1

National Economic Survey of Iraq

The Agriculture Survey

Part 2

November 21, 2004

2

National Economic Survey of Iraq

The Agriculture survey was carried out to build up a data base for agriculture in Iraq and It is the only reliable source of information after the war.

It is a unique update to agriculture resources and shows among other things the business opportunities for investors in this sector .

Analysis of Primary Data

3

National Economic Survey of Iraq

From each governorate three samples were selected. These samples represent: small, medium, and large farms and covers production of the following crops: Wheat, Barley, Maize, Sunflower, Cotton, Beef, Chicken Layers & Broilers, and Dairy.

Small Farms are : Land size is equal 3 -15

Medium Farms are: Land size is equal 16 – 49

Large Farms are: Land size is equal or greater

than 50

* Size is measured in donum

Analysis of Primary Data

Primary Data

4

National Economic Survey of Iraq

Medium and small farms are grouped together as one group.

All farm indicators such as income, quantity of seeds, fertilizer income, … are measured in local currency per donum.

Note: The survey was conducted in the summer of 2004.

Analysis of Primary Data

Primary Data

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National Economic Survey of Iraq

Productivity Index = Value of Production / Total Cost

Value 0f output

per donum

Total cost

( in dinar per donum)

Production Function

Small Farm

Large Farm

A BQ

A is more productive

than B

Illustrating Productivity

Farm B has potential to increase productivity without employment of further inputs.

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National Economic Survey of Iraq

0.0

0.5

1.0

1.5

2.0

2.5

3.0

South South Central Baghdad Central North

Size : Large

Size: Middle & Small

Average Ratio / Iraq

Productivity of Wheat

Value of outputs vs. inputs in various regions

Small farms are more efficient than large farms with the exception of

the Central regions

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National Economic Survey of Iraq

0.0

20.0

40.0

60.0

80.0

100.0

120.0

South South Central Baghdad Central North

Size : Large

Size: Middle & Small

Average Ratio / Iraq

Productivity of Maize

Value of output vs. inputs in various regions

Large farms are more efficient than small farm with the exception of the South region

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National Economic Survey of Iraq

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

South South Central Baghdad Central North

Size : Large

Size: Middle & Small

Average Ratio / Iraq

Productivity of Rice

Value of output vs. inputs in various regions

Surprisingly There is evidence that there is high productivity in the South region

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National Economic Survey of Iraq

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

South South Central Baghdad Central North

Size : Large

Size: Middle & Small

Average Ratio / Iraq

Productivity of Sunflower

Value of output vs. inputs in various regions

There is no strong evidence that farm size is important

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National Economic Survey of Iraq

0.0

0.5

1.0

1.5

2.0

2.5

3.0

South South Central Baghdad Central North

Size : Large

Size: Middle & Small

Average Ratio / Iraq

Surprisingly we don’t have large farms producing cotton

Productivity of Cotton

Value of output vs. inputs in various regions

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National Economic Survey of Iraq

The south regions is relatively more efficient the other regions

Productivity of Dairy

Value of output vs. inputs in various regions

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

South South Central Baghdad Central North

Ratio of Incom / Cost

Ratio Average

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National Economic Survey of Iraq

Productivity of Beef higher than average in the South, South Central & North

Productivity of Beef

Value of output vs. inputs in various regions

0.0

0.5

1.0

1.5

2.0

2.5

3.0

South South Central Baghdad Central North

Ratio of Incom / Cost

Ratio Average

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National Economic Survey of Iraq

Productivity of Chicken-Boiler

Value of output vs. inputs in various regions

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

South South Central Baghdad Central North

Ratio of Incom / Cost

Ratio Average

Productivity is higher in the South & Baghdad regions

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National Economic Survey of Iraq

Productivity of Chicken-Layers

Value of output vs. inputs in various regions

0.0

1.0

2.0

3.0

4.0

5.0

6.0

South South Central Baghdad Central North

Ratio of Incom / Cost

Ratio Average

Only in the South Central & North regions the productivity is higher than average

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National Economic Survey of Iraq

Output to Cost in Value

It sound that Wheat has lower production returns

Value of output vs. inputs comparison for various crops

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

South South Central Baghdad Central North

Wheat

Maize

Rice

Sunflow er

Cotton

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National Economic Survey of Iraq

Output to Cost in Value for Iraq

Iraq

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Wheat Average Ratio Maize Average Ratio Rice Average Ratio Sunflower AverageRatio

Cotton Average Ratio

Value of output vs. inputs comparison for various crops

Rice has high return relative to the other crops

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National Economic Survey of Iraq

There is scope for improving productivity by considering the following options:

1. Exploiting economies of scale on large farms.

2. Improving ‘Best Practice’ by introducing modern cultivation processes and introducing advanced technologies.

3. Introducing/improving production support facilities: finance, marketing, irrigation, …. etc.

Improving Productivity

Suggestions