The team of the European Union’s (EU) Trade Related Assistance to Mongolia (TRAM) project established a Memorandum of Cooperation with Mongolian cosmetics companies on forming a cluster.
“EU TRAM is aimed at promoting exports of non-mining products and it will be implemented till March, 2021. We will be attentive towards launching products in European market as the project is backed by the EU”, said the Senior Advisor to the project.
Under the project, a study was conducted in Mongolia this July and recommended to focus on four sectors, of which one is the export of organic products. The exporting sector was considered propitious as it is rich in raw material resources and is recognized internationally with its unique feature of representing Mongolian life.
In Mongolia, there are many cosmetics companies that use organic raw materials including nettle, sheep tail fat oil, sea buckthorn, mare milk, camel bone marrow and so forth. When individually exporting their products, the producers face a number of challenges such as factory capacity, product advertising and packaging to compete against globally recognized brands. To address these issues, the project team is conducting progressive courses on clustering with provision of some recommendations.
Representatives of Mongolian cosmetics companies including Monos Cosmetics LLC, Lhamour (Natural Essentials LLC), MonCream LLC, Ich Cream LLC and others were present at the signing ceremony.
They noted the project creates an opportunity for cosmetics producers to get acquainted with each other and to cooperate , sharing experiences.
With the funding of over USD 5 million, the four-year TRAM project aims at reducing poverty and decreasing the economy’s dependency on external factors by promoting trade and diversifying the economy.