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Iraq




             GRAIN AND FEED ANNUAL IRAQ GRAIN PRODUCTION FACES

                  DIFFICULT WEATHER AND COVID-19 IMPACT IN 2020



              Iraqi grain production may not            Production:                 6.6 MMT and MY 2018/19 production to
             rebound in a  similar  pattern in MY                                   3.5 MMT based on official data.
             2020/21  as  it  did in MY 2019/20  due   Iraqi farmers plant wheat in November
             to a shortage of rainfall  coupled with   in both irrigated and rainfed zones. In the   Seasonal rainfall in Iraq normally
             the  impact of  the  COVID-19 outbreak   irrigated zones, the harvest generally   begins in October and lasts  until May
             on  Iraq’s oil-dependent  economy and   begins in May and runs until June while   the following year. According to data
             movement  restrictions that  limit the   in the rainfed areas, it begins in June and   from international  and  local  weather
             ability of farmers to cultivate their grain.   runs through to July. Occasionally, some   sources, rainfall in  MY 2020/21 is less
             Post expects less than average yields   farmers  in  irrigated zones  may delay   than the previous season, particularly
             per unit area of wheat and barley due to   harvesting until June as  well. Normally,   between  February and April 2020. In
             late and insufficient rainfall in growing   there is no double-cropping on the   addition, the movement  restrictions as
             areas. However, an increase in planned   same land  where wheat  is  cultivated,   a result of  the  unexpected spread of
             planted areas for wheat and barley may   especially in the rainfed areas because   COVID-19 will impact farmers’ ability to
             compensate  for yield declines. Rice   the land becomes very dry after the   harvest all the planted areas as well as
             production is forecast to decline due to   harvest.                    mitigate against the annual infestation of
             the limited availability  of water. Grain                              the sunn pest (eurygaster integriceps)
             food and feed consumption are forecast   Post estimates wheat production in the   through the aerial spraying of fields.
             to rise on population growth and growing   market year (MY) 2020/21 to be 6 million   As a result, Post anticipates  lower than
             demand  for meat and dairy products   metric tons (MMT) on expanded planned   average wheat yields.
             fueling the Iraqi livestock sector  planted area by the government of Iraq   Nevertheless, the market conditions
                                                which will offset declining yields. Post is   that influence farmer decisions to plant
                                                also revising MY 2019/20 production to   remained unchanged in MY 2020/21
                                                                                    as the  government’s announced  wheat
                     Wheat Production, Supply, and Demand Statistics                purchase price was  the same as  the
                                                                                    previous marketing year.  The Iraqi
                  Wheat          2018/2019         2019/2020         2020/2021      government begins its annual purchase
                                                                                    of locally-produced  wheat in July of
               Market Begin      Jul 2018          Jul 2019          Jul 2020       each year. Table 2 lists  the production,
                  Year                                                              average yield, and area for MY 2019/20.
                              USDA     New      USDA     New      USDA     New
                  Iraq                                                               National Agricultural
                             Official  Post    Official  Post    Official  Post
              Area Harvested  1700     2000     2400     2350       0      3100       Plan – MY 2020/21
              Beginning       1372     1372      887      887       0      1187
              Stocks                                                                  The Ministry of Agriculture (MOA)
                                                                                    maintains a  National Agricultural  Plan
              Production      3000     3500     4800     6600       0      6000
                                                                                    which prescribes the areas farmers may
              MY Imports      3915     3915     2500     2300       0      2700     plant specific crops each year. The plan
              TY Imports      3915     3915     2500     2300       0      2700     lays out the ministry’s understanding
                                                                                    of the best combination of production
              TY Imp. from                                                          and import decisions  needed  to meet
              U.S.             888      888       0       52        0       0
                                                                                    country demands. MOA gives farmers
              Total Supply    8287     8787     8187     9787       0      9887     incentives to follow the plan by allowing
              MY Exports        0        0        0        0        0       0       them to access subsidized inputs (i.e.
                                                                                    fertilizers and  seeds),  as  well as  to
              TY Exports        0        0        0        0        0       0
                                                                                    improved marketing through the Grain
              Feed and         800     1000      700     1400       0      1400     Board of Iraq. Subsidized  inputs for
              Residual                                                              MY 2020/21 remained the same as last
                                                                                    season where farmers operating within
              FSI             6600     6900     6800     7200       0      7400     the plan received subsidized seeds at a
              Consumption                                                           rate of 30KG per donum (approximately
                                                                                    120 KG/Ha).
              Total           7400     7900     7500     8600      0       8800
              Consumption                                                             Farmers planting in areas not included
              Ending Stocks    887      887      687     1187      0       1087     in the plan must procure their own inputs
                                                                                    at full market value or plant grain saved
              Total           8287     8787     8187     9787      0       9887     from the previous year’s harvest. These
              Distribution
                                                                                    farmers can also only sell their wheat
              Yield            1.76    1.75     2.00     2.81      0       1.94     as feed grade, regardless of quality, at
                                                                                    market price.
                                  (1000 HA), (1000 MT), (MT/HA)
                26    Arab Agriculture  2021


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