed to reduce the fat flesh defects by 36% in sheep skins and 32% in cattle hides within one year according to the project monitoring assessment report in 2019. Increased productivity and quality of raw materials was a key impact. MALI acquired new skills and capacity of MALI was enhanced and now this institution is capable of assisting with hides and skins quality improvement.

7 Detailed list of institutions is available upon request. 8 Detailed list of the tanneries and other recipients of the knife tools is available upon request. It is attached to the final report of MALI, January 2020.

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o The static flaying frame (SFF) with direct design assistance of an international meat expert was assembled in Mongolia and proved the concept of reducing damages and defects - almost zero-flaying defects during the peri-slaughter process. Significant impacts on productivity and yield were progressively exposed in the industry. The quality improvements are expected to make leather more competitive. All technologies are affordable, scalable and locally available (e.g. no need to procure with donor assistance). This is a key technology which MoFALI intends to scale up. Contribution to potential new employment with static flaying frame is estimated at over 1200 positions (4 jobs/soum) at about 1 million tugrik per job, when scaled up.

o Transfer of technology, training, establishment of PDU and improvements in the wool supply

chain that introduced electric shearing, wool sorting, baling and labelling for traceability methods had beneficial effects on productivity, quality and yield. For example, traditional scissor cutting requires 10-15 minutes while mechanical shearing is just 3-5 minutes. The mechanically sheared and sorted pelts demanded twice the price due to better quality (e.g. clean, sorted, consistent length, bailed). This is a key technology which MoFALI intends to scale up. Contribution to income generation: With support of given PDU a typical shearer had an increase in income of 32,644MNT (about USD12) per day which is considered good income for the time of year. Contribution to potential job creation: the possibility of at least 4 seasonal jobs per bagh (about 4,000 jobs) when this equipment scaled up. Potential new employment with mobile shearing business is estimated at over 1,500 jobs throughout Mongolia. At about 3 million tugrik per job. This is a key technology which MoFALI intends to scale up.

o Knitwear wet finishing technology to improve the knitwear performance: After installed

proper training base of wet finishing equipment (scouring, hydro-extracting, drying and steam ironing), the SOP for cashmere, sheep wool and yak wool knitted products was developed. Total 7 engineers and operators of selected 3 knitting factories (Bayalag Ulzii in Ulaanbaatar, Erdenet Cashmere in Orkhon and Jinst Murun in Khuvsgul) were trained and gained deep knowledge and practiced in knitwear finishing technology. This training resulted in improved knitted products performance including upgraded quality of the wool and cashmere softness and pilling up to grade 3-4. The equipment and training are affordable and highly effective. Quality improvements are expected to fit consumers’ demand. Standard operating procedures were developed and introduced both for wool supply chain and finishing of knitwear products. Incubator Center for Textile Finishing was established at the Research and Development Institute of Light Industry that provided open access for SMEs to get professional training and knitting services.

o Innovative PHAROS software for managing the business operations was introduced for

cheese and meat factories. Two enterprises started piloting the software.

o Pre-inspections were undertaken by internationally recognized auditor with focus on compliance of ISO, HACCP, Halal, FSSC standards within the framework of food safety management system. The enterprises requested advanced training and pre-auditing in 2020.

o Packaging and labelling as well as product development and marketing training and on-site

assessments were conducted for the industries, which resulted in increased innovative ideas and knowledge of international standards.

Total 70,500 Euro value of assets transferred in;

o Meat sub-component: Professional knives and tools- 30,600 Euro

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o Textile sub-component: Knitwear finishing equipment- 13,130 Euro; Electric sheep shearing machine and equipment- 12,240 Euro. Subtotal: 25,370

o Leather sub-component: Professional knives and tools- 12,350 Euro; Safety equipment- 2,180 Euro. Subtotal: 14,530.

Cross-cutting: International training on “Occupational Safety and Health in the Leather industry” was organized. A participatory workshop “Business models for blended training” was organized amongst trainers of training partners navigating them to share resources for blended training.

Technical series and toolkits were produced within the reporting period as follows: o Twelve volumes of the technical series were produced including;

- International experts’ technical reports (7) based on the mission for leather, dairy and meat sub-components as well as OSH in leather industry and Packaging for Dairy and Meat sectors;

- National experts’ technical reports (3) for leather, meat and dairy sub-components; - Contract performance reports (2) for textile and leather (also covered meat) sub-

projects.

o Toolkits and Guidelines (4) “Shearer’s manual”, “Handbook for Moodle LMS administrators of Urlakh Erdem FDI”, “Standard Operating Procedures for Hides and Skins for the Tanning Industry in Mongolia” and “Standard Operating Procedures for Knitwear Wet Finishing in the Textile Industry in Mongolia”.

o Interactive training materials for blended learning “The First Aid at Workplace” (8 modules), “Sustainable Leather Manufacturing” (5 modules) and “Footwear Pattern Engineering” (10 additional modules).

o Outreach and visibility materials (over 80) were released including: - Journal articles and newsletter including SECiMC2 newsletter, success stories and

monthly articles on Mongol Malchin (Mongolian Herder) Journal, which is distributed to all 330 soums in the country (7)

- Press release, banner & standee for each international trainings and workshops (38) - Project video for raising awareness on the project implementation and achievements

(5) - TV broadcasting including interviews and news programs (8) - Online news both local and international websites (23)

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Please see detailed information from Appendix I.

#

Sub component 2.3 TEXTILE VALUE CHAIN (cashmere, camel/yak hair, wool)

Results and Impact by UNIDO

Output 2.3.1: Upgraded spinning process Activity 2.3.1.2: Upgrade spinning processes and establish SOPs, including good decent work practices.

[Progress in 2018 included: National wool processing industries were surveyed and they identified inconsistent fibre length as key constraint resulting in poor spinning. Mechanical shearing was conceptualized to address the improvement of wool supply chain systems. Consensus built with partners on the way forward to develop the PDU]. The International training on improving the quality of sheep wool and introducing the electrical shearing practice was conducted for local producers (wool suppliers/herder cooperative members) in Zereg soum (7-day) and Must soum (5-day) of Khovd province with facilitation of Australia's and New Zealand's professional shearers and herders’ cooperative “Altain Uulsiin Orgil (AUO)”. Overall 254 herders of local cooperatives, TVET teachers and related field people (of whom 28.7% women) participated in the introductory workshop. 54 people (of whom 14 women) participated in practical training of Master and Assistant shearer and total 16 trainees received the shearer’s certification as planned. Key partners were Mongolian Chamber of Commerce and Industry (Pro Value project), Mongolian Wool Textile Association, local governments of Khovd aimag, Must and Zereg soum, GAVS and MoFALI.

Applying international best practice on electric sheep shearing (SS), sorting, baling and labelling for traceability through conducting practical training for local producers Institutional capacity building for Altain Uulsiin Orgil (AUO) cooperative in Khovd province such that AUO is now the PDU of mobile and mechanical shearing. Detailed technical report is available – TR10; TG8 in appendix 1.

Practical training : demonstrated the improved effectiveness of wool producing in the value chain as follows; ● Shearing skills – proper use of electrical equipment with safety and increasing the yield – were practiced for the cooperative members. In fact, professional shearer shears a sheep for 3-5 minutes ● Introduced electric sheep shearing equipment proved as sheep fleece can be clean enough without excessive sand in practice. ● The innovative mobile shearing service (refer to photo 3 in appendix 1) was introduced with a truck that was taken directly to herder camps where sheep could be conveniently shorn. It should be called the O’Leary-Altansukh Mobile Shearing Unit based on the idea of using a truck bed to carry pens, generator and shearing units that were attached on pipes overhead.

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● Effectiveness of training: – evaluation of learning with pre- and post-test. Trainees assessed the level of knowledge and practice improvement. According to the assessment test, the level of trainees shearing knowledge was increased by 80.6% and improved the practical skills.

● Experiment result of sheep wool quality improvement: experimental study was conducted with control and treatment groups of 5 female sheep samples at RDILI in Ulaanbaatar. The control sample was collected from Zereg soum shorn by shearing equipment, while the treatment group was from Darvi soum shorn by scissors. The result proved the sheep wool quality was improved with 3.25% of short fiber content in case of only shearing the wool by mechanical equipment. So, the study concluded that to produce the qualified yarn wool from the spinning process the relevant technology is needed rather than using traditional methods like scissors.

Ulaanbaatar Demonstration Workshop: (follow-up) was held in Ulaanbaatar Carpet Factory with the purpose of presenting the result of the electric shearing practice and laboratory test for industry stakeholders and counterparts. As a result, Altain Uulsiin Orgil (AUO) cooperative and Erdenet Carpet factory made a contract to supply 10 tons wool (with 20,74-21,63 micron from Sutai sheep breed) that was shorn by the machines. Other factories were also interested in purchasing the improved quality wool from AUO.

Output 2.3.2: Upgraded finishing process Activity 2.3.2.1: Assessment of present finishing recipes and methods and employment opportunities. Activity 2.3.2.2: Test and introduce optimised decent work finishing recipes and methods. Activity 2.3.2.3: Assessment of applied finishing recipes and methods and employment opportunities

Activity 2.3.2.4: Test and introduce optimised decent work finishing recipes and methods.

[Progress in 2018 included: Bottlenecks in the textile value chain were identified by the international expert Mr. Fung Wai Wu as a result of in depth assessment and consensus were built with partners to develop SOP and training programme on Knitwear wet finishing].

● UNIDO’s international expert conducted on-site assessment in

the textile industry in 2018. As a result, the bottleneck was

identified in the knitwear wet finishing procedure. RDILI was

identified as potential local institution to receive the

international best practices and provide services for the

industry. Therefore in 2019 the project installed proper training

base of wet finishing equipment (scouring, hydro-extracting,

drying and steam ironing), the SOP for cashmere, sheep wool

and yak wool knitted products was developed. 10 trainers (ToT)

of RDILI and 7 engineers and operators of selected 3 knitting

factories (Bayalag Ulzii in Ulaanbaatar, Erdenet Cashmere in

Orkhon and Jinst Murun in Khuvsgul) were trained.

● ToT training result is assessed by trainees knowledge. Trainees

improved their knowledge on Knitwear finishing technology

from 75.64% to 96.79% and practical finishing skills.

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Output 2.3.3: Established ‘Advisory service for the wool and cashmere sector’ Activity 2.3.3.1: Select faculty members as consultants. Activity 2.3.3.2: Organise trainings Development and implementation of knitwear finishing training courses and standard operating procedure for textile industry Institutional capacity building for RDILI. Textile training and SOPs development on knitwear wet finishing -by Fung Wai Wu, International Textile Expert Detailed technical report is available – TR19 in appendix 1.

Blended training of knitwear finishing technology was organized at newly opened Textile Finishing Incubator Center led by the International expert Fung Wai Wu and RDILI trainers (who are trained through ToT) and achieved in following results:

● The trainees improved their knowledge on knitwear finishing

technology including technological stages, how to control

technical parameters in processing, follow all steps as indicated

in the SOPs on wet finishing (refer to TG16 in appendix 1).

According to the pre and post test, trainees knowledge on

knitwear wet finishing technology was increased by 48,21%

and improved wet finishing practical skills.

● The training resulted in improved knitted products

performance including upgraded quality of the wool and

cashmere softness and pilling up to grade 3-4, which are

processed by newly developed SOP. Quality improvements are

expected to fit consumers’ demand.

● Standard operating procedures were developed and introduced

both for wool supply chain and finishing of knitwear products.

The advantage of the new SOP is the milling process in wet

finishing, which is not common treatment in Mongolia, is

included.

● The equipment and training are affordable and highly effective.

The equipment is well fit for practical training to understand

how to adjust water level, liquor ratio, chemicals concentration

and so on.

● The Textile Finishing Incubator Center was established at the

Research and Development Institute of Light Industry that

provided open access for SMEs to get professional training and

finishing services.

Training is expected to impact indirect job creation of textile factories. The employees can be further trained and upgraded their knowledge and experience (refer to TG17 in appendix 1). Competitive and quality jobs can be secured.

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5. SUB-COMPONENT 2.4 LEATHER VALUE CHAIN

# Sub component 2.4 LEATHER VALUE CHAIN

Results and Impact by UNIDO

Output 2.4.1: Sustainable ‘green’ hides and skins quality improved in a pilot area Activity 2.4.1.1: Assessment of selected abattoir(s) Activity 2.4.1.2: Develop and introduce a manual (SOP) on hides and skins improvement, preservation, grading/pricing and Good Decent Work Practices Activity 2.4.1.3: Provide pilot training on hides and skins and improve good decent work practice. Institutional capacity building for Mongolian Association of Leather Industry (MALI) Sustainable Leather Manufacturing blended Training, assessment and Standard Operating Procedures for Hides and Skins Quality Improvement Detailed technical report is available – TR14; TG14 in appendix 1. Technology of transfer for improving quality of the yield and increased profit by upgrading the raw materials Reduced production expenses and optimized

[Progress in 2018 included: the leather industry partners and MoFALI identified knife marks and tick marks as a key bottleneck for quality leather production. Improved flaying knives and static flaying frames were identified as potential solutions.] MALI team evaluated and examined of 2,749 hides, skins and leathers at four tanneries, in Darkhan and Ulaanbaatar including;

● 401 cattle hides/leathers,

● 662 yak hides/leathers,

● 1,300 sheep skins/leathers, and

● 386 goat skins/leathers. The results confirmed the presence of a range of defects; including the peri-slaughter ones - excess flesh, cuts and holes - related to improper ripping, flaying and fleshing – predominated. Therefore, the practical training paid special attention to such defects with introducing new knives and tools sponsored from the project (refer to TR 14, TG14 in appendix 1). Project-sponsored (procured) professional knives and tools as well as safety equipment were distributed during and after training and workshop activities9. The follow-up assessment analyzed the effectiveness and utility of distributed knives and tools among direct beneficiaries; 4 slaughterhouses as well as 3 tanneries. Study revealed that the quality of distributed tools was rated 4.3 and ease of use was rated 4.2 points out of 5 in average. Additionally, beneficiaries emphasized less slippery during the process of flaying and fleshing as well as reduced frequency of knife-sharpening. In terms of reducing operations cost and increasing output, 9.0 minutes were on average saved in the fleshing process, while approx.1.6 minutes were saved in cutting and deboning. In other words, all steps such as fleshing, flaying, knife sharpening and deboning were progressively reduced time spending and thereby fostered the efficiency (Refer to TR15 in appendix 1). The assessment findings show that generally the fat flesh defects were relatively higher than other defects, however it was reduced by 36% in sheep skins and by 32% in cattle hides within one year. The evaluation indicated that the cut (no hole) on sheep skins was made up of 4% in 2019, falling down 2% while cut on cattle hides was 20% in 2019, decreasing from 42% compared to previous year. TTLMs prepared by project staff – and feedback from the training

9 Detailed list of slaughterhouses and other recipients of the knife and tools is available upon request. It is attached to the final report of MALI, January 2020.

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useful areas through reducing damages and defects such as knife cuts, tick marks etc. SLM training material is translated into Mongolian and at least 3 tanneries are received the training.

itself – were used to prepare (again for the first time in Mongolia) SOPs for slaughterhouse operations related to the preparation of hides and skins (refer to TG14). "Sustainable Leather Manufacturing (SLM)” blended training materials enriched complimentary with hide and skin quality improvement trainings’ feedback (refer to TG18 in appendix 1). Total 321 (of whom 117 (36%) women) technicians, operators and engineers were trained from Makh Market, Makh Impex, Darkhan Meat Foods, Erdenet Makh Market, Baruun Mongol International and Meat Foods abattoirs/meat processors as well as Darkhan Nekhii, Darkhan Minj and Mon Ireedui tanneries. MALI acquired new skills and capacity of MALI was enhanced and now this institution is capable of assisting with hides and skins quality improvement.

Output 2.4.3: Skills and employment development capacity of the leather department of the MUST strengthened. Activity 2.4.3.3: Update training curricula including short courses for the leather sector. Teaching, training and learning materials (TTLMs) development– based on UNIDO’s Sustainable Leather Manufacturing training material.

With the objective to improve the quality of the yield, overall 7 trainings10 were conducted simultaneously along with introducing new/proper equipment under the Hides and Skins Quality Improvement Training sub-project in Ulaanbaatar, Darkhan and Erdenet locations; 321 tanneries and abattoirs participated in the training, 36% of whom were women. Prior to the start of inputs to training, a review of existing, Mongolian-language documents was undertaken and training materials were prepared by the project team. The training participants evaluated that their technical skills were enhanced with 4.1 point and productivity increased with 4.2 point out of 5 in average after training activities. The survey participants highlighted the practical training was not only classroom based traditional activity, but also practiced with project-sponsored knives and equipment in the field. So, this approach was furthermore helped to improve the technical skills and expertise i.e. Darkhan Meat Foods abattoir said “we exercised well how to use knives and other tools properly during the training”.

Technology of transfer; Static Flaying Frame (SFF) with aim of improving hides and skins quality Construction and commissioning of two Static Flaying Frames (SFFs)’ - by Ralph Arbeid, International leather expert Detailed technical report is available – TR11; TG15.

● AUO in Khovd agreed to work with UNIDO’s international expert Mr. Ralph Arbeid and introduced 2 SFF models for both big and small ruminants. The model is innovative, affordable, locally available and cost effective. The SFF models (refer to photo 2 in appendix 1) were used for the “field abattoir” in both aimag and soums. Total 200 sheep, 1 goat and 1 horse were flayed with these two machines during the demonstration. Afterwards AUO used the SFF machines successfully for 450 sheep and goats and 20 yaks.

● MoFALI recognized UNIDO and AUO team as introduced creative and practical tools in the supply chain system and made a decision to replicate the same model in all 330 soums

10 Training reports are attached to the final report of MALI, January 2020 under contract no. 3000065812 for provision of services relating to “Hides and Skins Quality Improvement”

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and include this tool as a mandatory for the abattoirs under the leather incentive programme.

Pre-auditing of LWG and Benchmarking tool introduction to tanneries and facilitate self-assessment process and improvement of business efficiency. Follow up of assessment on the leather industry: Pre-audit for LWG environmental certification - by Viswanathan Munusamy, International Leather Expert Detailed technical report is available – TR16;

● Two tanneries received training and pre-auditing for LWG environmental certification by the UNIDO’s International Expert Mr. Viswanathan Munusamy (refer to TR16 in appendix 1). The tanneries are taking corrective actions and preparing for real audit. It will create opportunity for the leather industry to increase high value exports.

● Three tanneries, namely Darkhan Minj, Mon Ireedui and Buligaar conducted self-assessment with UNIDO’s benchmarking tool with direct support of International expert Viswanathan and national experts’ team from MALI in December 2019.

● As a result of the assessment, factories identified the bottleneck problems and developed corrective action plans in line with improving their business efficiency.

● The international expert met leather sector stakeholders, whom he visited in 2018 and provided follow up recommendations. It includes the Emeelt Industrial Technology Park project team, Khargia Primary Effluent Treatment Plant, Armono Institute, Mon Ireedui tannery and MoFALI.

Output 2.4.3: Skills and employment development capacity of the leather department of the MUST and other institutions strengthened. Activity 2.4.3.1: Develop new training course/learning material - Occupational Health and Safety in tanneries Occupational Health and Safety in Leather Industry’ technical report - by Norbert Lukasz Neidzweidz, Safety leather expert Detailed technical report is available – TR7; OSH guideline as basic material for preparation of the on-line tool through capacity building training including at least 3 tanneries, Effluent

● OSH training materials translated into Mongolian and 3 Blended training (Classroom and hands-on) were conducted. These materials integrated into the eLearning course “Sustainable Leather Manufacturing” along with topics on “Decent work in tanneries” and “Traceability and accountability” so that any tannery manager/worker, TVET can access it online from anywhere anytime.

● OSH guideline (Refer to TG5 in appendix 1) was developed with support of International expert Norbert and team from project counterparts. Guideline was thereby peer reviewed by LWG and TEGEVA and IULTCS experts.

● Recommendations provided to the OSH committee of MoFALI, MoLSP, MoFALI and other counterparts

● Practical OSH training was conducted for the OSH experts and trainers from LSHC of MoLSP and tanneries. Mongol Shevro tannery provided its venue for the practical training. As a result, the experts and trainers learnt the international standard on OSH and needs for further improvements in their sectors.

● Effectiveness of training: A test with 14 questions was conducted to evaluate the training effectiveness. Based on the score achieved before (entry test) and after (exit test) the training, we could assess its effectiveness. Entry tests of OSH experts were 28%, internal tannery staff 33%, while the exit tests became 80% and 71% respectively.

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treatment and OSH trainers

Activity 2.4.3.2: Develop learning material for an on-line course on Footwear Pattern Engineering learning materials development for an on-line course on Footwear Pattern Engineering (FPE) – refer to TG13; TG9 in appendix 1 First Aid at the Workplace blended training with MRCS – refer to TG10; TG11; TG12 in appendix 1

● 15 FPE modules – translated into Mongolian, uploaded on Moodle.

● FPE Instructional Guideline was prepared and translated into Mongolian to assist trainers to run the blended course.

● FPE modules were handed over to UEFDI for further implementation, and they upgraded their curriculum for further implementation. In addition, the UEFDI is planning to conduct the FPE blended course for interested shoe designers in 2020. This ensures the sustainability of output.

● In Dec 2019, the UEFDI organized a shoemaking competition amongst its 2nd to 4th year students. It is proof of how they are using the FPE course, Arsutoria professional journal, and textbooks, which were provided to them from the project.

● The project team translated 8 modules of First Aid at the Workplace blended learning course into Mongolian and handed over it to the Mongolian Red Cross Society (MRCS). Together with this institution practical training was conducted both for leather and textile industries. The MRCS started providing regular training for various sectors with certain business models.

Activity 2.3.3.4: 2.4.3.4: Provide pilot training and develop a pool of trainers.

● International training (ToT) on “Business models for Blended Learning” was conducted for 28 trainees from the collaborating institutions including ARMONO, Municipal Water Authority, MRCS, UEFDI, MALI, RDILI and Erdene TVET. The participants learnt how to use the elearning or blended training methodology to train the others. This training was paired with Common Sense company from Austria, who developed the eLearning programme for UNIDO.

Activity 2.4.2.4: Support to market linkage development and information systems and value chain credit/finance. International Study Tour: “MosShoes Expo and Forum£, held in Moscow, Russia, March 2019 International Study Tour: on “Cleaner Production Technologies in Leather Industry” held in Bursa, Turkey in October 2019

[Progress in 2018 included: leather industry representatives were trained in China and Turkey that resulted in the introduction of new ideas and innovations such as low use of chromium in tanning as well as raised interest of international buyers for more value added exports of leather goods].

● Two representatives from MS Garment company and MALI attended successfully the MosShoes Expo and Forum in Moscow and built extensive network and linkages with Russian Shoes and Tannery Association, Moscow Science and Technology University and UNIDO Representation in Moscow. As a result two Mongolian students, who are studying at the Moscow Science and Technology University, carried out internships at tanneries in Mongolia.

● Two representatives from Mongol Shevro and Darkhan Minj tanneries participated in the international workshop and study tour in Turkey. They obtained up do date information on the

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international leather industry and learnt best practices from the Industrial technology parks, leather goods factories, tanneries and higher education schools such as Ege University in Turkey. Furthermore extensive networks were built during the international workshop.

6. SUB-COMPONENT 2.5 VEGETABLE VALUE CHAIN Output 2.5.1 Small-scale and household vegetable producer technical and decent work know-how on vegetable value chain activities improved The project focused on promoting contract farming and planned production among potato and

vegetable growers, to help them increase their income by creating self-employed jobs. To increase

vegetables production, capacity building activities have been done as well as planned production of

549 farmers, which generated 128 new employment in the vegetable value chain, since the project

started. The project transferred a total of 4 new technologies, which helped local farmers to increase

their income and generated self employment.

The FAO Mongolia signed a Letter of Agreement with the Mongolian Farmers Association of Rural

Development (MFARD) in June 2018. Vegetable growers’ groups and cooperatives received 6,000 kg

of potato seed and 374 pack hybrid seed, 324 kg seeds of different vegetable species including carrot,

beetroot, turnip, garlic, cabbage, tomato and cucumber.

The project beneficiaries planted seeds in 29 hectar field and harvested in total 388 tons of

vegetable.

The theoritcal and field training on “Integrated pest management and occupational safety

management” was organized for 430 vegetable value chain benificaries. National vegetable

consultants were trained on integrated pest management including weed, disease and insect

control, principles of safety work with

pesticide, and proper use of new registered

pesticides.

The farmers were interested to learn

technology of different vegetable species

including cabbage, garlic, onion, water melon

in the open field and cucumber, tomato,

sweet pepper and leafy vegetables in green

houses. The farmers received theoretical

lectures on growing technologies and good

practices of different vegetable species

including cabbage, root crops (carrot, turnip,

beetroot), onion and garlic, cucumber, water

melon, leafy vegetables and vegetable

species growing in green houses (cucumber, tomato, sweet pepper, eggplant). Farmers participated

in onsite practical training in the farmer’s field and in greenhouse preparation of seed bed for

planting seed and transplanting seedlings and proper usage of hand planters and other tools.

The farmers trained on logging of field logbooks for potato and vegetable growing technology.The

vegetable growing farmers have to fill growing technology in the field logbook including name,

Figure 14. Beneficaries growed vegetables in greenhouse

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application rate, time and date of pesticides and fertilizers applied. According to regulation for origin

of certification, the agronomists will be check their field logbook before giving certificate of origin

for marketable vegetable production of the farmers and cooperatives for enhancing safety and

healthy vegetables and potatoes supplied to consumers.

The project invested 15 summer greenhouses with total capacity of 1,800 m2 to 6 vegetable growers’

groups in Tuv, Khuvsgul, Darkhan-uul and Selenge provinces. The farmers contributed to increased

supply of cucumbers, tomatoes, chilly, sweet pepper and leafy vegetables from greenhouse

vegetable production. It created total of 30 employment and increased income of farmers by US$

7,000.

For example; “Arivjikh” growers’ group received a greenhouse with 120 m2 capacity, planted spinach

and harvested 28 kg yield and supplied to a local vegetable processor. “Od Sumber” growers’ group

received 2 greenhouses with capacity of 240 m2 and planted lettuce and supplied to the local

vegetable processor. The group planted onion to harvest it in spring and plant leafy greens from May

to harvest it in fall.

The project is developing red skinned garlic value chain for employment creation and income

generation of Zavkhan and Khovd provinces. UN-FAO Mongolia signed Letter of Agreement with

“Khamtiin urgats” vegetable producers cooperative in Uliastai soum, Zavkhan aimag. Khamtiin urgats

cooperative purchased a quality garlic seed and kept seed in proper storage with capacity of 3 tons.

The garlic value chain development activities are contributing 60-80 self-employment and increase

their income.

2.5.2. Vegetable collection centers equipped with post-harvest handling (sorting, grading, packaging and cooling) and storage facilities and mini-scale processing facilities are established

Around Orkhon, a village of 3,000 in Darkhan-Uul province, small vegetable farmers produce 20 percent of all the carrots consumed in the country. Prior to 1990, a State-owned processing factory employed a large number of townspeople there. Yet like many of Mongolia’s previously nationalized factories, it was not able to survive the transition to a free-market economy. While some farmers carried on carrot cultivation in their home gardens, it was small in scale and there was no market for their products. While the area was still known for its carrots and other vegetables, without processing capacity there was no way for people in the town to make a living during Mongolia’s long

cold winters. One group of carrot farmers decided to get together and form a cooperative in an effort to increase their incomes through economies of scale. Cooperative members took the initiative to try and sustain their incomes year round by building a small processing plant. They were able to save enough money to take over and refurbish an abandoned three-story building and, through their own hard work, convert it into a carrot-processing facility, storage facility and

living quarters. The farmers received seeds of a high-juice-yielding carrot variety that is renowned for its naturally sweet flavor. It was not the same variety they were used togrowing, but upon testing it they found that it produced more juice than their usual variety and that the juice tasted naturally sweet and flavorful. The project provided modern extracting and pasteurization equipment, along

Figure 16. Buyanda cooperative produce carrot juice

Figure 15 Buyanda cooperative produces carrot juice

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with training in processing and marketing. Now that the facility is up and running, the cooperative is getting ready to enter the local market and is experimenting with other value-added vegetable products such as pickles and jarred salads. It has already contracted with a local school to provide carrot juice for the children’s mid-morning snack – improving the nutrition and health of children in their community.

Their hard work and ingenuity has paid off: after receiving positive press on the opening of their factory, demand for their high-quality products is growing. Thanks to their storage facility and processing equipment, cooperative members can now earn incomes all year round. They now are conducting market research to determine the best marketing strategy for their products. By providing farmer groups with seeds, equipment and knowhow to process their produce, this innovative project is building demand for healthy

vegetable products and strengthening value chains for nutrient-rich foods – increasing the incomes of Mongolia’s rural people and keeping them on their land. The project transferred the potato and vegetable dry cleaning new technology to Mongolian vegetable sector. The project invested US$ 40,000 for vegetable dry cleaning and vegetable grader and installed at the three vegetable collection centers in Tuv, Dornod and Khovd provinces. Three collecting centers have capacity of grading 390 tons of potato and other round formed vegetables annually. In current practice grading of potatoes and vegetables is done manually and average person’s daily output is 800 kg potato and wage per day is US$ 9.4. These automated vegetable graders will save labour and increase the vegetable growers income.

2.5.3. Vegetable processing methods to reduce post-harvest losses and extend shelf life

are introduced/improved MFARD organized on the job training on vegetable processing technology by the national food technologist who has 25-years of experience in the state and private vegetable processing factories. She trained farmers on home processing technology of vegetables, including drying, freezing and

canning different types of vegetables. Five hundred project beneficaries learnt how to produce value added processed vegetable product by using simpe technologies such as washing, cutting, cooking and sterilizing vegetables. The MFARD conducted “Vegetable storing and processing technology” training for the project beneficaries. They used world-café training method for enhancing participation of the farmers.

Figure 18. Farmers are sorting potatoe in Tuv collection center

Figure 17 School children drink carrot juice during mid day lunch

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Farmers actively participated in this kind of training and prepared 10 different value-added products such as ketchup, lecho, mixed salad, pickling of vegetables, beetroot jam, tomato paste and pumpkin jam. The participants actively learnt new recipes of value-added vegetable products and increased their income.

The project is transferring a new technology of Individual Quick Freezing for freezing vegetables and marketing practice to the vegetable value chain in Mongolia. It is going to be an improved technical know-how of local vegetable growers, vegetable processors and customers.

Two vegetable processors at Khuvsgul center LLC, Murun soum and Enkhsuren-Anand LLC,

Ulaanbaatar are introducing this technology. It is useful in Mongolia as the vegetable production is

limited by the climate. Two IQF technology lines are going to create 20 new jobs of an operator and

plant workers and increase income of contracted vegetable growers as they supply their vegetables

to processing plants.Two processors are going to supply the market 200 tons of quick-frozen high-

quality vegetables and generate US$ 28,300 profit. The project collaboarted with Mongolian School

of Life Science, which organized 5 days training on “The use of Ruralinvest toolkit for development

of investment proposals for small and medium enterprises”. Twenty five representatives of project

beneficiaries, producers, local administration specialists on SMD and local BDS providers

participated and gained knowledge and skill to develop effective rural investment proposals, monitor

investments throughout the project cycle and evaluate performance against initial projections, using

the Rural Invest software.

7. SUB-COMPONENT 2.6: COORDINATION AND MANAGEMENT

• The project carried out a total of 79 trainings and technical assistance over 100 times in 2019. Total of 5049 value chain beneficaries participated training and technical assistance and 54% of participatants were rural women.

• The main goal of SECiM project and its coordination and management endeavor in 2019 were to improve cooperation with government agencies (aimag governor offices and aimag’s department of agriculture), seek synergies and coordination with other international organization IFC, WB, American Chamber of Commerce and non-governmental organizations such Mongolian Meat Association, National Dairy Development Board, Mongolian Food Industry Association MFARD, MULS to build sustainable system to continue develop value chains beyond the project implementation.

• ‘Pioneers in beef and dairy development in Mongolia’ workshop was organized by SECiM C2 in collaboration with International Finance Corporation (IFC), American Chamber of Commerce in Mongolia and Mercy Corps Mongolia. Over 60 representatives of government officials, beef and dairy processing companies, banks, financial institutions and project beneficiaries attended the workshop. Participants were actively engaged in discussion on range of topics including feedlot operation, raising beef cattle, animal breeding, as well as an accessibility of financial services for livestock and agricultural entrepreneurs. Donor agencies developed the position paper on Competent Beef and Dairy Sector shared it with decision makers of GoM and relevant authorities to support the meat and dairy processing private companies.

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Figure 19. Training participants and trainings conducted

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8. PROJECT RESULTS TRACKING

The log frame was revised with the support of Mr Claus Moller, the International Consultant on Monitoring and Evaluation from the European Union in 2017. (Please see Figure 20 below:Project simplified Logical Framework). Mr Ochirsukh, a key field expert from the Belgium company “Stantec consortium” hired by the European Union, carried out a Mid -term evaluationfrom 1st of December to 28 of February, 2020. The expert, in order to collect information in Mongolia, visited Selenge, Darkhan-Uul and Dornod province meat, dairy and vegetable value chain beneficaries and local government representatives. Mr Ochirsukh met with representatives of MoFALI,and MoLSP, key counterparts and carried out the evaluation. The European Union is going to provide the Mid-term evaluation report to the FAO and UNIDO team in June 2020. Ms Songuuli is a senior monitoring and evaluation officer, in charge of international projects that is co-implemented by the MoFALI. She carried out the annual monitoring activities of the project implementation in June and October 2019 on behalf of the MoFALI. The annual project evaluation report was delivered to the project implementation unit at the end of 2019. The document highlighted that the project is implementing its activities successfully and provided technical support and investment to the local value chain beneficaries The project is regularly monitored by the project evaluation officer and by the FAO.

Simplified Logframe SECiM Value Chain Component-2

Figure 21 SECiM C2 Project Simplified Logical Framework

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The project tracks total of number of jobs created and increased income of the project beneficaries in all value chains. The project supported 10,730 herders, who generated more income and 753 new employment in the meat value chain since the project started. The project contributes increasing installed capacity of 11 abbatoirs and meat processing plants in 6 project provinces. The project supported increasing milk collection through the established cold chain and establishing milk collection centers, 331 herders generated income supplying milk to the collection centers and processes and 130 new employment in the dairy value chain since the project started. The project contributed increasing dairy processor’s capacity 2 times through the technical assistance and its support. The project supported increasing vegetable production through the capacity building and planned production of 549 farmers and 128 new employment generated in the vegetable value chain since the project started. The project transferred total of 4 new technologies which helped local farmers to increase their income and generated self employment. UNIDO part keep track of key performance indactors results from 2018 to 2020. Table 7 Summary of KPIs Results, 2018-2020

Results KPIs 2018 2019 202011

Number of Capacity building activities provided

28 trainings 35 trainings 12 trainings

Number of Institutions collaborated/enhanced

4 14 14+3

Outreach of capacity building activities and trainings by enhanced institutions

n/a 320 350

Value assets provided EUR 1,500 EUR 70,500 EUR 72,800

Number of toolkits and guidelines produced

Technical series (TR*) – 6 Toolkits and guidelines (TG*) – 7 Advocacy and Visibility materials (AV*) – 10

Technical series (TR*) – 12 Toolkits and guidelines (TG*) – 10 Advocacy and Visibility materials (AV*) – 43

10 toolkits

* Abbreviations or code of deliverables produced and detailed lists are in Appendix 1 The project efficiency and contribution to the job creation is being calculated and will be thoroughly assessed based on the complete result of previous years.

11 Detailed Work plan 2020-2021 is attached in Annex 2.

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9. FINANCIAL DELIVERY

The total SECIM C2 budget is EUR 4 450 000.

• EU contribution : EUR 4, 150,000

• FAO contribution : EUR 300,000

• UNIDO contribution: In-kind USD 150,000

In total, SECIM C2 project has spent EUR 3,259,327.20 including UNIDO estimated total delivery of EUR 1,289,244.12.

Meat Value Chain16%

Dairy Value Chain17%

Vegetable Value

Chain 14%

Project coord & Mgmt16%

TCP7%

Textile Value Chain15%

Leather Value Chain15%

30%

Figure 22 Allocation of budget components in Euro

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UNIDO Project Expenditures to Date

As of 31 January 2020 total financial delivery is USD 910, 721. 22 (58%). Financial report is attached in the Annex 1 Financial Report 01 February 2019 to 31 January 2020 – UNIDO SECiM C2. Table 8 Financial delivery, as of end of January 31 2020

Cost Category Amount Approved in Budget (in EURO)

Total Expenditures (EUR)

2.1. Meat value chain 143.594 101,265.66

2.2. Dairy value chain 143.594 102,477.81

2.3. Textile value chain 641.058 322,918.53

2.4. Leather value chain 641.058 384,059.23

Total 1,569.304 910,721.22

Discussion of expenditures

Although the UNIDO’s component of SECiM C2 project started from 1 March 2018 with substantial delays, the project team has achieved reaching the delivery rate of 58% as of 31 January 2020. The budget plan for the remaining period of the project is prepared in line with the Work plan. Upon the commitment of 70% financial delivery the remaining installment of EUR 319,305 will be requested as per the UN-UN Agreement.

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10. PROJECT COMMUNICATION & VISIBILITY ACTIVITIES

The project is compliant with the European Union’s Communication and Visibility EU-financed

external actions requirements for implementing partner’s guideline.

• The SECiM communication and visibility plan main objective is to communicate key

achievements and best practice to targeted value chain beneficiaries and public at the

national and local level. FAO Mongolia signed contract with the local television channels,

newspapers and websites. The project share the news and updates through national media,

FAO Mongolia, MoFALI websites and public outreach platforms. The SECiM project shared

achievements and best practice with 660,000 public and local beneficiaries.

• The project experts, 6 local coordinators, project staff and national consultants interviewed

15 times by 6 local television stations and national TV channels such as Mongolian

Broadcasting System and reached over 200,000 families in the nationwide.

• The project key activities and results posted on the FAO Mongolia website reaching public

and professionals. FAO website news

http://www.fao.org/mongolia/news/detail-events/ru/c/1251906/

Erdene TVET meat processing class opening in Nov 2019 http://www.fao.org/mongolia/news/detail-events/ru/c/1200142/ World Milk Day celebration in UN House –May 2019 http://www.fao.org/mongolia/news/detail-events/ru/c/1196086/ World Milk Day Celebration –May 2019 http://www.fao.org/mongolia/news/detail-events/ru/c/1196218/ Rural women engaged heavily in the agriculture sector -21 May 2019 http://www.fao.org/mongolia/news/detail-events/ru/c/1196070/ Dairy development policy –May 2019 http://www.fao.org/mongolia/news/detail-events/ru/c/1193913/ Pioneer in Beef and Dairy Development March 2019 http://www.fao.org/mongolia/news/detail-events/ru/c/1187301/ FAO-EU joint trip to Dornod province http://www.fao.org/mongolia/news/detail-events/ru/c/1181965/

FAO Representative meeting Khuvsgul governor

• http://www.fao.org/mongolia/news/detail-events/ru/c/1184760/

• The project key activities and results posted on the MoFALI website and reached over 3500

professionals.

http://mofa.gov.mn/exp/article/entry/1953 http://mofa.gov.mn/exp/article/entry/1882 http://mofa.gov.mn/exp/article/entry/1741

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http://mofa.gov.mn/exp/article/16/P108

• The project contributed to the special report on development of Competent Beef

and Dairy Sector collaboration with World Bank, International Financial Fund,

Mercy Corp Mongolia and American Chamber of commerce. This special report was

shared with decision makers and MoFALI government officials during the meeting

with Minister of Food, Agriculture and Light Industry Ch. Ulaan in May 2019.

• Third edition of the "Milk processing" book published 500 copies and provided to

dairy processors and beneficaries at the national and local level.

• Thanks to the project, a World Milk Day has been created. For this event a special

edition of news has been broadcasted in national television channels and posted in

the websites promote the benefit of dairy product consumption to children and

their parents.

• The project implementation unit developed and printed two project newspapers of

1 000 copies each. They have been distributed to beneficiaries and to the public.

UNIDO’s part of Communication and advocy materials please see. Appendix 1 Project

technical documents, guidelines and advocacy materials.

Figure 25 The children of Khovd performed a drama about benefit of the milk consumed by children

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Figure 26. The children draw paintings, hand craft about milk products in Khovd school children

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11. KEY ACHIEVEMENTS AND PROBLEMS ENCOUNTERED

a) Key achievements/strengths

FAO- PIU: Key achievements:

• The project carried out a total of 79 trainings and more than 100 technical assistance activities in 2019. A total of 5,049 value chain beneficaries participated in the training training and technical assistance; 54 percent of these participatants were rural women.

• The project demonstrated an emerging technology that uses electromagnetic radiation for the castration of lambs. This novel technology is a pain- and stress-free method that helps young animals to gain weight rapidly. The carcass weight of an 8-month old lamb castrated in this way was equal to that of an 18-month old hogget.

• The project established a model small-scale abattoir, fully complying with the meat hygiene standards that apply to establishments, in Erdenebulgan soum of Khuvsgul aimag. This abattoir has all the equipment necessary for the slaughtering process and the meat can be packaged at the facility. The design of this low-capacity (5 cattle a day) abattoir it is ideal for soums. It reduces pre-slaughter stresses of animals, and supplies meat that complies with hygiene standards for local consumption.

• The project focused improving meat quality. Due to the absence of chilling facilities, the large-scale abattoirs in Mongolia use blast freezers, which is a strong determinant of poor meat quality. Chewiness, dryness and poor taste arecommon characteristics of factory-slaughtered meat. To address this technological gap, the project supported the establishment of chilling and freezing rooms at the abattoir established in Erdenebulgan soum and at the Shinemurun food market in Murun soum in Khuvsgul. The introduction of chilling technologies in meat value chain can reduce beef imports.

• Mongolia’s meat and livestock export potential are seriously undermined by the persistence of transmissible animal diseases in the country, especially FMD. Gaining disease-free status for a country or specific area (zone) can grant access to lucrative international markets. However, achieving this comes with challenges of resource mobilization and time. An alternative is application of compartments, which must comply with requirements of the OIE Terrestrial Animal Health Code (Section 4). Dr. McFaddden, international expert of veterinary medicine, worked for two days at Darkhan Meat Foods LLC and participated in a discussion organized by the project on “Opportunities to increase meat export through establishment of a disease-free compartment”. The discussion was attended by 48 officials, specialists from GAVS, GASI, the State Central Veterinary Laboratory, donor agencies and other projects.

• The project implementation unit works closely with national dairy companies to develop a cold chain in the dairy sector. It is now in the process of developing a milk supply scheme that connects primary producers with large dairy companies to ensure the smooth supply of safe, high-quality milk. The project: assisted in the formation of 11 dairy producers’ groups; supported the establishment of four cooling centers with a combined capacity of 14.2 tons in three provinces; and linked them with the dairy processors Vitafit, Titanic, and Onkhoodoi.

• With the technical and financial support from the project, six more cooling tanks were provided for herder households’ use. In addition, six small-scale dairy processing units with a daily capacity of 500 liters and three dairy sales points were established. All of these demonstrate greater potential for linking primary milk producer groups and large dairy processors on the cost-sharing basis.

• The project team has shared best practices in employment creation through a small dairy-processing unit with the local government. The government of Khuvsgul aimag invested in the establishment of daily capacity with a 500-liter small dairy processing unit in Renchinlhumbe soum and the project provided a five-day training on the production of new products.

• The 3rd edition of the dairy processing handbook was published in 500 copies and distributed to dairy specialists, dairy producers and dairy value chain beneficaries.

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• The project team supported the establishment of dairy sale points, accommodated in 12x5 metre buildings in Murun (Khuvsgul) and Jargalant (Khovd) soums. These sale points sell a range of dairy products produced by 18 local SMEs to end consumers. A milk vending machine was installed in the dairy sale point in Khovd. Cooling chambers (-18 Co) were also provided to improve product quality and market linkages of dairy value chain players in these two aimags.

• The project contributed to increased incomes of 450 growers from 28 farmers groups, 6 farmers cooperatives and 7 companies in the framework of contract farm promotion.

• Total of 6,324 kg of seed materials for potato and 9 promising varieties of vegetable crops were supplied to vegetable farmers.

• The project team provided 15 plastic greenhouses and 3 vegetable dry brush cleaners and vegetable sorters at 3 collection centers. All these contributed to generating new employment and increased incomes of project’s beneficaries.

b) Beneficiaries

The project beneficiaries are:

• Main market players in the selected value chains: producers, processors, collectors and traders;

• Government organizations and local governments;

• NGOs such as business associations in the value chains;

• TVET education and training institutions; and

• Scientific organizations and research institutions related to selected value chains.

c) Problems encountered and actions taken

Comment on problems encountered during implementation (i.e. non-execution, delays or implementation of unforeseen activities) and actions taken to resolve them. Following key problems encountered in implementation include:

• Human resources: - Two project staff left the team because the project was planned to end in January

2020. FAO Mongolia managed to ensure project smooth.

• UNIDO team started implementation in March 2018 and has therefore less time to implement the activities foreseen - The PIU has made prioritization of project activities based on consultations with

MoFALI and other stakeholders. - Additional staff will be hired to complete activities.

• Hides and Skins Quality improvement sub-project: - Institutional capacity and long term visioning of associations and R&D related

institutes are lacking, which affects delayed reporting of the contracted work and handing over the existing training modules for institutionalization. The project team provided a series of project management and eLearning methodology training for the MALI team.

- The project team maintained continuous communication and advocacy on building their industry representation capacity.

- Association management training is needed. - Capacity building for R&D institute with international management experiences is

required. - The small scale dairy processors, cooperative and herder cooperative new

employment generation and income registration are not easy to get official recognition and registration by the government.

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d) Follow-up actions

Summarize (bullet points) follow-up actions to be looked at by the Budget Holder, the PTF or other partners.

- The project team provided vegetable dry cleaning, vegetable grader at the three

vegetable collection centers in Tuv, Dornod and Khovd province. The vegetable dry

cleaing is a new technology introduced Mongolia first time. In current practice grading

of potatoes and vegetable done manually and average person’s daily ouput is 800

kilogram potato and wage is approximately 9 US$ per day.

- Project team is transferring an Individual Quick Freezing technology to Mongolian

vegetable sector. This new technology is going to reduce post harvest losses and extend

the shelf life of vegetable.

- Continue support government policy and national program of the MoFALI.

Upcoming Activities The SECiM C2 project was extended until 31 January 2020 and the main approach for the remaining period will be to institutionalize the proof of concepts including the sheep shearing, static flaying frame and eLearning training and replicate in other provinces and building national capacity complemented by international best practices. Furthermore, key interventions will be supporting the private sector to export high value added products complied with international standards and designs based on quality supply chain systems. The project efficiency and contribution to the job creation is being calculated and will be thoroughly assessed based on the complete result of previous years. Partnerships will be continued with counterparts and project clients to carry out rapid review on market potentials for leather, textile, meat and cheese products as well as transferring innovative technology to the industries in cooperation with R&D institutes. Annual detailed work plan for 2020-2021 is attached in the Annex 2: Work Plan 2020 – 2021 EN – UNIDO SECiM C2

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Appendix 1: Project technical documents, guidelines and advocacy materials

Abbr Series № Title of the deliverable Date

TECHNICAL REPORTS

TR 1

Technical series No.1

Rapid assessment on spinning and finishing in Mongolian textile industry, National expert report, D. Enkhtuya, Textile expert [English, Mongolian]

Apr 2018

TR 2

Technical series No.2

Assessment on current status of the leather industry in Mongolia, National expert report, S.Davaajav, Leather expert [English, Mongolian]

May 2018

TR 3

Technical series No.3

Assessment and recommendation on Tanneries and Effluent Treatment in Ulaanbaatar and Darkhan, International expert mission report, Viswanathan Munusamy, Leather industry expert [English, Mongolian]

Jun 2018

TR 4

Technical series No.4

Technical review and recommendation for Mongolian textile industry, International expert mission report, Fung Wai Wu, International Textile Expert [English, Mongolian]

Dec 2018

TR 5

Technical series No.5

Assessment on Mongolian meat and dairy industries, National expert report, P.Byambadorj, Meat and dairy expert [English, Mongolian]

Jan 2019

TR 6

Technical series No.6

Project annual progress report, UNIDO Mongolia project team [English, Mongolian]

Jan 2019

TR 7

Technical series No.7

‘Occupational Health and Safety in Leather Industry’ technical report based on the mission of Norbert Lukasz Neidzweidz, Safety leather expert [English, Mongolian]

Jun 2019

TR 8

Technical series No.8

Assessment on Dairy Value Chains in Mongolia, International expert mission report, Karl Schebesta, Senior International dairy expert [English, Mongolian]

Oct 2019

TR 9

Technical series No.9

‘Assessment and recommendations for Packaging for the Dairy and Meat sectors in Mongolia’ technical report based on the mission of Soha Atallah & Johannes Bergmair [English, Mongolian]

Nov 2019

TR 10

Technical series No.10

‘Training of sheep wool quality improvement’ technical report by Altain Uulsiin Orgil NGO [English, Mongolian]

Dec 2019

TR 11

Technical series No.11

‘Construction and commissioning of two Static Flaying Frames (SFFs)’, International expert mission report, Ralph Arbeid, International leather expert [English, Mongolian]

Dec 2019

TR 12

Technical series No.12

‘Consultants’ service delivery report on facilitating benchmarking assessment for selected tanneries’ by M. Bat-Ochir & D. Amarjargal, National expert report [English]

Dec 2019

TR 13

Technical series No.13

‘Consultant’s service delivery report on coordinating meat and dairy sub-components of SECiMC2 project with UNIDO’ National expert report, Kadirbyek Dagys [English, Mongolian]

Dec 2019

TR 14

Technical series No.14

‘Quality Improvement of hides and Skins’ with Training and Tools in Selected Abattoirs and Tanneries, Contract performance report [English, Mongolian]

Dec 2019

TR 15

Technical series No.15

Assessment on Quality Improvement of Hides and Skins sub-project by Purevdulam Jamiyansuren, National expert report [English]

Jan 2020

TR 16

Technical series No.16

Pre-audit for LWG environmental certification, International expert mission report, Viswanathan Munusamy, International Leather Expert [English, Mongolian]

Jan 2020

TR 17

Technical series No.17

Food Safety Compliance Assessment for Dairy & Meat Processing Sectors, International expert mission report, Issa A.

Jan 2020

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Beitouni, Senior International Food Safety System Expert [English, Mongolian]

TR 18 Technical series No.18

Implementing Digital Transformation in Agro-Industries with Pharos Agri-Business Navigator Software, International expert mission report, Serguei Golovanov [English, Mongolian]

Jan 2020

TR 19

Technical series No.19

Textile training and SOPs development on knitwear wet finishing, International expert mission report, Fung Wai Wu, International Textile Expert [English, Mongolian]

Jan 2020

TOOLKITS AND GUIDELINES

TG1 Guideline Booklet "How to deal with Hydrogen sulphide gas?" [Mongolian]

May 2018

TG2 Guideline Course brochure "How to deal with Hydrogen sulphide gas?" [Mongolian]

Jul 2018

TG3 eL course “How to deal with hydrogen sulphide gas?” online course, 1 module [Mongolian]

Jul 2018

TG4 Guideline Photo handbook on mechanical shearing "Wool in Balochistan of Pakistan" [Mongolian]

Aug 2018

TG5 Guideline OSH guideline, Norbert Lukasz Neidzweidz, Safety leather expert [English]

Aug 2018

TG6 Guideline Course brochure "Footwear pattern engineering" [Mongolian]

Nov 2018

TG7 eL course "Footwear pattern engineering" online course, 5 modules [Mongolian]

Nov 2018

TG8 Guideline Shearer’s manual (translated into Mongolian ) [Mongolian] Aug 2019

TG9 Guideline Handbook for Moodle Administrator of Urlakh Erdem Fashion Design Institute, Efficient Way LLC [Mongolian]

Mar 2019

TG10 eL course “The First Aid at Workplace” online course, 8 modules [Mongolian]

Oct 2019

TG11 Guideline Course brochure “The First Aid at Workplace” online course [Mongolian]

Sep 2019

TG12 Training manual

Teacher’s manual “The First Aid at Workplace” blended training [Mongolian]

Sep 2019

TG13 eL course “Footwear Pattern Engineering” online course, additional 10 modules [Mongolian]

Nov 2019

TG14 SOP SOP for processing hides and skins in Mongolia [English, Mongolian]

Dec 2019

TG15 Guideline Guideline for flaying hides and skins using SFF model [English, Mongolian] by international expert Ralph Arbeid

Dec 2019

TG16 SOP SOP on knitwear wet finishing for textile industry [English, Mongolian] by international expert Fung Wai Wu

Jan 2020

TG17 Training manual

Textile training manual, by Fung Wai Wu, International Textile Expert [English, Mongolian]

Jan 2020

TG18 eL course “Sustainable leather manufacturing”, updated 5 module [English, Mongolian]

Jan 2020

ADVOCACY AND VISIBILITY MATERIALS

AV1 Brochure UNIDO SECiMC2 project brochure, [English and Mongolian] May 2018

AV2 Standee UNIDO SECiMC2 project standee, [English and Mongolian] May 2018

AV3 Press release

“How to deal with hydrogen sulphide gas?” online course press release [English, Mongolian]

Jun 2018

AV4 Press release

“Improving the Mongolian wool industry: Possible lessons from Pakistan” press release [English, Mongolian]

Aug 2018

AV5 Press release

“The State Secretary of MoFALI of Mongolia attends the 5th Green Industry Conference” press release [English,

Oct 2018

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Mongolian]

AV6 Project ads card

UNIDO SECiMC2 project ads card [Mongolian] Nov 2018

AV7 Course ads card

"How to deal with Hydrogen sulphide gas?" ads card [Mongolian]

Nov 2018

AV8 Press release

“Footwear Pattern Engineering blended learning course launches” press release [English, Mongolian]

Nov 2018

AV9 Press release

“Technical training on Wool, Cashmere and Leather production” press release [English, Mongolian]

Nov 2018

AV10 Newsletter SECiMC2 project newsletter 1Q 2019

AV11 Press release & Standee

“Technology transfer training and establishment of PDU on meat and quality improvement” press release and standee [Mongolian]

Mar 2019

AV12 Postcards Export promotion postcards for Mongolian leather, textile, meat and dairy products

Mar 2019

AV13 Video “Safety matters on OSH in tanneries in Bangladesh” translated into Mongolian language

Jun 2019

AV14 Press release, banner & standee

International training on occupational health and safety Jun 2019

AV15 Press release, banner & standee

International training on sheep wool quality improvement Jun 2019

AV16 Journal article

“Training on improving quality of sheep wool”, article on Malchin journal

Sep 2019

AV17 Project video

UNIDO SECiM C2 project updated video [Mongolian with English subtitle]

Sep 2019

AV18 Project brochure

SECiMC2 project brochure [Mongolian] Oct 2019

AV19 Journal article

“Packaging and reliable food” article on Malchin journal [Mongolian]

Oct 2019

AV20 Video “Life in a box” video translated into Mongolian language, World Packaging Organization

Aug 2019

AV21 Video “Introduction to World Packaging Organization” video translated into Mongolian language

Aug 2019

AV22 Press release

“From Packaging to Marketing for Food Products” international training [English, Mongolian]

Aug 2019

AV23 Press release, banner & standee

“Clean and clear from farm to fork” international training on products diversification and market access in dairy industry [English, Mongolian]

Sep 2019

AV24 Press release & standee

"The First aid at the Workplace blended training launches” press release and standee [English, Mongolian]

Oct 2019

AV25 Project standee

UNIDO SECiM C2 project updated standee [English and Mongolian]

Oct 2019

AV26 Footage Static Flaying Frame Commissioning and training in Khovd province

Oct 2019

AV27 Success story №1

Quality improvement of sheep wool in remote Khovd province [English, Mongolian]

Oct 2019

AV28 Success story №2

UNIDO with WPO improves packaging in Mongolia [English, Mongolian]

Oct 2019

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AV29 Success story №3

“The FIRST AID at the WORKPLACE” Blended learning course launched in Mongolia [English, Mongolian]

Oct 2019

AV30 Success story №4

UNIDO is working on capacity strengthening of dairy industries in Mongolia [English, Mongolian]

Oct 2019

AV31 Press release and standee

International training on “Food safety management systems and international standards for meat and dairy industries” [English, Mongolian]

Nov 2019

AV32 Project brochure

“Support to Employment Creation in Mongolia” project [English]

Dec 2019

AV33 Journal article

“Piloted removing hides and skins without flay cuts”, article on Malchin journal [Mongolian]

Dec 2019

AV34 Press release and standee

Seminar on “Applying Pharos digital transformation instrument for Agro-industrial SMEs” [English, Mongolian]

Jan 2020

AV35 Press release and standee

International ToT on “Business models for Blended Learning” [English, Mongolian]

Jan 2020

AV36 Video UNIDO’s Greeting to the 85th anniversary of light industry in Mongolia [Mongolian]

Oct 2019

AV37 Documen- tary

Darkhan Minj LLC’s brand documentary included UNIDO SECIM’s work, especially related to the LWG auditing and value added export opportunities. https://www.youtube.com/watch?v=asHvvIy1V7Y

Dec 2019

MEDIA (TV INTERVIEWS, NEWS, SOCIAL MEDIA)

AV38 TV News program, website news

Technology transfer training on improving quality of meat and skin will be held in March 5 http://mofa.gov.mn/exp/article/entry/1610 Technology transfer training on improving quality of meat and skin takes place https://news.mn/r/2096726/ Technology transfer training on improving quality of meat and skin takes place http://news.gogo.mn/r/236889 Project on improving quality of meat and skin is being implemented http://www.npost.mn/a/162626 “Support to Employment Creation in Mongolia project in leather, textile, meat and dairy sectors” UBS TV news program https://www.facebook.com/hotiinmedee/videos/1461979933938359/ Technology transfer training for meat and leather industry takes place https://www.montsame.mn/mn/read/182626 Technology transfer training for meat and leather industry takes place https://www.montsame.mn/en/read/182682

4 Mar 2019 4 Mar 2019 4 Mar 2019 4 Mar 2019 7 Mar 2019 12 Mar 2019 12 Mar 2019

AV39 TV interview

Aiming to turn Mongolian leather goods into exportable products, Norbert Neidzweidz, Safety leather expert, Bloomberg TV http://bloombergtv.mn/%D0%BD%D0%BE%D1%80%D0%B1%D0%B5%D1%80%D1%82-%D0%BD%D0%B5%D0%B9%D1%86%D0%B2%D0%B8%D0%B7-%D0%BC%D0%BE%D0%BD%D0%B3%D0%BE%D0%BB%D1%8B%D0%BD-

Jun 2019

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AV40 TV news programs, website news

International training on sheep wool quality improvement is now being held in Zereg soum, Khovd province, New Khovd TV https://www.youtube.com/watch?v=GFr1deMxF7k&feature=youtu.be Introducing the international best practice on sheep wool supply chain, Montsame news agency: https://www.montsame.mn/mn/read/193474 International training on sheep wool quality improvement is now being held in Zereg soum, Khovd province, Khovd TV http://khovdnews.mn/?id=202796

17 Jun 2019 20 Jun 2019 20 Jun 2019

AV41 TV news programs, website news

Training on “Food packaging and marketing- branding” was organized http://mofa.gov.mn/exp/article/entry/1849 Training on “Food packaging and marketing-branding” was organized http://erennews.mn/index.php?view=article&type=item&val=24155 Training on “Food packaging and marketing-branding” was organized http://vip76.mn/content/62770 Training on “Food packaging and marketing-branding” was organized http://www.tur.mn/archive/niigem/36372-sav-baglaa-boodlyn-marketingiyg-deeshllne.html

29 Sep 2019 20 Aug 2019 22 Aug 2019

AV42 TV news programs

International training on “Product diversification and market access”, MNB TV news program http://www.mnb.mn/i/184767

12 Sep 2019

AV43 Website news

“First aid at the workplace” Blended learning course launched in Mongolia http://mofa.gov.mn/exp/article/entry/1910 “First aid at the workplace” e-Learning course launched http://www.shuud.mn/a/513310 “First aid at the workplace” e-Learning course will be conducted in Mongolian language https://www.redcross.mn/News/NewsDetail/1969 “First aid at the workplace” e-Learning course launched https://www.caaknews.mn/view/8297023/

10 Oct 2019 10 Oct 2019 7 Oct 2019 10 Oct 2019

AV44 TV news programs

“Challenges in leather industry and a way forward” Consultation workshop, MNB TV https://www.youtube.com/watch?v=V8_aaWFBjc4

Nov 2019

AV45 TV news programs, website news

Training on food safety management in meat factories, MNB TV news program https://www.youtube.com/watch?v=mxcjLYdfQuE&list=PLhK0tr8c-txXiOAa-0_GlB2jrGXypWlaL “Healthy animal is Mongolian treasure”, MNB TV program https://www.youtube.com/watch?v=ePz8ms8OAxc

Dec 2019

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Value added dairy product: artisanal cheese, MNB TV news program https://www.youtube.com/watch?v=IvIaZ-dsJRs&t=139s

Training on food safety management and international standards was conducted https://news.mn/r/2227023/ Training on food safety management and international standards was conducted http://www.zaluucom.mn/read/3h214g8bc

20 Nov 2019 20 Nov 2019

AV46 TV news program

“Healthy animal is Mongolian treasure” (opportunities for improving hides and skins quality and meeting international standards), MNB TV https://www.youtube.com/watch?v=Jd02hVwQaSw

Dec 2019

AV47 UNIDO instagram

UNIDO helps to improve meat and leather quality in Mongolia https://twitter.com/UNIDO/status/1105508345304231937

13 Mar 2019

AV48 UNIDO twitter

UNIDO helps to improve meat and leather quality in Mongolia https://twitter.com/UNIDO/status/1105508345304231937

13 Mar 2019

AV49 UNIDO global website

Technology transfer and training to improve meat and leather quality in Mongolia https://www.unido.org/news/technology-transfer-and-training-improve-meat-and-leather-quality-mongolia

Mar 2019

AV50 UNIDO global website

UNIDO training improves yield quality of sheep wool in Mongolia https://www.unido.org/news/unido-training-improves-yield-quality-sheep-wool-mongolia

June 2019

AV51 UNIDO global website

UNIDO and WPO improve packaging in Mongolia https://www.unido.org/news/unido-and-wpo-improve-packaging-mongolia

Sep 2019

AV52 UNIDO global website

UNIDO learning course “First aid at the workplace” launched in Mongolia https://www.unido.org/news/unido-learning-course-first-aid-workplace-launched-mongolia

Oct 2019

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Appendix 2: Photo Illustrations / Achievements in 2019

Photo 1. Technology transfer training and establishment of PDU on meat and hide quality improvement

Photo 2. Assembling static flaying frame (SFF) and practical training held in Khovd province

Photo 3. International training on sheep wool quality improvement held in Khovd Province

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Photo 4. Textile training and SOPs development on knitwear wet finishing. New product is developed.

Photo 5. International trainings and on-site assessments on food safety management system and international standards in meat and dairy sectors

Photo 6. Assessment on Dairy Value Chains in Mongolia and international training on products diversification and market access by Karl Schebesta, Senior International dairy expert

Photo 7. International training on packaging and marketing, and on-site assessment by WPO experts

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Photo 8. International training on occupational health and safety, held at Mongol Shevro tannery

Photo 9. International training (ToT) on “Business models for Blended Learning” for local training partners

Photo 10. “First Aid at the Workplace” Blended learning course launch at Mongolian Red Cross Society

Photo 11. “LWG pre-auditing and training” by Mr. Viswanathan Munusamy in Darkhan

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Photo 12. Updated curriculum of the UEFDI, shoemaking competition amongst students