The Importance of Tomato Paste Export for the Country’s Economy
Iran is a four-season country with diverse climates, which gives it a special place in agriculture and the production of agricultural products. Tomato is one of these strategic products that, in addition to domestic consumption, has the potential for significant exports and foreign exchange earnings for our country. Here, we will discuss the importance of exporting tomato paste, a product derived from tomatoes, for the country’s economy and its impact.
Tomato, a High-Yielding Product
Due to its various vitamins and minerals, tomato has a special place in the Iranian food basket. However, the high production of this product in some seasons leads to price fluctuations and agricultural product waste. Converting tomatoes into tomato paste is a smart way to increase shelf life, reduce waste, and add value to this valuable product.
Iran’s Position in Tomato Production
With an annual production of about 7 million tons of tomatoes, Iran has ranked seventh in the world in this field. This volume of production has created a significant potential for the development of the processing industry and export of tomato paste.
The Process of Converting Tomato to Paste
The process of converting tomato to paste includes various stages such as washing, sorting, chopping, cooking, concentrating, packaging, and sterilization. By accurately implementing this process, a product with high durability and transportability to domestic and foreign markets can be offered.
The Global Tomato Paste Market
The global tomato paste market, with a value of over 10 billion dollars, is an attractive opportunity for countries exporting this product.
Leading Countries in Tomato Paste Export
Countries such as Italy, China, the United States, Spain, and Portugal, using advanced technologies and appropriate infrastructures, are pioneers in tomato paste export in the world.
Iran’s Position in Tomato Paste Export
Despite the high potential of tomato production, Iran does not have a significant share of the global tomato paste market. However, in recent years, the export of Iranian tomato paste to neighboring countries such as Iraq, Afghanistan, UAE, Russia, and Kazakhstan has increased.
Benefits of Tomato Paste Export for the Country’s Economy
Exporting tomato paste can have many benefits for the country’s economy, some of which are mentioned below:
- Foreign Exchange Earnings:
Exporting any product, including tomato paste, leads to the inflow of foreign currency into the country and strengthens foreign exchange resources. This can lead to economic stability and pave the way for the import of essential and capital goods.
- Job Creation:
The boom in tomato paste export will increase the demand for the production of this product inside the country. Consequently, the need for labor in various sectors such as agriculture, processing industries, transportation, and trade will increase. This will create new job opportunities and reduce unemployment.
- Development of Agricultural Processing Industries:
Tomato paste export encourages investment in agricultural processing industries. This leads to the establishment of processing plants, development of related infrastructures, and improvement of production technologies. Consequently, in addition to creating jobs, more value will be added to agricultural products.
- Branding Iranian Products:
The successful presence of Iran in the global tomato paste market can help introduce and brand Iranian products in the international arena. This can pave the way for the export of other agricultural and industrial products of Iran in the future.
Challenges and Obstacles to Tomato Paste Export
Despite the significant advantages of tomato paste export, this path also faces some challenges, some of which are mentioned below:
- Competition with Powerful Countries:
As mentioned, the leading countries in tomato paste export have advanced technologies and extensive experience in this field. Competing with these countries in the global market requires improving the quality of products, complying with international standards, and smart marketing and trade strategies.
- Exchange Rate Fluctuations:
Exchange rate fluctuations are one of the significant challenges for Iranian exporters. Economic instability and sudden changes in the value of the national currency can disrupt export planning.
- Packaging Quality and International Standards:
Proper packaging and compliance with international standards in food quality and hygiene are important factors in product acceptance in global markets. Unfortunately, in some cases, weaknesses in the packaging sector and non-compliance with international standards prevent the successful presence of Iranian products in export markets.
- Lack of Export Infrastructure:
The lack of appropriate infrastructure such as cold chain transportation systems and export facilitation processes can increase export costs and reduce the competitiveness of Iranian products in the international arena.
Some solutions to strengthen tomato paste export are:
- Improving quality and complying with international standards
- Developing branding and international marketing
- Supporting processing industries and farmers
- Streamlining and simplifying export processes
- Utilizing experienced professionals
By implementing these solutions and working collaboratively, Iran can significantly increase its share in the global tomato paste market and reap the economic benefits it offers.