It is believed that almost 70 percent of the nation's total food supply is imported products. Therefore, the Government is supporting entities replacing import products in order to decrease foreign trade deficit and absorb currency flow in the country. Mongolia imports vegetable oil that adds up to 30 million USD annually. But with the help of a vegetable oil producing factory opening in Selenge Province, 50 billion tugrik is being forecasted to support the domestic market. Mongolia’s vegetable oil needs are estimated at 25 thousand tons per year. Vegetable oil is a product that can be produced in the country but is almost 100 percent imported from abroad. It is said that almost 30 million USD is being spent on these imports, and critics say that over 20 pre-schools could be built with this money.Ts.Renchinsengee, Head of Agricultural Policy and Coordination Division at the Ministry of Industry and Agriculture, “Starting from last year, the Ministry of Industry and Agriculture adopted a policy to  support this vegetable oil producing factory, following the government policy of replacing imported products. We are working closely with the factory, employees and farmers”. To produce vegetable oil, the raw materials should be adequate. In Mongolia, sunflower, colza and corn can grow and provide raw material needs. But while colza, also known as rapeseed, has high concentrations of oil, it can also negatively affect the soil. The agricultural specialists say that if colza is planted properly, there are no affects to the soil. The government states that it is supporting the production of value-added products domestically and domestic production factories are ready to open their doors. The Maind Tech company has the capacity to produce 100 tons of oil plants per day and will soon be operational in Bayangol soum of Selenge Province.The soum has a population of 5,600. With the factory operational, it will provide over 150 residents with stable jobs. This area is believed to be an agricultural zone.B.Enkhbat, Governor of Bayangol soum of Selenge Province “As of today, there are 30 people from our soum who have been recruited for factory work. According to the project organizers, they will employ over 150 people”.The project initiators say that during the production process, almost 40 percent becomes oil and the rest becomes animal feed. This no-waste model is the most eco-friendly means of production.