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Agriculture and food Packaging

The agriculture sector has long been a popular place for commodity trading. Mark McLornan made this comparison in the May issue of Marc Faber Gloom Boom and Doom Report: Investing in agriculture today will be like investing in the oil sector in 2001-2002. (If you’ll remember, that’s when oil raced up to $143 a barrel from its $30 low.) Right now, this sector remains locked in underinvestment, so there’s opportunity here, considering the case of future demand.

Agricultural is one of the most important sectors of the Iranian economy, accounting about 13%of GDP, 25%of the employed population and 17%of the foreign exchange revenues. Agricultural and animal husbandry products have always provided the major non-oil export items such as pistachios,nuts، raisins and even carpets.
 About %25 of the land Iran is arable .the main food-producing areas are in the Caspian region and in valleys of the northwest. Some northern and western areas support rain-fed agriculture, while other areas require irrigation for successful crop production.
Agriculture Industry in Iran
• Iran is one of the most populous countries in the region, and so there was a real long-term strategic intent from the side of international companies to make an entry into this market
• A total of 13,198 entities are engaged in the Iranian food industry, or 13% of all entities in the industry sector. The sector also employs approximately 358,000 people or 17.1% of the entire industry sector’s workforce, according to the Iranian Food Industry Organization.
• Investments now total $7.9 billion, or 19% of total investment in the industry sector. Sector exports range around $1 billion per year, and the main export items are confectionary, dairy products, tomato paste, fruit juice and concentrate, mineral water, and pasta.
• The main export regions include the Middle East, Central Asia and other CIS nations, Europe, and South America. The country is also increasingly importing food technology, including processing and packaging equipment.
• The beverages sector is growing quickly in Iran as part of an expanding FMCG scene. As local consumption increases, players in the sector look to gain market share while improving supply and quality.

Investment Facilities
1- The income derived from all agriculture and horticulture activities, fish farming, bee-keeping, hunting and fishing, sericulture, revival of pastures and forests, is exempt from payment of tax. All the natural and juridical persons (Iranian and Foreign) can enjoy above mentioned exemption at the outset their activities.  
2- %100 of the income derived exportation of industrial finished goods and products of agricultural sector(including forming ,horticulture husbandry, poultry ,fishery, forest and pasture products) and its conversional-signal and complementary industries and also %55 of the income earned from exportation of other goods that are exported for achieving the objectives of the exportation of non-oil goods, shall be exempt from tax. A List of goods subject to this article, in the course the of each development plan based on proposal of the ministries of economic affairs and finance, commerce, jihad-e-agricultural and industries and mines, shall be approved by the council of ministers.

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