Economists forecast meat price to increase due to higher global price
2 сар, 1 долоо хоног өмнө
Mongolia exported USD 83 million worth meat, USD 80 million worth canned meat, ham and sausage last year. Compared to the same period of the previous year, meat export surged by 54 percent, in which heat-processed meat, ham and sausage export multiplied by nine times, according to the customs statistics.
In the first 11 months of 2018, prices of meat escalated by 15.5- 31.6 percent depending on the type according to the National Statistics Office. The impact of meat price increase was visible in the inflation as the Bank of Mongolia (BoM) announced that inflation exceeded the 8 percent target level, reaching 9.3 percent in November. According to the BoM, meat prices accounted for 1.3 percentage point for inflation. Meat and meat products make up over 10 percent of the basket of consumer goods in Mongolia. Ministry of Food, Agriculture and Light Industry (MFALI) informed that MNT 4.6 billion will be allocated for scarcity of meat in Spring from the 2019 State Budget. Within this frame, the ministry expects to reserve 10,000 tons of meat beforehand. Due to the surge in meat exports, the ministry also plans to take policy measures on increasing domestic supply of meat Regarding the matter, Economist Khaschuluun Chuluundorj said, “Meat export growth will increase domestic meat prices. Because higher global meat price will eventually pull up domestic price of meat. We have to be ready for this.”
Around 12-15 million heads of livestock are used for domestic needs. According to the MFALI, Mongolia has enough reserves to fully supply domestic demands, provide 9 million heads of livestock to economic circulation and export over 180,000 tons of meat.