Flour Market Study

The importance of a strong domestic agricultural sector, and within it, a strong flour market sector, has been recognized by the Mongolian people and government for decades. There is an increasing demand amongst Mongolian consumers for flour and flour-based products. At first glance, the country seems well-prepared to meet consumers’ needs. Mongolia has a significant installed milling capacity and a government committed to supporting the flour market. Yet, the country continues to rely on wheat and flour imports from its neighbors to meet domestic demand. An unpredictable wheat harvest precludes the development of a stable domestic flour production pipeline. If Mongolia is to reduce its dependence on wheat and flour imports, steps must be taken to improve the reliability of domestic wheat production through focusing on increasing yields and wheat quality.