MONGOLIA* (10 October)
Livestock in Mongolia play a fundamental role in the nutritional status of the majority of the population. Total number of livestock in 2004 is officially estimated at 28 million, 3.5 million above the previous year. However, substantial losses have been forecast for the 2004/05 winter as a result of a dry summer in 2004 and heavy snows and much below-normal temperature during the winter. To protect against the consequences of natural disasters such as disease and severe winter weather (zud), a livestock insurance system was introduced in July 2005, with a no-interest loan of US$ 7.54 millions from the International Development Association.
Wheat is virtually the only cereal grown in the country. Production in 2004 is officially estimated at 135.6 thousand tonnes, some 15.5 percent below the previous year, reflecting the dry summer weather in the major wheat growing regions. Harvesting of 2005 wheat crop is underway and the output of this crop is provisionally forecast at 110 000 tonnes, below the level of last year, reflecting the drought weather in most part of the country this summer. This output covers only about 28 percent of domestic wheat utilization, leaving an estimated import requirement for 2005/06 of 285 000 tonnes. Given that the country has a serious balance of payment problem, commercial imports will only cover part of this requirement and food aid will be necessary to meet the deficit. The United States Department of Agriculture (USDA) has committed to donate 20 000 tonnes of wheat to Mongolia under the Food for Progress programme. Besides, the private US charity, Mercy Corps, will sell the wheat in Mongolia for an estimated US$ 2.9 million to help rural development projects.