Investigating the production and export capacities of Iran's horticultural products to create a regional hub

Document Type : Original Article

Authors

1 Associate Professor of Agricultural Economics, Department of Agricultural Economics, University of Tehran, Karaj, Iran.

2 Associate Professor of Agricultural Economics, Department of Agricultural Economics,University of Payam e noor, Tehran, Iran.

3 Ph.D. in Agricultural economics, Department of Agricultural Economics, Ferdowsi university of Mashhad, Mashhad, Iran.

10.30490/aead.2024.365528.1597

Abstract

The development of regional food hubs has become a strategic plan to secure the food system by improving local producers and hubs to connect local producers and consumers. In this regard, this study seeks to answer the question of whether Iran's agricultural sector has the necessary capacities to create regional hubs for the trade of agricultural goods.In order to achieve the purpose, the production and export capacities of the horticultural products, which accounts for nearly half of Iran's agricultural exports, have been analyzed. This study uses five indices including the symmetric revealed comparative advantage (SRCA) index, Lafay index (LI), concentration ratio (CR), efficiency advantage index (EAI), and relative import advantage to provide comprehensive results. The results showed that Iran has an advantage in exporting horticultural products and this advantage has increased over time. In other words, Iran's competitiveness in exporting these products has increased globally. According to the results, Iran's main trading partners, such as the United Arab Emirates, Iraq, and Türkiye, are among the largest importers of horticultural products, whose imports have advantages. Also, the markets of Iraq and Türkiye are highly dependent on Iran's exports, and Iran's competitiveness have increased in these markets. The most of the regional countries (except Türkiye) are major importers of horticultural products and do not have the ability to produce competitively horticultural products, and Iran is the only country in the region that has a common land and sea border with the main importers of these products. Therefore, Iran should use this opportunity to create a regional hub by developing a business plan with a win-win approach as well as improving and developing legal and commercial structures and transit and customs infrastructures.

Main Subjects