Economic Diversification Potential : Insights from Mongolia’s Livestock Product Value Chains
2025
Dagys, Kadirbyek | Heijman, Wim | Dries, Liesbeth | Agipar, Bakyei | Yetyekbai, Myeruyert | Damdinsuren, Myagmarsuren | Tsamba, Gantulga
Mongolia, endowed with abundant natural resources, faces a critical challenge in reducing its reliance on the mining sector and achieving economic diversification. This study aims to identify the potential for economic diversification by developing the non-mining processing industry. To this end, a Revealed Comparative Advantage (RCA) analysis and value chain mapping were employed. The RCA results highlight the importance of livestock-derived products and recognise the livestock sector as having the best potential for achieving economic diversification. Consequently, the value chain of livestock-derived products was mapped, and key challenges at each stage were identified. The study provides actionable recommendations for developing this value chain. The findings underscore that the value chain of livestock-derived products encounters numerous obstacles that must be addressed to build a competitive sector. Key strategies for addressing the issues throughout the value chain include improving animal health, ensuring compliance with good practices and standards, and enhancing competitiveness through advanced technologies, increased financial and investment support, and improved logistics and infrastructure.
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