Sustainable approaches for sustainable grazing and animal husbandry in Mongolia

Fact-finding mission

Animal husbandry is a central pillar of the Mongolian economy and social life: it accounts for around 80% of agricultural production, contributes around 10% to gross domestic product (GDP), makes up around 8% of the country's exports, and employs around 30% of the working population. From Oct 24 to Nov 2, 2025, IAK Agrar Consulting GmbH conducted a comprehensive fact-finding mission to Mongolia. The aim was to gain a sound understanding of the local conditions, institutional structures, and sector-specific challenges, thereby laying the foundation for practical, needs-based project approaches in the Mongolian livestock sector.

The mission included field visits to the western provinces (aimags) of Bayan-Ölgii and Khovd, as well as supplementary technical discussions and consultations in Ulaanbaatar with national ministries, veterinary authorities, and international development partners. In numerous interviews, focus group discussions, and on-site meetings, the IAK team exchanged ideas with representatives of aimag and soum (district) administrations, herder cooperatives, veterinarians, agricultural enterprises, small and medium-sized enterprises, research institutes, and non-governmental organizations.

Findings

The discussions, field visits, and observations made it clear that the Mongolian livestock sector has considerable potential but also faces fundamental structural challenges:

• The country has enormous natural resources, a long tradition of livestock farming, and growing export ambitions. There are structural bottlenecks, mainly due to heavy dependence on meat and cashmere production, limited local value creation, insufficient utilization of by-products, and a lack of approaches to a circular economy. Hides, skins, and wool (cashmere) often remain unused, even though they offer considerable potential for income diversification and employment. In the long term, emission certificates could help to tap into additional sources of income.
• Overgrazing and degradation of pastureland are key challenges for sustainable land use. More and more livestock farmers are moving from purely nomadic systems to semi-intensive forms of production, focusing increasingly on fodder cultivation, indoor housing, and productivity rather than pure herd size. This change opens up new opportunities for sustainable pasture management, fodder production, and resilient production systems, but requires targeted institutional and technical support.
• The traceability of animal products, veterinary services, and processing capacities must be further expanded. Progress has already been made in developing traceability systems at the national level, but there are still shortcomings at the local level in data management, certification, and compliance with international standards. At the same time, the increasing political prioritization of export quality in animal production, animal health, and food safety provides a favorable environment for reforms and investments.
• The mission demonstrated the high need for integrated approaches that combine pasture management, animal health, agribusiness development, water and irrigation management, and climate adaptation.

Conclusion

Mongolia faces the challenge of developing its livestock sector in a way that is sustainable, resilient, and market-oriented. The IAK is ready to actively shape this path together with national and local partners: through integrated concepts for sustainable value creation, responsible use of resources, and long-term economic prospects in rural areas.