“Wow, herders have become wealthy. Every household now has solar panels, freezers and televisions. They can travel the internet on their expensive smartphones, and they own both trucks and passenger vehicles. Some even employ herders to help them. With meat prices this high, it is hardly surprising. Besides, I hear the government pays herders’ social insurance contributions and provides them with low-interest loans,” one man remarked.

Another person commented, “Before the democratic revolution, Soviet leaders used to urge Mongolians to increase their livestock numbers to 20 million. The government assigned people to specific regions to raise livestock and sent entire classes of eighth-grade graduates to rural areas as part of organised labour mobilization programmes. Yet livestock numbers barely increased. However, once livestock was privatized, their numbers rose sharply. People came to understand the value of private property, and today the national livestock population has reached nearly 60 million. For a country with a population of 3.5 million and 200,000 herder households, that is an enormous figure. Surely herders must have become wealthy and financially comfortable as a result. Is the fact that a kilogram of cashmere costs 100,000 MNT and a kilogram of beef exceeds 30,000 MNT not proof of that?”

As the prices of livestock products, particularly cashmere and meat, continue to rise, we tend to assume that herders’ livelihoods have improved and their incomes have increased. Meanwhile, advances in modern technology have made mobile phone and internet access increasingly widespread, even in the most remote corners of the country. With more people using social media reels to showcase the best and most attractive aspects of their lives, there appears to be a growing tendency to oversimplify the realities of herding and romanticise livestock farming, viewing the profession as far easier and more appealing than it actually is.

In reality, quality of life should be measured not only by living conditions and material possessions, but also by whether people enjoy good health and live long lives. It can also be assessed by whether their income is commensurate with the time and labour they invest, and whether their wages are sufficient to meet their living expenses. Furthermore, people should ideally have a balanced work-life routine, sufficient rest and leisure time, and the opportunity to look after their physical and mental well-being, rather than working around the clock.

If livestock farming is considered an independent economic sector, it should have certain characteristics, including a continuously replenished workforce and a balanced distribution between experienced workers and younger newcomers. However, these conditions are largely absent from the lives of Mongolian herders.

In particular, the number of people engaged in herding has been steadily declining. The proportions of both elderly and young people among herders are also decreasing. In 1995, there were 69,900 herders aged 60 and above, accounting for 17.9 percent of the total herder population. By last year, this figure had fallen to 42,400, or 13.5 percent. Similarly, in 2025, there were 76,800 people aged 15 to 34 engaged in herding in rural areas, accounting for 22.4 percent of the total. This represented a decline of approximately 6,600 over five years. In other words, the proportion of both young and elderly people among herders continues to fall, while many say that making a living from livestock farming is becoming increasingly difficult.

‘ONLY 30–40 HOUSEHOLDS ACROSS 3 BAGS’

There are many reasons why herding has become such a difficult occupation that young people are leaving the countryside and elderly herders are becoming weary of the work. One of the main reasons is that, apart from meat and cashmere, most livestock products have little to no market value. Mongolians traditionally say that everything from livestock can be put to use except its breath. Today, however, wool, hides, skins and by-products are worth almost nothing.

Even a household with 500 livestock cannot make a decent profit from selling anything other than meat and cashmere. As a result, whatever income they earn is spent on hay, animal feed, veterinary services and transportation. In other words, the number of livestock a household owns no longer determines its net profit. In some cases, maintaining a larger herd may actually result in higher expenses.

As livestock numbers increase, the carrying capacity of pastures declines. Overgrazing reduces the productivity of each animal, while lower returns per animal translate into lower average annual incomes. This has created a vicious cycle that leaves herders struggling financially and heavily burdened by debt. Statistics show that approximately 62 percent of all herders own no more than 200 livestock. This places them below the average subsistence level, leaving many barely able to keep their households afloat without falling into extreme hardship.

A herder from Altai soum of Govi-Altai Province, described the situation, “We have around 500 livestock and a family of four. In terms of livestock numbers, we are actually among the larger herding households in our bag. As the number of herders continues to decline and more people move to urban centres, our herd is considered relatively large. Nevertheless, we have no regular source of income. We only make money by selling a few sheep and one or two cattle for the winter meat supply season, and selling cashmere in the spring. Last month, we sold two cattle for a total of 4.3 million MNT. We also sold five sheep for 300,000–400,000 MNT each, bringing our total income to just over 6 million MNT. My daughter rents an apartment in the provincial centre, so I transferred 3.5 million MNT to help cover her rent and living expenses. We will spend the remainder preparing for winter and purchasing hay and animal feed.”

The herder then continued, “Meanwhile, the prices of everyday necessities, including fuel, flour, rice and sugar, have also increased. It is difficult to make ends meet unless we manage what little we earn very carefully. I have never been on a holiday or to a health resort. My wife has only travelled to Erlian once, for her graduation anniversary.”

Moreover, a herder from Duut soum of Khovd Province, said that the declining number of herders was largely due to the fact that livestock farming no longer provides a better livelihood. “People are leaving because their lives do not improve despite raising livestock. Admittedly, the gap between urban and rural areas has narrowed in recent years. Herders now have access to information much more quickly, provincial centres are connected to soums by paved roads, and people can order goods from online stores and have them delivered. There are many advantages compared with the past. Even if we do not go back too far, around 10 years ago, there were 60–70 households in each bag. Today, however, there are only 30–40 households across our three bags combined.” “Duut and Munkhkhairkhan are traditionally known as yak-raising areas. Yet there are now hardly any yaks left. Due to increasingly difficult weather conditions and harsh winters, raising yaks has become more challenging. Many households have sold their cattle and moved closer to urban centres. There are almost no young herders left. Those who remain in the countryside are mostly pensioners or people approaching retirement age. Duut is one of the few soums in the province that is not connected to the provincial centre by a paved road, despite being only 70 kilometres away. Due to the poor road conditions, travelling between the soum and the provincial centre takes two to three hours. This may also be contributing to the declining population,” said the herder from Duut soum. 

“Our region is a land of high mountains and yaks. Although the mountainous terrain means pastures are relatively sparse, the grass is nutritious and rich. Yak clotted cream is nearly three finger-widths thick, their milk is exceptionally rich, and the dried meat prepared on the mountain slopes has a distinctive, delicious flavour. Given these unique dairy and meat products, we could develop businesses around them and significantly increase herders’ incomes. However, there are no small-scale processing facilities, meat-processing workshops or dairy production units in the area. People are increasingly reluctant to remain in their homeland. At this rate, our soum and other rural areas could become depopulated within the next 10 years. Unless the government develops a comprehensive policy to support herders’ livelihoods and takes concrete measures, we will eventually run out of herders. What good is it to call ourselves a livestock-raising nation if we no longer have herders? People of my generation, those in their 60s and older, will eventually pass on. What will happen to the generations that come after us?” the herder said with frustration.

For the agricultural sector to develop, rural communities to thrive, and herders and livestock-owning households to enjoy better living conditions, urban residents also have an important role to play. The Government and authorities in the capital must pay greater attention to ensuring that Mongolia produces high-value, value-added products from its livestock raw materials.

Building processing plants, establishing logistics centres, bringing livestock, meat and other raw materials into economic circulation, and increasing their market value are responsibilities that fall to government agencies and companies based in urban centres. Specialists should advance technology and manufacturing, while herders supply raw materials to these facilities, allowing the sector to develop through a cluster-based approach.

SECTOR WHERE LOANS HAVE DELIVERED LITTLE RESULTS

If all livestock-derived raw materials commanded high prices, herders would not focus solely on raising goats for cashmere and sheep for meat. Instead, they could manage and control their livestock numbers. Keeping herd sizes at appropriate levels would reduce pasture degradation, improve livestock weight and raw material yields, and increase income generated per animal.

Therefore, a wide range of measures must be taken to improve herders’ livelihoods. First and foremost, attention should be given to improving livestock breeds and animal health. This would increase the productivity of each animal and ensure healthier herds. Second, meat, livestock, hides, skins, wool and cashmere should be fully processed domestically into finished products for export. Although the Government has been providing concessional loans and assistance for this purpose, Mongolia has yet to develop the capacity to produce goods from any of these raw materials without relying on imported inputs.

Over the past 20 years, approximately 6 trillion MNT in loans and financial assistance has been provided to the agricultural sector. Nevertheless, industrial productivity has barely improved, while the workforce has continued to decline. It would also be beneficial to establish more collection points, facilities and workshops in every province to consolidate and purchase herders’ raw materials and products, carry out primary processing, grading and storage.

There is also a need to improve the veterinary system, pay particular attention to herd health, develop veterinary services according to market principles, and introduce policies that support the training of veterinarians and other specialists. Only through the systematic and careful implementation of these measures can Mongolia become a country with large livestock herds that generate substantial income and profits, where herders’ labour is properly valued and people enjoy a good quality of life.

Furthermore, every project and programme implemented in the livestock sector must be followed through to completion, with continuity maintained across changes in government administration. Otherwise, programmes with ambitious names risk delivering little results despite the substantial funds allocated to them.

Interestingly, the United States and Brazil are among the world’s leading countries in terms of export volumes and revenues from meat, dairy products and live animals. These countries generate substantial income from beef, pork and dairy sales and have numerous wealthy farmers and agricultural companies. Brazil, in particular, earns billions of dollars annually from beef sales, and its livestock health standards are internationally recognised.

Meanwhile, countries such as the Netherlands, France and Germany have combined livestock farming with technological advances and gained international recognition for their beef, premium-quality milk and cheese. Australia and New Zealand, on the other hand, are renowned in the global market for their high-quality lamb, sheep wool and wool products. Large-scale farmers and herders in these countries are generally considered to belong to the middle- and upper-income groups and are relatively affluent.

Their farms reportedly achieve high productivity through the use of fully automated systems, smart technologies, artificial intelligence and modern equipment. International media reports also note that their governments provide regular subsidies and financial support to key agricultural sectors, helping protect farmers from market risks, fluctuations in raw material prices and droughts.

Published Date:2026-11-08