Mongolia : Gender Inclusive Dairy Value Chain Project

Nonsovereign Project | 53306-001

The project will support Milko's investment plan during 2019 to 2020 by financing dairy procurement and processing expansion and permanent working capital investments for smallholder farmer and herder supply of raw milk and berries.

Flickr photos from the 53306-001: Gender Inclusive Dairy Value Chain Project in Mongolia album.

Project Details

  • Project Officer
    Wong, Yee To
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Mongolia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Gender Inclusive Dairy Value Chain Project
Project Number 53306-001
Borrower / Company Milko Limited Liability Company
Teso LLC
Country / Economy Mongolia
Location Nation-wide
Type or Modality of Assistance
3871 Loan Ordinary capital resources USD 7.50 million Committed
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP5: Promoting rural development and food security
OP7: Fostering regional cooperation and integration
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade

Gender Gender equity theme
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Office of the Director General, PSOD
Responsible ADB Officer Wong, Yee To
Project Sponsor(s)
Description The project will support Milko's investment plan during 2019 to 2020 by financing dairy procurement and processing expansion and permanent working capital investments for smallholder farmer and herder supply of raw milk and berries.
Objectives and Scope The project will support the expansion of Milko's raw milk and fruit procurement and dairy processing capacity. The increase in raw milk and fruit procurement capacity will ultimately benefit women and men smallholder farmers and herders as they are included in formal value chains. The project will also support Milko to increase exports of its end-products. The project is fully aligned with the Government of Mongolia's goals to enhance agricultural productivity, increase local value addition, diversify exports, and create jobs.
Status of Development Objectives Implementation is on-going.
Status of Operation/Construction The loan was fully disbursed in April 2020 to finance Milko's capacity expansion of raw milk collection and processing. Milko has achieved stronger sales through ADB support and launched a new export-oriented product line.
Linkage to Country/Regional Strategy

The project is aligned with ADB's Strategy 2030 and all three strategic pillars of ADB's country partnership strategy for Mongolia, 20172020: (i) promoting economic and social stability, (ii) developing infrastructure for economic diversification, and (iii) strengthening environmental sustainability.

The project is also consistent with the Strategy 2030 Operational Plan for Priority 2 on Accelerating Progress in Gender Equality, and Priority 5 on Promoting Rural Development and Food Security.

Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category B for environment. ADB has undertaken a corporate and site-level compliance audit. Environmental impact from construction activities is minimal considering the scale and nature of the milk collection facilities. During operational phase there would be impact on waste, wastewater and some occupational health and safety risks. Corrective actions will be implemented to address gaps identified at corporate and subproject-level, to establish a formal environmental and social management system at corporate level, and to comply with ADB SPS 2009 requirements. An environmental and social monitoring report will be submitted to ADB on an annual basis.
Involuntary Resettlement In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category C for involuntary resettlement. The activities related to the implementation of this project will be undertaken within the existing facilities and does not require any land acquisition or relocation of people.
Indigenous Peoples In compliance with ADBs Safeguard Policy Statement (SPS, 2009), the project is classified as category C for indigenous peoples. The activities related to the implementation of this project is not expected to impact on any distinct and vulnerable group of Indigenous Peoples as defined under ADB SPS.
Stakeholder Communication, Participation, and Consultation Milko has developed and introduced a mechanism for open acceptance of complaints and their resolution in sub-projects (Milk Collection Centers). So far, no official suggestions or complaints have been registered on environmental, social and land issues.
Timetable for assistance design, processing and implementation
Concept Clearance 02 Oct 2019
Credit Committee Meeting 06 Nov 2019
Approval 22 Nov 2019
Last PDS Update 11 Oct 2023

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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Title Document Type Document Date
Gender Inclusive Dairy Value Chain Project: FAST Report Faster Approach to Small Nonsovereign Transactions Nov 2019
Gender Inclusive Dairy Value Chain Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Sep 2019

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.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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.

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