VZCZCXRO5433
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #3031/01 2330358
ZNR UUUUU ZZH
R 210358Z AUG 06
FM AMEMBASSY BAGHDAD
TO RUCNRAQ/IRAQ COLLECTIVE
RUEHC/SECSTATE WASHDC 6368
RUEHRC/DEPT OF AGRICULTURE WASHDC
INFO RUEHAM/AMEMBASSY AMMAN 0859
RUEHDM/AMEMBASSY DAMASCUS 0160
RUEHKU/AMEMBASSY KUWAIT 0175

UNCLAS SECTION 01 OF 03 BAGHDAD 003031 
 
SIPDIS 
 
SIPDIS 
 
USDA PLEASE PASS FAS/DEVER 
 
E.O. 12958: N/A 
TAGS: EAGR EAID ETRD USTR IZ PREL FAS
SUBJECT: IRAQ: FIRST USG WORKING MEETING WITH NEW MINISTER 
OF AGRICULTURE 
 
 
¶1. (SBU) Summary.  On August 13, IRMO, USDA, USAID, and 
Econoff met with new Minister of Agriculture, Dr. Yaarub 
Nadhum Al-Obodi; the Deputy Minister, Dr. Subhi Al-Jumaily; 
and the Director General for Planning, Mr. Sabah  This 
meeting was only the second between post officials and the 
minister, although post has made frequent requests for 
meetings.  USAID presented the results of the ARDI 
program.  USDA discussed its programs to assist the GOI in 
agriculture, US support for the poultry industry through 
private industry programs, and animal health issues 
regarding avian influenza (AI) and import issues, such as 
the ban on US beef imports into Iraq due to BSE concerns. 
IRMO discussed a current USG program to set up a modern 
food testing laboratory in Iraq.  The Ministry of 
Agriculture (MoA) expressed keen interest in setting up the 
laboratory.  Econoff inquired about the GOI's tariff 
program and was told an extensive tariff schedule has been 
developed with tariff rates ranging from 0% to a maximum of 
15%.  MoA officials were critical of some past USAID 
program because, they argued, the projects were not 
coordinated with the MoA, and in some cases provide 
inadequate or inappropriate assistance.  The MoA was also 
critical of the USDA poultry program which it believes does 
not help poor farmers.  The MoA said it wants to move 
forward with the USG in closer cooperation and more 
information sharing that will address some of the concerns 
with prior agricultural programs.  End Summary. 
 
¶2. (U) On August 13 IRMO's Senior Consultant for 
Agriculture, the Agricultural Attach from USDA, USAID's 
Deputy Director of the Office of Economic Growth and 
Agriculture, and Econoff held their first working meeting 
with the new Minister of Agriculture, Dr. Yaarub Nadhum 
Al-Obodi; the Deputy Minister, Dr. Subhi Al-Jumaily, and 
Mr. Sabah the Director General of Planning (DG).  The 
minister opened the meeting noting the importance of the 
agricultural sector to Iraq, and asked for further USG 
assistance. 
 
¶3. (U) USAID presented an overview of the agricultural 
projects under the Agriculture Reconstruction and 
Development Program for Iraq (ARDI), noting that ARDI is 
scheduled to be phased out at the end of 2006, and provided 
an updated list of all ARDI accomplishments as well as 
future planned activities.  USAID noted that ARDI is 
collaborating with the MoA on several specific initiatives, 
namely the national water strategy for Iraq, an 
agro-ecological zone mapping center for use as a planning 
information tool, and a wholesale price monitoring and 
information system for vegetables, fruits, meats and dry 
goods in 18 major agricultural markets nationwide.  USAID 
asked for MoA's views on activities related to growing a 
vibrant and competitive agribusiness sector in Iraq. 
 
¶4. (SBU) The deputy minister stated that USAID should be 
more of a partner so that the goals of the MoA can be 
reached.  He indicated that there is a need for more 
cooperation between USAID and the MoA, and that there are 
"different views" between USAID and the MoA with regard to 
how to develop projects.  Dr. Subhi mentioned that there is 
good collaboration in some projects, such as agriculture 
statistics training in the agro-ecological mapping 
projects.  The DG emphasized that the relationship between 
USAID and the MoA needs to be strengthened because the MoA 
believes some projects undertaken in ARDI were not very 
relevant to Iraq's needs.  Mr. Sabah specifically mentioned 
the olive oil project that, he believed, had received 
inappropriate equipment which he critized as used and 
outdated.  He suggested that the MoA needs to review the 
projects with USAID in order to ensure the MoA can provide 
information that will help the project implementers.  The 
deputy minister stated that in the past the MoA tried to 
evaluate project ideas with USAID, but the MoA was 
informed that the work was being performed under 
contractual agreements with implementing partners, and so 
consultations were unnecessary.  He emphasized that there 
is a great need to "sit together" with USAID to determine 
project priorities. 
 
¶5. (SBU) The minister said he would like to evaluate ARDI's 
programs and projects, and stated there is a need to share 
all 
information.  The DG highlighted some areas of concern that 
have been discussed in the past with US agencies, stating 
that the MoA's concerns have not been addressed in the 
agriculture projects undertaken by the implementers.  The 
 
BAGHDAD 00003031  002 OF 003 
 
 
DG specifically mentioned that the soil salinity problem in 
central and southern Iraq has not been investigated 
although the MoA is now undertaking some wheat project work 
in these areas.  Mr. Sabah said that the farmer micro loan 
program of the Agriculture Cooperative Bank (ACB) has been 
very successful, and that the program needs more funding in 
order to help more farmers.  (Comment.  Since solid 
statistics are hard to come by in Iraq, the success of this 
program is difficult to assess independently.  End 
Comment.) 
 
¶6. (SBU) IRMO informed the MoA that it has recommended that 
the GOI invest more money in its farmer micro loan program, 
and assist the ACB to open up other credit programs for the 
agriculture community.  IRMO also indicated that 
agribusiness development will be a major program area in 
the next two to three years, and that IRMO plans to 
establish some credit programs for agribusiness 
development, although it is not certain when such programs 
will begin.  The deputy minister said that the farmer micro 
loan program of the ACB needs additional funding now and 
cannot wait for the GOI to provide it.  The MoA has asked 
the GOI for more funding, but as yet there has not been any 
response according to the deputy minister. 
 
¶7. (SBU) The DG indicated that assistance is needed in many 
provinces of Iraq with regard to integrated pest management 
(IPM).  Technology and funding are need so that a 
meaningful IPM programs can be implemented in the target 
provinces, and he recommended that the USG put this type of 
program on its development agenda.  The deputy minister 
said that there is clearly no objection to developing 
programs to assist agribusiness in Iraq, but there should 
be more collaboration with the MoA in planning these 
programs.  He re-emphasized that the MoA would like to 
examine the results of past projects in order to develop 
clear directions for future projects.  IRMO reminded the 
minister and deputy minister that post's Joint Agriculture 
Task Force (JATF) was created nearly a year ago so that all 
major agencies and groups working in the agriculture 
sector, and the MoA, could meet on a regular basis to 
coordinate activities and communicate results.  Dr. Subhi 
stated that the MoA will appoint a representative to the 
JATF, and the representative will be able to attend the 
next JATF meeting in the International Zone (IZ). 
 
¶8. (SBU) USDA summarized the August 1 visit to Baghdad by 
the US Secretary of Agriculture.  The joint agreement to 
enhance the agriculture education and extension capacities 
of Iraq, signed during the Secretary's visit, includes 
several ministries in addition to the MoA.  USDA presented 
copies of the agreement in Arabic and English to the 
minister.  USDA said it will send specialists in strategic 
planning, extension/education, and food safety from the 
U.S. to Baghdad to work with the MoA.  The specialists 
could arrive in September.  USDA outlined its support for 
Iraq's poultry industry through the Food for Progress 
program and the US Grains Council's revolving credit 
project.  The DG sharply criticized the project because he 
believes that the more prosperous poultry producers were 
being helped, and not many other poorer farmers and 
livestock breeders. 
 
¶9.  (SBU) The DG also noted that the water buffalo is an 
important animal in many parts of the country, especially 
the south, but that there are no programs to assist owners 
or the broader livestock sector.  USDA explained that the 
revolving credit for the poultry producers is a private 
sector program to assist the commercial poultry producers 
in Iraq, and was not a program that could be modified by 
the USG in the manner the DG suggested. 
 
¶10. (SBU) USDA explained that it and other agencies are 
ready and willing to collaborate with the MoA on animal 
health issues, in particular with respect to AI.  Although 
there has been a quiet period during the past months, a 
reoccurrence of AI could occur and the MoA will need to be 
prepared.  USDA stated that there are many different 
agencies of the GOI -- MoA, Ministry of Trade (MoT), 
Ministry of Health (MoH) -- with equities in food safety 
regulations.  Enforcement of these regulation and food 
safety rules should be based on science, and be consistent 
with international standards and WTO principles.  USDA 
brought up the case of Iraq's ban on US beef products due 
to bovine spongiform encephalopathy (BSE) concerns, even 
though other US trading partners (such as Japan) have 
 
BAGHDAD 00003031  003 OF 003 
 
 
re-opened their markets to US beef and beef products.  The 
DG asked if USDA could provide some type of "international 
document" to indicate the safety of US beef products, 
including an indication that the U.S. is "BSE-free."  USDA 
explained that the U.S. cannot say it is BSE-free, but that 
US programs far exceed the guidelines of the OIE (World 
Animal Health Organization) and, based on these guidelines, 
trade in US beef is accepted.  USDA suggested that this 
topic requires a separate meeting with MoA officials so 
that all pertinent and relevant technical information can 
be exchanged. 
 
¶11. (SBU) Econoff asked about the actions being taken in 
the MoA with regard to agricultural product import tariffs, 
and who is the appropriate point of contact at the MoA for 
this issue.  The deputy minister stated that he is the 
proper contact since he chairs the inter-ministerial 
committee (MoA, Ministry of Finance, MoT, and the Central 
Bank of Iraq) that is developing and setting the new tariff 
schedules.  The DG explained that the committee has already 
studied the tariff schedules of 27 countries worldwide, and 
hopes to have its final recommendation ready to be sent to 
the GOI cabinet before the end of 2006.  The proposed 
tariffs range from 0% to a maximum of 15%.  According to 
the deputy minister the document runs to approximately 200 
pages, but the MoA could not at this time provide a copy of 
the schedule to the USG.  The DG also mentioned that the 
MoA is beginning to review a plan to change the 
agricultural subsidy systems from subsidizing inputs to 
subsidizing outputs. 
 
¶12. (U) IRMO outlined USG interest in assisting Iraq in 
setting up a modern food analysis laboratory.  Possible 
locations and contact persons need to be determined very 
soon or the funding will expire.  IRMO told the MoA that 
the USG was ready to purchase laboratory equipment for a 
food analysis laboratory that can conduct all the necessary 
analyses and assays of food articles for export.  IRMO 
suggested that the MoA consider meeting with post officials 
to discuss possible locations of the laboratory and the 
equipment needs.  The deputy minister indicated that he 
would be willing to meet in the IZ to discuss equipping the 
laboratory.  He mentioned that it would be necessary to 
discuss this project with other ministries (MoH, MoT) 
because the responsibilities for conducting food analyses 
are spread across the different ministries. 
 
¶13. (SBU) Comment: The meeting was cordial overall, 
although the MoA criticized USAID for failing to coordinate 
programs with the MoA.  USAID countered that the earlier 
programs were developed unde the CPA, and that it would 
work closely with the MoA in the future.  With regard to 
the DG's especially strong criticism of the poultry 
programs, it seemed the DG does not fully understand how 
the program was developed, and the difference between 
private and public programs.  The deputy minister did 
commit to sending a representative to the next JATF meeting 
in the IZ, which has been a long running request by the USG 
side.  Post hopes that MoA's participation in the JATF will 
lay the groundwork for smoother relations and better 
communication between the USG and the MoA on issues of 
cooperation, information exchange and program development. 
End Comment. 
KHALILZAD