9.3 Sectors in Iraq contributing to Iraq’s Bioeconomy
Iraq’s agricultural sector has been crucial for its economy but faced numerous challenges, especially due to conflicts like the Iran-Iraq War (1980-88), the Gulf War in 1991, and the Iraq War in 2003. Governmental intervention has also significantly influenced agricultural production. Challenges such as rapid population growth, limited arable land, and stagnant agricultural productivity have led to increased reliance on food imports since the mid-1960s. Before the Gulf War in 1991, Iraq had significant agricultural trade with the U.S., receiving substantial agricultural export credit from the USDA in the 1980s. However, after the war, U.S. agricultural export credit to Iraq stopped, leaving the USDA with $2 billion in unpaid credit. Agricultural trade between the U.S. and Iraq remained minimal until 2002. Iraq’s agriculture was significantly impacted by U.N. sanctions and the government’s response to them after 1991. Between 1991 and 1996, before the Oil-For-Food program (OFFP) began, Iraq’s agricultural imports dropped significantly. With the OFFP’s start, Iraq’s agricultural imports’ value increased, reaching an average of $1.5 billion between 1997 and 2002. Even before the 2003 U.S.-Iraq War, Iraq’s agricultural sector struggled due to mismanagement, unresolved land and water disputes, and the lasting effects of a severe drought from 1999 to 2001. The country’s reliance on imports to meet domestic food demand persisted, with food aid shipments likely determining the share of agricultural imports. This report expands on the analysis from the CRS Report RS21516, exploring Iraq’s agricultural landscape, historical policy, production, and trade until the period preceding the 2003 Gulf War. It examines factors influencing the long-term prospects of Iraq’s agricultural production and trade, offering historical data tables for reference. The report aims to provide updates as events unfold. For further information on humanitarian aid efforts or details on the Oil-For-Food Program and 1990s trade, referenced CRS reports offer comprehensive insights.
The food market is projected to reach a revenue of US$42.22 billion in 2023, expected to grow annually by 4.99% between 2023 and 2028 (CAGR). The largest segment within this market is Confectionery & Snacks, accounting for a market volume of US$10.14 billion in 2023. In global comparisons, China generates the most revenue, estimated at US$1,493 billion in 2023. When considering the total population, this translates to per-person revenues of US$977.90 in the same year. Online sales are anticipated to contribute 1.2% of the total revenue in the food market by 2023. Moreover, the overall volume in this market is forecasted to reach 13.10 billion kilograms by 2028, showcasing a 4.5% volume growth expected in 2024.The average volume per person within the food market is projected to be 250.30 kilograms in 2023.
Biotechnology emerges as a crucial tool in Iraq’s landscape, offering potential solutions to multifaceted challenges like food scarcity, health issues, water safety, and sanitation concerns. While not a standalone remedy, biotechnology presents promising avenues to tackle these pressing problems. Iraq contends with food shortages and malnutrition. Biotech advancements, particularly in agriculture, hold promise through genetically modified crops that offer enhanced nutritional value or resilience to adverse conditions. These innovations could potentially augment food production and bolster nutritional content. The country also grapples with inadequate access to clean drinking water and sanitation facilities. Biotechnology’s potential lies in developing advanced water purification techniques, innovative filtration systems, and bioremediation methods, ultimately improving water quality and sanitation practices. In the realm of healthcare, biotech plays a pivotal role. It contributes to vaccine development, improved diagnostics, personalized medicine, and novel treatments for prevalent diseases. Biotech-derived pharmaceuticals offer potential solutions to health challenges faced by Iraqi populations.