1.
Socio-economics an Policy
Research
HSAD (Harmonized Support for Agricultural Development in Iraq
Iraq-ICARDA-USAID
Final Meeting: 10-11 June 2014
Baghdad, Iraq
Aden A Aw-Hassan
Director, Social, Economic and Policy Research

2.
Main Activities
1. Policy analysis by IFPRI
– Applied CGE Model to assess the effects of different policy
interventions on wheat supply and on distributional effects on
labor and livelihoods
– Iraqi spatial showing different natural resources endowments,
production and livelihoods as tool to guide development policy
2. Assessment of Seed Policy and support in its implementation
3. Baseline production surveys of wheat and date palms
4. Value chain analysis of dates and wheat

3.
• The seed policy is in the Shura council for final
approval but the seed policy is already in the
process of implementation
• Information: qualitative and quantitative.
• Qualitative: legislative process used to guide
policy implementation.
• Quantitative: Uses aggregate data to illustrate
the general trends in seed production and
related wheat production
Wheat Seed Policy

4.
Wheat sector in Iraq
Planted area:
Average (2000/12): 1.975 mln Ha
Irrigated 1.25 mln Ha (63.3 %)
Rain-fed 0.725 mln Ha (36.7 %)
Production
Average (2000/12): 2.0 mln Ton
Irrigated 1.894 mln Tons
Rain-fed 0.106 mln Tons
Suggesting low yields, on average, in both conditions
Source: FAO statistics
4

5.
Importance of the wheat sector in Iraq
Wheat self-sufficiency:
Based upon normative per capita consumption
2007 2010 2013
48.9 % 58.8 % > 70%
In relation to actual wheat imports 50% max
5

6.
Relevance of the wheat seed component
1. Seed is a main and sure production factor to improve
productivity and production
2. Research to produce new varieties are mobilized and available
3. Seed industry and related multiplication infrastructure to
produce increasing amounts of seeds are available,
4. Farmer seed demand guaranteed and enhanced through
increasingly motivating incentives,
5. Accompanying inputs are also in supply and at advantageous
prices.
6

7.
Regulatory framework
The National Seed Policy:
 Falls within the general framework and is stipulated by the
strategy set for the agricultural sector
 Recognizes that Agriculture throughout Iraq has a
differentiated potential:
 North dependence on rain, rivers and ground water
 Center and the south dependence mainly on river water
 Recognizes the importance of high quality, adapted and
improved seeds as prerequisites for enhancing crop
production
7

8.
The National Seed Policy
Improve
family food
security
Improve rural
incomes
Elevate
standard of
living in rural
areas
Enhance the
contribution of
agriculture to
GDP
Increase food
production
Timely
availability of
required
quantities of high
quality seeds of
improved crop
varieties to
farmers at
reasonable prices
at appropriate
locations
Objectives

9.
Elements of strategy and vision:
• While in the long run:
– the aim is minimize the use of public subsidies,
• In the immediate and short run:
– The seed industry will be supported to achieve rapid improvements in
crop development by improving both genetic and physical attributes of
varieties as private enterprises are perceived to be financially non
viable,
• The Government will also support the involvement of the
private sector in the seed industry by providing incentives to
invest in the seed sector,
9

10.
The National Seed Policy
The Government will also:
o Play the lead role in developing pilot research
operations
o Enhance farmer demand for high quality seeds
o Create an operating and economic environment
favorable for investment in seed production and supply
oVariety development is assigned to the agricultural
research centers with the expectation that the private
sector will in the long run participate in it
10

11.
The national Seed Policy:
• Registered and certified seed production are the responsibility
of seed suppliers with the expectation that the higher
performing of them would develop self-sustaining private-
sector seed business operations according to pre-specified
rules,
• With time the Government would concentrate on the
production of those varieties which are required by farmers but
not supplied by the private sector,
• Ultimately, the Government would be responsible for those
activities that are of public service nature while the activities
that are of a commercial nature would be entrusted to the
private sector.
11

12.
II. Regulatory framework
C. The Seed and seedlings Act (Law 50 of 2012):
12
Top management, advisory
& investment stimulation
Agricultural research,
experimentation & seed
development
Inspection, control
& certification of
seeds
Registration and
accreditation of
new seeds
National seed
council
NCRRPAV PAAR GAECR
Seed
companies
Seed
producers
Wheat
producers
Seed
multiplication,
marketing &
storage

13.
Ministry of Agriculture (Minister)
Initiator
(Ex Agr Supplies)
Planning and Follow up
Ministry Council Legislation
Directorate
(MoA Legal
Office)
Ministerial Council
Shura’a Council
Parliament
Law
passed
Procedures for
implementing the Law
The Process of Legislating Agricultural Policy

14.
Seed policy implementation and instructions (2013)
• The main implementation aspects deal with:
– Seed production and certification modalities,
– Reiteration of the exclusive nature of the higher
grade categories and their certification procedure and
requirements (field checking, seed cleaning,
laboratory analyses, etc.),

15.
High grade seed technical specifications
Seed
grades
Purity
(%)
Min
Germination
(%)
Min
Weed
Seeds/Kg
Max
Moisture
content (%)
Max
Other crop
seeds/Kg
Max
Base
(Foundation) 98 85 10 12 5
Registered 98 85 15 12 10
Certified # 1 97 85 30 12 25
Certified # 2 96 85 60 12 50
15

16.
High grade seed elaboration steps

Steps Denomination Institutions in charge
1 Seed breeding Agricultural Research Stations and the
National Committee for Release,
Registration and Protection of Agricultural
Varieties (NCRRPAV)
2 Seed multiplication Seed companies in cooperation with seed
producers on contractual bases
3 Seed quality testing
and certification General Authority for Examination and
Certfication of Seeds (GAECS)
4 Seed management,
storage and supply Seed companies (MSP, ICSP & STC)
5 Seed marketing Seed companies and marginally by the
private sector 16

17.
Structure of the market
Seed producers are 3 major companies:
• Mesopotamia seed company, public with revolving funds
• Iraqi seed company with mixed capital (51, 49%) with access to
public funding (Seed fund and agricultural fund)
• Seed Technology Center, entirely public
– All operating on contractual bases with seed producers
17

18.
Seed total utilization evolution
Years High grade seed use (Tons) Self-sufficiency ratio (%)
2003 3500 2
2004 6576 4
2005 7600 4
2006 9716 5
2007 10500 6
2008 40000 22
2009 47718 26
1010 36726 20
2011 60000 33
2012 62000 34
2013 132000 73 18

19.
Impact on wheat production (All Iraq)
Period Average
2000/08
Average
2009/12
Variation
(%)
2013
Wheat production (MT) 1.8 2.6 + 47 3.82
Estimated yield
(Ton/Ha)
1.13 1.84 + 62 2.18
Estimated wheat
Consumption (MT) 4.4 4.8 + 9 5.1
Production
consumption gap (MT) - 2.6 - 2.2 - 15.4 1.9
Wheat imports (MT) 3.1 3.8 + 24.6 3.2
19

20.
Constrains to farmers access to seeds
• Farmers face huge administration problems when buying
certified seeds.
• The sales points are far away from farmers, thus requiring
long distances to get certified seeds.
• Farmers also have to undertake substantial paper work to be
eligible to certified seeds and subsidies.
• Some farmers did not get the amount of seed they need.
• Farmers are not fully convinced of the certified seed in some
cases so trust has to be gained.
• Distribution of seeds has to be improved, with less
bureaucracy.

21.
The private sector involvement
The seed policy of Iraq, and related legislation call for two main
ideals:
1. Support public sector:
1. Supporting the wheat seed industry in the short to medium run in
every way possible
2. Support wheat production with other related inputs, price of wheat, provide
marketing services, etc.
3. The aim is to help the industry get started and reach a critical stage of
take-off and follow-up development,
2. Private sector:
1. Expect the private sector to gradually take over the mission in the
long run
2. Allowing the Government to disengage and focusing on public
service activities that can be of benefits to all.
21

22.
Progress and obstacles on seed sector
privatization
• The sector now heavily depends on state support both the
demand and the supply
• It is generally difficult in any systems to withdraw subsidies
• The private sector will not be able to enter the industry due to
these strong state support
• The state support to the main seed companies has crowding-out
effect on the private sector
• The assumption that in the short and medium run private firms
are not financially viable to undertake private investment in the
seed sector- should be questioned and reviewed.

23.
FINAL WORD
• Policy is sound and it supports clear food policy strategy
• Policy is being implemented
• BUT: The role of private sector needs further measures:
– Leveling the plane field with state supporting companies,
– Devolving the distribution to small and medium size input traders (Conduct pilot
case):
• Need support in training and information
• Also capitalization by through local financial institutions
• State will retain monitoring and evaluation of the system and implementing changes as needed
• Small-scale seed enterprise sector should be developed:
– particularly as they play complementary roles with the formal sector-
– the advantage of this system is could produce verities that adequate for local
conditions

24.
Thank you