Wheat and meslin flour and cereals market in Mongolia

Earlier Report Observations

From 2018 to 2020, the market for wheat and meslin flour and cereals in Mongolia showed notable volatility. Production initially recovered in 2018, supported by improved agricultural practices and favorable weather that boosted wheat yields. This trend was reinforced in 2020 when government programs, launched to ensure food security during the COVID-19 pandemic, actively promoted domestic wheat cultivation. These measures led to increased local production, which raised overall market volume that year despite some global supply chain disruptions.

The market adjusted in the following years with legislative changes playing a key role. In 2022, amendments to the Food Law formally defined wheat and flour as 'strategic food,' underscoring their national importance. Concurrently, export restrictions by neighboring countries, such as Kazakhstan, affected import availability. While domestic wheat harvests reached high levels in 2021, processing into flour and cereals did not follow the same pace, contributing to a period of lower market volume. Consumer demand for these staple products remained steady throughout this period.

By 2023, the market volume increased again, driven primarily by a significant rise in imports. This occurred alongside ongoing institutional support for the supply chain, illustrated by the Asian Development Bank's financing partnership with Ulaanbaatar Flour aimed at stabilizing local wheat procurement. Although wheat production estimates declined slightly in 2023 and 2024, the market demonstrated resilience through these coordinated support mechanisms and adaptive trade flows.

Production wheat and meslin flour and cereals in Mongolia

In kind, 2017-2020, K t

Top producers of wheat and meslin flour and cereals, 2017-2020

World map of production of wheat and meslin flour and cereals, 2017-2020

In 2020, Mongolia produced 235.1 thousand tons of wheat and meslin flour and cereals, marking a significant 11.1% increase compared to the previous year. Looking at the period from 2017 to 2020, production grew by 12.7%, which translates to an average annual growth rate of 4.1%. The highest production level was recorded in 2018 at 238.9 thousand tons. In 2019, production experienced its largest decline of 11.4%, while the biggest increase occurred in 2018 with a 14.5% rise.

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

Exports wheat and meslin flour and cereals from Mongolia

Exports in kind, t

In 2018, Mongolia's exports of wheat and meslin flour and cereals amounted to 4 tons, representing a substantial year-on-year decrease of 97.1%.

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

From 2017 to 2020, Russia and North Korea were the primary destinations for Mongolia's exports in kind, together accounting for 96.5% of total export volumes. Other trading partners each held significantly smaller shares.

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

In 2018, Mongolia exported wheat and meslin flour and cereals worth 2 thousand US dollars, showing a sharp decline of 96.0% compared to the previous year.

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

Between 2017 and 2020, Russia and North Korea consistently represented 93.4% of Mongolia's total export value for these products, highlighting a highly concentrated market with numerous smaller partners making up the remainder.

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

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

Imports wheat and meslin flour and cereals to Mongolia

Imports in kind, t

The market showed notable fluctuations during this period. Imports reached their lowest point in 2017 and peaked in 2019, with a 4.9-fold difference between these years. In 2020, Mongolia imported 1 814 tons of wheat and meslin flour and cereals, a decrease of 50.8% from the prior year. The highest import volume was recorded in 2019 at 3 684 tons, which also saw the largest increase of 299.3%.

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

During 2017–2020, Russia and Kazakhstan dominated Mongolia's imports in kind, together making up 99.3% of total import volumes.

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

The market displayed an unstable trend over this timeframe. Imports hit their lowest in 2017 and reached a high in 2019, varying by 4.9 times between these points. In 2020, Mongolia's imports of wheat and meslin flour and cereals totaled 664 thousand US dollars, down 47.4% year-on-year. The peak value was recorded in 2019 at 1 262 thousand US dollars, which also experienced the largest increase of 343.6%.

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

From 2017 to 2020, Russia and Kazakhstan were the key partners for Mongolia's imports in value terms, jointly accounting for 98.1% of total import flows, with other partners comprising the rest.

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

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