1. National Economic Survey of Iraq 1 The Agriculture Survey Part 2 November 21, 2004

2. National Economic Survey of Iraq 2  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 3 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 4 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

5. National Economic Survey of Iraq 5 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 B Q A is more productive than B Illustrating Productivity Farm B has potential to increase productivity without employment of further inputs.

6. National Economic Survey of Iraq 6 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

7. National Economic Survey of Iraq 7 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

8. National Economic Survey of Iraq 8 Productivity of Rice Value of output vs. inputs in various regions Surprisingly There is evidence that there is high productivity in the South region

9. National Economic Survey of Iraq 9 Productivity of Sunflower Value of output vs. inputs in various regions There is no strong evidence that farm size is important

10. National Economic Survey of Iraq 10 Surprisingly we don’t have large farms producing cotton Productivity of Cotton Value of output vs. inputs in various regions

11. National Economic Survey of Iraq 11 The south regions is relatively more efficient the other regions Productivity of Dairy Value of output vs. inputs in various regions

12. National Economic Survey of Iraq 12 Productivity of Beef higher than average in the South, South Central & North Productivity of Beef Value of output vs. inputs in various regions

13. National Economic Survey of Iraq 13 Productivity of Chicken-Boiler Value of output vs. inputs in various regions Productivity is higher in the South & Baghdad regions

14. National Economic Survey of Iraq 14 Productivity of Chicken-Layers Value of output vs. inputs in various regions Only in the South Central & North regions the productivity is higher than average

15. National Economic Survey of Iraq 15 Output to Cost in Value It sound that Wheat has lower production returns Value of output vs. inputs comparison for various crops

16. National Economic Survey of Iraq 16 Output to Cost in Value for Iraq Value of output vs. inputs comparison for various crops Rice has high return relative to the other crops

17. National Economic Survey of Iraq 17 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