MONGOLIA* (20 April)

Preparations for wheat planting, which starts in May, are underway. Shortages of seeds are reported for the upcoming sowing campaign. Aggregate output of cereals in 1997, estimated at 240 000 tonnes, was about 33 percent below the average of the previous five years. As a result, the tight cereal supply situation is expected to deteriorate until the next harvest in September.

The economy is heavily dependent on the livestock sector, which contributes 88 percent to gross agricultural production. However, due to the transition to market oriented economy the sector has been subject to radical reforms in the form of the break-up of large state enterprises into smaller units and a sharp decline in budgetary and service support. As a result, the sector continues to be hampered by serious shortages of infrastructure such as wells, veterinary services, marketing systems and other inputs.