Diversification policy outcome: Meat export rises 150 percent www.zgm.mn
Aside from the mining growth created by the surge in global commodity market this year, another sector is on the boom in Mongolia. Meat and meat products export revenue totalled USD 24 million in the first half of 2018, almost 150 percent higher compared to the same period of last year. Although the amount is fairly small compared to the mining sector, meat revenue is now catching up to cashmere. In order to ease Mongolia’s economic vulnerability that is highly dependent on mining sector, the Government has been making efforts to diversify the economy. In doing so, various national programs supporting import substitution products were introduced in recent years, such as Industrialization 21:100, Cashmere and Livestock Health. Last year, meat export was diminished due to livestock foot and mouth (FMD) disease outbreaks; however, the meat export still doubled the previous year’s amount thanks to rise in horse meat export. By tackling FMD outbreaks, the meat export flourished by the surge in beef, mutton and goat meat exports, and new markets have been opened for Mongolian meat and meat products this year. This includes new routes to Iran, Hong Kong and Vietnam.
One of the highlight of this year was goat meat export, which rose by eight times in the first half compared to last year’s mean time. Horse meat accounted for about 80 percent of total revenue, while demand for mutton, goat meat and beef are increasing. Specifically, horse meat export doubled, while mutton tripled. In addition to meat, live export jumped 11 times year-over-year. Experts estimate meat and live export revenue, which totalled USD 32.6 million in the first half, to reach about USD 81.3 million by the end of the current year. Presently, Max Market, Darkhan Meat Foods, Makh Impex and Sayan Uul are supplying meat and meat products in Mongolia according to the Mongolian Meat Association. The trending products consisted of precooked meat and sausages. National Council on Food Security conducted a study on meat export capacity. The study shows that Mongolia can export 27.9 tons of beef and 43.6 tons of horse meat this year. As for mutton and goat meat, the council set no restrictions, allowing limitless export. There are around 30 business entities with meat export permits, informed Ministry of Food, Agriculture and Light Industry. The ministry noted they are working to increase the number of permits and penetrate new markets. Furthermore, FMD outbreaks in seven soums of Arkhangai and three soum of Uvrukhangai aimags have been successfully tackled last month.