Mongolia's Dairy Industry Overview

Mongolia's dairy industry is a critical part of its economy, grounded in a rich cultural heritage of livestock management. In 2023, the industry was supported by approximately 1.19 million dairy cattle and 1.03 million dairy goats. This livestock base enabled the production of a substantial 576 million liters of milk annually, underscoring its importance to the national economy and the vibrancy of the dairy sector.

Dairy Processing and Production

The processing capabilities of Mongolia's dairy industry are noteworthy, with facilities capable of managing approximately 200 million liters of milk per year. These facilities produce various value-added products, including around 18,000 tonnes of cheese and 25,000 tonnes of milk powder and whey annually, reflecting the sector's robust processing infrastructure.

Key Enterprises

Several enterprises are pivotal in driving Mongolia's dairy industry forward. Notable companies include Suu JSC, Monfresh Dairy LLC, Undurkhaan Dairy, Asem Agro, and Tes Agro LLC. Additionally, important dairy farms such as Bayankhoshuu Dairy Farm, Erdene Farm, Khustai Dairy Farm, and Selenge Cooperative significantly contribute to the industry's production capacity.

Exports and Imports

In 2023, Mongolia exported approximately 9 million liters of milk and dairy products, with primary markets being China and Russia. Simultaneously, the country imported about 12 million liters of dairy products, mainly from New Zealand and the European Union. Mongolia is also a major importer of Russian ice cream, diversifying its import portfolio.

Significant Events

A notable development is the near completion of a camel milk processing plant in Umnugobi aimag, anticipated to begin operations in October 2024. This development will enhance Mongolia's presence in the global camel milk market. Moreover, APU Dairy, the country's second-largest dairy producer, secured a $40 million loan for expansion, including $20 million from the European Bank for Reconstruction and Development (EBRD), indicating confidence in the sector's growth potential.

Market Trends and Future Outlook

Despite an expected 10.9% reduction in livestock numbers in 2024, bringing the total to 57.6 million animals, Mongolia's dairy market is poised for continued evolution. The industry's foundation in Tsagaan Idee, the traditional "white food" of Mongolia, is being transformed with innovative products, suggesting a promising future for the sector.

Health Concerns

A recent outbreak of foot-and-mouth disease was reported in the Ulziin Khayalga area in eastern Mongolia. Approximately 19,000 animals in the affected zone are scheduled for vaccination, demonstrating proactive measures to contain the disease. Additionally, Mongolia remains a significant importer of Russian veterinary vaccines, essential for maintaining animal health and productivity.

Mongolia also imports a variety of Kazakhstani dairy products such as yogurt, kefir, ryazhenka, butter and spreads, and cheese and cottage cheese, further diversifying its dairy consumption. Mongolia contributed to cheese and curd imports to Kyrgyzstan, though in smaller volumes.

Modified: 2026/02/18