In the following interview, Head of the “Altan Tsatsral” Cooperative operating in Baruun-Urt, Sukhbaatar Province L.Khaltar delved into the development of the agricultural sector and cooperatives in the region. Trained as a medical doctor, she has worked in agriculture for the past 25 years. She placed particular emphasis on the importance of cooperative development, noting that she established one of the first agricultural cooperatives not only in the province but also in the country.
The “Altan Tsatsral” Cooperative was one of the first cooperatives established in Mongolia. Could you tell us when it was founded and share some of the key events or experiences from that early period?
Sukhbaatar was once a leading province in national grain production, particularly hay, dating back to the socialist period. At that time, cooperatives were engaged in sheep breeding for meat, operated flour mills and maintained large settlements that supported agricultural production. However, with the transition to a market economy and the privatization process, many agricultural workers lost their jobs. As the new millennium approached in 1999, a radio program titled “Voice of Cooperative Radio” was broadcast on Mongolian National Radio. Unemployed residents would gather to listen to the program, which encouraged collective action. Inspired by these broadcasts, they decided to establish a cooperative and founded the “Altan Tsatsral” Cooperative with 72 members. Each member contributed 479,601 MNT and held one vote, enabling the cooperative to raise a total of 38.9 million MNT. As a result, “Altan Tsatsral” became one of the first agricultural cooperatives recognized at the national level. The cooperative began cultivating grain, potatoes and vegetables on land located more than 40 kilometers from Baruun-Urt. Despite its early success, the cooperative was dissolved three to four years ago. This decision was driven by several challenges, including limited access to bank loans, a lack of reliable markets for agricultural products, and inadequate technical capacity and equipment. In addition, since 2000, large numbers of fast-breed horses have been raised and grazed in the province, frequently entering cultivated fields and causing extensive damage to crops.
After that, did you go on to establish another cooperative?
Although the original founders of the cooperative eventually ceased crop production, the name “Altan Tsatsral” was retained. In 2005, the cooperative purchased five hectares of land from the province and resumed agricultural activities, focusing on vegetable and potato cultivation. Today, the cooperative operates a 1,200-square-meter greenhouse complex and cultivates potatoes and vegetables on 12 hectares of land. The cooperative has its own well and uses modern irrigation methods, including drip, sprinkler and pivot irrigation systems. In the greenhouses, cucumbers, tomatoes, strawberries, leafy greens and early-season cabbage are grown. In addition, the cooperative operates a boutique shop to market its products.
Sukhbaatar Province has a population of more than 66,000, and the cooperative currently supplies up to 30 percent of the local demand for vegetables, a share with potential for further growth. “Altan Tsatsral” has 49 members, 16 of whom are directly employed in field and greenhouse production. The cooperative follows Good Agricultural Practices in line with standards promoted by the Food and Agriculture Organization of the United Nations. This approach ensures full traceability, with detailed records kept on planting schedules, fertilizer and plant protection use, and harvest dates. Its potatoes, widely known as “Khaltar Potatoes,” have earned a strong reputation and stable demand in the market. In addition to its own production, the cooperative purchases products grown using sound agricultural practices from farmers in Tuv and Selenge provinces and supplies them to local markets. Overall, the cooperative’s mission is to provide the local community with safe, ecologically clean agricultural products.
What are the main challenges facing farming and greenhouse cultivation in your local community?
If projects and programs are implemented and adequately funded, their impact can be significant. For example, the “Mongolian Potato” program provided substantial support for potato cultivation. When the program was implemented nationwide, Mongolia was able to stop importing potatoes. This was followed by the “Mongolian Vegetables” program, in which our cooperative also participated. As a result, vegetable cultivation has since developed in a stable and sustainable manner. Our cooperative operates a 1,200-square-meter summer greenhouse. With support from the “Mongolian Vegetables” program, we have expanded the variety of vegetables grown in our greenhouses and have begun cultivating early-season cabbage, which represents meaningful progress. Cabbage is now harvested in mid-July. However, greenhouse farming remains underdeveloped overall. Constructing a 1,000-square-meter winter greenhouse would require an investment of more than 1 billion MNT. Our cooperative proposed to the then Governor of the province J.Batsuuri, that the construction of such a greenhouse be studied and supported. The governor agreed and announced a tender to provide a loan of approximately 300 million MNT from the local budget. However, no companies participated in the tender, as the amount was insufficient. In general, constructing a winter greenhouse requires high-quality materials and specialized expertise, often involving specialists from neighboring countries. Attempting to build such facilities at low cost using improvised solutions would ultimately result in inefficient use of funds.
You’ve been operating for a long time. Do you see an opportunity to expand your business further with the support of a low-interest or concessional loan?
We do have loans, and the state has taken initiatives to support cooperatives, carrying out a range of activities in this area. However, there is still no comprehensive policy framework or long-term support mechanism. Most efforts are tied to political cycles and the timing of elections. In 2012, an important initiative, the “Rural Cooperative Campaign,” was launched, but it was discontinued before 2015. More recently, in 2024, the New Cooperative movement was introduced, with Government officials visiting provinces and soums across the country. While the initiative promised support for cooperatives, in practice it mainly resulted in additional loans being issued to herders, specifically those who already met banking requirements. Loans were issued by banks based on herders’ A accounts, meaning that established cooperatives and crop farmers were largely excluded. Because the program was launched hastily and under political pressure ahead of elections, herders, farmers and household producers were not given clear guidance on how to prepare for or participate in the program. As a result, some recipients misused the loans, many remain unstable, and properly functioning cooperatives have yet to be formed. In addition, projects, programs and concessional loans often fail to reach the middle-income group and those genuinely willing to work and develop their businesses. In practice, access is largely limited to those with substantial collateral, existing loans and strong connections, allowing them to expand further while others are left behind.
Aside from financial challenges, what other difficulties does your cooperative face?
The agricultural sector is currently facing a serious shortage of human resources. Many of the people who previously worked in this field are now of advanced age, and the workload is largely carried by senior workers. As a result, we asked two of our daughters and our son-in-law, who had been living in Ulaanbaatar, to return and assist with the work. We have seven children. My husband and I are actively involved in the cooperative’s operations, and four of our children are also working alongside us.
What are the main benefits of cooperatives, and do you think people in your community are able and willing to work together in this way?
Our province currently has 77 cooperatives. Most of them are engaged in the production of raw materials, while three to four focus on hay production and nine operate as dairy cooperatives. Last year, a dairy processing factory was established, which was a very positive development. I had the opportunity to propose and guide the nine dairy cooperatives to become suppliers to the factory, and they agreed to do so. Half of the 300 million MNT required for the factory’s equipment was provided by the UN, with the remaining funds coming from the state budget. The nine cooperatives each contributed 5 million MNT, totaling 45 million MNT and officially became suppliers to the dairy factory. As a result, milk is now being supplied for the provincial school lunch program.
In order to ensure stable operations throughout both winter and summer, plans have been announced to purchase additional dairy cows with an investment of 300 million MNT. This demonstrates that, with coordinated support and cooperation from all sides, there is real potential for rural development. The province’s Cooperative Union works in cooperation with the National Union of Mongolian Agricultural Cooperatives. In my view, cooperatives are stable institutions that make meaningful contributions to local and regional social and economic development. Most importantly, they play a major role in producing safe and healthy food in the agricultural and farming sectors. Cooperatives are based on principles of fairness, mutual support, and democratic governance, with a shared goal of improving the livelihoods of all members. Unlike private companies, which are owned by individual owners, cooperatives are collectively owned by their members. If the cooperative movement is actively supported through appropriate policies, it can fully include household producers, farmers, and herders, leading to benefits such as job creation in rural areas and the expansion of Mongolia’s middle class. In countries such as the Republic of Korea and Japan, government policies actively encourage citizens to work through cooperatives, demonstrating the long-term value of this model.
The “New Cooperative” movement doesn’t seem to have brought much benefit to the local community. In fact, it appears to have been quite costly. Could you share your thoughts on this?
It’s safe to say that. Loans are usually granted based on herders’ A accounts, and herders have learned to interact with banks, taking loans according to the number of livestock they own. In reality, however, loans should be accessible to both new and established cooperatives. The Law on Cooperatives requires at least nine members to form a cooperative, but in practice, medium-sized industries or farms need 20 to 50 members. While nine people contributing 5 million MNT each can form a cooperative with 45 million MNT, such small cooperatives often risk dissolving without expanding their activities. It is also more effective when herders, not just farmers, participate in cooperatives. Natural risks in the region are high, with frequent droughts in many springs. By properly distributing labor and energy, cooperatives can work more efficiently and reduce individual risk. At present, there are few cooperatives truly centered on herders. Many cooperatives are instead formed by commodity traders, who operate more like businesses than member-focused organizations.
Another challenge is the limited capacity of Government officials. Young, inexperienced, and often untrained personnel are sent to local communities as agricultural specialists. As a result, there is little guidance for herders, farmers and vegetable growers on improving their livelihoods, developing their skills, or gaining financial literacy. For example, we propose dividing the province’s 12 soums into four regions and holding regular meetings. Our goal is to train scientists and Government officials on international agricultural standards and work collaboratively with local citizens to implement best practices in the sector.
What are the benefits of forming a cooperative for herders?
There is a cooperative with about 150 members in Tuvshinshiree soum. It was initially established with each member contributing 100,000 MNT. However, during the early stages, misunderstandings arose, and the province’s Cooperative Association asked me to hold a meeting to guide them on how to move forward. First, the members increased the cooperative’s capital to 1 million MNT, of which 500,000 was contributed in cash and the remainder in meat and raw materials. As a result, about half of the members left, leaving 85 committed participants. In the fall of 2023, these members contributed their cash and livestock products, built fences and sheds to prepare for winter, and stocked up on hay and fodder. Thanks to this preparation, they successfully survived the 2023-2024 zud without any losses. Herders now have the opportunity to improve their livelihoods and build real wealth. Many wealthy herders own four to five vehicles, while those with more modest means have two to three. Yet, during droughts, livestock can easily be lost. This is why we must work to become herders with a high quality of life, genuine assets and lasting wealth. Achieving this requires knowledge, access to information and cooperation with Government officials. Since the number of herders is declining, forming cooperatives is a very practical solution. Our herders are also becoming more prosperous and modern, for example, their clothing, tools, and overall appearance have improved, and even men now dress well and maintain higher standards of living. If this trend continues, our local herders and farmers will enjoy good health, increased wealth and a better quality of life.
You mentioned that you are a doctor. When did you begin working in agriculture, and what motivated you to enter this field? Could you also share your goals for the future?
I graduated from Dornogovi Provincial Medical Secondary School in 1975-1979, specializing in obstetrics and gynecology. I later completed my higher education at the Mongolian National University of Medical Sciences and worked as an obstetrician and school doctor for more than 20 years. My family has long been connected to agriculture. My husband L.Magnaibayar graduated from Omsk Technical School in the former USSR as a tractor and combine operator and was assigned to Sukhbaatar in 1981 to support agricultural development. He worked as the leader of the hay department, and under his leadership, the department won three national championships, while the grain brigade won two. Through our work in cooperatives, we became one of the country’s leading farming communities. Perhaps influenced by our family background, we eventually moved fully into the agricultural sector. Looking ahead, we have set a goal to learn how to cultivate apples. Recently, I met with representatives from the Mongolian Fruit and Vegetable Association to exchange ideas on developing fruit farming. They have begun planting apples in Dundgovi Province, cultivating two hectares of land and harvesting delicious apples. This has inspired me greatly. At the very least, I hope to provide the local population with fresh, high-quality apples.
How would you describe the current life of herders and local residents, and what steps do you think should be taken to improve it in the future?
Our province is well known for the quality of its meat and cashmere. Looking ahead, it may be more profitable to focus on raising young livestock or preparing and selling lamb. To achieve this, herders, veterinarians and cooperatives need to work closely together. When producing meat and other raw materials, good agricultural practices should be implemented, including proper vaccination and timing of grazing or planting to ensure healthy products. The gap between rural and urban life has largely disappeared. Today, nearly everything available in the capital or even abroad can be accessed in the countryside. With hard work, access to low-interest state loans, and a solution to the land issue, it is possible to lead a comfortable life in rural areas. The main challenge, however, remains access to land. Fertile land near rivers and highways is largely unavailable to local citizens. There have been cases where former state farm land, about 40 kilometers from Baruun-Urt, was leased to foreigners or used to plant narcotic crops. The fact that foreigners were allowed to work on land that locals cannot access, and that prohibited plants were cultivated there, is a very serious concern. These are issues worth discussing and speaking out about.
