The Rural Agribusiness Support Program (RASP) is a rural business development project designed and managed by Mercy Corps with financing from the United States Department of Agriculture. The RASP program began in May 2004 and will continue until at least September 2009. The project is funded at $2 million per year.

Details

Location

RASP is being implemented in eleven aimags in central and southern Mongolia that present both an opportunity for greater agribusiness development and a significant challenge in advancing that development. The aimags are: Khovd, Zavhan, Arhangai, Gobi-Altai, Bayanhongor, Uvurhangai, Dundgobi, Umnugobi, Gobi-Sumber, Dornogobi and Sukhbaatar.

Goal

To diversify and expand rural businesses critical to Mongolia’s agriculture sector

Objectives

• An increase in the production and sale of marketable animal products and crops
• A more market-oriented agricultural production and marketing system
  

Focus

• Supporting the development of herder groups, cooperatives and associations
• Strengthening existing businesses and promoting new businesses that add value to production and link products to markets
• Improving the supply of critical inputs for production, including business financing
• Ensuring a safer supply of food products for Mongolian consumers
  

Clients

• Rural Businesses that add value to agricultural production and link that production to markets
• Business Associations that support and advocate on behalf of an active rural business constituency
• Herder Groups and Cooperatives that are expanding and diversifying their operation in response to market signals, and are an integral part of the overall market supply chain
• Business Development Service Providers that provides various services for rural businesses to build their capacity and link them to the market
• Local Governments that support rural businesses and engage in active and participative dialogue and activity regarding issues critical to business development
  

Activities

• Technical, organizational and business management training and technical assistances for herder business and rural enterprises that support herder-based production
• Market development through improving access of rural businesses to new markets and strengthening the linkages between rural businesses
• Loan guarantees for rural businesses to diversify and “scale-up” their agribusinesses
• Promotion of Business Development Service Providers through capacity building and strengthening the linkages with market
• Training, veterinary credit line and pharmaceutical/equipment support for rural veterinarians and vet technicians
• Development and institutionalization of a broad producer-based animal nutrition monitoring system
• Development and institutionalization of a dairy food safety quality assurance system
• Development of sector support for agribusiness through promoting enabling environment for rural businesses in collaboration with government and application of agricultural innovations
• Financial and technical support for essential new businesses that ensure availability of production inputs, add value to local production and link products to markets
  

A Focus on Producer-Processor Linkages

Unlike the Gobi Initiative program which began with a focus on the formation of herder groups in order to improve the efficiency of training efforts, the Rural Agribusiness Support Program (RASP) focuses much more intensively on improving the productivity and profitability of rural processors and rural producers and on strengthening the business link between them.

Concentrating on agricultural and livestock growth and diversification, RASP works to not only improve and expand existing traditional primary production systems, but also to promote horizontal diversification into activities such as dairy and vegetable production, and vertical diversification along the supply chain, including improvements in value-adding services and activities.

Examples of producer-processor linkages include dairy, meat and wool processing. To support processors, RASP provides assistance with business planning; equipment sourcing and use; financial and human resource management; marketing, product promotion and distribution; and production technology. To support producers, RASP provides assistance with animal health and nutrition planning and management; elite animal breeding; dairy and vegetable production and marketing; business management; and cooperative development and operations.

Funding Period

May 2004 - September 2009

Funded By

• Mercy Corps
  
• United States Department of Agriculture