Foreign trade partners and delegations tend to emphasize the potentials of animal husbandry in Mongolia; however, the agriculture accounts for only 0.04-0.08 percent of direct foreign investment (FDI) in Mongolia. The sheer amount displays the investors’ interest and value in the sector. The agricultural sector, especially, animal husbandry is highly dependent on the weather condition. The sun, wind, and rain affect the number of livestock and benefits of it. The traditional animal husbandry sector has been facing difficulties due to risks including the carrying capacity of a pasture, the low livelihood of herders, and animal diseases.

“Animal husbandry is almost abandoned while the government and foreign investors are focusing on the mining sector. The animal husbandry, the special sector that shows Mongolia’s tradition and history, is being forgotten. There are clear schemes for funding. Mongolia once built the industrial complex when it had 26 million livestock. Now there is nearly 70 million livestock in Mongolia. The Bank of Mongolia should invest in the sector that could help accumulate the foreign exchange when paying with the MNT,” emphasized Mongolian President Battulga Khaltmaa at the Mongolian Economics Forum.

The World Bank estimated that Mongolia needs to develop a standard and certification system for animal husbandry and develop a risk-based monitoring system as soon as possible. The government needs to support the sector with the right policy, solving the system of raw material preparation as well as ensuring animal health.

Officials estimate that about MNT 800 billion worth investment is required in agriculture to boost outcome and prevent potential risks. This will increase profits by MNT 2 trillion and raise agriculture share in the economy to make up 20-30 percent of the total exports.

In his opening speech, Deputy Minister of Environment and Tourism Ts.Batbayar noted that solutions to source the necessary financing for studies and researches and for the protection of the environment is currently being determined in the frameworks of the project.

He highlighted that the discussion, which aims to determine the source of the necessary financing for implementation of the Sustainable Development Goals for 2030 and the Sustainable Development Agenda, is being held during the development of the sixth national report of the implementation of the Convention on Biological Diversity. According to the study that was done in the project frameworks, 50.1 percent of the total financing for environmental protection and rehabilitation of natural resources are from the state and local budget, while the rest 49.9 percent is sourced by aids given by international organizations.

During the discussion, the national consulting team for the BIOFIN project introduced the the current state of policy on environmental protection, its institutes and calculation of necessary financing. They also put forth suggestions for the most suitable and sustainable solutions to source the financing from available resources.

Initiated by the UNDP, the BIOFIN project was launched at the UN Biodiversity Conference in October 2012. With the project being implemented in over 30 countries in Asia, Latin America and Africa, the project has been implemented in Mongolia at the initiation and support of the Ministry of Environment and Tourism since September 2015.

The industry expert noted that introducing the smart technology that recycles solid waste, rock, metal and organic materials is essential for maintaining ecological balance.

“Our project is giving importance to the environmental protection, focusing on the construction waste recycling. With the laboratory repair and necessary equipment, it is now possible to recycle environmentally nonharmful construction waste,” said the project manager M.Byambaragchaa.

The project implemented by Caritas Czech Republic with the support of European Union and czech Development Agency is aimed at encouraging SMEs in construction sector to introduce resource-efficient, sustainable and clean production.

Ulaanbaatar produces 350-400 thousand tons of waste annually, about 100 thousand tons or 12-15 percent of which is construction waste. Renovation of the laboratory and new machinery improves conditions for research and experiments on construction waste, thereby increasing Mongolia's recycling system.

Mongolia's geographic location, sandwiched between the large economies of China and Russia, presents an opportunity, said Gombojav Zandanshatar, chairman of the State Great Hural of Mongolia, the country's parliament.

"The top priority is to connect Russia and China, and also there is a discussion if it's possible to construct gas and oil pipelines through Mongolia -- exporting Russian resources to China," he said after delivering a speech.

"Actually, the Belt and Road Initiative will positively impact the Mongolian economy if implemented successfully, because Mongolia's role and participation is especially important."

Mongolia is organizing a trilateral meeting with Russia and China to accelerate the development of an economic corridor, which includes dozens of projects, such as modernizing Mongolian railroads and highways connecting the three neighbors.

Mongolian President Battulga Khaltmaa is scheduled to meet Russian and Chinese officials in Kyrgyzstan next month, he said.

But while Ulaanbaatar is eager to tap the Belt and Road for economic growth, it is wary of taking on a heavy debt load.

Mongolia received an International Monetary Fund-led bailout in 2017 after plummeting commodity prices hurt its finances. But the ratio of government debt relative to gross domestic product has been reduced, while loans from China make up less than 10% of the total, according to the chairman.

"We don't see any high risk of debt [default] in Mongolia," he said, adding the key is to use international credit "precisely and efficiently" to avoid risk and drive the economy.

The country, he said, is also diversifying to reduce its reliance on commodity exports.

"For instance, the Chinese middle class is expanding, demand for high-quality food products is increasing," he said. "We have a lot of potential to export not only commodities but other agricultural and tourism-related products."

Under the framework of the year, a series of measures will be taken to make sure that parents play their roles and assume responsibilities to protect children from violence. The year would also see more cooperation between government and non-government organizations, according to the government's press office.

"We need to listen to the voices of our children in order to help them in any situation. Parents should be the closest friends of their children", Mongolia's Minister of Labor and Social Protection Sodnom Chinzorig said.

At the event, Minister of Food, Agriculture and Light Industry Mr Ch.Ulaan, MP and Head of the Mongolian Food Producers’ Association Mr D.Terbishdagva, UN Food and Agriculture Organization Resident Representative Mr Vinod Ajuha and Ambassador of the European Union to Mongolia Mr Traian Laurentiu Hristea gave presentations on the development of milk industry and strategies and policies to be implemented in the future.

Mongolia’s processed liquid milk production has been on the rise year by year, amounting to 33.4 million litres in 2017 and 38.2 million litres in 2018. This is thanks to Mongolian companies’ actions of developing intensive farming, improving their partnerships with herders and farming businesses as well as the outcomes of the government’s policies and actions and activities undertaken within the Mongolian Livestock National program and the First Meat and Milk Campaign.

Moreover, during the event, an exhibition of national producers including Suu JSC, Vitafit Milk LLC, Khaan Milk LLC and TESO corporation took place.

At the first stage, it is intended to develop metallurgy, machinery industry, oil refinery, deep coal processing and chemical industry. It is estimated that by 2026, the income from heavy industrial sector to the state budget will increase, creating over 5000 jobs

At the beginning of the meeting, President Kh.Battulga expressed his pleasure with meeting the ambassadors and delegates again and extended greetings on the occasion of the 30th anniversary of diplomatic relations between Mongolia and the EU.

The ambassadors raised questions concerning the President’s state visit to the People’s Republic of China, the Belt and Road initiative, and recent developments in the domestic legal system and discussed in depth about the diversification of the Mongolian economy.

For instance, President Battulga highlighted the announcement made by President Xi Jinping during his visit that China was looking to develop as an importer nation, while expressing his view that it would create an opportunity of increased export for neighboring Mongolia. President Battulga shared his vision on Mongolia’s export potentials, especially in the sectors of agriculture and tourism, and the possibility of exporting value-added products originating from these sectors to China and the surrounding region.

President Battulga spoke about the substantial opportunities for Mongolia to export goods to the EU market and its neighbor countries by promoting cooperation based on not only agriculture, the traditional economic sector of Mongolia, but also the processing industry, and introducing and adopting advanced technology, know-how, and expertise from European countries.

The ambassadors expressed their readiness to explore the possibilities of broadening cooperation in these areas. In this regard, the sides discussed and reached an understanding on the matter of organizing an extended-format joint meeting with entities next fall, with the purpose of improving connectivity between Mongolian companies and EU entities and investors and increasing export opportunities.

The ambassadors expressed interest in and discussed the Northeast Asia Energy Super Grid Project, an initiative of President Battulga.

At the end of the meeting, President Battulga expressed his confidence that the ambassadors will pay close attention to the strengthening of bilateral relations and cooperation and wished success in their duties.

In Mongolia, there has not been a detailed survey of rare elements that would meet fiscal requirements. Mongolia was only an observer in the last few years and is now trying to compete in this market. Mongolia has 71 deposits and 300 mineralized reserves with rare earth minerals reserve, including Khalzan Buregtei, Luugiin Gol, Mushgai Khudag, Tsagaan Chuluut, and Khotgor.

Regardless of the review from the World Bank, further analysis of the rare earth geological survey on the territory of Mongolia are required, highlighted experts of the Ministry of Mining and Heavy Industry (MMHI). The Mineral Resource and Petroleum Authority of Mongolia (MRPAM) reported that the operation in the Khalzan Buregdei deposit has commenced and the feasibility study of another one in Myangad soum, Khovd province has been approved.

During the meeting of the Prospectors and Developers Association of Canada (PDAC), a major forum of the world mining sector held in early March, the Government of Mongolia introduced the new policy to international investors for the first time. Mongolia expressed its intention in attracting investment in rare earth elements, such as uranium, aside from the traditional raw materials, including gold, copper, and coal. The participating investors at the PDAC displayed interest in the initiative.

The MMHI has recently announced its plan to intensify the exploration of rare-earth elements in cooperation with Germany. Last week, Mongolian and German intergovernmental working groups have discussed and the sides considered to work in the field of the rare earth elements. Also, Japan has been expressing its interest in exploring rare earth elements in Mongolia.