Iraq is taking a major step toward improving local food production. The Iraq Development Fund has signed a deal with UK-based Agrium Capital to build the country’s first modern infant formula plant. This partnership marks a milestone in the ongoing infant formula production in Iraq, aiming to reduce dependence on imported goods.
The project’s estimated cost exceeds $200 million. It will use locally sourced ingredients, including Iraqi-produced milk. By doing so, the facility aims to meet 85 percent of domestic infant formula demand. This move not only strengthens food security but also improves quality control through local oversight.
Rod Bassett, Managing Director of Agrium Capital, said the company values Iraq’s strategic role in the region. He also highlighted Agrium’s long-standing ties to the Iraqi market, spanning 15 years. Globally, the company employs around 3,000 people and focuses on food security and renewable energy.
The new plant will have an annual production capacity of 25,000 tonnes. This facility marks the beginning of a broader investment plan in Iraq’s industrial sector. Both partners believe this move will enhance Iraq’s manufacturing capabilities and provide new jobs.
In addition, the factory will serve as a model for other industrial projects across the country. It will stimulate the local dairy industry, promote job creation, and cut down on foreign spending. Iraq currently imports large quantities of infant formula, which places a strain on national reserves and limits local economic activity.
This deal also reflects growing investor confidence in Iraq’s market. The cooperation between a global firm and an Iraqi fund shows how international partnerships can drive domestic development. The focus remains clear: support national production, reduce imports, and ensure safe, high-quality food products for infants.
With this facility, Iraq joins the ranks of countries that produce infant formula domestically. The project aligns with the government’s push to revitalize the industrial sector. It also supports Iraq’s broader vision for economic independence and stronger local industries.
As work begins on the plant, all eyes are on the potential impact of infant formula production in Iraq. Success here could open the door for more projects in health, nutrition, and industry.