FAO in Mongolia

Increasing the supply of dairy products to urban centres in Mongolia by reducing post-harvest losses and restocking

The project Increasing the supply of dairy products to urban centres in Mongolia by reducing post-harvest losses and restocking with total fund of 1.96 USD million was funded by the Governments of Mongolia and Japan, under the Kennedy Round facility, and executed by the FAO under its global Special Programme for Food Security and implemented during 2005-2007 to rebuild the dairy industry in Mongolia.

By the end of the two-year project in 2006, milk was being collected from 1 500 herding and farming households that are benefiting from the enhanced nutrition, regular incomes and rural jobs that milk provides as

By the end of the two-year project in 2006, milk was being collected from 1 500 herding and farming households that are benefiting from the enhanced nutrition, regular incomes and rural jobs that milk provides as nature's most complete food.
Quantities produced and collected had increased five-fold to a total of 12 million litres over the 2003 base year. More than 40 000 school children received fresh milk from distribution schemes established by the project.

The number of dairy industry partners was expected to increase to 200 000 in 2007; twenty new dairy products were produced, tested and launched in urban markets, and 800 dairy cows were involved in a genetic improvement (re-stocking) scheme. Mongolia is on its way to self-sufficiency and food security in milk and dairy products. In 2003, the country was importing nearly all of its processed milk at a huge cost. Now, a great part of consumer needs can be met in coming years through domestic production. The volumes collected by milk processors were set to increase five-fold in 2006 compared to 2003, to about 15 million litres.

In long-term impact, the project was able to show the government and other stakeholders that milk can be produced, collected, processed and marketed to replace imported milk powder to the benefit of thousands of herders and milk producers. This has convinced Government to invest heavily in sustainably developing the dairy sector. During the project lifetime, a new National Dairy Programme was approved by the government in October 2006.

Quantities produced and collected had increased five-fold to a total of 12 million litres over the 2003 base year. More than 40 000 school children received fresh milk from distribution schemes established by the project.

The number of dairy industry partners was expected to increase to 200 000 in 2007; twenty new dairy products were produced, tested and launched in urban markets, and 800 dairy cows were involved in a genetic improvement (re-stocking) scheme. Mongolia is on its way to self-sufficiency and food security in milk and dairy products. In 2003, the country was importing nearly all of its processed milk at a huge cost. Now, a great part of consumer needs can be met in coming years through domestic production. The volumes collected by milk processors were set to increase five-fold in 2006 compared to 2003, to about 15 million litres.

In long-term impact, the project was able to show the government and other stakeholders that milk can be produced, collected, processed and marketed to replace imported milk powder to the benefit of thousands of herders and milk producers. This has convinced Government to invest heavily in sustainably developing the dairy sector. During the project lifetime, a new National Dairy Programme was approved by the government in October 2006.

The three main project intervention areas of: (i) milk production enhancement, (ii) milk marketing enhancement and (iii) dairy training/ capacity building had been mainstreamed into the new National Dairy Programme. During 2008-2009, processing facilities to produce fresh pasteurized milk, yogurt and other dairy products were built in 16 rural provinces allowing milk to be collected from 700 farmers and herders in remote areas. The building and installation was carried out by national technical staff that were trained, and interventions piloted successfully through the FAO-implemented Dairy Project.

Brian Dugdill, the chief technical advisor of the project was recognized with an award from the president of the country and a letter of commendation from the Ministry of Food and Agriculture for his unique contribution to development in Mongolia. He also received the B.R. Sen Award from FAO in 2007 for his outstanding contributions towards the goal of improving food security and helping countries reduce poverty. For the first time, Mongolia’s President H.E. Ts. Elbegdorg, in his New Year 2011 speech, raised a toast with a glass of milk, declaring that milk was always sacred for Mongolians and he will be supporting the tradition of using dairy products in everyday life.

Project name: Increasing the supply of dairy products to urban centers in Mongolia by reducing post-harvest losses and restocking - (GCSP/MON/001/JPN).

Publicated: June, 2016.