Mongolia's Dairy Industry Overview

Mongolia's dairy industry is deeply rooted in its cultural heritage, with a traditional emphasis on livestock management. In 2023, the industry boasted approximately 1.19 million dairy cattle and 1.03 million dairy goats, producing a substantial 576 million liters of milk annually. This production is a cornerstone of Mongolia's economy and supports its vibrant dairy sector.

Dairy Processing and Production

The processing capacity of Mongolia's dairy industry is impressive, with facilities capable of handling approximately 200 million liters of milk per year. The sector demonstrates its capability to produce value-added products by manufacturing around 18,000 tonnes of cheese and 25,000 tonnes of milk powder and whey annually.

Key Enterprises

Several key enterprises drive Mongolia's dairy industry forward, including Suu JSC, Monfresh Dairy LLC, Undurkhaan Dairy, Asem Agro, and Tes Agro LLC. Important dairy farms such as Bayankhoshuu Dairy Farm, Erdene Farm, Khustai Dairy Farm, and Selenge Cooperative contribute significantly to the industry's production capacity.

Exports and Imports

In 2023, Mongolia exported approximately 9 million liters of milk and dairy products, primarily to China and Russia. Meanwhile, the country imported around 12 million liters of dairy products, mainly from New Zealand and the European Union. Additionally, Mongolia is a major importer of Russian ice cream, adding to its diverse import portfolio.

Significant Events

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

Market Trends and Future Outlook

Despite an anticipated 10.9% reduction in livestock numbers in 2024, reducing the total to 57.6 million animals, Mongolia's dairy market is poised for continued evolution through enhanced production and processing capabilities. 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. Moreover, Mongolia remains a significant importer of Russian veterinary vaccines, essential for maintaining animal health and productivity.

Additionally, Mongolia 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.

Modified: 2025/10/31