The IBBC Agritech committee, led by Dr Amet Selman of AAA Holdings, and Christophe Michels, attended the IFA 2024 conference in Singapore. We were joined by Dr Hussain Alwasity the PM’s advisor, and Eng Hayder the General Manager of the state fertilizer company. The significance of the conference is that AAA Holdings are key sponsors to this global fertilizer convention and enables us all to position Iraq back in the spotlight as a fertilizer production nation. through AAA holdings the new key manufacturer and for us to learn about macro global trends in farming and business. Some of the key outtakes we drew are:

Iraq is back: with a history of fertilizer production of urea and other phosphates, Iraq had failed to maintain the fertilizer industry and has relied entirely on imports, until this year, when AAA holdings reestablished Phosphate, Potassium and Nitrate production to the tune of over 1.5m tones, and the process of import substitution has started.  Iraq has a requirement of roughly 5 million tons a year, but already access to high quality fertilizer at a reasonable price, has led to significant increases of wheat in particular from 2m tons pa to 5m this year and expected 7m tons by end of 2024, enough to begin exporting wheat. Access to smart use of fertilizer also will be a supporting pillar of the GOI strategy to boost agriculture and logistics distribution to where it used to be (from a current low to perhaps 25% of GDP  and employment in future).

The role of the IBBC Agritech Committee is to understand the global dynamics and trends within farming and production, including the use of AI and the opportunity for low cost production through readily available gas in Iraq, and its use in creation of Ammonia (international shipping are transitioning to instead of diesel) and the importance of reducing Co2 emissions through transport and efficiency over the next 10 years.

Impact of AI: of particular note at the conference Caroline Yap of Google spoke about AI and how it is there to enhance productivity in business, but that it will change the way we do everything,

Sustainability: discussions on the sustainability of shipping and production ensued, with a clear market return to normality and stability and regular growth in production and demand following the Russian Invasion of Ukraine.

Of note is the rise of Asia as a production and consumption centre for fertilizer and its export to Latin American markets, while also putting manufacture of fertilizer to the forefront in business priorities, and also the increasing use of byproducts of farming such as chicken manure for recycling into further fertilizer products (such as AAA are launching).

Engaging all stakeholders: in a time of increasing disruption, uncertainty and complexity business will need to work with all stakeholders to ensure adaptation to multiple challenges including climate, conflict and a growing hungry world and is going to be central to how agriculture will continue to ensure food production sustains.

Christophe Michels, MD of IBBC comments ‘Agritech is a new area for IBBC to be focused on, but its timely to be attending this IFA event for us to learn about key dynamics in the industry and be in contact with the lead players and sources of data that we can use in our work in modernising Iraqi agriculture’

Dr Amet Selman of AAA says ‘Engaging with IFA puts AAA and Iraq at the forefront of the global agriculture and fertilizer industry. Through our sponsorship we are able to communicate the opportunity for Iraq agriculture and put the country back on the map after a long dormancy. After all, agriculture evolved in Iraq and with modern techniques and fertilisers we can again become self-sufficient with a thriving agricultural sector that can provide jobs and opportunities to the people of Iraq’

 

Singapore, May 21, 2024