Milk market in Mongolia

Earlier Report Observations

The milk market in Mongolia demonstrated a clear upward trajectory from 2018 to 2023, expanding its total volume by over 35% across the period. Starting at 201.2 thousand tons in 2018, the market experienced a slight dip in 2019 before recovering in 2020. A more pronounced contraction occurred in 2021, bringing the market size down to 193.3 thousand tons.

This decline was sharply reversed in the following two years, with the market volume surging to 227.2 thousand tons in 2022 and reaching 272.3 thousand tons in 2023. This growth was fundamentally driven by a marked increase in domestic milk production, which rose from 195.4 thousand tons to 264.6 thousand tons over the same span. Imports remained a stable but minor component of supply, while exports were negligible, underscoring the market's reliance on internal output.

Production milk in Mongolia

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Mongolia's milk production rebounded after two years of decline. In 2020, the country produced 200.2 thousand tons of milk, marking a modest 3.6% increase from the previous year. Looking at the period from 2017 to 2020, production fell by 4.1%, which translates to an average annual decline of 1.4%. The lowest production level was recorded in 2019 at 193.2 thousand tons, while the steepest drop occurred in 2018 with a 6.4% decrease.

Annual dynamics of production in Mongolia in kind, 2017-2020, K t

Exports milk from Mongolia

Exports in kind, t

Mongolia's milk exports continued to decline for the second year in a row. In 2019, exports amounted to just 1 ton, representing a dramatic 99.3% drop compared to 2018. Over the three-year span from 2017 to 2019, exports plummeted by 99.7%, with a compound annual growth rate of -85.2%.

Annual dynamics of product's exports from Mongolia in kind, 2017-2020, t

From 2017 to 2020, China remained the dominant and nearly exclusive destination for Mongolia's milk exports in kind, accounting for 96.3% of the total.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Mongolia in kind, 2017-2020

Exports in value, K $ US

Mongolia's milk exports in value terms declined for the second consecutive year. In 2019, exports reached 6 thousand US dollars, indicating a sharp 98.2% decrease from 2018. Between 2017 and 2019, exports fell by 99.3%, equating to an average annual decline of 80.4%.

Annual dynamics of product's exports from Mongolia in value, 2017-2020, K $ US

During the 2017-2020 period, Mongolia's milk exports in value terms were almost entirely directed to China, which held a 96.0% share of the total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Mongolia in value, 2017-2020

Imports milk to Mongolia

Imports in kind, t

After two years of growth, Mongolia's milk imports in kind declined. In 2020, imports stood at 5 844 tons, down by 12.6% compared to 2019. Over the period from 2017 to 2020, imports increased by 7.3%, with an average annual growth rate of 2.4%. The peak was recorded in 2019 at 6 685 tons, which also saw the largest increase of 12.0%.

Annual dynamics of product's imports to Mongolia in kind, 2017-2020, t

From 2017 to 2020, New Zealand (35.6% of imports in kind), Belarus (26.8%), and Poland (13.1%) remained the key sources for Mongolia's milk imports in kind, together accounting for 75.5% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Mongolia in kind, 2017-2020

Imports in value, K $ US

Following two years of increase, Mongolia's milk imports in value terms declined. In 2020, the country imported 16 850 thousand US dollars worth of milk, which is 4.8% less than the previous year. Between 2017 and 2020, imports grew by 23.1%, translating to an average annual increase of 7.2%. The highest value was recorded in 2019 at 17 700 thousand US dollars, with the largest rise of 18.7% also occurring that year.

Annual dynamics of product's imports to Mongolia in value, 2017-2020, K $ US

Throughout 2017-2020, New Zealand (44.8% of imports in value terms), Belarus (29.3%), and Poland (13.0%) remained the main markets for Mongolia's milk imports in value terms, jointly representing 87.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Mongolia in value, 2017-2020