The Asian Development Bank (ADB) and Ulaanbaatar Flour Limited Liability Company (UBF) today signed a 3-year $10 million loan to support local wheat procurement to meet the increasing demand for domestically processed wheat flour in Mongolia. This financing will provide UBF with working capital to purchase wheat from local farmers.
“Wheat flour is a key staple for Mongolian families, representing about one-third of their daily caloric intake. However, local wheat production faces challenges due to a single harvest season and vulnerability to climate events,” said ADB Country Director for Mongolia Shannon Cowlin. “This project will help stabilize the wheat supply chain by supporting UBF’s procurement from local farmers, especially women, and will contribute to a more resilient and inclusive agriculture sector. It will also enhance Mongolia’s food sustainability and reduce reliance on imports.”
The project will facilitate consistent wheat procurement and provide a stable buyer for 250 wheat farming enterprises, including smallholder and women-led farms. UBF will also integrate the needs of women suppliers into its procurement policies and disseminate awareness raising materials that encourage the redistribution of unpaid care work and support prevention and response to domestic violence within farming communities.
“We are proud to continue our partnership with ADB to strengthen Mongolia’s wheat value chain and support local farmers,” said the CEO of Ulaanbaatar Flour LLC Bakhatguli Nuktarkhaan. “This financing is critical to ensuring a reliable supply of quality wheat for our operations while empowering smallholder and women-led farms. Through this collaboration, we aim to improve food security, promote inclusive growth in rural communities, and build resilience against climate impacts.”
Additionally, a $500,000 technical assistance grant will be provided to enhance the resilience of wheat farmers through training programs in financial literacy, sustainable food security, and climate-adaptive agricultural practices. These practices will include effective soil, water, and pest management.
Regional food security is a priority for ADB, which has recently increased its support for long-term food and nutrition in Asia and the Pacific by $26 billion. This brings ADB’s total funding commitment for food security initiatives to $40 billion for the period of 2022 to 2030. Direct support for farmers and the agriculture value chain is essential, and the expanded commitment includes $11 billion allocated for private sector investments. This financial package with UBF provides direct support to Mongolia’s agrifood private sector.
ADB and UBF, Mongolia’s leading wheat flour processor with a 30% market share, has a long-standing partnership. UBF is part of the Tavan Bogd Group, one of the country’s largest and most diversified business groups. This loan marks ADB’s fourth transaction with Tavan Bogd Group and third with UBF.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Published Date:2025-05-16