LocationsChurning Change: How Local Dairy is Driving Jobs, Resilience, and Rural Growth in Mongolia
April 20, 2025
Churning Change
How Local Dairy is Driving Jobs, Resilience, and Rural Growth in Mongolia
“If I can get enough milk, I want to keep my factory running all year round — producing high-quality dairy products for people across Mongolia,” says Janlavtsogzol, her eyes lighting up with pride as she speaks beside a row of her dairy products.
She is the proud founder of the only dairy factory called “Yaks of Ikh Mountains” in Ikh-Uul soum, a sub-provincial administrative unit of Zavkhan province, Mongolia. With targeted support and smart local investment, her factory is creating a ripple effect of opportunity — strengthening incomes, food security, and climate resilience in one of Mongolia’s most remote areas.
Every cup of probiotic yogurt, every wedge of cheese, every drop of ghee and curd is made from one of Mongolia’s rarest and most prized resources: yak milk.
Rich in protein, essential fatty acids, and nutrients rarely found in cow’s milk, yak milk is a natural superfood, born from animals that thrive in some of the harshest, highest-altitude environments on earth. Its slightly sweet, creamy flavor is as unique as the resilience of the people who produce it.
For Janlavtsogzol, this is not just a business — it is a mission. She is creating a proud local brand in a place where few thought it was possible. "People love our products," she says. "We can sell as much as we can make."
But making it here took more than passion — it took vision, partnership, and the right kind of support.
With a background in food technology, Janlavtsogzol always dreamed of using her skills to make something meaningful. That dream became reality through ENSURE, a project implemented by UNDP in partnership with the Government of Mongolia and funded by the Global Environment Facility. The project provided her with the critical equipment she needed to launch — from processing tools to deep freezers powered by renewable energy, placed directly at herders’ homes to preserve milk safely.
The impact? Immediate and powerful.
During the summer peak, her factory processed over six tonnes of yak milk, and employs up to four local workers — creating opportunities in a community where jobs are scarce and outbound migration is rising.
“The training was just as valuable as the equipment,” she adds. Through ENSURE’s capacity-building programs, she learned to develop a brand, manage marketing, and build a digital presence. She now runs her own social media, proudly showcasing her products and the herders who supply the milk.
But Janlavtsogzol is not doing this alone. Her dream is now a shared one. The local government stepped in, providing land and a building — transforming it into a true public-private partnership.
Today, her community — from yak herders to high school students — proudly consumes what they helped create. This kind of local ownership accelerates impact, reduces dependency, and lays the foundation for scaling.
Yet while Janlavtsogzol’s factory is making local dairy more accessible, Mongolia as a whole still faces a nutritional gap: many people consume less than the recommended daily intake. And nearly half (49 percent) of all dairy products on the market are imported. To close this gap and strengthen local production, the Government of Mongolia has introduced targeted support measures, including a cash incentive of MNT 1,000 per liter for raw milk supplied to certified processing facilities during the cold season.
“Locally driven businesses like this are key to strengthening rural economies and building resilient communities. We are committed to supporting initiatives that empower citizens, diversify incomes, and ensure sustainable development in every region of Mongolia,” says Mr. Munkhnasan Ts, Acting Director of Livestock Policy Implementation Coordination Department, Ministry of Food, Agriculture and Light Industry.
She is already thinking ahead. To stabilize supply and expand production, she secured a loan to purchase a 40-tonne freezer container. She is also getting ready to sign agreements with 30 herder households who own a total of 100 yaks. By collecting 150 liters of milk per day — or 4.5 tonnes per month — over a period of five months, the factory is enabling these herders to earn a stable and reliable income throughout the summer season.
The long-term vision? A national yak milk brand, born in the mountains of Ikh-Uul.
And the impact ripples far beyond her factory walls.
Janlavtsogzol, holding products from her yak milk dairy factory, “Yaks of Ikh Mountains.”
In a region with one of the largest yak populations in the country, local herders now have a reliable, local market for their milk. Their incomes are rising. And thanks to the nature of yak grazing — a breed uniquely suited to high-altitude pastures — the factory’s supply chain supports not just people, but the sustainability of local ecosystems.
Similar factories supported by the project are now being established across three provinces — each one creating new local jobs and breathing life into rural economies.
“By supporting small-scale, locally owned enterprises like this dairy factory, we are not only creating livelihoods but also demonstrating how targeted support can strengthen rural value chains and build climate resilience in Mongolia. Investments like these are critical to translating national development goals into tangible actions at the community level, especially in regions most vulnerable to economic and environmental shocks. It is now up to the authorities to take this further and scale it up,” said Matilda Dimovska, UNDP Resident Representative in Mongolia.
This is what it looks like when climate-smart development meets local leadership and ownership. When women like Janlavtsogzol are given the tools to lead, entire communities rise with them. With continued support, this locally owned dairy factory is no longer just a business — it is a blueprint. A model for how small investments can unlock sustainable rural growth, empower herders, and build a future rooted in pride, resilience, and opportunity — one soum at a time.
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