Low carbon yogurt line

Green investment in Mongolia’s dairy sector ensures benefits from reduced energy consumption while supporting local herders.

Mongolia’s dairy sector plays a vital role in supporting rural livelihoods and ensuring national food security. With the country’s growing urban population and increasing demand for high-quality, locally sourced dairy products, producers are investing in modern technologies to improve product quality, reduce energy efficiency, and strengthen sustainability.

Founded more than 60 years ago, SUU Joint Stock Company is Mongolia’s first and largest dairy producer, holding 48% of the national market share. The company supports over 2,500 local herders and supplies more than 70 varieties of milk and dairy products nationwide.

To meet rising consumer demand for diverse yogurt products, SUU JSC decided to replace its outdated, nine-year-old production line with a modern, energy-efficient system. The company selected a new production line equipped with advanced pasteurizers, fermentation and mixing systems, aseptic air and water units, CIP stations, and a fully automated control system. With these upgrades, SUU JSC produces fermented cream and yogurt products at higher efficiency and more consistent quality, setting an example for sustainable resource management, and contributes to reducing the industry’s environmental footprint.

The USD 3.23 million investment, partially financed through a GEFF loan from XacBank, supports SUU JSC’s commitment to sustainability and innovation. The new equipment delivers annual energy savings of 524 MWh, reduces CO₂ emissions by 739 tonnes per year, and significantly lowers maintenance and operating costs.

Through this investment, SUU JSC reinforces its leadership in Mongolia’s dairy industry and demonstrates how green technologies can improve efficiency, reduce environmental impact, and strengthen local food production. The project highlights the growing role of sustainable innovation in advancing Mongolia’s low-carbon, resource-efficient economy.

The Green Economy Financing Facility (GEFF) in Mongolia was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the Green Climate Fund and the Government of Japan.