The wide range of different climates in Iran, has caused a great potential in agricultural sector. In this industry, likewise other industries in Iran we can find lots of opportunities for those who are looking for attractive investment options. Specifically, there are significant advantages in producing olive table and olive oil.
Iran ranks 11th in olive production among 43 countries in the world. Olive is growing in Fars, Kerman, Hormuzgan, Sistan-Baluchestan, Qazvin, Gilan, Golestan and Zanjan provinces. Although olive is a kind of fruit that can be produced even on unproductive lands, but different climates can affect the quality of table olive and also olive oil. For example, olive that has been farmed in the North of Iran, has such unique flavor that distinguishes from other kinds that has been grown in other parts of Iran. Also, as the fat level of olives have been grown in the Northern area is considerably higher, the amount and quality of olive oil produces in this part of country is higher than other parts of Iran.
With more than 100 thousand hectares under cultivation, unfortunately Iran has not been able to use all its potentials in order to being ranked in a higher place among other olive producers in the world. Most of the under-cultivation areas are farming in a traditional way. By investing in research and development in improving sapling, crop improvement and post harvesting technology, olive producers will be able to improve their yield and quality. The result of some researches shows that using a modern harvesting technology can save farms from losses by 30 percent comparing to manual harvesting. This can be an example for the effect of applying modern technology in farming and harvesting process in the agriculture sector`s productivity.
In recent years, people have started to demand for healthier food due to the increasing rate of diseases. As a result, the demand for olive products has increased all around the world. In the biggest olive producer countries like Spain and Italy, people mostly use olive oil in their foods and salads and also the per capita olive consumption in these countries is high. But in Iran, improving the food and nutrition`s knowledge for healthier diets is needed to form dietary habits in which people are encouraged to use more olive products. This way, the domestic demand will increase considerably. It should be mentioned that this changes in Iranian people’s diet have occurred already. But domestic demand still has great potential to grow.
On the other hand, in some neighboring countries and some countries in the GCC region such as Oman, United Arab Emirates, Kuwait, there is a potential demand for olive products due to this region’s lack of agricultural capacity. But for having a significant share in the competitive market of this industry in the world, olive manufacturers should pay special attention to make sure that they are manufacturing their products in a high level of natural antioxidants, minerals and vitamins. Also they should be able to create a successful brand by an appropriate marketing strategy. This needs an intelligent investment besides an appropriate knowledge-based management system.
Taking into account all mentioned points as an investing potential in producing olive table and olive oil in Iran, this field seems to be interesting for domestic and also foreign investors. For foreign investors there is even an extra advantage due to the low financing cost in their countries comparing to Iran.