Recently, climate change and increased food demand caused by population growth (and the coronavirus disease and military conflicts in the short term) have caused a global food shortage and disruption in food supply chain. This study aimed to examine the expansion of small-scale dairy production in suburban areas of Mongolia and its social and economic background based on the case of Erdenet and the neighboring districts of Bulgan province. It attempted to determine the characteristics and challenges of local food production, distribution, and consumption, which are expected to contribute to a safe and secure food supply.
Since the 2000s, small-scale dairy production and sales, mainly by individual families, have become widespread in the suburbs of the capital and provincial centers. At present, most dairy products consumed nationwide are milk and dairy items produced by herders and small-scale dairy farms. However, herders’ pastoral management is not solely dedicated to dairy production but is conducted along with meat and fur production. The main portion of their income is obtained from the sale of livestock (meat). The sale of dairy products helps secure income when livestock sales reduce during the summer and fall when the livestock are growing. In addition, there is room for herders to increase revenue through their creativity and ingenuity. Therefore, there are differences in the types of products sold and the volume and frequency of transactions, depending on the distance from the market. Excessive milking of cows can negatively affect the growth of calves. Therefore, a trade-off relationship exists between milk and meat utilization. This problem becomes apparent when a critical situation arises, such as a severe winter disaster or an infectious disease. Furthermore, declining labor force, shift to meat-centered management strategies, and rising transportation costs have contributed to the volatility of the local dairy supply chain.
