Manila, Nov 13, 2006 AEST (ABN Newswire) - Asian Development Bank (ASX: ATB) will help tap the huge export potential of Mongolia's agriculture sector through a $1 million technical assistance grant.
Mongolia's agriculture industry is potentially attractive to niche international markets. The sector could offer production processes such as chemical free methods, environment friendly practices, free range livestock, combined with its unique culture of nomadic lifestyle, family production, traditional relationship with animals and nature, and boutique practices that contrast with the mass production methods of its neighbors.
The technical assistance will prepare a branding campaign to provide a distinct identity or "brand" that differentiates Mongolia's agricultural products from those of other countries. The branding campaign will be considered for funding through an ADB loan project and through grants from other development agencies. The branding campaign could help Mongolian enterprises command an international price premium for their products in niche markets.
"Investment will be necessary to fund processing facilities, management, and raw material supply before agricultural enterprises can meet the quality and reliability standards expected by international markets," says Mandar Jayawant, ADB Senior Country Economist at its office in Mongolia.
Financed by the Japan Special Fund, funded by the Government of Japan, the grant will assist 8 to 10 private agricultural enterprises, with a team of international and national experts working with them to identify supply-chain partners for the enterprises, help develop investment plans, and arrange financing for investment plans on attractive terms. The technical assistance will target companies with a long-term commitment to Mongolia and its unique production environment.
Signing the grant agreement today were Adrian Ruthenberg on behalf of ADB; and N. Bayartsaikhan, Minister of Finance of Mongolia, and N. Terbishdagva, Minister of Food and Agriculture on behalf of the Mongolian Government. Hiroshi Sato, First Secretary of the Japanese Embassy in Ulaan Bataar, was among the officials in attendance.
ADB is itself preparing a loan project that could be a source of financing for the investment plans. The loan, to be considered by ADB's Board of Directors in the third quarter of 2007, would offer a range of financing options for investments in processing facilities as well as farther along the supply chain down to the final suppliers.
The technical assistance team will also work with private sector enterprises and government agencies to identify investments in public services and infrastructure that will improve the performance of private enterprises. These public investments, to be considered for funding through the ADB loan project, could range from veterinary facilities to breed improvement research, to roads, energy, wells, and other rural infrastructure.
Preparatory work for the technical assistance has started and public announcements calling for interested enterprises to contact the project team will be forthcoming.
Contact
Tsukasa Maekawa
Email: tmaekawa@adb.org
Tel:+632 632 5875; Mobile: +63 918 939-9059
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; Mobile: +63 920 938-6487
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