Initiating research and development for the “New Cooperative 2.0” program.

Nomadic herders, who have carried the legacy of nomadic civilization for centuries, are now being empowered to adapt to climate change and overcome risks through a new initiative called the “New Cooperative Movement,” launched by the Government of Mongolia, a year ago. There were initial concerns that it would be difficult to integrate herders—who traditionally live and work independently, tending their livestock year-round—into cooperatives. However, within just one year, approximately 30% of all herders have established cooperatives. Mongolia has a total of 308,730 herders, of whom 91,456 have become cooperative members. While this is a remarkable achievement, it also demonstrates that herders had both the desire and the need to cooperate economically. Professor and international relations scholar Dashdorj Bayarkhuu noted in an article that “Herders have the full potential to voluntarily and collaboratively form cooperatives and develop infrastructure in various forms. If they succeed, they could potentially earn all the income they need for autumn, winter, and spring during the three summer months. This growing need has been significantly supported by the economic incentives of the “New Cooperative Movement.” For instance, 23,108 herders have received investment loans totaling 783.4 billion MNT under this initiative. Speaker of Parliament D. Amarbaysgalan emphasized that these loans should be viewed not merely as credit, but as investments. The loans provided to participating herders are up to 50 million MNT, up to 50 billion MNT per cooperative with a 6% annual interest rate and a five-year term. These funds have had a direct positive impact, enabling herders to increase livestock productivity, purchase processing equipment, build shelters, and acquire breeding animals. Moreover, the movement has fostered collaboration among herders, expanding their economic and social interactions—an outcome widely welcomed by the Mongolian public. Ch. Lkhagvadorj, a herder from the 4th bagh of Orkhon soum in Bulgan province, stated, “The greatest benefit of the New Cooperative Movement is that herders are becoming united in spirit.” The initiative also contributes to environmental protection, improved pasture management, and reduced greenhouse gas emissions—points repeatedly emphasized by Deputy Prime Minister S. Amarsaikhan. Since the launch of the movement, 9,689 new cooperatives with 95,118 members have been established across Mongolia. As these are all primary-level cooperatives, there is now a need to standardize operations and develop supply chains, potentially transitioning into secondary-level cooperatives. H. Erdenebulgan, a herder from the 2nd bagh of Khangal soum in Bulgan province, highlighted this need. The Government of Mongolia is now focusing on this next phase, initiating research and development for the “New Cooperative 2.0” program. This movement is backed by a dedicated law passed by Parliament and includes a plan to provide a total of 5 trillion MNT in low-interest loans through commercial banks by 2029. Policymakers and sector experts believe this provides a strong foundation for developing secondary-level cooperatives.

NOMADS ARE JOINING THE COOPERATIVE 

Date And Time 2025-07-04 to 2025-07-05
Location Online event.

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