The office told Xinhua the loan approved in mid-December will be used to improve livestock health and increase the value of meat, dairy and other livestock products by commercializing targeted value chains at select locations.

"Improving livestock health and livestock productivity by commercializing the value chain will enable greater economic diversification and contribute to broad-based employment and income growth in rural areas and at the same time improve food security and food safety," said Andrei Mikhnev, World Bank country manager for Mongolia.

Mongolia, a landlocked East Asian country, has a vast area of pasture lands. Official data show there are more than 230,000 herder households with livestock animals nationwide, and the number of livestock animals surpassed 66.46 million by the end of 2018.

Despite a great potential for development, Mongolia's livestock sector is faced with major challenges including low productivity, animal health issues, and vulnerability to climate change and extreme weathers, according to the World Bank.