The Mongolian agricultural machinery market has an import dependence of over 85%, with China firmly holding the position as the largest supplier (accounting for approximately 65%). In the first half of 2026, benefiting from Mongolia's livestock modernization policy and the advancement of its "Grain Self-sufficiency" plan, China's agricultural machinery exports to Mongolia increased by approximately ▲12% year-on-year. The main risks stem from fluctuations in the MNT exchange rate and rising logistics costs at the Erenhot port, but the continuous facilitation of bilateral trade between China and Mongolia provides support for medium to long-term growth.
Source: General Administration of Customs of China (July 2026 Monthly Bulletin), National Statistics Office of Mongolia (Q2 2026 Trade Brief)
Mongolia's domestic agricultural machinery production capacity is extremely limited, capable only of supplying a small quantity of simple tillage tools and spare parts. Over 85% of agricultural machinery equipment relies on imports. In 2025, Mongolia's total agricultural machinery market demand was approximately USD 150 million, while domestic output was only about USD 20 million, resulting in a supply-demand gap of about USD 130 million. The main consumption areas are livestock machinery (mowers, rakes, balers, etc.) and planting machinery (small to medium tractors, seeders).
| Indicator | 2024 | 2025 | H1 2026 (Est.) |
|---|---|---|---|
| Total Agricultural Machinery Demand (USD 100M) | 1.38 | 1.50 | 0.82 |
| Domestic Output (USD 100M) | 0.18 | 0.20 | 0.11 |
| Import Value (USD 100M) | 1.20 | 1.28 | 0.70 |
| Supply-Demand Gap (USD 100M) | 1.20 | 1.30 | 0.71 |
Source: National Statistics Office of Mongolia (Published July 2026), World Bank Mongolia Country Report (Updated June 2026)
In the first half of 2026, China's agricultural machinery industry operated steadily overall, with revenue of enterprises above designated size reaching approximately RMB 142 billion, a slight year-on-year increase of ▲2.8%. In terms of exports, agricultural machinery exports to Mongolia grew significantly. The average export price of small and medium-sized tractors (25-70 HP) was approximately RMB 42,000-85,000/unit, and the export volume of livestock machinery increased by over ▲15% year-on-year. The efficiency of agricultural machinery customs clearance at the Erenhot port has improved, benefiting the export rhythm.
Source: China Agricultural Machinery Industry Association (July 2026 Industry Brief), China Customs Export Data (July 2026)
The Ulaanbaatar agricultural machinery market is the main distribution center for imported Chinese agricultural machinery, with end-user retail prices at a premium of approximately 18%-30% compared to Chinese port prices (including tariffs, transportation, and dealer profits). The main sources of Mongolia's imported agricultural machinery are China (approx. 65%), Russia (approx. 12%), Japan (approx. 8%), and South Korea (approx. 5%). In 2026, the Mongolian government has increased subsidies for livestock machinery, leading to a significant increase in the growth rate of livestock machinery import demand.
Source: Mongolia National Statistics Office Trade Data (Q2 2026), Mongolia Ministry of Food, Agriculture and Light Industry Announcement (June 2026)
Mongolia's imported agricultural machinery categories are dominated by Livestock Machinery and Small and Medium Tractors. In 2025, livestock machinery (mowers, rakes, balers, etc.) accounted for approximately 48% of imports, tractors and tillage machinery accounted for about 28%, harvesting machinery about 10%, irrigation equipment about 7%, and others about 7%. In H1 2026, the import growth rate of livestock machinery led the pack, with a year-on-year increase of approximately ▲16%.
| Segment Category | 2025 Import Share | H1 2026 Growth Rate | Main Supplier Countries |
|---|---|---|---|
| Livestock Machinery | 48% | ▲16% | China, Russia |
| Tractors & Tillage Machinery | 28% | ▲8% | China, Japan |
| Harvesting Machinery | 10% | ▲5% | China, South Korea |
| Irrigation Equipment | 7% | ▲10% | China |
Source: Mongolia Customs General Administration Classification Statistics (July 2026), China Customs HS Code 84-87 Classification Export Data
Small and medium-sized tractors (25-70 HP) are the core demand product for Mongolia's planting industry. In 2025, Mongolia imported approximately 2,800 units of this category, and about 1,600 units in H1 2026. The demand for livestock balers is strong, with approximately 1,500 units imported in 2025. Mongolia has no large-scale agricultural machinery production, and the core products almost entirely depend on imports, with the supply-demand gap continuing to widen.
Source: Mongolia Customs Import Statistics (June 2026), China Agricultural Machinery Circulation Association Export Monitoring Data (July 2026)
The core raw materials for agricultural machinery manufacturing are steel, engines, and hydraulic components. In July 2026, the average price of hot-rolled coil (HRC) in China was approximately RMB 3,850/ton, a slight decrease of ▼2.3% from the beginning of the year, which is conducive to controlling production costs. The CIF Ulaanbaatar price for imported machinery typically includes the ex-factory price in the Chinese production area plus overland freight and insurance, with a comprehensive markup of approximately 15%-22%. Key components such as diesel engines are still mainly sourced from China.
Source: Mysteel Steel Price Monitoring (July 2026), Longzhong Information Logistics Cost Data (July 2026), 100ppi Steel Sector
Mongolia's GDP in 2025 was approximately USD 23.8 billion, with a growth rate of about 5.2%, and mineral exports are the backbone of the economy. Agriculture accounts for approximately 11.5% of GDP. In 2025, bilateral trade between China and Mongolia was approximately USD 17.8 billion, with China's exports to Mongolia around USD 5.2 billion. The RMB to MNT exchange rate was approximately 1:485 (July 2026), with MNT depreciating approximately ▼4.5% compared to the same period in 2025, increasing procurement costs for Mongolian importers.
| Macroeconomic Indicator | 2024 | 2025 | H1 2026 |
|---|---|---|---|
| Mongolia GDP (USD 100M) | 218 | 238 | 125 (Est.) |
| GDP Growth Rate | 5.5% | 5.2% | 5.0% (Est.) |
| China-Mongolia Trade Volume (USD 100M) | 166 | 178 | 94 |
| RMB:MNT Exchange Rate | 1:462 | 1:475 | 1:485 |
Source: World Bank (Updated July 2026), Bank of Mongolia Exchange Rate Data (July 2026), Ministry of Commerce of China China-Mongolia Trade Statistics
Major risks include: continuous depreciation of MNT ⚠ FX Risk increasing importer costs; occasional congestion at Erenhot port causing logistics delays; intensifying competition from low-cost Russian agricultural machinery in the Mongolian market. Opportunity windows lie in: the Mongolian government's 2026-2028 Livestock Modernization Plan with a budget of approximately MNT 250 billion; the obvious cost-performance advantage of Chinese machinery; and the ongoing feasibility study for a China-Mongolia Free Trade Agreement, which is expected to lower tariff barriers.
Source: Mongolia Ministry of Food, Agriculture and Light Industry Policy Document (June 2026), Bank of Mongolia Exchange Rate Report (July 2026), Ministry of Commerce of China China-Mongolia Economic and Trade Cooperation Brief