Iran is one of the largest producers of fruit & vegetables in the world, production of Agricultural products reaches to 120 Million tons per year, this is while the government is planning to double the production during the next plan. The Fresh Fruit & Vegetables (FFV) production is near to 30 million tons per year. The average local consumption of the fresh fruits & vegetables in the country is not more than 30 Kg comparing to the world average consumption which is around 120Kg/Person, shows a huge local capacity for development in this industry, especially in distribution channel. There are several examples of Foreign Direct Investment in distribution and retail in Iran, which shows a great success in this sort of foreign investments.
Iran rank in top 10 producers of the fruits & vegetables in the world, pistachio, Walnut, Pomegranate, Apricot, Date, Cucumber, Melon, Cherry, Water Melon, Fig, Almond, Onion, Quince, Kiwi, Sour cherry, Grape, nectarine, peach are some of the products which are produced in the country. The country located in a four season region with 16.5 M/Ha arable Land, Irrigated 46.2% & Rain fed 53.8%
Apart from the local consumption, recently export of the products reach to over 5 million tones and created an income of over 2.5 Billion USD for the country. The countries like Iraq, GCC countries as well as Russia are among the large importers are the fruits and vegetables, Russia’s import in FFV reach to 40 Billion USD and Iran is capable to export considerable quality products to this region.
The government has allocated 10 Billion USD in its National Development Fund for the modernization of this industry. The export target of 10 billion USD is in government plan for the next 7 years. The current 4000 Ha greenhouses should be developed to 48.000 Ha and lots of refurbishment for the current greenhouses are in process.
Agricultural Industry is among one of the Tax exemption business in Iran, this is while all the export of the production and services are also among the Tax exemptions activities in the country, and this shows the great capability of this industry in Iran.
Currently the local technologies for the modern agriculture has been developed inside the country, the cost of a model hydroponic green house is not more than 300.000 per/Ha, due to the industrial capabilities for the production of 90% of the needed parts and equipment.
According to the law, an Iranian company can be established by 100% foreign capital as well as shareholders. The Foreign Investment Promotion and Protection Act, support the foreign investment in the country.
Merge & Acquisition strategy would be an attractive method for creating synergy in development of the current farms for the purposes of the promotion in export of the products.
It is worth to say that due to the increasing demand of the region in FFV products and increasing trend of the demand in local market the Agricultural industry in Iran will experience a huge development in very near future.