– New jobs created, first products produced –
There is a saying about the advantage of collective efforts – “magpies together are better than a tiger by himself.” And just like that, there are many benefits from a growing cooperative movement. Local residents and herders have recognised the need to join together their efforts. That is why Oyu Tolgoi LLC’s Pastureland management programme and the Mongolian cooperatives training centre have been working together on the “Supporting development of cooperatives” initiative in Bayan-Ovoo, Manlai and Khanbogd soums of Umnugovi aimag since last year. Since then, many activities took place to support cooperative development in order to increase herder incomes and create new jobs in the soums of the Oyu Tolgoi impact area. The campaign is already showing its first results with five cooperatives already founded and working in these soums.
One of them is the “Uran khiits bat kholboo” cooperative in Manlai soum. The cooperative was founded with 13 members in 2013 with every member investing MNT 150,000. In order to provide jobs for members, they rented a room in the soum centre and are making casual and working boots. The workshop has been supported by soum authorities with a three year, three per cent loan of MNT 15 million from the soum development fund.
Uran khiits bat kholboo cooperative used the loan to purchase equipment and materials needed for making shoes. The workshop has a capacity to make at least ten pairs of casual and working boots per day and two members of staff are now employed on a permanent basis. Head of the cooperative, B.Nergui says: “Since starting work, we have received orders and manufactured 20 pairs of Buryat style traditional boots and ten of winter boots. More orders are expected. We procure raw materials from Ulaanbaatar city. There were many orders ahead of Tsagaan Sar.”
In addition to making boots, the cooperative will also engage in the production of milk and milk products. Oyu Tolgoi LLC supported their work by donating freezer equipment and assisting with providing construction materials for building the workshop at which the cooperative members will soon start working.
A series of measures by Oyu Tolgoi involving training and consulting services were introduced in order to assist herders and citizens who have decided to start cooperatives. These measures included explaining concepts such as how herder groups could work, cooperatives and legal entities, advising on establishment of the necessary entities, study tours to learn from the experiences of other cooperatives engaging in similar production, and training and consulting in business planning. Members of Uran bat khiits kholboo have been taking part in this and tell us how much they have learned from this training.
The local community has understood well the advantages for cooperation and begun establishing cooperatives, creating new jobs and making new products.
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