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Iraq

Analysis of the Key Value Chain Elements in Agriculture Food Sector in Khanaqin – Diyala Governorate

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Executive Summary

This Value Chain Study is part of a project implemented by UNDP, in partnership with Mercy Hands for Humanitarian Aid, with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ), provided through KFW Development Bank. The project, entitled Sustainable Livelihoods and Economic Recovery – Khanaqin District, Diyala Governorate, was launched in December 2020. Its overall objective is to facilitate the recovery and enhance the resilience of vulnerable communities - mainly returnees, Internal Displaced People (IDPs) and hosting communities - by providing short and medium-term employment opportunities to women and men using the Cash-for-Work approach. This project aims to address the mutually reinforcing challenges of widespread unemployment, youth radicalization and violent extremism by developing ad-hoc vocational trainings, providing small grants to start-up businesses, supporting existing businesses and creating new business and employment opportunities. It targets and benefits mainly young and adult women and men of different population groups: returnees, IDPs and host communities in Khanaqin, in Dayala Governorate. Finally, this project aims to enhance economic and livelihood opportunities and strengthen long-term resilience among the target populations. As such, this Value Chain Study seeks to improve Mercy Hands for Humanitarian Aid’s understanding of the local agricultural food value chain and inform and guide feasible intervention in order to identify and develop those activities necessary to strengthen resilience, ensure stability and social cohesion and consequently trigger sustainable and long-term recovery in the region as well as restore local livelihoods. In detail, this Value Chain Study aims to accomplish the following: identify gaps, challenges, shortcomings and opportunities in the food value chain; provide an overall picture of the food market system in Khanaqin and assess consumer preferences; identify sectors and income generation opportunities that can create livelihoods for the different targeted population groups and enhance the value of the food chain.

The assessment took place between January and February of 2021 and was based on a mixed methodology approach. Indeed, qualitative and quantitative methodologies were deployed. The qualitative approach included six Key Informant Interviews with local stakeholders: local authorities, members of Chamber of Commerce, Mukhtar and members of financial institutions and vocational training institutes. In addition to Key Informant Interviews, six Focus Group discussions with consumers, traders and business owners were conducted. Finally, a quantitative survey was carried out based on a purposeful sample of 22 interviewees among owners of registered companies and small shops.