The Mongolian government is to finance the building of 83 greenhouses in a bid to improve the supply to vegetables to residential areas.
The initiative, launched by the Ministry of Food, Agriculture and Light Industry, will be accomplished by granting low-cost loans to family businesses.
The giant greenhouses will add approximately 75ha of land given over to veg production under glass.
A further €10.2 million (£7.5 million) of investment in vegetable production is coming to Mongolia via an initiative by Poland.
It will pay for the construction of potato and vegetable storage facilities with 8,500 tonne-capacity.
The cash will also be used to buy more than 600 types of farming machinery and equipment.
China is also investing in Mongolia agriculture by funding the provision of farm irrigation system equipment to crop farmers.
The Chinese are offering 50 per cent discounts on the equipment and giving farmers six years to pay back the money at a six per cent annual interest rate.
The project is expected to result in an increase of irrigated farmland of approximately 1,500 ha, according the ministry.
The United Nations’ Food and Agriculture Organisation is also working in Mongolia to improve its farming prospects.
Last week the UN signed a deal with the Ministry of Food, Agriculture and Light Industry to provide a new project aimed at creating employment opportunities for young people in the agribusiness sector.
It is part of a larger European Union funded technical assistance project designed to transform employment in Mongolia that is being jointly implemented by the UN and the International Labour Organisation.