KHAN BANK COMMITS TO CREATING AN ORGANIC AND HEALTHY MEAT VALUE CHAIN

Ulaanbaatar, December 18, 2018. When you buy meat, you don’t always know exactly where your meat is coming from, how the meat was transported, how much of the cost is being passed on to consumers, what stages the meat passes through, and how long it takes to get from the butcher to your table. Today, Khan Bank is taking part in a great start toward improving the meat supply process and developing the value chain, through the purchase of livestock directly from herders and the processing of meat in a certified factory, to provide consumers with high quality meat.

Khan Bank is bringing local meat companies together to achieve this goal and to sign a memorandum of understanding of cooperation. The main participants in the Meat Value Chain Project are Khan Bank, Ereen Bukht LLC, Erdenet Makh Market LLC, and Darkhan Minj LLC. Ereen Bukht LLC buys livestock from herders that meets quality requirements and fattens the livestock for 2-3 months before delivering them to Erdenet Makh Market LLC. Erdenet Makh Market LLC does meat processing, including slaughter, sorting, and packaging. The third value chain participant, Darkhan Minj LLC, purchases hides from the meat processing plant and manufactures quality leather products for global export. The bank will provide financial support to these companies and will be the bridge between these companies and customers.

The main goal of the Meat Value Chain Project is to deliver the highest quality, healthy, and low cost meat meeting international standards to customers. There are also opportunities for these companies to create new jobs. Ereen Bukht LLC will supply consumers with fresh meat all year round. Preliminary estimates suggest that 2,4003,000 fattened cows could be supplied each year.

Participants in the Meat Value Chain Project emphasize that herders and trade organizations will be linked to the network, and that the standards applied to all stages of the value chain will ensure that consumers are supplied with same high quality all throughout the year.

In August, Khan Bank set up Mongolia’s first cluster farm with 400 dairy cows to contribute to the social and economic development of Mongolia, and to establish eco-friendly and green banking products that support environmentally friendly, sustainable and responsible businesses. In November, Khan Bank organized training for herders to improve their skills, in cooperation with the non-profit organization Sustainable Fibre Alliance. Now the bank is setting out to revolutionize the nation’s meat value chain.

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