As one of the most important economic sectors in Mongolia, investing in livestock and related industries like meat processing and dairy farming provides great potential for agribusinesses to drive economic diversification. With abundant land resources and a strategic China market, Mongolia now opens its door wider to foreign investment to develop its livestock sector. According to statistics, China has invested over $5 billion accumulatively in Mongolia, but mostly in mining, energy and construction areas. As Mongolia aims to reduce its dependence on mining and achieve sustainable growth, it looks forward to more investment from China flowing into livestock and agriculture.
Invest in meat processing to tap market potential
With 60 million livestock living in Mongolia and a population of only 3.4 million, the country has rich resources to develop livestock-related industries. Meat processing in particular is expected to secure substantial capital injection to cater for the growing domestic and international demand. As the top trade partner and a huge consumer market itself, China should grasp the opportunity to invest in Mongolia’s meat processing sector.
Increase investment in dairy farming
Dairy farming serves as another highlight in Mongolia’s vision to diversity its economy leveraging its competitive livestock advantages. Currently foreign investors are welcomed to fund dairy farming projects in Mongolia as the sector remains largely underdeveloped. As the world’s largest milk producer and a neighboring country, China again should stand out in terms of investing in Mongolia’s dairy farming industry.
Raise goats for cashmere production
In addition to meat and dairy production, cashmere goat raising attracts increasing investment interest in Mongolia thanks to the premium price and steady market demand for Mongolian cashmere products. With rich grasslands to raise goats in a cost-efficient way, Mongolia has unused land available to invest in scaling up its cashmere goat sector, offering promising investment returns especially for Chinese companies specialized in textile and apparel.
Develop livestock-related tourism projects
As an integral part of Mongolian culture, livestock also plays a part in boosting tourism growth in the country. Mongolia now opens up wider to tourism investment, including building casinos which are set to benefit from tourist spending. Also worth noting is that China makes up the majority of international tourists in Mongolia, reaching nearly 500,000 in 2017. Therefore tourism investment from China targeting livestock-related projects can enjoy first-mover advantage.
In conclusion, Mongolia welcomes more Chinese investment to develop its livestock sector and related industries, so as to drive economic diversification and achieve sustainable growth by leveraging its rich livestock resources. Key areas for investment include meat processing, dairy farming, cashmere production and tourism projects related to Mongolian livestock culture.