3.5 Iraq Food and Additional Suppliers

In 2020, exports represented 23.21% of GDP (39,344.6 M.$) while imports represented 25.55 % of GDP (43,297.0 M.$).

According to OEC, in 2019, the top exports of Iraq are Crude Petroleum, Refined Petroleum, Gold, Tropical Fruits, and Petroleum Coke, exported mostly to China, India, South Korea, United State), and Italy. The top imports of Iraq are Refined Petroleum, Broadcasting Equipment, Cars, Jewelry, and Rolled Tobacco, importing mostly from United Arab Emirates, Turkey, China, India, and South Korea. Additionally, Iraq was the world's biggest importer of Wheat Flours ($469M).

Iraq’s manufacturing activity has been closely connected to the oil industry. The major industries in that category have been petroleum refining and the manufacture of chemicals and fertilizers.

Iraq has a highly competitive market in terms of goods however the level of competency in services varies depending on type of services, for example, high technology services and telecommunication services are not very competitive due to limited number of reliable service providers, though, it can still be considered competitive as at least three reliable service providers are available.

Imports allow high level of competency in the market due to wide range of brands and services offered with potential for scaling up. However, one of the main challenges in the Iraqi market are related to payment method, as bank transfer is not favoured due to lack of liquidity by some of the banks. Additionally, direct contracting and cash payment is the most used methods by the wholesalers rather than tendering and bank transfers.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

3.5.1 Iraq Food Suppliers

Since 1990, Iraq has been using the public distribution system (PDS) to achieve food security and counteract the debilitating effects of the economic sanctions imposed on Iraq in 1990, by providing families with basic food items on monthly basis (Alzobaidee, H.L.K. 2015. Social Protection and Safety Nets in Iraq. Brighton: Institute of Development Studies). In 2016, 90% of Iraqi households (33 million people) received subsidised food commodities, while the programme’s expenditure was reported to be 0.6 per cent of GDP (Reference), the PDS were legible for all Iraqi’s however, the government decided to exclude some categories effective on 01 June 2021. The main PDS food commodities are Rice, Wheat Flour, Sunflower Oil and White Sugar. lately in 2021, tomato paste, beans and chickpeas were added to the PDS. However, the distribution of all commodities and frequency were varied from month to another depending on the economic situation in Iraq. Therefore, Iraq is trying to reach food security and increase the production of the strategic commodities such as wheat and barley. According to the ministry of agriculture for Iraq.

The local needs for wheat are approximately 4.2 million tonnages, in 2020 Iraq was able to produce more than 6.2 million tonnages of wheat however Iraq is still importing approximately of 1 million tonnages to mix with the local production for quality matters. Meanwhile Iraq produced barley of approximately 1.7 million tonnage which is over the local needs. Iraq is encouraging the production of those two commodities locally by purchasing them in a higher price than the international market, which was one of reasons for the surpluses. Dates, tomato, eggplants, onion, and others are a surpluses commodity, please refer to this link (Available in Arabic only) for more details on local production. Ministry of Trade for Iraq is contracting Etihad Food Industries Co. Ltd to cover the PDS requirement of sugar and sunflower oil. the factory is producing Sugar, Sunflower oil, Vegetable Ghee, RDB palm Olein and Corn oil. the factory capacity is 4000 MT/day for sugar and 2400 MT/day for sunflower oil. Altunsa Company has presence in Iraq as a food supplier and manufacturer, it provides rations, dry pulses, sunflower oil with a capacity of 2000 MT/Day and wheat flour with a capacity of 1000 MT/Day.

Additional information can be located from sources which are regularly maintained and reflect current facts and figures. For more specific and detailed overviews of food availability and market conditions, please consult the following sources:

WFP Vulnerability and Analysis Mapping (VAM): (http://vam.wfp.org/)

USAID Famine Early Warning Systems Network (FEWS NET): (http://www.fews.net/)

For more information on food supplier contact details, please see the following link: 4.10 Supplier Contact List.

Retail Sector

According to the Iraqi Chamber of Commerce and Central Statistics office, there are approximately 100,000 registered private food retailers and wholesalers. However, it is noticed that there might be more than 200,000 unregistered small retailers. Retailers generally purchase most items from established wholesalers and from specific wholesale markets. Overall, sales among registered retailers have grown modestly at a few percentage points per year.

Types of Retailers Available
Type of Retailer	Rank (1-5)
Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains.	4
Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative.	3
Permanent shop with strong supply capacity – individually/family-owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options.	2
Permanent shop with limited supply capacity – individually/family-owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options.	1
Mobile Shop/Market Stand – individually/family-owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments.	5

Wholesale

Supplier Overview
Company Name	Etihad Food Industries Co. Ltd
Address	Babylon, Iraq
Does the supplier have its own production / manufacturing capacity?	Yes, refinery factory Sugar: 4000 MT/day Soybean / sunflower oil: 2400 MT/day RBD Palm olein Oil: 2400 MT/day
Does the supplier have its own retail capacity?	No
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate Turnover in MT	Sugar: 1.25 MT /Annual Soybean / sunflower oil: 450 K MT/Annual RBD Palm olein Oil: 25 K MT/ Annual
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	Contracted supplier with MOT for sugar and sunflower oil for the PDS. One of the biggest refineries in MENA Well-known brand in Iraq.

Supplier Overview
Company Name	Altunsa Company
Address	Duhok, Iraq
Does the supplier have its own production / manufacturing capacity?	Yes, Rations: 2,000 MT/day sunflower oil: 2,000 MT/day dry pulses: 2,000 MT/day wheat flour: 1000 MT/day
Does the supplier have its own retail capacity?	No
Does the supplier have its own transport capacity?	Information not available
Does the supplier have its own storage facilities?	Yes
Approximate Turnover in MT	Rations: 60,000 MT/ Annual sunflower oil: 10,000 MT/ Annual dry pulses: 200,000 MT/Annual
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	Company HQ is in Turkey. Well-known brand in Iraq.

Supplier Overview
Company Name	Tazweed Commercial Solutions
Address	Duhok, Iraq
Does the supplier have its own production / manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Information not available
Does the supplier have its own storage facilities?	Yes
Approximate Turnover in MT	Rations: 15,000 MT/ Annual Canned fish: 1,000 MT/ Annual dry pulses: 10,000 MT/Annual
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	Based in Jordan and has branch in Iraq.

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
00 - Live animals (other than fish, crustaceans, molluscs, etc.)	i.e. sheep and goats, swine, poultry…	Sheep, goats, poultry, camels, cows and buffalo are available locally (breeding) and import is allowed except for poultry.
01 - Meat and meat preparations	i.e meat of bovine animals, meat of sheep, dried or smoked meat of swine, sausages…	Available, mostly are imported by privet sector. Iraq is Islamic country, importation of dried or smoked meat of swine is not allowed.
02 - Dairy products and birds’ eggs	i.e. milk, yogurt, butter, cheese, eggs…	Available, local production and imported products. Eggs are on the yield of surpluses hence importation of egg is restricted at times of surpluses.
03 - Fish (not marine mammals), crustaceans, molluscs…	i.e. fish (chilled or frozen), fish (salted or in brine), fish liver and roes…	Fish is available and a surpluses commodity.
04 - Cereals and cereal preparations	i.e. wheat, rice, flour of maize, pasta...	Wheat flour is a surpluses commodity however import of WHF is needed for mixing with local product for quality purposes. Yellow maize is surpluses commodity and available. Rice is available in market, however local planted rice does not cover the local need and limited to specific types hence market is mainly importing rice.
05 - Vegetables and fruit	i.e. vegetables, fruit and nuts, jams/jellies, fruit juices…	Some fruit and vegetables are surpluses commodities such as onion, eggplants, watermelon, and dates. However, all veg, and fruits are available in the market.
06 - Sugars, sugar preparations and honey	i.e. sugars (beet or cane) raw, natural honey, fruit/nuts preserved by sugar …	Sugar is produced locally (raw materials are exported). However, exportation is allowed, and market is a mix of locally produced and exported product.
07 - Coffee, tea, cocoa, spices and manufactures thereof	i.e. coffee, cocoa, chocolate, tea, mate, pepper…	Information is not available
09 - Miscellaneous edible products and preparations	i.e. ready-to-eat foods, margarine, sauces, soups and broths, yeasts…	Available in the market, both local produced and exported products.
41 - Animal oils and fats	i.e. lard, fats and oils…	Information is not available.
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated	i.e. soya bean oil, olive oil, maize oil, vegetable oil…	Available in the market, both local produced and exported products.

**For non-food products please see section 3.5.2 Additional Suppliers, and for fuel/petroleum products please see section 3.1 Fuel.

For more information on food supplier contact details, please see the following link: 4.10 Iraq Supplier Contact List

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

3.5.2 Iraq Additional Suppliers

Overview

the Iraqi market is mainly depending on import for most of supplies. Manufacturing and production factories are very few in the country and limited to specific industries such as oil, water tanks, plastic/nylon materials and construction materials such as cement and brick. Wide range of products that is needed by the humanitarian actors are available by wholesalers however, most of them are imported. Most of wholesalers are in the capital or big cities such as Baghdad, Erbil, Sulaymaniyah, and Basra. Tents, water pumps, pipes, water tanks, office furniture, potable water are available in country however IT and communication equipment are special case. some of items falls under approval from different government authorities such as ministry of interior and intelligence.

The main challenges in Iraqi market linked to humanitarian actors is most of the wholesalers in the capital are not complying with UN/ INGO procurement terms and conditions such as having bank accounts or accepting bank transfer payment to the firm bank account. Moreover, they accept direct contracting and/or advanced cash payment therefore general trading, medium size or retail firms are more likely to be contracted if bulk quantities are needed. Situation is different in KRI, wholesalers are more flexible and can comply with humanitarian procurement terms and conditions.

Throughout the crisis of ISIS in 2014, some of suppliers/service providers have developed a good experience to respond to the humanitarian needs responding to the ongoing crisis. Through working with the UN agencies and NGOs, they developed a good understand and knowledge of the policies and rules/regulations of the humanitarian organizations.

For more information on Iraqi industry, please refer to this KAPITA Report.

For more information on suppliers’ contact details, please see the following link: 4.10 Supplier Contact List.

Wholesale – High Tech Co.

Supplier Overview
Company Name	High Tech Co.
Address	Iraq – Baghdad – Erbil
Does the supplier have its own production / manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes / Provision of commodities to end user & managing retail locations.
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	8 M $ Yearly turn over
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	N/A

Wholesale – Al Hayat Co. for internet

Supplier Overview
Company Name	AL Hayat Co. for internet
Address	Iraq – Baghdad
Does the supplier have its own production / manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes / Provision of commodities to end user & managing retail locations.
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	590,396.00 $ Yearly turn over
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	N/A

Wholesale – Al Nabaa Network Solutions

Supplier Overview
Company Name	AL Nabaa Network Solutions
Address	Iraq – Baghdad
Does the supplier have its own production / manufacturing capacity?	No
Does the supplier have its own retail capacity?	Yes / Provision of commodities to end user & managing retail locations.
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	NA
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	N/A

Wholesale – Alressoom Alalamiya Company for home and office furniture trading and manufacturing limited

Supplier Overview
Company Name	Alressoom Alalamiya Company for home and office furniture trading and manufacturing limited
Address	Iraq – Baghdad
Does the supplier have its own production / manufacturing capacity?	Yes
Does the supplier have its own retail capacity?	Yes / Provision of commodities to end user
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	NA
Payment Methods Accepted	Bank Transfer
Other Comments or Key Information	N/A

**For FOOD products please see section 3.5.1 Food Suppliers, and for fuel/petroleum products please see section 3.1 Fuel.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.