ShapeShapeauthorShapechevroncrossShapeShapeShapeGrouphamburgerhomeGroupmagnifyShapeShapeShaperssShape

Mongolia - Livestock Situation 2009

by 5m Editor
16 June 2009, at 9:46am

MONGOLIA - The latest GAIN report from the USDA's Foreign Agricultural Service states that livestock herding, which provides a living for approximately 28 per cent of the population, continues to be under stress following the global finanical crisis. As the economy recovers, Mongolia is expected to become a steady two- to three-million dollar market for US chicken products.

Report highlights

The global financial crisis that began in 2008 continues to have a negative impact on Mongolia's economy. Although inflation is down and the local currency is up, livestock herding, which provides a living for approximately 28 per cent of the population, continues to be under stress. In recent months, the herding sector has been most severely affected by a sharp reduction in cashmere and meat prices.

At the same time, low local meat prices and increasing poverty, have resulted in a sharp decrease in once rapidly growing exports of US chicken meat that peaked at a record $2.2 million in 2008. In the years ahead, as the economy recovers, Mongolia is expected to become a steady $2-3 million market for US chicken products, especially to Ulaanbaatar, the cities and the mining sector.

Chicken meat

In 2008, US chicken meat exports reached a record $2.2 million, up from zero in 2004. Despite high local meat production, US poultry has been a popular item, especially in Ulaanbaatar where there is increasing familiarity with US products. The strongest urban markets are in supermarkets, restaurants, and tourist-oriented venues such as bars. Mining settlements, which could eventually house thousands of workers, provide another potentially lucrative market for US poultry.

The most popular items are leg and hindquarters with retail prices averaging around 3,500 tugriks/kg ($1.40/lb). Outside Ulaanbaatar, sales of US chicken are limited by the undeveloped cold chain and low incomes. In 2009, the rapid decline in local meat prices and discretionary incomes dented demand for US chicken, lowering imports from January to March 2009 to just $171,000. This shift toward less expensive animal proteins is expected to remain as long as the Mongolian economy remains under stress. However, as the country recovers, it is expected to become a two- to three-million dollar market for US chicken meat.

Poultry import requirements
Imports of chicken meat and chicken meat products into Mongolia are subject to sanitary requirements but do not require an import license. They must be from US slaughter facilities approved by the US Department of Agriculture's Food Safety Inspection Service (FSIS). The meat is inspected at the plant by an FSIS inspector and once its wholesomeness is determined, it is stamped. The seal means it has been inspected and passed.
Most chicken meat destined for Mongolia is transshipped through China, almost all entering through Tianjin. If product is sent to Mongolia by rail, there can be long delays – often at the China-Mongolia border where products often need to be offloaded because of a rail gauge discrepancy. In addition, the lack of temperature-controlled cars can make it difficult to move perishable goods. Since there are no sealed roads from the Chinese border to Ulaanbaatar, truck transport poses a high risk of loss or damage. While most shipments successfully transit China, it is important to work with importers and logistics companies that are capable of securing the necessary transport, sanitary documents and transit licences.

Further Reading

- You can view the full report by clicking here.

Further Reading

- You can view other GAIN reports from the USDA's Foreign Agricultural Service by clicking here.