Dornod Shim Agro


The project is financing capital expenditure for further expansion of agricultural activities in eastern Mongolia.

DSA is developing and operating environmentally efficient (zero-tilling) farms, where it grows cereals (wheat, barley..) and canola. 

Since the collapse of communism in the early 90s and all related farm infrastructure, Mongolia has still not managed to ensure its wheat supply food security and uses only a fraction of its former farmland, the remainder staying abandoned. Producing on average 400.000 tons of cereals annually from 2009 to 2013, local needs can only be met by importing over 100.000 tons, mainly from Russia/Kazakhstan. DSA redevelops 30.000 ha of derelict farmland and sells its wheat to the local mills, producing flour for local food consumption. Government strongly supports local production through a number of measures, but even without these, DSA is viable. Its canola production is exported, which generates a source of hard currency income.

Development impacts:

  • Private sector consolidation/innovation: know-how and technology transfer
  • Food security and rural development: improved economic opportunities for farms; increased availability of food on local markets.