Mongolia's Dairy Industry: An Analytical Overview

Milk Production and Dairy Cattle

Mongolia's dairy industry is significantly influenced by its rich tradition of livestock management, which includes dairy cows, yaks, and goats. In 2023, the country boasted approximately 1.19 million dairy cattle, contributing to a total milk production volume of around 576 million liters per year. Additionally, dairy goats, numbering about 1.03 million, play a crucial role in these production figures.

Dairy Processing and Production

The annual processing volume of milk in Mongolia is about 200 million liters. The industry has demonstrated its capacity to produce value-added products, with cheese production estimated at 18,000 tonnes per year. Furthermore, Mongolia produces approximately 25,000 tonnes of milk powder and whey annually.

Key Enterprises

Suu JSC
Monfresh Dairy LLC
Undurkhaan Dairy
Asem Agro
Tes Agro LLC

Dairy Farms

Bayankhoshuu Dairy Farm
Erdene Farm
Khustai Dairy Farm
Selenge Cooperative

Exports and Imports

In 2023, Mongolia exported approximately 9 million liters of milk and dairy products, primarily to neighboring countries such as China and Russia. Conversely, imports of dairy products reached about 12 million liters, predominantly from New Zealand and the European Union. Notably, Mongolia is a leading importer of Russian ice cream, reflecting its diverse import portfolio and enhancing regional trade ties.

Significant Events

A notable development in Mongolia's dairy sector is the near completion of a camel milk processing plant in Umnugobi aimag, scheduled for commissioning in October 2024. This plant aims to bolster Mongolia's presence in the niche global camel milk market.

Additionally, APU Dairy, the second-largest dairy producer in Mongolia, has secured a $40 million loan to support its expansion, highlighting the sector's growth potential. The European Bank for Reconstruction and Development (EBRD) also announced a $20 million loan to APU Dairy, reflecting confidence in the sector's promising future.

Despite a decrease in livestock numbers by 10.9% in 2024, bringing the total to 57.6 million animals, Mongolia's dairy market is poised for continued advancement through increased production and enhanced processing capabilities.

Modified: 2025/05/18