VZCZCXRO3301
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #4692/01 3581259
ZNR UUUUU ZZH
R 241259Z DEC 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 8699
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS SECTION 01 OF 02 BAGHDAD 004692 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAGR IZ
SUBJECT: GAINING SUPPORT FOR ERBIL AGRICULTURAL PROJECT 
 
REF: BAGHDAD 3485 
 
¶1. Summary.  During December 11-14 Multi-National Forces-Iraq 
Civil Military Office (MNF-I CMO) and Econoff traveled to 
Erbil to discuss construction of facilities for honey 
production and a farmers' market in northern Iraq with 
Multi-National Division-North East (MND-NE) at Camp Zaytun. 
The group also met and discussed this project with a 
non-governmental organization (NGO) working with beekeepers 
in northern Iraqi, farmer unions and officials from the 
Kurdistan Regional Government's Ministry of Agriculture (KRG 
MoA).  MNF-I CMO wanted to determine the support MND-NE, the 
local beekeepers' association, and the KRG MoA could provide 
for this project.  The KRG MoA committed to providing land 
once a suitable location was identified.  The local 
association promised to provide expertise and training to the 
project.  MND-NE offered to provide heavy construction 
equipment.  Funding commitments by the parties were not 
agreed to during these meetings, but a Memorandum of 
Understanding (MoU) is being worked out among the parties. 
MNF-I CMO is pushing for the project to begin officially by 
January 1, 2007, and break ground for the facility by the 
beginning of April.  End Summary. 
 
----------- 
Erbil Bound 
----------- 
 
¶2. During December 11-14, MNF-I CMO and Econoff traveled to 
Erbil to meet with the CMO office of the Korean military 
(MND-NE) at Camp Zaytun, agriculture officials of the KRG, 
and the private sector to discuss support for construction of 
honey processing and farmers' market facilities in northern 
Iraq.  The project would include equipment for the processing 
of local honey from its raw state to a finished and labeled 
product that could be marketed locally.  Additional space 
would also be provided for a farmers' market with associated 
cold storage, public restrooms, and parking.  In assessing 
the need for these facilities, the local NGO representative, 
Mr. Rayan Toma Oghana and officials from the KRG MoA, stated 
that approximately 350 metric tons (MT) of honey are consumed 
yearly in Erbil.  Only 180 MTs are produced locally. 
According to Mr. Oghana, locally produced honey sells for 
twice the price of imported honey from Iran, Syria or Turkey 
due to the greater trust in the quality of the locally 
produced product. 
 
-------------------- 
Preparing the Ground 
-------------------- 
 
¶3. The facility would also be a training center and a place 
for local farmers to market products other than honey.  The 
private sector was represented by Mr. Oghana and other 
members of the Youth Activities Organization (YAO), a 
progressive NGO started three years ago as part of an 
Agriculture Reconstruction and Development Program in Iraq 
(ARDI) project, and is currently working to develop the honey 
industry in northern Iraq.  In the initial meetings Mr. Kamal 
Abbas represented the KRG MoA. 
 
¶4. On December 12, the group discussed what contributions to 
the project would be made by each participant.  The YAO is 
ready to provide training for the processing facility, and 
the KRG MoA is willing to provide the land.  MNF-I CMO 
indicated that some modest funding may be available from USG 
sources.  MND-NE indicated that, although it may be unable to 
provide funding, it would be able to provide heavy 
construction equipment because it already has this equipment 
in-country at its vocational training center (see reftel). 
 
---------------------------- 
Location, Control and Timing 
---------------------------- 
 
¶5. Another area of discussion was the location of the 
facilities and whether they would be government or privately 
controlled.  MNF-I CMO argued for several locations in the 
important agricultural areas in northern Iraq, such as the 
area just north of Erbil in Shaqlawah, where ARDI, MNF-I CMO, 
and YAO have supported honey production projects.  The YAO 
suggested that the facilities ultimately be controlled by the 
local private organizations involved in the project.  Mr. 
Kamal from the KRG MoA said that the KRG initially should 
manage the facilities, until the associations demonstrated 
that they could manage the projects on their own.  MNF-I CMO 
said that an optimum timeline would be for the 
ground-breaking for the first facility to take place by the 
beginning of April 2007. 
 
 
BAGHDAD 00004692  002 OF 002 
 
 
--------------------------- 
Agriculture Will Rise Again 
--------------------------- 
 
¶6. On December 13, the parties met with Mr Abdul-Aziz Taib, 
the KRG Minister of Agriculture, who said that his ministry 
strongly supports the project.  According to Mr. Taib, 
agriculture was devastated under the former regime, and the 
KRG MoA believes that it is an area of tremendous economic 
potential for northern Iraq.  MNF-I CMO asked if KRG MoA 
would support the project by donating land.  The Minister 
said that when the details of location were established, the 
KRG MoA could provide the land.  During the meeting, the 
MND-NE suggested putting together an MoU among the parties 
(KRG, MNF-I, and the private sector) to establish clearly the 
roles and responsibilities of each participant in the 
project.  MNF-I CMO reiterated its desire to have this 
project begin soon (by January 1, 2007) and to have 
construction work begin by April 1.  Although this timeline 
is desirable, MND-NE emphasized that the group should take 
the time necessary to ensure the project is well-executed. 
MND-NE has completed many similar projects during its tenure 
in northern Iraq, and consequently has a solid understanding 
of the time required to plan-and-complete a project of this 
nature. 
 
----------- 
Other Needs 
----------- 
 
¶7. Further issues were raised during the meeting with the KRG 
MoA regarding support and assistance in the following areas: 
aquaculture, seed cleaning, seed supply, grain silos, cold 
storage, grape farming, chicken production, produce 
transport, and training courses for all sectors within the 
KRG MoA sphere. 
 
¶8. Later on December 13, the KRG MoA and MNF-I visited two 
honey-producing farms in the area.  One was close to Erbil in 
an area where MND-NE conducted one of its reconstruction 
projects called New Village.  The other was in the area of 
Shaqlawah where MNF-I CMO had supported a bee production 
project with ARDI.  MND-NE was interested to see if the areas 
would be suitable for the production facility.  MND-NE it is 
concerned that facilities be close to markets and thereby do 
not place an undue transportation burden on honey producers. 
 
¶9. Comment.  The project would undoubtedly be important for a 
sector of the economy identified as critical by the KRG.  It 
remains to be seen exactly what the participants' roles and 
responsibilities will be in the project.  These issues will 
be thoroughly worked out in the preparation of the MoU. 
Since MNF-I CMO is seeking an aggressive time-table, it is 
working to develop the MoU as soon as possible.  Periodic 
updates on the project will be provided.  End Comment. 
KHALILZAD