The government of Iraq inaugurates a new US$22M wheat flour mill in Domiz

IRAQ – The Kurdistan government in partnership with the private sector, on November 19 inaugurated the Distar Factory, a cutting-edge wheat flour mill located in Domiz, Duhok Governate, Iraq.

The prime minister of the Kurdistan Regional Government, Masrour Barzani graced the inaugural ceremony where he said that the new flour mill would provide job opportunities for hundreds but also strengthen our agricultural backbone.

Kurdistan is an autonomous entity governed by the Kurdistan Regional Government within Iraq and is bordered by Iran, Turkey, and Syria.

The US$22 million project has a storage capacity of 52,300 tonnes of wheat and can produce up to 500 tonnes of flour per month.

Speaking during the ceremony, Barzani urged investors in the Kurdistan Region to explore opportunities in agriculture and industry, adding that this will not only bolster our regional economy but also reduce our reliance on external sources.

“Historically, agriculture and industry have received minimal investment. To drive the economic growth of the Kurdistan Region, we must focus on these sectors,” he said.

He added that the mill will provide farmers with a reliable platform to sell their products and encourage ongoing cultivation and production.

Wheat is one of Iraq’s most important crops, and yields have been affected severely by the drying rivers that were traditionally the source of water for agricultural pursuits. 

Today, Iraqi farmers grow up to one-third of the estimated 235 million bushels (6.4 MMT) of wheat consumption, according to U.S. Wheat Associates (USW).

Recently, Iraq’s government revealed a raft of measures including using groundwater for farming has translated to a bumper harvest and increased cultivation in the country.

According to the government, this officially-supported shift to wells has allowed the country to double areas cultivated with wheat this year to about 850,000 hectares compared to roughly 400,000 hectares last year.

Mohammad Al-Khuzai, the agriculture ministry spokesperson noted that this shift has translated into a harvest of around 4 million tons of wheat – the largest in years and 80% of the needs of a country with a 43 million population who eat bread at almost every meal.