New IFC Guidebook supports development of Mongolia’s livestock sector, offers scope to bolster exportsEconomy | Agriculture
Ulaanbaatar, Mongolia, October 27, 2020—Developing modern feedlots could help Mongolia improve its beef production efficiency, export competitiveness, and rural household incomes, reveals a new guidebook by IFC, a member of the Work Bank Group.
The publication, Developing Feedlots in Mongolia, provides practical information as well as best practices from Mongolia, North America, and Kazakhstan to guide feedlot owners and operators, who are mostly herders and rural entrepreneurs in the beef cattle sector. This guidebook further offers market insights on the sector for investors, bank loan officers, and policy makers.
“IFC is intensifying its support to Mongolia’s traditional livestock industry and looking for new opportunities in this sector,” said Rufat Alimardanov, IFC Resident Representative for Mongolia. “With the right policies, we are confident that the meat industry could attract necessary investments, improve incomes for herders, and ensure the nation’s sustainable recovery from COVID-19. In this context, developing feedlots and expanding the sector’s capacity and resources is critical.”
Households and the catering industry in Mongolia tend to prefer the soft, juicy, and marbled variety of beef. Demand for quality beef is prevalent among consumers and specialized retailers as well. Imported beef that caters to this market demand, offers an opportunity to Mongolian beef producers who are capable of import substitution. An analysis of Mongolia’s production resources and domestic markets further reflects a timely opportunity to develop an export-oriented meat industry.
For meat producers, developing beef feedlots—with faster turnover of cattle between 90-to 120 days from intake and slaughtering—could improve quality and yield of the cattle, thereby contributing to a higher return and revenue for herders and intensive livestock farmers.
“Mongolia’s beef production sector needs to embrace a comprehensive approach to meet international and national meat market demands,” said Jigjidmaa Dugeree IFC’s Project Manager for the Investment Policy and Agriculture Investment Promotion Program. “This implies taking advantage of nomadic animal husbandry and ways of life, integrating knowledge, experience, and best practices from countries with mature beef industries and developing new business models for Mongolia’s livestock industry.”
IFC—in partnership with the government of Japan—has been supporting the government of Mongolia in enabling private investment in the agriculture sector through its Investment Policy and Agriculture Promotion advisory project. The project is also part of the World Bank Group’s efforts to revitalize Mongolia’s livestock sector, which employs 25 percent of the country’s labor force.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.