Dairy Producton/Aggregation

Investing in rural dairy production and aggregation clusters in Iraq has proven potential to transform the sector, providing economic benefits and enhancing food security. By focusing on investments in infrastructure, training capacities, access to financial support and introduction of modern and climate smart technologies, stakeholders can reform towards a sustainable and

profitable dairy industry. This includes investments in producer organizations (in selected areas) working to increase productivity by adopting improved livestock management, feeding practices, disease/pest management etc.

The investment in this activity will increase milk production from 0.45 litres per lamb to 0.55 litres per day, increasing milk supply, and will be accompanied by a reduction in mortality rates, increasing the number of lambs available for marketing (mortality rates have been halved due to the intervention). The investment will further reduce milk losses (which are financial losses but more importantly losses in value) through better milking practices and investment in cooling facilities operated by producer organizations.

The total proposed joint investment is USD 95 million that would yield a high internal rate of 24 percent. The Net Present Value is estimated to be USD 45 million, and the total direct and indirect beneficiaries are estimated to be 124000 and 40000 respectively. The average expected income increase through these investments would be approximately USD 500 for each farmer participatin

Dairy Processing and Marketing

Iraq's dairy sector presents significant opportunities for growth and revenue, particularly by expanding small but modern aggregation points. Earlier investments showed there is strong local demand for high-quality dairy products. Upscaling into other prospective areas is required to reach its full potential to meet the rising demand from consumers.

This investment will enable 30% - 50% of the milk available in the clusters to be processed, providing guaranteed sales opportunities for farmers, while reducing losses in the raw/open milk sales supply chain, as improved packaging and better-quality pasteurized milk supplies are introduced to the local/domestic market.

The total proposed joint investment is USD 74 million that would yield a high internal rate of 18 percent. The net present value is estimated to be USD 32 million, and the total direct and indirect beneficiaries are estimated to be 100 and 140 000 respectively. The average expected income increase through these investments would be approximately USD 300 000 for each participating processor.

Backyard Lamb Fattening

Backyard lamb fattening is a vital agricultural practice in Iraq, providing smallholder farmers with a sustainable income source while contributing to food security. Upscaling investments in this area have proven to lead to enhanced productivity, improved livestock quality, and increased revenues.

This includes support to areas such as early weaning management, use of milk replacers and in-house feeding practices combined with deworming and vaccination to achieve optimal weight gain. This will result in an average weight gain of 6 kg per month through improved practices, and thus a better carcass recovery (40% to 45%) will be achieved through improved slaughtering and processing techniques. This activity also includes investment in abattoirs to meet export market requirements, as well as increasing sales of high-quality lamb meat in local markets.

The total proposed joint investment is USD 149.26 million that would yield a high internal rate of 14 percent. The net present value is estimated to be USD 9 million, and the total direct and indirect beneficiaries are estimated to be 20,000 and 10,000 respectively. The average expected income increase through these investments would be approximately USD 1,635 for each farmer/ businessperson.