Analyzing the Milk Consumption and Supply of Ulaanbaatar City

Abstract

Ulaanbaatar (UB) is not only Mongolia's capital and largest city, but it is also the country's fastest growing city. Those who live in urban areas, particularly UB city, are need to consume the most milk. The current level of domestic liquid milk production is inadequate to meet the requirements of the capital city and other major cities. The goal of this study is to analyse the market equilibrium of the liquid milk (estimations were based on cow milk, which has a higher yield than milk from other species of five types of livestock) market in UB city and determine the level of milk supply. Regression analyses were used to estimate functional forms and other required statistical-econometrical variables utilizing market theory, including demand and supply analyses. Secondary data acquired from the National Statistical Office (2004-2019) and adult equivalence conversion process cited from methodological guidance. According to the study results, main finding was comparatively bigger deficit of liquid milk market of UB warn weak position of liquid milk security level (1125.21 t <669.7 t). As a result, it should be desired to promote domestic liquid milk producers in order to improve market conditions as well as national food security concerns. It is apparent that in order to fulfil future demands, more advanced development of intensified dairy farms and support for their activities would be required.