Financing agreement signed for World Bank Livestock Commercialization Project

Economy | Agriculture
2020-02-10 11:43:35

Ulaanbaatar /MONTSAME/. On February 7, the Ministry of Finance of Mongolia and the World Bank signed Financing agreement for the Livestock Commercialization Project.

The project, funded with $30 million loan financing from the World Bank, will be implemented in 150 soums of 14 aimags and Ulaanbaatar city. It aims to improve the health and productivity of livestock and increase value of products, such as meat and dairy by commercializing targeted value chains in selected locations. 

The signing ceremony was attended by Minister of Food, Agriculture, Light Industry Ch.Ulaan and other relevant officials as the 5-year project will be implemented by the Ministry of Food, Agriculture, and Light Industry of Mongolia. 

The project will help improve the health and productivity of livestock and increase value of products such as meat and dairy by commercializing targeted value chains in selected locations.

With more than 60 million livestock and wide pastureland, the Mongolian agriculture and livestock sectors have huge potential to drive economic diversification and as a key source of broad-based employment.

However, major challenges such as low productivity, animal health issues, and vulnerability to climate change and extreme weather events, limit the sector’s potential. About 56 percent of Mongolia’s herders own 200 head or fewer of livestock and are trapped in a low-input, low-output, low-productivity cycle.

Animal disease, coupled with poor food hygiene and inadequate nutrition, limit the output and quality of meat and dairy products. As a result, Mongolian meat exports have stagnated at less than 10 percent of their potential despite the country’s proximity to the region’s largest markets for meat imports.

The new project aims to improve the quality of and access to veterinary services nationally and help establish trans boundary animal disease free zones. The project will help improve performance of the Mongolian Veterinary Services Authority to effectively control animal diseases, promote responsible use of antimicrobials, provide veterinary public health services, and improve food safety in line with international standards, according to World Bank Mongolia. 

In addition, the project will improve livestock productivity and increase the volume of livestock products that meet market requirements by promoting partnerships between producers and processors. Collaborative research with academic and research institutions, as well as investments to improve animal breeding and nutrition services, will also contribute to this goal. Moreover, the project will provide immediate response in the event of an eligible crisis or emergency.

In particular, the project is deemed to eliminate livestock diseases cases by 25 percent at minimum, increase animal meat and milk outputs by 15 percent, involving 20 thousand herders directly and improving the value of livestock meat products by 20 percent. 

As a result of the project, competitiveness of the livestock industry and exports market to be expanded with improved benefits of livestock animals and improved livelihoods for herders. 

“Livestock and Agricultural Marketing Project” with grant aid of USD 11 million from the World Bank was implemented throughout 15 soums of 5 aimags of Mongolia between 2013 and 2017, reports the Ministry of Finance. 

The project, aimed at establishing connection between herders with markets and consumers, improving livestock animal breeding and developing livestock industry value chain, covered 140 thousand herders to result in 78-percent growth in their incomes from livestock products.