Ulaanbaatar
ADB and Ulaanbaatar Flour Partner to Support Women Farmers and Wheat Supply Chain
Economy
Ulaanbaatar, May 9, 2025 /MONTSAME/. On May 8, 2025, the Asian Development Bank (ADB) and Ulaanbaatar Flour LLC (UBF) signed a 3-year USD 10 million loan agreement to implement a project to support women farmers and local wheat procurement to meet the increasing demand for domestically processed wheat flour in Mongolia. This financing will provide UBF with working capital to purchase wheat from local farmers.
ADB Country Director for Mongolia Shannon Cowlin said, “Wheat flour is a key staple for Mongolian families,
representing about one-third of their daily caloric intake. However, local
wheat production faces challenges due to a single harvest season and
vulnerability to climate events. This project will help stabilize the wheat supply chain by
supporting UBF’s procurement from local farmers, especially women, and will
contribute to a more resilient and inclusive agriculture sector. It will also
enhance Mongolia’s food sustainability and reduce reliance on imports.”
The project will facilitate consistent wheat procurement
and provide a stable buyer for 250 wheat farming enterprises, including
smallholder and women-led farms. UBF will also integrate the needs of women
suppliers into its procurement policies and disseminate awareness-raising
materials that encourage the redistribution of unpaid care work and support
prevention and response to domestic violence within farming communities.
CEO of Ulaanbaatar Flour LLC Bakhatguli Nuktarkhaan said, “We are proud to continue our partnership with ADB to
strengthen Mongolia’s wheat value chain and support local farmers. This financing is
critical to ensuring a reliable supply of quality wheat for our operations
while empowering smallholder and women-led farms. Through this collaboration,
we aim to improve food security, promote inclusive growth in rural communities,
and build resilience against climate impacts.”
Additionally, a USD 500,000 technical assistance grant will
be provided by the Asian Development Bank to enhance the resilience of wheat farmers through training
programs in financial literacy, food security, and climate-adaptive
agricultural practices. These practices will include soil fertility, water management, and
pest control.
As of 2024, there are 16,189 wheat farmers nationwide.
