Identifier
Created
Classification
Origin
05BAGHDAD3555
2005-08-31 09:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Baghdad
Cable title:  

JCRED AGRICULTURE AND FOOD SECURITY

Tags:  ETRD ECON EAGR EIND KPRV SOCI EAID IZ 
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UNCLAS SECTION 01 OF 03 BAGHDAD 003555 

SIPDIS

SENSITIVE

STATE FOR NEA/I, EB/EX WAYNE, D STAFF
PASS TO USAID FOR ADMINISTRATOR NATSIOS

E.O. 12958: N/A
TAGS: ETRD ECON EAGR EIND KPRV SOCI EAID IZ ECON
SUBJECT: JCRED AGRICULTURE AND FOOD SECURITY

This cable is sensitive but unclassified. For
government use only. Not for internet distribution.

Summary:
UNCLAS SECTION 01 OF 03 BAGHDAD 003555

SIPDIS

SENSITIVE

STATE FOR NEA/I, EB/EX WAYNE, D STAFF
PASS TO USAID FOR ADMINISTRATOR NATSIOS

E.O. 12958: N/A
TAGS: ETRD ECON EAGR EIND KPRV SOCI EAID IZ ECON
SUBJECT: JCRED AGRICULTURE AND FOOD SECURITY

This cable is sensitive but unclassified. For
government use only. Not for internet distribution.

Summary:

1. (SBU) U.S. and Iraqi delegations discussed Iraq
agricultural issues in Amman during the Joint
Commission on Reconstruction and Economic
Development (JCRED) July 11. Minister of
Agriculture Dr. Ali Hussein Al-Behadli presented his
strategy to reduce poverty and increase food
security. In addition, the Minister prioritized his
needs from donors. He also noted that the Ministry
is unaware of all components of the Agriculture
Reconstruction & Development in Iraq (ARDI)
initiative and he hopes to improve communication
between the Ministry and USAID. USAID Administrator
Natsios noted that USG will continue to work with
the ITG to find common priorities for developing the
agricultural sector and increasing private sector
involvement.


2. (SBU) During side meetings, the Ministry of
Agriculture and the Ministry of Water Resources
indicated that they are doubtful that institutional,
public distribution system (PDS),market
development, and state-owned enterprise (SOE) reform
will occur during this government. End Summary.


3. (SBU) Minister of Agriculture Dr. Ali Hussein Al-
Behadli began the JCRED session by noting the long
history and development of the Ministry of
Agriculture. He listed the Ministry's primary
functions as conducting agriculture research,
providing services related to food production,
adopting modern sector approaches and introducing
new technologies to farmers, providing technical
guidance and training, and applying laws and
implementing programs.


4. (SBU) Dr. Al-Behadli noted that the Ministry has
22 ongoing projects and another 17 proposed, all
intended to alleviate the food insecurity situation.
The Ministry proposes to reduce poverty and increase
food security through agricultural industrial

development, farming in rural areas, subsidized
microcredit programs, providing fertilizers for
farms and drugs for livestock, and "to lead the
[agriculture] sector and initiate projects... to be
delivered eventually to the private sector."
Subsequent to the latter statement, Dr. Al-Behadli
listed the many state-owned companies intended to
support the private sector's development.


5. (SBU) Regarding ongoing donor support, the
Minister thanked USAID for its Agriculture
Reconstruction & Development in Iraq (ARDI) project,
and noted livestock assistance in particular. In
addition, Dr. Al-Behadli listed his needs from
donors: reconstruction of the national seed industry
and associated research and development and
restoring and modernizing fisheries ($1.3 million);
refurbishing a vaccine center ($22 million);
implementing an integrated pest management program
throughout the country targeting export crops ($25
million for airplanes); beginning anti-
desertification/ deforestation programs and
establishing a "greenbelt" around Baghdad ($45
million); replenishing bovine livestock ($6
million); and establishing alternative crop programs
and fertilizer factories to counter the salty soil
of southern Iraq. (Note: A list of all the projects
was given to USDA Baghdad Agriculture Attache James
Smith at the conference. End note.)


6. (SBU) The Minister also listed "other priority
projects," such as establishing model villages
throughout Iraq wherein engineers, farmers, and
students work together on farm campuses to teach the
next generation of Iraqi farmers. He again noted
the importance of reforestation efforts, and
highlighted the need for subsidized credit for small
farmers. The Minister continued his speech with a
description of the agricultural environment in Iraq.
Highlighting that he is "looking forward to American
support," Dr. Al-Behadli indicated that salty soil
and negligence have forced people to leave their
farms. He also noted that the irrigation system
created by the previous regime led to the poor soil
conditions in the south, and he implied the need to
change the entire system. Dr. Al-Behadli commented
that much work and support is occurring in the
governorates, but the Ministry is not informed about
much of it.


7. (SBU) At the end of his opening remarks, Dr. Al-
Behadli noted that USAID's agricultural
reconstruction project is "doing a good job", but
that the Ministry is not aware of all the work being
done in the governorates and better coordination is
needed. He concluded his remarks by thanking the
United States for its support and stated that he
looks forward to continuing to work together.


8. (SBU) The Deputy Secretary thanked Dr. Al-Behadli
for his comments and followed-up the Minister's
remarks with a rhetorical request to the Government
of Iraq for their "thinking on (public distribution
system) reforms".


9. (SBU) USAID Administrator Natsios began his
comments by highlighting the two reasons why
agriculture is so important to all Iraqis,
specifically that: 25 percent of the population is
directly or indirectly involved in agriculture,
which represents Iraq's second largest productive
sector; and agricultural development affects
national security by decreasing urban migration,
increasing markets and jobs, and reducing fodder for
the insurgency.


10. (SBU) Remarking on the importance of Iraqi
agriculture to the USG, Director Natsios noted that
the USG cannot fund everything, but will continue to
work with the Iraqis to find common priorities. He
highlighted the areas in which USAID is currently
supporting Iraqi farmers and the Ministry of
Agriculture: initiating vaccination programs and
rehabilitating veterinary clinics around the country
to increase animal productivity; instituting a
national tractor repair program throughout Iraq's
agricultural districts to repair over 2700 tractors;
implementing a wheat seed program to take Iraq away
from levels comparable to North Korea; planting
35,000 date palm trees; helping the Ministry of
Agriculture and Ministry of Water Resources to
develop the country's National Water Strategy; and
introducing over six million new fishlings into
Iraq's rivers, ponds, and farms to revive the
fisheries industry.


11. (SBU) Quoting Minister of Finance Dr. Ali
Allawi, the Administrator reinforced USG views that
the private sector will be the growth engine for
Iraq, and that a "better, more responsive, and
stronger agriculture market will develop...
[through] a free market system, which is essential
to agricultural production and food security."
Natsios also noted that the PDS "is not working
well," that privatization without production
increases does not work well, and that a multi-
ministry effort is required to reform the sector.
He ended his comments by indicating that Iraq has
the capacity to feed itself without imports, but he
acknowledged political issues with the reform effort
and highlighted that agricultural reform is in the
hands of the GOI.


12. (SBU) Comment. The Ministry of Agriculture and
the Ministry of Water Resources gave indications
during their prepared remarks and during side
conversations at the JCRED that they see themselves
- still - as catalysts for economic growth despite
subsidization of inputs and government competition
with the private sector through SOEs. Further, at
least half of their project support requests were to
support entities and activities that should be
handed over to the private sector, but the
government is retaining its physical and
intellectual ownership of Iraq's agricultural
industry. While agricultural reconstruction is
s
critical to Iraq's future, it is doubtful that
institutional and SOE reform will occur during this
government and, in turn, that meaningful
advancements will be made with regard to the PDS,
market development, production, and the Minister of
Agriculture's guiding hand on the direction of the
industry. End Comment.

13. (U) This cable was cleared by Ross Wilson in D.

Khalilzad