World Bank wants new leather training institute in Mongolia

03/06/2019
Mongolia’s Central Economic Corridor (CEC), a key transportation network connecting China and Russia, offers promising opportunities to bring Mongolian leather to world markets and to diversify the country’s exports away from mining resources, according to a new World Bank report.

In the report, the World Bank says the leather industry in Mongolia “needs a fundamental upgrade”. It said Mongolia’s access to the Chinese market in particular represents an attractive opportunity, but added: “Unfortunately, low quality of products, lack of local storage, poor access to finance, and undeveloped distribution channels stymie efforts of leather entrepreneurs to turn the leather market around.”

The report recommended a number of policy actions and said several of these could yield quick results.

It recommended that the leather industry carry out an awareness campaign for herders, skinners and butchers on appropriate flaying techniques and promote centralised slaughtering “in upgraded facilities that accord with international best practice”. 

It also said Mongolia should set up a new leather training institute “to deal with the scarcity of professional skilled labour and high wastage from unsatisfactory processing techniques”. 

The World Bank has made $20 million available to help Mongolia boost its exports and it said this report, which also examines the potential of the meat and cashmere sectors, will help inform how that money is spent.