Seabuckthorn Tree Plantations And Affiliated Products

close up of sea buckthorn tree

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Seabuckthorn Tree Plantations And Affiliated Products
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Invest in B2C businesses involved in sea buckthorn tree plantations and that manufacture products using sea buckthorn. Enterprises operating in this space primarily focus on supply of raw material as well as manufacturing of value added products such as pure sea buckthorn oil and juice, which are two main semi-processed export-oriented products. These products are exported to countries such as Japan, Korea and Taiwan. Additionally, there is focus on exporting products such as sea buckthorn oil, demand for which is increasing, especially in European markets. Examples of companies active in this space are:

Uvs Food JSC, founded in 1942, started manufacturing products using wild seabuckthorn since 1973. They established a seabuckthorn processing plant in 2010 with modern equipment that has the capacity to process 10 tons of fruit per day. 99.8 percent of the total company share is owned by a single person, as of February 2023.

Doctor Tseg LLC started planting seabuckthorn on 3 ha of land in Uvs province in 2005 and has been preparing seabuckthorn, currant, willow, poplar, elm, and larch seedlings since 2008. To date, about 250,000 seedlings have been prepared and delivered to individuals and organizations. Besides seedlings, they also produce seabuckthorn juice and oil.

Ulzii Nuur LLC was founded in 2008 to grow and sell crops, vegetable seeds, trees, and seedlings. It built a 1.5-hectare fenced orchard, planted 35,000 seabuckthorn and currant seedlings per year, and planted 1,000 seabuckthorn trees. They produce high-quality seabuckthorn oil, juice, jam, and soap as well as juice and jam from currant, cranberry, blueberry, and supply them to domestic and foreign markets.

Expected Impact

Reduce national food insecurity by enabling more high-quality domestic sea buckthorn in the market and reduce GHG emissions by planting more its trees

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
> 25% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
European Union funded Trade-related Assistance for Mongolia project financed and established 4 export clusters, including Uvs sea buckthorn cluster. The funding amount was ~USD 5 mn. (18)
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Gender Equality (SDG 5) Responsible Consumption and Production (SDG 12)
Sector Sources
  • (1) Mongolia transforms food system to ensure safer food, Increase Health Security (2022) World Health Organization. Available at: https://www.who.int/westernpacific/news-room/feature-stories/item/mongolia-transforms-food-system-to-ensure-safer-food--increase-health-security (Accessed: February 5, 2023). (2) Government of Mongolia, UN Mongolia, & FAO. (2021). TOWARDS SUSTAINABLE FOOD SYSTEMS IN MONGOLIA. FOOD SYSTEMS SUMMIT DIALOGUES GATEWAY. Retrieved February 5, 2023, from https://summitdialogues.org/wp-content/uploads/2021/09/ENG_sustainablefoodsystems_Mongolia_FSD_Pathway-document.pdf (3) FAO, IFAD, UNICEF, WFP and WHO. 2022. The State of Food Security and Nutrition in the World 2022. Repurposing food and agricultural policies to make healthy diets more affordable. Rome, FAO. https://doi.org/10.4060/cc0639en 4) Government of Mongolia, (2020). Mongolia's Long-term development plan "Vision 2050" https://legalinfo.mn/mn/detail/154060/80 5) Asian Development Bank (2020) ADB to help manage food insecurity risks in Mongolia amid supply disruptions caused by covid-19, Asian Development Bank. Available at: https://www.adb.org/news/adb-help-manage-food-insecurity-risks-mongolia-amid-supply-disruptions-covid-19 (Accessed: February 5, 2023). 6) Agribusiness: Potential Organic Agricultural Sector, Invest in Mongolia | Ministry of Economy and Development. Available at: https://investmongolia.gov.mn/agribusiness/ (Accessed: February 5, 2023). 7) Greening growth in Mongolia (2019) IMF. Available at: https://www.imf.org/en/News/Articles/2019/12/09/na121019-greening-growth-in-mongolia#:~:text=The%20overgrazing%20in%20Mongolia%20stems,carrying%20capacity%20of%20the%20land. (Accessed: February 5, 2023). 8) FAO in Mongolia.(2020). FAO. https://www.fao.org/mongolia/programmes-and-projects/fr/ 9) Beyond the pandemic: Transforming Food Systems in Mongolia in Mongolia (2021) United Nations Mongolia. United Nations. Available at: https://mongolia.un.org/en/131976-beyond-pandemic-transforming-food-systems-mongolia (Accessed: February 5, 2023). 10) Government of Mongolia. (2022) National Movement on Ensuring Food Supply and Security 2022-2027 11) FAO. (2019) Gender Analysis in Livestock Management and Interventions 12) ADB. (2020). Vegetable Production and Value Chains in Mongolia. https://www.adb.org/sites/default/files/publication/624311/vegetable-production-value-chains-mongolia.pdf 13) Kimura, S., Tumur-Ochir, E. and Tseren, T. (2022) Strengthening Mongolia's Food Security Post-covid-19, Development Asia. Available at: https://development.asia/insight/strengthening-mongolias-food-security-post-covid-19 (Accessed: February 5, 2023).
IOA Sources
  • 14) Gonchigsumlaa, Ganzorig and von Cramon-Taubadel, Stephan and Soninkhishig, Nergui and Buerkert, Andreas (2019): Competitiveness of sea buckthorn farming in Mongolia: A policy analysis matrix. Published in: Journal of Agriculture and Rural Development in the Tropics and Subtropics , Vol. 121-1, No. 2020 (9 May 2020): pp. 77-88. 15) National Statistics Office of Mongolia. SOWN AREAS OF FRUITS AND BERRIES. 2022. https://1212.mn/en/statistic/statcate/573069/table-view/DT_NSO_1002_009V1 16) National Statistics Office of Mongolia. TOTAL FRUITS AND BERRIES. 2022. https://1212.mn/en/statistic/statcate/573069/table-view/DT_NSO_1002_009V2 17) Montsame Agency (2022). Uvs Chatsargana registered in the EU as first protected Geographical Indication from Mongolia. https://montsame.mn/en/read/287846#:~:text='Uvs%20Chatsargana'%2C%20seabuckthorn%20berries,and%20the%20Embassy%20of%20France 18) Fratita, C. (2021) Increased Mongolian non-mining exports with support from EU-Tram project., Tram Project. Available at: http://tram-mn.eu/increased-mongolian-non-mining-exports-with-support-from-eu-tram-project/ (Accessed: February 16, 2023). 19) Montsame Agency (2019). Uvs sea buckthorn to be exported to Europe. https://montsame.mn/en/read/194025 20) National Statistics Office of Mongolia. Deaths by cause. <https://1212.mn/tables.aspx?tbl_id=DT_NSO_2100_011V1&PH004_select_all=0&PH004SingleSelect=_0_1_2&Gender_select_all=0&GenderSingleSelect=_0_1&YearY_select_all=0&YearYSingleSelect=_2021&viewtype=table> 21) Williams, J. (2022) Why does mongolia have such a high carbon footprint?, The Earthbound Report. Available at: https://earthbound.report/2022/10/06/why-does-mongolia-have-such-a-high-carbon-footprint/ (Accessed: January 31, 2023). 22) Han, J., Dai, H. & Gu, Z. Sandstorms and desertification in Mongolia, an example of future climate events: a review. Environ Chem Lett 19, 4063–4073 (2021). https://doi.org/10.1007/s10311-021-01285-w 23) Hannah Ritchie, Max Roser and Pablo Rosado (2020) - "CO₂ and Greenhouse Gas Emissions". Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/co2-and-greenhouse-gas-emissions' [Online Resource] 24) Dorj, O. et al. (2013). Mongolia: Country Features, the Main Causes of Desertification and Remediation Efforts. In: Heshmati, G., Squires, V. (eds) Combating Desertification in Asia, Africa and the Middle East. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-6652-5_11 25) Government of Mongolia. (2020). MONGOLIA’S NATIONALLY DETERMINED CONTRIBUTION TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE. https://unfccc.int/sites/default/files/NDC/2022-06/First%20Submission%20of%20Mongolia%27s%20NDC.pdf 26) Government of Mongolia (2020). Five-Year Development Guidelines in 2021-2025. https://legalinfo.mn/mn/detail?lawId=211213&showType=1 27) Government of Mongolia. (2022). Government Resolution No. 36. Actions to ensure food supply and safety. https://legalinfo.mn/mn/detail?lawId=16530824672861&showType=1 28) Government of Mongolia. (2012). Law on Ensuring Food Safety. https://legalinfo.mn/mn/detail?lawId=8911 29) Government of Mongolia. (2016). Law on Agriculture. https://legalinfo.mn/mn/detail?lawId=11641 30) Government of Mongolia. (2022). Government Resolution No. 117. https://legalinfo.mn/mn/detail?lawId=16468272061611 31) Government of Mongolia. (2015). Law on Value Added Tax. https://legalinfo.mn/mn/detail/11227 32) Government of Mongolia. (2019). Law on Business Entity Income Tax. https://legalinfo.mn/mn/detail/14407 33) National Statistics Office of Mongolia. NUMBER OF TOTAL BUSH AND TREES OF FRUITS. https://1212.mn/en/statistic/statcate/573069/table-view/DT_NSO_1002_013V1