Incentives to be provided for supply of quality milk

Economy | Agriculture
2020-09-30 14:27:24

Ulaanbaatar /MONTSAME/ At its regular meeting on September 30, the Cabinet approved temporary regulations to provide monetary incentives to herders and intensive farmers for supply of raw materials that meet the requirements of milk and dairy factories.

The milk incentives will be provided through Ebarimt system from November to December this year and the reward program will continue until June 1, 2025. The incentive scheme is expected to boost supply of raw milk in winter, stabilize raw material supply, increase production of import-substituting products, and make it possible to sustainably and inclusively meet domestic milk and dairy needs.

Today, 204 milk and dairy factories operate nationwide with 1,680 workers. Even though the factories have an annual combined capacity of over 470 thousand tons, they are currently operating at only 35 percent of their capacity due to the absence of an established supply chain and seasonal production of raw materials. Herders currently supply 16.8 million while 27 million liters of milk is required to meet the domestic milk and dairy product demand in winter.