Mongolia currently produces 8.4 million raw skins and hides, out of which 52.4% or 4.4 million is sheep skin, 26.2 % or 2.2 million is goat skin, 7.1 % or 0.6 million is cow hides; The remaining leather products constitute 4.7% or 0.46 million.
As of 2003, more than 60 leather-processing companies represent the industry. Twenty processing companies produce finished goods. The total processing capacity maintained by these companies is 7.9 million skins.
However, they currently operate at a production capacity of 10-40%. Early stage processing has exceeded the raw material resource capacity by 12.6%.
Production volume of the industry for 2004 was 356.6 million MNT. A total value of USD 5,149 million was exported. This amount reflects 1.3% of the GDP and 8.6% of the total export. Most of the production volume and export is semi-processed leather.
The National program for the leather industry was developed with the objective to ensure the sustainable development of the livestock product processing industry. This industry is crucial for the economic development of the country in the achievement of the objectives of the Government to promote export-oriented industry, to achieve about 10 % growth in economy in 2010, and to maintain the sustainable development of the industry.
Goal of the program
Increase the export earnings of the leather industry through improvements in processing
Restructure the industry in line with the regional development concepts.
Reduce the ecologically negative impact of the production technology, and introduce new and advanced technology.
Promote the livestock product processing and the recycling of production wastes based on modern, advanced biotechnology processing.
Entry filed under: Leather Industry.