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IX. FARM MECHANISATION


Centre and southern regions: mechanisation policy

The mechanisation policy in Iraq is to provide farmers with the means of production at highly subsidised prices. Therefore to date large quantities of farm machinery have been imported and sold through the MOA Agricultural Supplies Company (ASCO) to private farmers.

Private sector agricultural machinery ownership - tractor/combine fleet

Prior to the sanctions, the tractor fleet comprised 40 000 units and the combine fleet 5 000 units.

Cultivated land area = 4 400 000 ha

Crops for combining = 2 639 000 ha

The ratio of tractors to cultivated area = 1: 110 ha

The ratio of combines to combined area = 1: 528 ha

From April 1995 up to July 2002, the total number of tractors imported was 11 344 and combines 600.

Total tractor population was 40 000 + 11 344 = 51 344

Total combine population was 5 000 + 600 = 5 600

The ratio of tractors to cultivated area = 1: 86 ha

The ratio of combines to combined area = 1: 471 ha

Age profile of tractor and combine fleet (1994/95)

Tractors

80% > 10 years old


53% > 15 years old

Combines

50.3% > 10 years old


35% > 15 years old

Although the ratio of tractors and combines has reduced considerably from pre-sanction days to a level whereby the national fleets can handle the current cultivated area, there is limited capacity for any increase in the cultivated area. In addition the original fleet is beyond economic repair and the current fleet replacement programme must be continued.

Implement fleet

There is no base line data available on the make up and quantities of the implement fleet although the quantities imported to date are as follows:

Seed drills:

225

Ploughs

1,200

Rotavators

1,000

Sprayers

18,021

Mechanization services - contracting

Mechanisation services are provided solely by farmers on a neighbour to neighbour basis. Therefore it is an active informal sector that is not recognised or represented by an association. Current estimates are that 51% of farmers use their own equipment and 49% use a contractor for undertaking harvesting and seedbed preparation.

Spare parts provision

Because of the ageing tractor fleet and combine fleet, the government import spare parts and distribute them through their warehouse system. However this system has been replaced by an agency system whereby the private sector is involved in the distribution process.

Current estimates are that 33% of farmers purchase their spare parts requirements through the agency system and 67% from the local market.

Northern Governorates: mechanization policy

During the 1970's the central government of Iraq adopted a mechanisation policy based on state provision of mechanisation services through the establishment of a network of state run workshops and tractor rental centres in an attempt to provide services to both individual and state run farms. However, state provision of services proved to be a failure and the government changed its policy accordingly to one of selling agricultural equipment direct to farmers and introducing credit facilities. Under this new policy the central government imported large numbers of agricultural equipment and distributed it at highly subsidised prices to private farmers with the result that agriculture in Iraq became highly mechanised.

This policy has been continued in the center south under Oil-for-Food Programme but in the northern Governorates the previously discontinued state run workshops and tractor rental centres have been revived. This has resulted in a large proportion of equipment and funding being channelled into starting up and running the public sector as a mechanization service provider in competition with an already active and successful private sector.

Private sector agricultural machinery ownership - tractor fleet

Figures from the FAO Rural Socio-economic Survey for 2002 indicate that only 14% of farmers use their own tractors for ploughing whilst 96% have to rely on renting a tractor to perform this basic operation including seedbed preparation. This shortfall in tractor ownership not only represents a major constraint to improving agricultural productivity but also highlights the significance and the scale on which farmer based mechanisation service providers have become an essential service for the farming community.

From the indicators below we have a situation in northern Iraq where 97% of the fleet is not only beyond economic repair but also beyond what is considered to be a useful life. The economic life of a tractor that is approximately 7 years depends on the annual increase in the rate of repairs, the tractors resale value and the price of an equivalent replacement tractor. In comparison, the useful life of a tractor which is approximately 12 years is based on obsolescence, unavailability of spare parts and reduced working capacity compared to a new tractor.

From a total fleet size of 13,996 tractors, 12,894 or 92% of the fleet is available for work, whilst 1,102 tractors or 8% of the fleet is unavailable due to mechanical break downs or worn tyres. This figure of 92% is very high for an ageing fleet and reflects both the high levels of ingenuity shown by local mechanics and the high levels of spare parts availability from both the private sector and FAO warehouses.

From information provided in the FAO agricultural statistical survey 2001, it is estimated that 10,658 tractors are engaged in agricultural operations at any one time and that 2,236 tractors are standing idle or engaged in off farm activity. Therefore, based on this estimated figure of 10,658 tractors, the estimated tractor fleet utilisation is 76% with 16% of the fleet engaged in non agriculture work and 8% broken down. Using these estimated figures for tractors engaged in agriculture, the national average ratio of tractors per hectare for the winter cropped area is 1:64 and for the total cropped area it is 1:70. These ratios indicate that the three Governorates have adequate mechanisation capacity to handle the requirements of the current cropped area. However, this is being achieved using an outdated and unreliable tractor fleet that is beyond economic repair. Consequently, it will become increasingly difficult to maintain the current high level of availability unless a tractor replacement programme is introduced for the private sector.

Private sector agricultural machinery ownership - combine fleet

The age profile is represented by a normal distribution with a very wide base of combine ages ranging from less than 6 up to 31 years with a mean of 19 years. From the indicators below we again have a situation in northern Iraq where 97% of the fleet is beyond economic repair. Therefore, as in the case of the tractor fleet, a phased replacement programme must also be implemented in order to maintain the existing combine fleet capacity.

34.5% of the fleet is aged 21 years and over

78.5% of the fleet is aged 16 years and over

97% of the fleet is aged 11 years and over

From a total of 669 combines, 587 or 87% are available for work and 82 combines or 13% of the fleet are unavailable at any one time. This represents a high level of availability and again reflects the ingenuity of local mechanics and the high level of spare parts availability from both the private sector and FAO warehouses.

The total hectares of crops suitable for combining is approximately 550 000 ha, therefore the ratio of combines to hectares is 1: 937 (550 000/587)

Private sector agricultural machinery ownership - implement fleet

Calculating the ratio of key implements to tractors shows that for mouldboard ploughs and trailers the ratio is 1:1, whilst for seed bed preparation equipment the ratio is 1:2 and for seed drills and planters the ratio is 1:7. These ratios clearly indicate those categories of implements that need to be procured as a priority but in the appropriate sizes to match existing and proposed tractor horse powers. In addition there is also a shortage of minimum tillage implements, crop sprayers and fertiliser distributors.

Mechanization services - contracting

Private sector. There already exists an agricultural contracting sector in the northern Governorates, but it is not recognised on a formal basis and is not represented by a contractors association. There are dedicated contractors but the bulk of the work is undertaken on a neighbour to neighbour basis and consequently there is no readily available data on the existing contractor population and their distribution.

Public sector. Under the Oil-for-Food Programme the public sector has been re established as a provider of contracting services through the setting up of mechanisation centres. This tractor pool approach has re-emerged with the handing over of tractors and implements to the LA's on a loan basis. These tractors and implements are being used to provide stone picking, threshing and seed cleaning/dressing services to the farming community besides traditional land preparation services. These services are provided free of charge and are coordinated and funded by FAO.

Mechanization services - workshops and manufacturing

Public sector workshops

The Oil-for-Food Programme has assisted the LA's to rehabilitate three existing central workshops in Malta (Dohuk), Erbil and Sulaimaniyah for a total cost of US$ 84 632 (excluding tools, equipment and fittings). In addition the programme has also constructed five new district workshops two in Dohuk and Erbil and one in Suleimaniyah at a cost of US $151 528. The three central workshops have been equipped to undertake major overhauls and it is assumed that the district workshops will be used for maintenance. The workshop capacity is far in excess of requirements.

Private sector workshop

The private workshop sector has been highly successful in supporting the farming community as demonstrated by the high levels of tractor and combine availability that has been achieved in the northern Governorates. This sector appears to be well equipped and shows a high level of ingenuity as well as versatility in being able to respond to changing market conditions.

A number of international companies have started to invest in the establishment of local representatives in the northern Governorates although the level of after sales service currently being offered is limited. In addition to those companies that provide local representation, most of the other major companies that have equipment operating in the northern Governorates are well established to provide technical assistance and spare pats from Baghdad or Amman.

The private manufacturing sector is well established and technically capable of undertaking a wide variety of fabrication work on a batch production basis. But there are shortages of new machine tools and standard steel stock. Nevertheless the programme has supported local manufacturing by placing orders for basic farm implements.

Spare parts provision

The mechanisation sub sector is currently using three newly commissioned FAO warehouses to store spare parts that are imported by FAO and sold to the local farmers. The distribution of spare parts has been analysed for one Governorate by beneficiary and value on a sub district basis and found that distribution has reached 73% of the sub districts and 818 beneficiaries per year. However, the average value of parts received by each beneficiary is only US$ 1 215 and this is considered insufficient for an engine overhaul and farmers must also be supplementing the FAO parts with parts from the private sector.

It is reported that very few genuine spare parts are available in the private sector but there are large quantities of non genuine parts. A major problem for the private sector is that many of the makes and models of tractors that currently make up the national fleet are obsolete and genuine parts are no longer available or in very short supply. Therefore, if the existing spare parts retail sector had ready access to genuine parts through FAO, they would provide an effective mechanism for identification and distribution.


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