Mongolia : Strengthening Food Security Post-COVID-19 and Global Food and Fertilizer Price Crises

Sovereign Project | 56254-001

The knowledge and support technical assistance will strengthen food security post- COVID-19 and global food and fertilizer price crises in Mongolia. Ensuing resilient recovery from COVID-19 is a priority agenda for both the government of Mongolia and ADB. The TA will support the implementation of National Movement on Food Security and Food Safety launched in 2022.

Project Details

  • Project Officer
    Kimura, Shingo
    Sectors Group
    Request for information
  • Country/Economy
    Mongolia
  • Sector
    • Agriculture, natural resources and rural development
Project Name Strengthening Food Security Post-COVID-19 and Global Food and Fertilizer Price Crises
Project Number 56254-001
Country / Economy Mongolia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10099-MON: Strengthening Food Security Post-COVID-19 and Global Food and Fertilizer Price Crises
Japan Fund for Prosperous and Resilient Asia and the Pacific US$ 2.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agro-industry, marketing, and trade

Industry and trade / Small and medium enterprise development

Gender No gender elements
Description The knowledge and support technical assistance will strengthen food security post- COVID-19 and global food and fertilizer price crises in Mongolia. Ensuing resilient recovery from COVID-19 is a priority agenda for both the government of Mongolia and ADB. The TA will support the implementation of National Movement on Food Security and Food Safety launched in 2022.
Project Rationale and Linkage to Country/Regional Strategy

Mongolian consumers are experiencing rising food prices and a limited availability of range of fresh foods and processed products. Food price inflation increased to 18% in March 2022 from and 8.1% in March 2021. High fuel price, on-going conflicts between Russian Federation and Ukraine, and limited crossing of trucks at the PRC border continue to threaten Mongolia's food security. Even before the pandemic, nearly 40% of population could not afford healthy diet. Reduced access to healthy and nutritious diet can exacerbate the double burden of malnutrition of increasing obesity and persistent undernutrition. The COVID-19 pandemic and the world food and fertilizer price crisis revealed the vulnerabilities of Mongolia's food supply chains. Building a resilient food supply chains is a priority for Mongolia to strengthen Mongolia's food security. Considering a high priority on food security and food safety, the Government of Mongolia announced the national movement on food security and food safety to scale up government actions to strengthen resilience to food insecurity risks, following the parliamentary resolution.

During the COVID-19 and global food and fertilizer price crisis, the rapid and coordinated response to evolving food security risks was hampered by the lack of integrated food security information system. Despite government investment in the database to track food price along food supply chains, and food import, distribution and storage, the insufficient coordination and information sharing between different ministries, and interoperability of IT systems constrained the government actions to ensure stable food supply across Mongolia.

Underdeveloped institution to develop modern and resilient food supply chains is another major constraint for Mongolia to ensure supply of quality and safe food to consumers. The dominance of informal marketing system in particular livestock chains is making difficult to quality-differentiated prices, proper animal traceability, health inspection and registration. The transition to an improved productivity and more quality-driven sector for export markets requires formal market institutions, where herders can obtain fair and transparent prices, and where food safety can be ensured. The lack of technical standards to produce safe food at production level and grading system is a major institutional constraint for the price discovery and commodity standardization in food supply chains. Another major bottleneck in Mongolia's food supply chains is a shortage of working capital for food processing and marketing actors. The credit facility for SMEs is much needed to provide enough cash for companies to build up inventories of raw materials and necessary inputs, including local retailers so they can afford to purchase food inventories that reflect rising product and transport costs. Having a warehouse receipts system could, to some extent, mitigate the shortage of working capital loans faced by processors, wholesalers, and retailers.

The disruption of food supply during the pandemic indicates the weak domestic logistics infrastructure remains a constraint for many local communities connecting to markets. The official State Reserves include wheat, flour, meat, milk and drinking water. However, limited local storage facilities made it difficult to stockpile products and has led to food losses and increased food prices. Increased storage capacity in partnership with private sector would mitigate logistical and transport issues when producers face a challenge to get their especially fresh products to market. The investment in modern collection capacity near producer nodes will be critically important. Moreover, disruption of food imports with the PRC and Russian Federation indicates that improvement of border procedures is necessary to facilitate movement and avoid long waiting periods of perishable food. A further development of digital processes could assist in overcoming delays at the borders and regulate who can enter with what into the country.

Impact

Mongolia's food security and food safety enhanced

Project Outcome
Description of Outcome

Resilience strategy and management of food insecurity risks improved

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Integrated food security information and response system established

Institutional capacity to develop modern and resilient food supply chains strengthened

Draft comprehensive investment strategy to strengthen food supply chain logistics prepared

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services A consulting firm will be recruited using the quality- and cost-based selection method, using a quality-cost ratio of 90:10 according to the Asian Development Bank's (ADB) Procurement Policy (2017, as amended from time to time and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement Procurement will follow the ADB Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Kimura, Shingo
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Ministry of Food, Agriculture, and Light Industry (MOFALI)
Timetable
Concept Clearance 11 Oct 2022
Fact Finding 30 Nov 2022 to 30 Nov 2022
MRM -
Approval 11 Apr 2023
Last Review Mission -
Last PDS Update 13 Apr 2023

TA 10099-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
11 Apr 2023 09 May 2023 09 May 2023 31 Mar 2026 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 21 Sep 2023 185,386.70

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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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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
International Food Security Information Specialist Individual - Consulting Closed
International Food Security Policy Specialist Individual - Consulting Closed
Firm 1 for Integrated Food Security Information and Response System Development Firm - Consulting Closed
Firm 2 for Institutional Capacity Development and Food Supply Chain Logistics Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance Technical Assistance 10099 09 May 2023 New Frontiers LLC (MONGOLIA) | Union of Mongolian Architects Building, Ste 303, Bulgaria Street - 27, 8th khoroo, Sukhbaatar district, Ulan Bator 15160 Mongolia Ministry of Food, Agriculture and Light Industry 513,413.00
Capacity Development Technical Assistance Technical Assistance 10099 16 May 2023 Monconsult Ltd. (MONGOLIA) | MONCONSULT BUILDING, PEACE AVENUE, Namyanju 4/1, Ulaanbaatar 13335 Mongolia Ministry of Food, Agriculture and Light Industry 831,100.00

Procurement Plan

None currently available.