Options for Increasing Mongolia’s Livestock Sector Exports - A Revealed Comparative Advantage Analysis

  • Erdenechuluun Tumur Section Economics, Wageningen University and Research (WUR), The Netherlands https://orcid.org/0000-0001-7352-4743
  • Wim Heijman Section Economics, Wageningen University and Research (WUR), Hollandseweg 1, NL-6700 EW Wageningen, The Netherlands
  • Enkh-Amgalan Gurjav Department of Agricultural Economics, School of Economics and Business, Mongolian University of Life Sciences (MULS), Mongolia
  • Bakey Agipar Department of Agricultural Economics, School of Economics and Business, Mongolian University of Life Sciences (MULS), Mongolia
  • Nico Heerink Section Economics, Wageningen University and Research (WUR), Hollandseweg 1, NL-6700 EW Wageningen, The Netherlands
Keywords: meat export, trade analysis, comparative advantage, value chains

Abstract

Mongolia is a country with rich natural resources, including more than 70 million domesticated animals. The livestock sector is the traditional economic sector of Mongolia, and it is a major food source of the nation. Currently, the country faces an overgrazing problem caused by an increase in the number of animals whereas rangeland carrying capacity is limited. Exporting more meat and other products of animal origin has the potential to reduce the livestock population to sustainable levels, reduce overgrazing pressure, and increase the country’s export income. Policies aimed at promoting animal product exports should take the comparative advantages of different types of products of animal origin into account in order to maximize their impact. This paper aims to provide science-based evidence to support such policies by investigating the comparative advantage of meat and other selected products of animal-origin using the revealed comparative advantage index. Official statistics for 81 products over nine years were used for the data analysis. The results suggest that Mongolia’s meat export policy should focus on large volumes and relatively lower processing level products in the short run and should shift to differentiated value-added products in the long run. We recommend that the Government of Mongolia improves its meat sector’s regulation and develops formal supply chains in order to effectively monitor food safety and create high-quality Mongolian brand products of animal origin.

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Author Biographies

Erdenechuluun Tumur, Section Economics, Wageningen University and Research (WUR), The Netherlands

Department of Agricultural Economics, School of Economics and Business, Mongolian University of Life Sciences, Mongolia

Wim Heijman, Section Economics, Wageningen University and Research (WUR), Hollandseweg 1, NL-6700 EW Wageningen, The Netherlands

Czech University of Life Sciences, Prague, Czech Republic

Published
2020-10-31
How to Cite
Tumur, E., Heijman, W., Gurjav, E.-A., Agipar, B., & Heerink, N. (2020). Options for Increasing Mongolia’s Livestock Sector Exports - A Revealed Comparative Advantage Analysis. Mongolian Journal of Agricultural Sciences, 30(2), 38-50. https://doi.org/10.5564/mjas.v30i2.1490
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Articles