63.2 Percent of Milk and Dairy Products Domestically Sourced www.montsame.mn
The implementation of Resolution No. 07 of 2022, "On Giving Directions to the Government," to support the production of domestic milk and dairy products and increase the Government's support to the sector" was reported to the Standing Committee on Industrialization Policy of the State Great Khural on the 9th of this month.
According to the report by Deputy Minister of Food, Agriculture, and Light Industry M.Gankhuleg, currently, 63.2 percent of milk and dairy products are sourced domestically, and the rest are imported from abroad. He mentioned that efforts are being made to increase and continue providing incentives for milk. Initially, the milk incentive applied only to cow's milk, but starting from November of last year, it has been extended to all types of milk. As of today, MNT 1000 is given for 1.0 liter of milk to 24 factories and workshops in 10 aimags. As part of the "Food Revolution" program initiated by President of Mongolia Khurelsukh Ukhnaa, 22 types of equipment for the production of milk and dairy products were exempted from customs duties. In 2023, loans for circulating capital and investment were granted to more than 1,800 enterprises in the food industry through 10 commercial banks. The five-year loans with a 6.0 percent interest rate for the purpose of establishing intensive dairy farming have been allocated to 49 citizens and enterprises totaling MNT 5.6 billion out of the budgeted MNT 34 billion. Additionally, loans totaling MNT 18.8 billion were granted to eight enterprises for the construction of baby milk and formula processing plants.
In connection with the presentation on the implementation of Resolution No. 07, members of the State Great Khural asked questions. To increase the supply of liquid milk to national industries, Member of the State Great Khural J.Batjargal spoke about the development of intensive farming in agricultural areas, milk collection, the development of high-yielding animals, improvement of breeds, and production of import-substitute products. Meanwhile, Member of the State Great Khural Ts.Tuvaan mentioned that the milk incentive has been effectively implemented since 2020 and stated that it is necessary to extend the incentive period to increase the milk supply in the cool season.
G.Ganbold, Member of the State Great Khural and Chairman of the Standing Committee on Industrialization Policy touched on the inclusion of incentives for locally operating dairy factories and workshops. He warned that it would be impossible to monitor if the incentives were flattened and advised that the regulations should be improved in more detail.
Subsequently, at the meeting of the Standing Committee on Industrial Policy, information was presented about the implementation of the directions given by the Standing Committee on optimizing the financial structure of the state to support small and medium-sized industries, increasing resources, expanding the market, and increasing sales. The Ministry has studied the international experience of the modern financial structure and system for supporting small and medium-sized industries and has developed a proposal for the establishment of a Small and Medium-sized Industry Corporation, submitting it to the relevant departments.
As part of the '10-billion program to protect health and recover the economy' related to supporting jobs a total of MNT 2.0 trillion was provided to 25,000 borrowers in the small and medium industry sector, protecting 110,000 jobs, said Deputy Minister of Food, Agriculture, and Light Industry M.Gankhuleg. The Government's implementing agency, the Department of Small and Medium Enterprises, granted MNT 88 billion in loans from 2020 to 2023. Additionally, the Government approved the decision to exempt new equipment from customs duty until the end of 2026 to update the technology of small and medium enterprises. As a result of the establishment of working groups in four aimags in charge of ensuring the participation of small and medium-sized enterprises in the supply chain of mining companies and major projects, the sales in 2023 reached MNT 4.6 billion in the four aimags while nationwide procurement was more than MNT 200 million in 2019.
Members of the State Great Khural, namely N.Naranbaatar, J.Batjargal, and T.Aubakir, posed questions and made statements related to the implementation of the resolution by the Standing Committee. They articulated their positions on the stability of cooperation between large companies and small and medium-sized enterprises, the repayment status of loans and financing, the enhancement of the loan guarantee system for small and medium-sized enterprises, the augmentation of resources, encouragement of repayment through interest discounts, and the development of small and medium production clusters.
G.Ganbold, Chairman of the Standing Committee on Industrial Policy, advised paying attention to the "10-billion program" and the repayment of loans to small and medium enterprises.