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Demand for Batsaikhan.S / ZGM© investment rises in agriculture as livestock heads increase www.zgm.mn

According to the statistical data on the growth of livestock heads in Mongolia, the share of livestock in the macroeconomy is declining, calling for investment in the field. The agricultural sector accounts for only about 10-15 percent of the gross domestic product (GDP) according to the Ministry of Food, Agriculture and Light Industry (MOFA). The amount falls further for animal husbandry.

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.



Published Date:2019-06-03