Mongolia : Climate-Resilient and Sustainable Livestock Development Project
The Government of Mongolia, during the country programming mission held in Ulaanbaatar in April 2018, requested the Asian Development Bank to provide lending support to prepare the Climate-Resilient and Sustainable Livestock Development Project. The project is included in ADB's country operations business plan for Mongolia for 20192021.
Hinrichs, Jan F.
Request for information
1 June 2021
- Agriculture, natural resources and rural development
|Project Name||Climate-Resilient and Sustainable Livestock Development Project|
|Country / Economy||Mongolia
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
|Sector / Subsector||
Agriculture, natural resources and rural development / Livestock
|Gender||Effective gender mainstreaming|
|Description||The Government of Mongolia, during the country programming mission held in Ulaanbaatar in April 2018, requested the Asian Development Bank to provide lending support to prepare the Climate-Resilient and Sustainable Livestock Development Project. The project is included in ADB's country operations business plan for Mongolia for 20192021.|
|Project Rationale and Linkage to Country/Regional Strategy||
Mongolia has witnessed a gradual decline in poverty levels since the early 1990s, when an estimated 40.0% of the total population was found to be poor. While the incidence of poverty fell significantly from 38.8% in 2010 to 21.6% in 2014, recent estimates indicate that it has climbed back to 28.4%. The poverty rate is also higher in rural areas (35.0%) compared to urban areas (27.0%). In addition, only 35.3% of households were food secure in 2016 while half the population experienced moderate to severe food insecurity. The high incidence of poverty and food insecurity in rural areas is particularly alarming, where majority of the poor are dependent on agriculture and extensive livestock production to sustain livelihoods.
The agriculture sector remains a key backbone of the economy. In 2016, agriculture accounted for over 12.0% of gross domestic product, with the sector growing at a similar rate (compounded annually) over the period from 2007 to 2016. The share of livestock in agriculture output is 84.2%, providing employment to one third of Mongolia's economically active population. Currently, meat and milk are the primary products of the livestock subsector, contributing to 61.0% of livestock output and 7.0% of gross domestic product. In contrast, mining comprises 4.2% of total employment. As such, the agriculture sector translates far more directly into improved lives for vulnerable Mongolians than mining and has the potential to reduce rural poverty, boost incomes, and diversify economic growth through food production and export of high-quality meat and wool products. The Asian Development Bank (ADB) supports Mongolia's economic diversification with several projects encouraging labor-intensive growth through utilizing and preserving Mongolia's natural capital outside the mining sector, especially by small and medium-sized enterprises engaged in agribusiness value chains and building climate resilience of the livestock subsector.
Despite the significant importance of agriculture and particularly the livestock subsector, several constraints and risks threaten the sustainability and competitiveness of the sector. The lack of a regulatory framework, enforcement capacity, and coordinated policies of central and local level administrations to control livestock numbers within the carrying capacity of grasslands, has created an alarming situation where 70.0% of Mongolia's pastureland is now degraded. These constraints are further exacerbated by extreme climatic events such as droughts and dzuds, which have resulted in significant livestock deaths and removed the means of livelihood for a large number of herder households. The Government of Mongolia is preparing policy actions to adjust the livestock flock structure and grassland use rights to reduce pasture deterioration.
The livestock subsector is dominated by an extensive livestock production system dependent on access to pasturelands. Lack of appropriate water points, animal shelter, and feeding throughout the winter leads to concentrated use of surrounding pasture and undermines pasture management during winter. This remains a key concern for herders in view of climate change induced frequency increase of severe weather events. The absence of coordinated grazing management between herders has impaired the development of more climate-resilient and profitable livestock production and marketing systems.
Mongolia also faces various challenges throughout the meat value chain in accessing export markets that are vital for lifting incomes and overall sector growth. First, transboundary animal diseases are prevalent, and the Mongolian veterinary system has been unable to effectively manage outbreaks. These animal disease outbreaks have led Mongolia's neighbors to periodically ban Mongolian meat exports. Second, some Mongolian meat, especially beef, is unable to compete in export markets on quality due to livestock producers' limited nutrition and breeding practices. Third, Mongolia's food hygiene practices and sanitary standards fall short of international standards, only 10% of meat supply in the country in 2017 were met by meat made at abattoirs and remaining were prepared in an informal way. Mongolia's veterinary, breeding, and agriculture extension services, and livestock production systems will therefore require significant investment and improvement. Furthermore, while Mongolia's new law on Animal Health entered into effect in June 2018, secondary legislation is still underway and national veterinary structure needs to be enhanced for effective surveillance and animal disease control.
As a result of these constraints, Mongolia exported only 70,400 tons of meat in 2018, despite an endowment in excess of 66 million heads of livestock that produced 448 thousand tons of meat. Given that Mongolia's domestic production of meat far exceeds consumption estimated at 269,000 tons annually, simply increasing productivity along the value chain without accessing new markets could lower prices and potentially hurt herder incomes. The current demand-supply configuration, combined with Mongolia's proximity to major markets in Northeast and Central Asia, and reputation for pastoralist traditions suggests that there is potential to significantly boost exports and incomes if the key binding constraints are addressed in a sustainable manner.
Competitiveness and sustainability of Mongolia's livestock sector improved (Mongolian Sustainable Development Vision 2030)
|Description of Outcome||
Efficiency and sustainability of climate-resilient livestock production increased
|Progress Toward Outcome|
|Description of Project Outputs||
Livestock sector policy, regulatory framework, and capacity enhanced
Climate resilience of livestock, pasture, and water management improved
Meat and dairy value chains strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Engagement of consultants will follow ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).|
|Procurement||Procurement of goods and services will follow ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).|
|Responsible ADB Officer||Hinrichs, Jan F.|
|Responsible ADB Department||Sectors Group|
|Responsible ADB Division||Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)|
Ministry of Food, Agriculture, and Light Industry (MOFALI)
|Concept Clearance||30 Jul 2019|
|Fact Finding||23 Nov 2020 to 01 Dec 2020|
|MRM||05 Mar 2021|
|Approval||01 Jun 2021|
|Last Review Mission||-|
|Last PDS Update||27 Sep 2021|
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
|Title||Document Type||Document Date|
|Climate-Resilient and Sustainable Livestock Development Project: Resettlement Framework||Resettlement Frameworks||Feb 2021|
|Climate-Resilient and Sustainable Livestock Development Project: Initial Environmental Examination||Initial Environmental Examination||Feb 2021|
|Climate-Resilient and Sustainable Livestock Development Project: Initial Environmental Examination||Initial Environmental Examination||Dec 2020|
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
|Title||Document Type||Document Date|
|Climate-Resilient and Sustainable Livestock Development Project: Procurement Plan||Procurement Plans||Jun 2021|