Mongolia's Dairy Industry: An Analytical Overview

Milk Production and Dairy Cattle

Mongolia's dairy industry is deeply rooted in its tradition of livestock management, boasting approximately 1.19 million dairy cattle and about 1.03 million dairy goats. In 2023, these animals contributed to a total milk production volume of around 576 million liters annually. This production is vital to Mongolia's economy and sustains its dairy industry.

Dairy Processing and Production

The processing capacity of Mongolia's dairy industry is notable, with an annual processing volume of about 200 million liters of milk. The industry produces approximately 18,000 tonnes of cheese and around 25,000 tonnes of milk powder and whey each year, highlighting its capability to generate value-added products.

Key Enterprises

Several key enterprises are pivotal to Mongolia's dairy industry, including Suu JSC, Monfresh Dairy LLC, Undurkhaan Dairy, Asem Agro, and Tes Agro LLC. Additionally, dairy farms such as Bayankhoshuu Dairy Farm, Erdene Farm, Khustai Dairy Farm, and Selenge Cooperative play essential roles in production.

Exports and Imports

In 2023, Mongolia exported approximately 9 million liters of milk and dairy products, primarily to China and Russia. However, it also imported around 12 million liters of dairy products, mainly from New Zealand and the European Union. Mongolia is notably a leading importer of Russian ice cream, enhancing its diverse import portfolio.

Significant Events

A major development in the sector is the near completion of a camel milk processing plant in Umnugobi aimag, expected to commence operations in October 2024. This plant aims to enhance Mongolia's presence in the niche global camel milk market. Additionally, APU Dairy, the second-largest dairy producer, has secured a $40 million loan for expansion, supported by a $20 million loan from the European Bank for Reconstruction and Development (EBRD), reflecting confidence in the sector's growth potential.

Market Trends and Future Outlook

Despite a projected 10.9% decrease in livestock numbers in 2024, reducing the total to 57.6 million animals, Mongolia's dairy market is poised for continued advancement through enhanced production and processing capabilities. The sector's foundation in Tsagaan Idee, the historic 'white food' of Mongolia, is being revolutionized with innovative products, signaling a promising future for the industry.

Health Concerns

A new outbreak of foot-and-mouth disease has been registered at a farm in the Ulziin Khayalga area in the eastern part of Mongolia. Approximately 19,000 animals in the risk zone are planned to be vaccinated, showcasing the proactive measures being taken to contain the disease.

Modified: 2025/09/19