Mongolia's Dairy Industry: An Analytical Overview

Milk Production and Dairy Cattle

Mongolia's dairy industry heavily relies on its rich tradition of livestock management, which includes dairy cows, yaks, and goats. As of 2023, Mongolia has approximately 1.19 million dairy cattle contributing to a total milk production volume of around 576 million liters per year. Dairy goats, numbering about 1.03 million, also 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. Mongolia's cheese production is estimated at 18,000 tonnes per year, demonstrating the industry's capacity to produce value-added products. Additionally, the country's production of milk powder and whey reaches approximately 25,000 tonnes 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, mainly to neighboring countries like China and Russia. Conversely, imports of dairy products reached about 12 million liters, predominantly from New Zealand and the European Union. Mongolia is a leading importer of Russian ice cream, reflecting its diverse import portfolio.

Significant Events

A significant development in Mongolia's dairy sector is the near completion of a camel milk processing plant in Umnugobi aimag, slated 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 growth potential within the sector. 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: 2025/02/05

---