Markets to explore: Iran
This column, dedicated to Italian companies operating in packaging with a keen eye to the possibilities of growth and development abroad, is born out of the collaboration between ICE-Agenzia and Edizioni Dativo. The network of ICE offices abroad will provide a regular update on packaging developments in the short/medium term in given countries.
With its natural resources and its strategic position in the Middle East, Iran has a long history of trade, entailing the buying and selling of a whole range of goods.
The situation today has not changed and the need to preserve the product during shipment is borne witness to by the growing importance of the packaging industry in this country as well.
The Iranian government in fact seeks to increase the export of non-petroleum based products and the great potential in the fresh produce area encourages Iranian producers to continuously update and to implement international standards.
However, there is wide recognition of the fact that certain problems identified in the export stage are caused by lack of suitable packaging systems, and that how products are transported and the way they are presented to the consumer is becoming a question of growing importance.
So much so that the President of the Trade Promotion Organization of Iran, Mr. Afkhamirad, has recently stated that the export food products without proper forms of packaging will be prohibited, with the goal of increasing the share of Iranian exports around the world.
Packaging machines:
who buys and how
On the local market, most of the purchases of packaging machinery have been made in recent years, aboveall involving Chinese and subsequent to that German, Turkish, French and Italian suppliers.
Iranian buyers in the industry are basically divided into two groups:
- Companies with large production volumes and companies with high liquid assets, regardless of production volumes, who prefer to purchase European machinery;
- Producers who, opting for more inexpensive machines, turn to domestic suppliers or mainly to the Chinese.
The Iranian buyer is fully aware of the quality of Italian or German machinery; in the current times, however, the general lack of liquidity pushes manufacturers towards more inexpensive equipment. In particular, the agribusiness operators, who for more than 80% are machinery and packaging services buyers, are in fact facing a period of relative stagnation.
Where supply and demand meet
The main opportunities where supply and demand meet up are the trade fairs, which in Tehran are Iran Plast (in April), Iran Agrofood (in July), followed by ICE International Exhibition of Beverage, Tea, Coffee and related Industries (in September) and the International Exhibition of printing, packing & related machinery (in December). Other important events are held in Mashhad, Isfahan and Tabriz.
A first step suggested to manufacturers wishing to enter this market is a simple advertisement in trade magazines and perhaps participation at one of the mentioned fairs.
At a later stage you may decide to rely on a representative or other Iranian partners who, by virtue of a “dowry” of local relations and contacts, may be preferable to direct sales.
If in doubt about customs tariffs, you should consult Iran’s Customs Administration website (www.irica.gov.ir), where you will find the information you need in detail. The website is also in English.
In conclusion
For Italian operators, the opportunities to be seized depend on penetration strategies and the ability to offer after-sales services, bearing in mind that Chinese and Turkish competition is tough and mainly based on an aggressive pricing policy.
The project is coordinated
at the ICE-Agenzia headquarters in Rome by the Industrial Technology, Energy and Environment office headed by Ferdinando Pastore. Figure of reference: Matteo Masini, tel 06.5992.9356 [email protected]
