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Iraq celebrates the launch of the first DAP fertilizer plant

DAP Factory opening in Iraq

DAP Factory opening in Iraq

DAP Factory walk through in Iraq

DAP Factory walk through in Iraq

AAA Holding DAP Factory in Iraq

AAA Holding DAP Factory in Iraq

UK and Iraq joined hands to open first DAP Fertilizer Plant in Iraq. Iraq celebrates the launch of the first DAP fertilizer plant

We stand today with our heads raised because we were able to prove to the world that Iraq is rising again despite the challenges and circumstances it has experienced over the past years”
— Manhal Al-Khabbaz - Minister of Industry and Minerals
BAGHDAD, IRAQ, August 4, 2022 / -- The Iraqi Minister of Industry and Minerals, Manhal Al-Khabbaz, inaugurated the first DAP fertilizer plant within the Southern Fertilizer Complex. The launch also stands the first successful venture between Iraq and the UK AAA Holding Group represented by the CEO of the company, Amet Selman.

In the recent times, Iraq has witnessed a surge in agricultural production with the Government favoring several initiatives to better the sector. Statistically, the Iraqi agricultural workforce employees close to 20% of the total workforce and is the second largest contributor to the country’s GDP. The excessive dependence on oil for income, which is a depleting resource, further fuels the need to diversify the economy. Agricultural development has thus been imperative towards the growth of the nation by facilitating the establishment of a diversified economy. While about 22% of Iraq’s land is suitable for agriculture, only 5% has been explored till date. The Government has thus been trying to initiate uses of different irrigation systems, import of seeds and fertilizers to better the prospects. Launch of the first DAP plant thus marks a historic moment in the agricultural sector of Iraq.

For approximately 75% of Iraqi farmers, crop production is the major source of income, while the rest depend on livestock or mixed crop and livestock production systems. The sector is largely dominated by small scale farmers and are typically characterized by traditional methods and minimal capital investments, resulting in low productivity. There is also limited social capital and positive outcomes from group interactions, causing poor integration along the supply chain.

The ceremony was graced by the representatives of the Ministry of Agriculture, the General Director of the State Company for Agricultural Supplies - Taleb El Kaabi, the Governor of Basra - Aqeel Al-Fariji, the envoy of British Prime Minister - Baroness Emma Nicholson, along with several general managers and officials from the Ministries of Industry, Agriculture, and Basra province, the press and the local community.

Talking about the importance of DAP in agriculture, Di-ammonium Phosphate s a preferred fertilizer in agriculture because it contains both Nitrogen and Phosphorus which are primary macro-nutrients and part of 18 essential plant nutrients. In comparison to other fertilizers, DAP is preferred for its free flowing nature and low maintenance requirements. It’s highly soluble and thus dissolves quickly in soil to release plant-available phosphate and ammonium. A notable property of DAP is the alkaline pH that develops around the dissolving granule. DAP also acts as a fire retardant. For example, a mixture of DAP and other ingredients can be spread in advance of a fire to prevent a forest from burning. It then becomes a nutrient source after the danger of fire has passed. DAP is used in various industrial processes, too, such as metal finishing.

In 2019, Morocco was the largest exporter of DAP selling over 2m metric tons to other countries following by Saudi Arabia, Russia and the United States Through this plant 500000 tons per year of DAP fertilizer will be produced by 3 European-origin production lines with a total capacity of 1500 tons daily. The production will cover the needs of the Iraqi Agricultural Sector, with an expansion plan.

In his speech following a round in the factory, the minister expressed his admiration for the advanced level of the factory. “We stand today with our heads raised because we were able to prove to the world that Iraq is rising again despite the challenges and circumstances it has experienced over the past years,” the Minister said, pointing out that “the ministry has taken it upon itself over the past two years to promote its factories and reach the best possibilities, and today we stand proudly in front of one of the important factories worked on by the Ministry of Industry through the efforts of all its leaders and in cooperation with the Ministry of Agriculture and the local government in Basra”.

The minister was also satisfied with the “real partnership between the General Fertilizer Company and the British company”. The Speech of the General Director of the State Company of Agricultural Supplies also focused on the importance of the new DAP fertilizer plant to the Agricultural sector in Iraq especially after the latest international developments, appreciating the cooperation between the Ministry of Industry and Minerals and the Ministry of Agriculture to provide fertilizers to the Iraqi farmers.

This launch also symbolises Iraq’s return into the world economy. After several decades of sanctions, violent conflict, ineffective government policies, extreme weather events, water scarcity and competition from cheap imports, the value chains had been heavily disrupted, distorting linkages between producers and markets. Furthermore, The Ministry of Agriculture (MoA) estimates that Iraq lost approximately 40 percent of its agricultural production in the wake of the recent crisis, and while the sector has yet to fully recover, a tie up with a British firm, establishment of an in-house fertilizer plant would definitely make way for further developments in this field.

In her speech, the British Baroness Nicholson thanked the Minister of Industry and Minerals, noting that the DAP fertilizer plant will support Iraqi industrial and agriculture sectors, and it proves that Iraq is a fertilizer producer, and the UK is proud to be part of this success.

At the end of the opening ceremony, the Minister witnessed the signing of an annual contract to supply the Ministry of Agriculture with DAP fertilizer for the quantity of (350,000) thousand tons as a first stage.

Amet Selman
AAA Holding Ltd.
+44 7400 008010
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First DAP Fertilizer Plant Opened in IRAQ - A Joint Venture of Iraq and United Kingdom