Piloting the construction of a horse farm for the production of mare's milk

• Project location: Selenge Aimag province, Mongolia
• Consortium: Hibbert (Nederland) BV, Monenzyme Research & Production Co. Ltd
• Project budget: Euro 1.0 million
• External financing: 50% grant funding by PSOM
• Project period: July 2007 - July 2009

Abstract

The local production and consumption of mare’s milk is part of a long tradition and culturally embedded in Mongolia, especially in the rural areas. The country giving home to numerous wild and domesticated horses, several smallholder farmers are involved in the production of mare’s milk for own consumption and sales on the local market. Compared to cow’s milk, mare’s milk contains higher and more varied nutritional properties, while being lower in fat. In addition, consumers who are allergic to cow’s milk and related products do not show allergic responses to consuming mare’s milk. This has to do with the immunological composition of the milk (which is close to human milk), resulting in an increased interest from the cosmetics and food processing industries in Europe and Asia.

Recognising this market potential for mare’s milk, Hibbert Nederland intends to invest in the construction of a horse farm for the production of mare’s milk, jointly with Monenzyme Research & Production Co. in Mongolia. An important advantage of constructing a horse farm in comparison to collecting milk from scattered herders, is the possibility to protect the horses from the severe weather conditions combined with the possibility of implementing an effective breeding programme. By doing so, it will be possible to prolong the production period by a substantially longer period than the present 3.5 months applying to the herder mares in the field. In order to facilitate accessing the export market in Europe and Asia, the partners will at least produce up to HACCP standards.

The principal client for the pasteurised milk will be Monenzyme which owns a milk powdering plant in Ulaanbataar. Monenzyme avails of ample technical expertise on the production and processing of milk, while having access to a local sales market. Hibbert will bring in expertise in the field of horse breeding, animal feed and hygiene, while being responsible for the international distribution and marketing.

The project partners will invest in the construction of a horse farm of 9,000 m2 with 360 horses. The project will include hardware investments in milking machines, pasteurising machines, a milk storage basin, means of transport, an office and accommodation for the employees and visitors. Technical assistance will include training of employees and smallholder herders in hygiene, use of installations, etc and the development of a breeding programme.

The proposed project will result in:
1. the establishment of a Joint Venture between Hibbert Nederland and Monenzyme Research & Production Co. for the production and pasteurising of mare’s milk;
2. the construction of a horse farm with a capacity of populating 360 horses, along with a laboratory and veterinary room, milk processing equipment, cold storage and office facilities, and housing facilities for staff;
3. recruitment and training of 16 staff in quality management, technical operation, horse breeding and feeding;
4. ISO 9001:2000 and milk production minimum up to HACCP certification standard;
5. milk collection scheme with 27 contracted and trained herders;
6. a bankable business plan for securing finance for follow-up investments.

Follow-up investments during the two years after project completion will include the construction of 1 additional farm (i.e. doubling capacity), whereas the partners will invest in increasing processing capacity at Monenzyme. Additional direct employment during this period is estimated to be 16 staff.