Agriculture in Mongolia constitutes over 10% of Mongolia's annual gross domestic product and employs one-third of the labor force. However, the high altitude, extreme fluctuation in temperature, long winters, and low precipitation provides limited potential for agricultural development. The growing season is only 95 – 110 days.Werner Elstner: Mongolei, p. 18. Berlin 1993 Because of Mongolia's harsh climate, it is unsuited to most cultivation.
The agriculture sector therefore remains heavily focused on nomadic animal husbandry with 75% of the land allocated to pasture, and cropping only employing 3% of the population. About 35% of all households in Mongolia lived from breeding livestock. Most herders in Mongolia follow a pattern of nomadic or semi-nomadic pastoralism.
Crops produced in Mongolia include wheat, barley, and potatoes. Animals raised commercially in Mongolia include sheep, goats, cattle, horses, camels, and pigs. They are raised primarily for their meat, although goats are valued for their hair which can be used to produce cashmere. Livestock breeds are increasingly challenged by land degradation and climate change. Populations suffer from more frequent and intense extreme weather events, especially brutal winter seasons called zuds that destroy forage and can decrease temperatures to around −50 °C. While zuds used to occur about once every ten years, there have now been six in the past decade, with over six million animals (9% of total livestock) killed by these conditions in the winter of 2024.
History and growth of production In the late 1980s, agriculture was a small but critical sector of the Mongolian economy. In 1985 agriculture accounted for only 18.3 percent of national income and 33.8 percent of the labor force. Nevertheless, agriculture remained economically important because much of Mongolia's industry processed agricultural products, foodstuffs, timber, and animal products, such as skins and hides for domestic consumption and for export. In 1986 agriculture supplied nearly 60 percent of Mongolia's exports.
Mongolian agriculture developed slowly. An abortive attempt to collectivize all arads occurred in the early 1930s; efforts to encourage voluntary cooperatives and arad producers' associations followed. In the 1930s, the government also began developing state farms, and by 1940 there were ten state farms and ninety-one agricultural cooperatives. In 1937 the Soviet Union provided ten hay-making machine stations to prepare fodder for livestock. In 1940 agriculture represented 61 percent of national income, and it employed approximately 90 percent of the labor force.
In the 1950s, agriculture began to adopt its present structure and modern techniques, based in part on material and technical assistance from the Soviet Union and East European countries. In the 1950s, the hay-making machine stations were reorganized as livestock machine stations. In 1955 negdels replaced the arad producers' associations. By 1959 the state had accomplished the collectivization of agriculture. In ten years, agricultural cooperatives had more than doubled, from 139 in 1950 to 354 by 1960. Ownership of livestock and sown areas changed dramatically as a result of collectivization. In 1950, according to Mongolian government statistics, state farms and other state organizations owned approximately 0.9 percent of livestock and 37.8 percent of sown areas; negdels had about 0.5 percent of livestock and no sown lands; and private owners some held 98.3 percent of livestock and 62.2 percent of sown areas. In 1960 state farms and other state organizations owned 2.7 percent of livestock; negdels, 73.8 percent; and individual negdel members, 23.5 percent. The state sector owned 77.5 percent of sown lands, and the cooperative sector the remainder.
By 1960 agriculture's share of national income had fallen to 22.9 percent, but agriculture still employed 60.8 percent of the work force. After 1960 the number of state farms increased, state fodder supply farms were established, the number of negdels decreased through consolidation, and interagricultural cooperative associations were organized to facilitate negdel specialization and cooperation. Mongolia also began receiving large-scale agricultural assistance from the Soviet Union and other East European countries after Mongolia's 1962 entry into Comecon. The Soviet Union, for example, assisted in establishing and equipping several new state farms, and Hungary helped with irrigation. In 1967 the Third Congress of Agricultural Association Members founded the Union of Agricultural Associations to supervise negdels and to represent their interests to the government and to other cooperative and social organizations. The union elected a central council, the chairman of which was, ex officio, the minister of agriculture; it also adopted a Model Charter to govern members' rights and obligations. In 1969 the state handed over the livestock machine stations to the negdels.
Negdels, which concentrated on livestock production, were organized into brigad (brigades) and then into suuri (bases), composed of several households. Each suuri had its own equipment and production tasks. Negdels adopted the Soviet system of herding, in which arad households lived in permanent settlements rather than traveling with their herds, as in the pastoral tradition. In 1985 the average negdel had 61,500 head of livestock, 438,500 hectares of land, of which 1,200 hectares was plowable land, 43 tractors, 2 grain harvesters, and 18 motor vehicles; it harvested 500 tons of grain. Individual negdel members were permitted to own livestock. In mountain steppe pasture areas, ten head of livestock per person, up to fifty head per household, were allowed. In desert regions, fifteen head per person, up to seventy-five head per household, were permitted. Private plots also were allowed for negdel farmers.
State farms, compared with negdels, had more capital invested, were more highly mechanized, and generally were located in the most productive regions, or close to major mining and industrial complexes. State farms engaged primarily in crop production. In 1985 there were 52 state farms, 17 fodder supply farms, and 255 negdels. In 1985 the average state farm employed 500 workers; owned 26,200 head of livestock, 178,600 hectares of land, of which 15,400 hectares was plowable land, 265 tractors, 36 grain harvesters, and 40 motor vehicles; it harvested 12,100 tons of grain.
In the late 1980s, several changes in governmental organization occurred to facilitate agricultural development. In October 1986, the Ministry of Agriculture absorbed the Ministry of Water Economy, which had controlled irrigation. In December 1987, the Ministry of Agriculture, the Ministry of Forestry and Woodworking, and the Ministry of Food and Light Industries were abolished and two new ministries, the Ministry of Agriculture and Food Industry, and the Ministry of Environmental Protection were established. Among the functions of the Ministry of Agriculture and Food Industry were the further coordination of agriculture and of industrial food processing to boost the food supply, and the development on state farms of agro-industrial complexes, which had processing plants for foodstuffs. The Sharin Gol state farm, for example, grew fruits and vegetables, which then were processed in the state farm's factories to produce dried fruit, fruit juices, fruit and vegetable preserves, and pickled vegetables. The Ministry of Environmental Protection incorporated the Forestry and Hunting Economy Section of the former Ministry of Forestry and Woodworking and the State Land and Water Utilization and Protection Service of the former Ministry of Agriculture.
Crop production
Since its inception, the Mongolian People's Republic has devoted considerable resources to developing crop production in what was a predominantly nomadic, pastoral economy. Mongols traditionally disdained the raising of crops, which was conducted for the most part by Chinese farmers. Early efforts to force arads to become farmers failed, and the government turned to the creation of state farms to promote crop production. By 1941 when the state had established ten state farms, Mongolia had 26,600 hectares of sown land. State farms, however, accounted for only 29.6 percent of the planted areas.
After World War II, Mongolia intensified efforts to expand crop production by establishing more state farms, by reclaiming virgin lands for crop raising, by mechanizing farm operations, and by developing irrigation systems for farmlands. When Mongolia began to report statistics on arable land in 1960, there were 532,000 hectares of arable land, and sown crops covered 265,000 hectares of the 477,000 hectares of plow land. Mongolia's 25 state farms accounted for 77.5 percent of sown areas, and cooperatives, for 22.5 percent. In 1985 when 52 state farms and 17 fodder supply farms existed, there were about 1.2 million hectares of arable land, and sown crops covered 789,600 hectares of the approximately 1 million hectares of plow land. The state sector accounted for 80.6 percent of sown areas, and cooperatives, for 19.4 percent. Development of virgin lands by state farms was responsible for most of the expansion of arable land and sown areas. Land reclamation started in the late 1950s and the early 1960s, when 530,000 hectares were developed, and it continued throughout each five-year plan. During the Seventh Plan, 250,000 hectares were assimilated, and the Eighth Plan called for an additional 120,000 to 130,000 hectares to be reclaimed.
Mechanization of farm operations commenced on a large scale in the 1950s with Soviet assistance. The Soviet Union provided most agricultural machines, as well as advice and expertise in mechanization. State farms were more highly mechanized than cooperatives. For example, in 1985, 100 percent of potato planting and 84 percent of potato harvesting were mechanized on state farms, compared with 85 percent and 35 percent, respectively, in negdels. Beginning in the 1960s, state farms also pioneered the development of irrigation systems for crops. By 1985 Mongolia had 85,200 hectares of available irrigated land, of which 81,600 hectares actually were irrigated.
Crop production initially concentrated on raising cereals; in 1941 cereals covered 95.1 percent of sown areas, while 3.4 percent was devoted to potatoes and 1.5 percent to vegetables. In 1960, Mongolia became self-sufficient as far as cereals were concerned.Werner Elstner: Mongolei, p.43. Berlin 1993 Cultivation of fodder crops began in the 1950s. In 1985 cereals covered 80.6 percent of sown areas, fodder crops 17.7 percent, potatoes 1.3 percent, and vegetables 0.4 percent. Mongolia's staple crops were wheat, barley, oats, potatoes, vegetables, hay, and silage crops. Since 1960 agricultural performance as measured by gross output, per capita output, and crop yields was uneven. Although sown acreage expanded dramatically between 1960 and 1980, output and crop yields remained stagnant and, in some cases, fell because of natural disasters and poor management. In addition to the staple crops mentioned, Mongolia also produced small quantities of oil-yielding crops, such as sunflower and grape, and fruits and vegetables, such as sea buckthorn, apples, European black currants, watermelons, melons, onions, and garlic. Small amounts of alfalfa, soybean, millet, and peas also were grown to provide protein fodder.