The Bumbhat Tavan Bogd Cooperative is a multipurpose cooperative located in the Selenge Province of Mongolia. As of 2024, the cooperative has 312 members who are involved in various livelihood activities. Two hundred forty-two (242) members of the cooperative are involved in milk collection and processing. Aside from dairy production, the cooperative’s members are engaged in a diverse range of activities for their livelihood including vegetable preservation, handicrafts, felt-making, and beekeeping.
The cooperative has a partnership with Milco, a major dairy processing company in Mongolia. Milco provided equipment for the cooperative’s milk collection center. Milco provides maintenance for the equipment as well.
The Bumbhat Tavan Bogd Cooperative received funding from the APFP-FO4A program for its business plan for the milk supply chain. The fund was used as additional working capital for the procurement of raw milk and its processing and marketing. Through this additional funding, the cooperative strengthened its milk collection capabilities, doubling its working capital. This financial boost allowed the cooperative to collect and supply larger quantities of raw milk to Milco.
With support from APFP-FO4A and other partners, the cooperative increased its annual income from 312 million Mongolian Tughriks (USD 90,400) in 2023 to 510 million tughriks (USD 148,300) in 2024. The cooperative was able to distribute 400 million tughriks (USD 116,300) as dividends to members, significantly improving their livelihoods.
Furthermore, the cooperative received a 300 million tughriks (USD 87,200) government loan, which was used to give out loans to members for the purchase of equipment for hay preparation for their livestock. The members of the cooperative are also pushing for the establishment of a reserve fund for contingency.
The cooperative plans to develop tourism initiatives based on traditional herding practices and showcase heritage products and traditional medicinal sciences, such as the use of camel’s milk and horse milk, to attract international visitors.
The Bumbhat Tavan Bogd Cooperative is a member of the National Association of Mongolian Agricultural Cooperatives (NAMAC), the national implementing agency of APFP-FO4A in Mongolia.
The APFP-FO4A is implemented by the consortium Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina and funded by the European Union and the International Fund for Agricultural Development (IFAD).
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