Incentive for wool supply set at less than a dollar
The Government of Mongolia approved a resolution on some measures to support national producers and increase jobs in 2011. The resolution regulates to grant monetary incentives to members of herder cooperatives and citizens with livestock when they supply wool of sheep and camel to national factories.
This action has brought many positive results, including growth of herders’ income, production capacity of factories, jobs and number of herders to turn in wool of sheep and camel and so on. Moreover, a large number of wool and other raw material processing factories that have been newly built have increased their production of value-added wool products.
A new goal has been established to increase the full processing of wool and cashmere up to 60 percent nationwide. In this regard, the Cabinet made a decision to increase the amount of incentives in accordance with the wool quality on September 4. The incentive amount of this year has increased to MNT 1500-2000 per kilogram depending on the number of livestock animals by an annual census, breeds, livestock animal benefits and wool quality. Corresponding local administrative officials were assigned with works of wool submission and incentive provision.