N.OYUNBAT: OUR BONE PROCESSING FACTORY IS A MONGOLIAN BUSINESS THAT RESPECTS NATURE

Once the face of the Italian brand United Colors of Benetton in Mongolia, a woman who opened branches in major malls, graced fashion shows, and worked closely with artists and cultural figures, found her life drastically redirected to the meat and livestock pro cessing hub of Emeelt. A place most would rather avoid even hearing about became the unexpected destination for someone from the delicate world of fashion. What could have drawn her attention so profoundly? What is the eco-conscious brand established by N.Oyunbat, founder of a protein production plant? What has she endured, and what is she striving to build?

-People recognize you as the face of Benetton in Mongolia. For you, that brand must carry a lot of value and sentimental attachment.

-First, I’d like to express my gratitude for inviting me to this special feature, representing many Mongolian women entrepreneurs. I consider this an honor and a symbol of recognition. Indeed, Benetton has become an inseparable part of my life—a brand I truly value and love. When the Benetton store first opened in Mongolia, a journalist once asked Luciano Benetton, the Italian billionaire and founder of the United Colors of Benetton, “Mongolia has a small population—do you think a brand like yours can be profitable here?” He smiled and replied, “Have you seen how beautifully shaped your country is on the world map? Why shouldn’t young Mongolians wear the same clothes as youth in the rest of the world, and wear them on the same day?” That was on September 21, 2010. Our Benetton store was the very first international brand to open in Mongolia. It’s hard to believe that it’s already been 15 years since we brought the United Colors of Benetton to our home country. Nowadays, new brands are entering Mongolia almost every day. Young people have embraced Benetton—it’s become part of their daily wardrobe. Mongolian youth are walking in step with global fashion trends, especially children. Our brand became particularly well-known for its children’s clothing. Benetton eventually led the way for other major brands such as Carpisa, Yamamay, and Wycon. When international tourists visit Mongolia and walk into our malls, it’s great to be able to welcome them with world-class brands.

-One day, a woman who had been introducing global fashion brands to Mongolia and pioneering modern consumer culture suddenly found herself in Emeelt, talking about livestock bones, animal fat, and feed. That’s a major transformation—and now many people refer to you as “Bone Oyunbat.” What inspired you to make this shift toward becoming a national producer of animal bone products?

-There were several reasons I decided to enter the field of animal bone processing. I’ve always believed and advocated that national production is the foundation of a country’s development. We cannot rely solely on imports—every Mongolian should aspire to become a producer. After graduating from university in Russia, my first job was as a technologist at a shoe factory. From a young age, I understood the value and importance of domestic production. So, I began asking myself: What else can I do beyond Benetton? What kind of production could I engage in that would contribute, even in a small way, to my country’s economy through exports? That was a period of deep research and exploration—one might even call it the golden age of entrepreneurial curiosity. I wanted to reduce the flow of currency leaving the country and instead bring foreign exchange into Mongolia. In fact, I’m now contributing to our economy by exporting and generating income from abroad. This mindset led me to study the agricultural sector, including its business landscape, policies, and legal framework. I learned that people around the world create businesses that directly serve their nations, and I wanted to do the same.

-How did you establish your bone processing factory?

-I guess it was about identifying a problem that people hadn’t noticed. The issue was this: at slaughterhouses and food markets, animal bones and by-products were being discarded. In Emeelt, Mongolia’s largest slaughterhouse and meat processing industrial park, animal bones were being thrown out and buried openly at the site. The first thing I thought about was the environmental impact of this waste being discarded in the open. Some people may think that burying bones in the ground will help fertilize the soil. However, it severely contaminates the land and soil rather than acting as fertilizer. Let me give you an example. If an animal dies in the wild due to a harsh winter, it remains on the land. Come spring, the birds start circling, microorganisms, and disease bacteria become active, and those diseases can spread to both humans and animals. This is one of the reasons why livestock diseases and outbreaks occur. After further research, I discovered that while we call livestock a “renewable resource,” we are wasting about 40% of the animal—its intestines, skin, hooves, horns, and bones—by discarding them. When you calculate this for the whole year, this amounts to approximately 400,000 tons of waste. Although livestock is a renewable resource, we cannot afford to be so wasteful. More importantly, we cannot afford to destroy our living environment. At a time when the global trend is shifting towards ECO, ORGANIC, and environmentally-friendly industries, we, as Mongolians, are not only being wasteful, but we’ve become one of the largest producers of greenhouse gases, exacerbating global warming. This is a serious issue we identified.

The motivation for me comes from seeing the waste that was once buried in the earth, polluting the environment, now being processed into end products

This realization prompted me to take action. I thought, “Why not process this waste and create something useful from it?” That’s when I got my husband involved. My husband is an engineer, and he looks at everything with a practical mindset. As soon as I started talking about animal bones, he began collecting all the research and information about bone processing and gave it to me. His support was vital for me. It’s different from the many men who would have told me to stick with my previous work (laughs). So, I visited leading bone waste management factories in the United States, Italy, Germany, and China to learn about their processes. Finally, I chose to adopt the European standards and imported Italian equipment and technology. Our factory and technology are highly regarded in Italy and Europe. This is how I established the bone processing factory. Later on, I dreamed of building a waste disposal plant to handle hazardous waste— this is how I got started in this field.

-So, is bone processing undeniably a strategic industry for Mongolia?

-Yes, absolutely. In a country like Mongolia, where there are over 70 million head of livestock and the economy is largely based on animal husbandry, having a bone and by-product processing factory is crucial for maximizing the benefits of our livestock and utilizing every part of the animal. It’s a strategic industry for our economy. When you start a business, you have to visualize it in your mind. I imagined my factory, and it gave me a great sense of fulfillment. I told myself, “Now is the time.” In 2017, I used all the capital I had to make an advance payment, ordered the equipment, and by the end of 2019, we brought the factory in. I secured a loan from the Development Bank, bought land in Emeelt, developed the infrastructure, and assembled the factory. In February 2019, I officially opened the factory, with the then-Prime Minister (and current President) U.Khurelsukh attending the opening. Everything happens in its own time, and now I understand this. I faced many challenges, as opening a new factory with new technology wasn’t easy.

When you start a business, you have to visualize it in your mind. I imagined my factory, and it gave me a great sense of fulfillment

Looking ahead, I plan to introduce technologies that will completely dispose of animal carcasses and bio-waste. Given the challenges posed by harsh weather, snow, and dzud (severe winter conditions), many livestock herders lose their animals. During spring, as the snow melts, hundreds of thousands, possibly millions, of animal carcasses begin to decompose, releasing greenhouse gases into the atmosphere, contaminating the soil, and creating foul odors. These issues not only harm the environment but also pose health risks. Currently, we are processing the bones and by-products from the meat industry, which are usually discarded, and creating products from them. Our current technology is based on EU 142/2011 European standards. However, the technology for disposing of deceased livestock carcasses is different.

-What products are derived from processing animal bones and by-products?

-First, we produce animal protein-based feed, which is the main ingredient for chicken, pork, and other livestock feeds. Second, we create organic fertilizers. These fertilizers are highly effective in regenerating soil that has been degraded by farming or polluted by mining activities. It helps improve soil quality, boost crop yield, plant new trees, and even support the growth of saplings. By enriching the soil, beneficial microorganisms thrive, and bio-humus is formed, improving soil quality. Our fertilizer gradually breaks down in the soil and provides essential nutrients for up to two years. Third, we extract animal fat. Animal fat is in high demand internationally. Our processed animal fat is used in South Korean oil refineries for biodiesel production. Biodiesel emits significantly less carbon dioxide, a greenhouse gas, than conventional petroleum diesel, making it a more environmentally friendly alternative. Through this, we contribute to the global fight against climate change.

-You mentioned that your oil has been certified by ISCC (International Sustainability & Carbon Certification). Can you explain what this certification means?

-Absolutely. In February 2023, we invited Germany’s ASG auditing firm to perform an international audit for our factory to obtain the ISCC EU certification. By the end of the same month, we successfully received our ISCC EU certification. ISCC is a supply chain certification system that aims to reduce greenhouse gas emissions and register factories using environmentally friendly and green technologies. Products registered under ISCC are recognized as being produced using organic, eco-friendly, and sustainable practices. By acquiring this certification, our company is now eligible to receive Carbon Credits. Carbon Credits are a financial mechanism designed to support businesses working to reduce their greenhouse gas emissions. Essentially, if we reduce emissions, we accumulate Carbon Credits. These credits can be sold to industries that exceed their emission limits. Moreover, products with ISCC certification are particularly attractive to global markets that prioritize sustainability. With our certification, we’ve already connected with major international clients and have started expanding our reach. To my knowledge, our company is one of the few in Mongolia to receive this certification.

United Сolors of Вenetton store was officially opened on September 21, 2010. The bone factory was commenced on February 15, 2019

-You are exporting your products to South Korea, is that correct?

Yes, I do proudly say that we are exporting our oil to South Korea. Although the market is there, we face significant logistical challenges. The transportation distance is too long—our oil is f irst shipped from Ulaanbaatar to Erenhot, then to Tianjin, China. After a wait at the port, it is f inally shipped to South Korea. During this long journey, the quality of the oil can be affected. South Korean refineries buy our oil because it is an eco-friendly, energy-saving, and greenhouse gas-reducing raw material. So, there is demand for our product, but logistical issues persist.

-What are the challenges and difficulties you face in your production?

-There are many challenges, but I no longer view them as obstacles. The biggest challenge we face is the export restrictions from Mongolia to China for animal products. To export to China, we need approval from the Chinese Customs and Quarantine Authorities. Despite our efforts over several years, we haven’t been able to obtain the necessary approval. Some companies were able to acquire export permits for our oil, but this year, those permits were revoked. Currently, only one company still holds the export rights. Additionally, there are specific regulations regarding the transportation of our products through China. If there is an outbreak of livestock disease in Mongolia, all transit shipments are halted. These risks exist because the international community is still skeptical about the quality of our veterinary and agricultural systems. If we can improve these systems, new export routes will open, and more Mongolian animal-based products could be exported. This would allow factories to operate more efficiently and with greater motivation.

-What motivates you to overcome these challenges?

-The motivation for me comes from seeing the waste that was once buried in the earth, polluting the environment, now being processed into end products. The courage and patience to transform that waste into something useful is my driving force. On top of that, we’re feeding animals like chickens and livestock with the very feed we produce, and nourishing the soil with the organic fertilizers we’ve created. In return, we get eggs from our chickens, meat from our animals, and crops from the land we’ve nurtured. The benefits of this cycle provide us with the greatest motivation and sense of fulfillment. Every time I walk into the factory, I feel a wave of emotion. My ancestors have left us fertile soil, lush green f ields, pure rivers, and pristine mountains. We are tasked with the responsibility of protecting and preserving these gifts for future generations, rather than depleting them. This sense of duty gives me a profound sense of pride in my work.

 I learned that people around the world create businesses that directly serve their nations, and I wanted to do the same

-I’ve spoken to many women entrepreneurs, and after hearing your story, I must say that I’m in awe of your journey.

-Thank you so much. Indeed, there are many women entrepreneurs in Mongolia. I would even say that Mongolia’s economy is carried by the shoulders of its women. Mongolian women are incredibly resilient, strong, and hardworking. Women in other countries, like in Italy for instance, may focus solely on their expertise—such as being fashion designers. But here, we do everything! If I take myself as an example, I was once in the fashion industry, talking about brands and trends, but then I switched to running a bone processing factory. Now, I’m talking about fertilizers, oils, and poultry feed, all while also dealing with fashion orders in Italy. I’m balancing my family life, raising children, and managing my business. It’s truly inspiring how women in Mongolia are leading and excelling in so many fields at once.

-You’ve mentioned that Mongolia will develop and flourish by supporting its manufacturing sector. What do you think the country still needs to improve on?

-Indeed, Mongolia will only develop and thrive if we support our own industries. What’s missing is a proper, supportive system for small and medium-sized businesses, and the right incentives to foster a competitive environment. However, I firmly believe that if we continue to work hard and push forward, we will eventually reap the fruits of our labor. Good times are on the horizon, and I have full faith that we’ll get there. I wish you all the best of luck in your work and future success!