Ulaanbaatar, February 28, 2025 /MONTSAME/. The Ministry of Food, Agriculture, and Light Industry of Mongolia, the Bank of Mongolia, and 10 commercial banks have signed a Concessional Loan Agreement to Finance the “Atar-4” Sustainable Agriculture Development Campaign.

Under the Agreement, commercial banks will provide loans worth MNT 800 billion to agriculture, livestock, and food production industries. Of this, up to MNT 350 billion will be allocated for working capital, and the rest for investment purposes. In 2025, MNT 52.8 billion will be allocated in the State Budget of Mongolia to subsidize loan interest rates, including 10 percent of the interest rate on working capital loans. The loan term is set at two years for working capital loans and four years for investment loans.

Minister of Food, Agriculture, and Light Industry Enkhbayar Jadamba said, “A month ago, the Bank of Mongolia and commercial banks signed a financing agreement for a large-scale program to improve the processing of wool, cashmere, and leather light industries. Today, a document for the “Atar-4” movement has been signed that will realize the Government’s goal of combining, intensifying, and diversifying agriculture with animal husbandry, and taking light and food industries to a new level. This program will be implemented until 2028 which would increase agricultural fields by 200 thousand hectares and boost production in food, agriculture, and light industries. To achieve this, agricultural fields must be protected from soil erosion. Mongolia's population will reach four million by 2030. In addition, the number of tourists visiting Mongolia will reach one million. Therefore, there is an urgent need to increase the volume of food cultivation and production to meet the growing demand. On the other hand, in collaboration with the "One Billion Trees" National Movement initiated by the President of Mongolia, we will elevate soil conservation policy, protecting soil fertility and establishing forest belts, introducing suitable advanced technologies in stages, including for irrigation and crop rotation. We will take comprehensive plant protection measures and develop seed breeding complexes. With these measures, we aim at increasing the food yield per land unit and create conditions for domestic production to meet 100 percent of the needs for grains, potatoes, and staple vegetables, and 70 percent of fodder demand."

"Moreover, we will support intensive livestock farming, adding 200 thousand high-yielding cows to the livestock herd and developing intensive meat and milk clusters. Another major task of this program is to augment feed cultivation for intensive livestock farming. Essentially, we will revolutionize feed cultivation and production. A network that directly connects farmers with producers will be established. The movement strives that all the stakeholders engaged in the food, agriculture, and light industry sectors can develop together. As a result, Mongolia will achieve the goal of providing its population with healthy and safe food and developing export-oriented agriculture. The export of Mongolian food, agriculture, and light industry sectors currently amounts to USD 1 billion, while the implementation of the “White Gold” National Movement and “Atar-4” Campaign, which are interconnected, will enable us to augment the export to USD 2 billion,” the Minister noted.

To boost agricultural production, increase capacity, and improve efficiency, investment loans will be provided to individuals and enterprises engaged in agricultural production in 15 areas as follows:

1. Establishing a fully mechanized threshing floor

2. Establishing a new mechanized potato and vegetable storage and cellar

3. Establishing a new greenhouse and plant factory (hydroponics, aeroponics)

4. Increasing the capacity of agricultural machinery and equipment, purchasing new ones

5. Establishing and expanding a mushroom factory

6. Expanding and establishing a new beef cattle farm, purchasing equipment

7. Expanding and establishing a new livestock breeding farm, purchasing equipment

8. Stabilizing poultry farming operations, expanding production, purchasing equipment

9. Establishing feed plant and expanding feed production

10. Stabilizing beekeeping farm operation, expanding production, purchasing equipment

11. Establishing a new dairy cattle farm (cluster), expanding production, purchasing equipment

12. Upgrading food processing equipment

13. Establishment and expansion of a new processing plant for grains (soybeans,  peas, beans, rye, barley) and purchase of new equipment

14. Establishment and expansion of a new food and meat warehouse and purchase of new warehouse equipment

15. Establishment of a new packaging plant for agricultural products