APU Dairy Boosts Capacity with ADB's $20 Million Support

The Asian Development Bank (ADB) has signed a $20 million loan agreement with APU Dairy LLC to advance Mongolia's dairy sector by integrating nomadic herders into the dairy value chain, enhancing dairy processing capacity, and promoting sustainable herd management. This initiative aims to reinforce Mongolia’s food security through local milk sourcing and processing dairy products domestically. The assistance includes up to $750,000 in technical support to build herder capacity in sustainable practices, financial literacy, and climate resilience. The project envisions boosting the livelihoods of around 1,000 herders, with a focus on inclusivity, gender equality, and job creation for women. Despite Mongolia producing 800 million liters of milk annually, only 10% is processed domestically. The rest, processed abroad, indicates a gap in local processing capabilities. With new collection centers within a 450km radius of Ulaanbaatar, APU Dairy plans to stabilize milk markets for local herders, increasing their income potential, and using milk as collateral for credit. The overall goal is to expand Mongolia's self-sufficiency in dairy, reduce reliance on imports during winter, and create 320 new jobs by 2028. APU Dairy, established in 2006, is Mongolia's second-largest dairy producer. APU JSC, a large conglomerate and the nation's largest beverage producer, owns APU Dairy.