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Scholars Journal of Economics, Business and Management | Volume-3 | Issue-03
Market Analyses of Milk: The Case of UB City
Ichinkhorloo Bazarragchaa, Nyambat Luvsandorj, Lu Qian
Published: March 30, 2016 |
115
84
DOI: 10.36347/sjebm.2016.v03i03.008
Pages: 140-145
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Abstract
Milk is of the traditional food in Mongolia with hundreds years of custom. Current domestic liquid milk
production has not met with the consumption of Ulaanbaatar (UB-capital city) and other big cities in Mongolia. The total
milk production of farmers in surrounding area of UB is 10-12 million liters; however 100 million liters of milk is
required for the consumption of inhabitants of UB. According to existing studies and official statistics, average
consumption of milk and dairy products urban person is 2 times less than rural person, and only 20 percent of procured
milk is processed. The objective of this study is to analyze market equilibrium of liquid milk market of UB. Market
theory, including demand and supply analyses, was applied using regression analyses to estimate functional forms and
other required statistical – econometrical indicators. The functions and elasticity(s)of demand and supply for liquid milk
show clearly that the share of dried milk higher in the market. More advanced development of intensified dairy farms and
supports of their activities are essential in order to meet the demands.