Agricultural Economics and Development

Agricultural Economics and Development

Strategic Analysis of Garlic Value Chain in Hamadan Province of Iran

Document Type : Original Article

Authors
1 PhD Student in Agricultural Development, Department of Agricultural Extension and Education, Faculty of Agriculture, Bu-Ali Sina University, Hamadan, Iran.
2 Assistant Professor, Department of Economic, Social and Extension Research, Hamadan Agricultural and Natural Resources Research and Education Center, Agricultural Research, Education and Extension Organization, Hamadan, Iran
3 Assistant Professor, Department of Economic, Social and Extension Research, Hamadan Agricultural and Natural Resources Research and Education Center, Agricultural Research, Education and Extension Organization, Hamadan, Iran.
4 Associate Professor of Rural Development, Department of Agricultural Extension and Education, Faculty of Agriculture, Bu-Ali Sina University, Hamadan, Iran.
Abstract
Introduction: Value chain, as the main component and the most important key to success in the knowledge-based economy, includes activities that can add value, facilitate the process of production and supply of the product to market as well as it makes the final product competitive in terms of price. Agricultural value chain is complicated and includes production inputs, farmers, wholesalers, traders, food companies and retailers, all of which must respond to various consumer demands in a sustainable and acceptable manner. This complexity makes them distinct from other chains of economic sectors including both industry and services. Study of agricultural product chain in different regions shows that the placement of all production links of any type of product in one geographical area and in line with each other has reduced production costs and caused synergy and greater efficiency in all links. Although, market-orientation and paying attention to the value chain of agricultural products are extremely important, addressing them in a large scale will not bring much achievement, so that presenting real examples can make this discussion completely practical. Therefore, the analysis of the value chain of strategic and important products in different regions, including garlic in Hamadan province of Iean, provides great opportunities for different beneficiaries directly or indirectly in the value chain.
Materials and Methods: This study was an applied-developmental one with a combined approach and at a strategic level, it was conducted in a descriptive-analytical survey method in terms of the non-experimental control of variables. In carrying out this research, a deep documentary and library review along with a secondary data and survey (using questionnaire instrument) and interviews with chain actors and experts were used according to the stages and objectives of the research. In the qualitative part, an interview was applied to determine and identify the structures of strengths, weaknesses, threats and opportunities (SWOT) of garlic production in Hamadan province, where the statistical population included local experts and official experts who were aware of the garlic product and its various processes, which were totally 11 people who were purposefully selected by snowball sampling method. But, in quantitative part of the study, aiming to determine the importance of the strengths, weaknesses, threats and opportunities that identified in the qualitative part, was presented to the heads of farmers’ households. The statistical population included 1272 farmers in Hamadan and Bahar counties, and using Cochran's formula, 233 people were estimated and selected as the statistical sample of the study. Both quantitative and qualitative data and information gathered from the field were analyzed and summarized; then, the presentation of these data and conclusions were made with the help of descriptive statistics and inferential statistics by strategic planning approach. In sum, SWOT analysis and strategic analysis were conducted using SPSS software, SWOT and Quantitative Strategic Planning Matrix (QSPM) models according to the goals.
Results and Discussion: Based on the obtained results, totally 15 strengths, 23 weaknesses, 17 opportunities and 19 threats were distinguished for garlic value chain in the studied area. The most important priorities in each sector were "suitable climatic conditions for garlic cultivation", "high cost of land and labor rent", "high potential of Hamadan garlic in terms of economy and employment", and "entry of non-specialists to the garlic market", respectively. The study results also showed that according to the points obtained in the matrix of internal factors (2.61 out of 4) and external factors (2.57 out of 4), the appropriate strategy for the development of the garlic value chain in Hamadan province was an aggressive strategy that included strategies such as developing a model of sustainable garlic cultivation, developing research related to production and processing, gaining competitive advantage and attracting new export markets, developing processing industries in line with employment and diversity of products, promoting domestic consumption of the product and creating the necessary platform for investment.
Conclusion and Suggestions: These strategies can perform synergistically and turn the region into a hub for garlic production and processing. Through focusing on improving quality, sustainability and competitiveness, new opportunities can be created in domestic and international markets. Also, the sustainable development of agriculture, preservation of the environment, creation of employment and improvement of the economic situation of the region are among the benefits of implementing these strategies. Finally, paying attention to these strategies can lead to strengthening the local economy, increasing incomes and improving the standard of living of farmers and society as a whole.
Keywords

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