Iran outsourcing 10,000 hectares of agricultural output to Kazakhstan to save water

Intellinews - Ukraine Today

South Khorasan Agricultural Organisation said on June 14 it is to outsource 10,000 hectares of agricultural production to Kazakhstan in a move aimed at reducing water consumption stress in Iran's arid northwestern region, Islamic Republic News Agency reported on June 13.

Iran, although likely to do well in meeting wheat and barley production targets this year, believes it can lower costs and reduce demand for scarce water by loaning out the fulfilment of some production requirements to its neighbour over the Caspian Sea in what will be the second such deal in recent years.

A spokesman for the agricultural organisation, Mohammad-Ali Bijarri, said that the country expects to strike a similar deal with Ukraine within the next few months, with demand continuing to grow for agricultural products in Iran.

Iran's previous such deal with Kazakhstan, realised under a project called Farming Beyond Borders, was arranged in June last year. Two objectives are to shore up agricultural supplies and to reduce Iranian purchases of wheat and other products from exporters in South America and other continents.

Iran has leased roughly 1mn hectares of agricultural land in several countries.

The Ukraine deal, to be pursued by Iran's Isfahan region and the Ukrainian Donetsk region, should eventually provide for the growing of arable crops including wheat and rye.

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