Letter to IFC: Metagro, Mongolia (September 2024)

In September 2024, dozens of civil society organizations submitted a letter to the IFC Board to express concerns about a proposed $60 million investment in MCS Holding LLC and its subsidiary, Metagro LLC, in Mongolia. The letter outlines key issues with expanding Metagro’s factory farming operations, which could conflict with the World Bank Group’s commitments to environmental sustainability, biodiversity, and climate goals.

The main points include:

• Deforestation for feed production: Metagro sources large amounts of feed with no traceability, contributing to deforestation and biodiversity loss.
• Biodiversity loss from agrochemicals: The project’s reliance on agrochemicals from China and Russia risks severe environmental damage.
• Water stress: The proposed increase in irrigated agriculture would worsen water scarcity in a region already at high risk for drought.
• No contribution to food security: Despite Mongolia’s large livestock numbers, the project would primarily support export markets rather than addressing domestic food insecurity.
• Animal welfare violations: Fast-growth animal breeds and poor living conditions in feedlots raise concerns about compliance with international animal welfare standards.
• Contradiction to climate goals: Expanding livestock production contradicts Mongolia’s commitment to reducing herd sizes under its Nationally Determined Contributions (NDCs).

The letter urges the IFC to reconsider its investment, highlighting the need for support of agroecological practices and investments in plant-based food production that align with climate, biodiversity, and food security goals.

Use the link below to download and read the letter.