PPP-Project "Mongolia"

Starting position

In Mongolia the economic development is still characterized mainly by export of resources and semi-finished products. In search of alternatives one focuses increasingly on the way of further processing of existing resources with self-production capacity. This is also about tapping of potentials from agricultural production according to existing resources.

So the Mongolian government is focussing on valuable faunal and herbal products, which should be processed and exported.

Due to the expansion of the market for organic produced groceries the demand for organic fertiliser increases. But the amount of nitrogen of organic fertiliser is under 3 %. Fertiliser pellets made of sheep wool contain 11% of nitrogen and so they are a real alternative for conventional ecological fertiliser. In Mongolia exists an animal stock of 20 Mio sheep that produce 40.000 up to 60.000 tons of wool annually. The positive image of the product of living animals from sustainable economy and nature and landscape maintenance comes in addition. No mass husbandry, no biochemistry, no antibiotics.

Short project discription

The objective and draft of our project is the connection between knowledge, experience and specific know how towards environmental risks, health protection and specific veterinary hygienic conditions upon collection, transport optimisation, processing and marketing of virgin sheep wool as well as fertiliser products based on sheep wool in Mongolia.

Further training and consulting in management and in provided veterinary hygienic area as well as in environment and soil protection according to European standard will be implemented. As part of the project the launch of a joint venture will be prepared and a pilot unit will be established and operated.

Relevance for the partner company

The ifn Anwenderzentrum GmbH (hereinafter referred to as ifn) produces natural fertilizer made of untreated raw sheep wool in Germany since 1.5 years. With its sustainable and ecological image the fertilizer is accepted by environment-conscious customers.

Additional to present referent location Germany with 2000 – 2500 tons of usable wool per year further sources of supply has to be tapped to enter the bigger volume segment in the market and the ecological purchase horticulture and landscaping with fertilizer made of sheep wool.

Since the resource occurrence in Mongolia allows an essentially higher output, the company is able to provide the end product with a higher price and make it more sellable.

Development important project impact

Target group of the project are shepherds, for which will be started an entire new market segment for their product sheep wool, and industrial worker, for which will be enabled employments in future factories.

For the Mongolian shepherds and sheep farmers the project creates a long-term stable sales market for their produced wool, which is not workable for textile processing. Further employments will be accomplished and for such ecological and sustainable fertilizer products a market in the Asian region will be developed.

The partner country benefits both from technology transfer and commitment of companies in Mongolia. Over new established structures of buy out and distribution shepherds will be able to create additional sales for a product, whose demand drops continuous and which currently doesn’t have further realistic development opportunities.