Iran's 420 billion US dollar economy is returning to be part of the global economy. Agriculture represents currently 12% of Iran’s GNP and keeps growing. There is a high demand for modern agriculture solutions. Finnish agrotechnology companies are in a good position to seize the opportunities in Iran.
Iran, the world's 18th largest economy in terms of purchasing power parity, is probably the last big and relatively untapped emerging market opening for western business. The country has enormous natural resources and is one of the global agricultural powerhouses. The agriculture sector, representing about 12% of GNP and 23% of employment, is considered as a fundamental contributor to the economy of the country.
Iran can greatly benefit from the Finnish high standard agrotechnology offering. Finnish companies are keen to enter the Iranian markets, and the governments of Finland and Iran are actively seeking ways to strengthen the collaboration between the countries on forestry and natural resources management. A Memorandum of Understanding, in which agricultural and forestry machinery and technology was identified as mutually high priority area of cooperation, was signed at the end of 2016 in Tehran.
Promising target market of Agrotechnology from Finland
Agrotechnology from Finland growth program, managed by Finpro, helps Finnish agrotechnology companies to find new markets and increase their exports. The program is targeted to companies operating in agricultural machinery, forestry machinery and different types of solutions for livestock.
Elina Puszkarzewicz, Program Director of Agrotechnology from Finland, tells that Iran is one of the target market countries of the program.
“Iran is a very promising target market for our member companies. We are glad that the Finnish state invests in the internationalization of agrotechnology companies in several ways. The recently signed MoU is a good example of important support.”
Competitive advantage of the Finnish offering
The Iranian agricultural technology markets are ranked among the top three in the Middle East. Currently the crops and grain handling machinery and equipment sector forms the main potential market. Also, in the arable machinery and equipment sector the growth and the demand are high. Livestock solutions is a promising and growing market too. Finland has an excellent offering in all of these three sectors.
Finnish companies have certain strengths in entering the Iranian market:
Boosting the collaboration - Team Finland visit to Iran in February
The next concrete step from the Finnish government to boost the promising collaboration between the countries in the field of agrotechnology, and in mining, waste-to-energy, healthcare and ICT, is a business delegation visit to Iran in February 2017. The delegation is led by Mr. Petri Peltonen, Under-Secretary of State, Ministry of Economic Affairs and Employment of Finland.
During the visit, agrotechnology companies and other delegates will have an opportunity to attend business meetings and networking events with local business leaders, organizations and authorities. Finpro is organizing the program in cooperation with the Embassy of Finland in Iran.
Program Director, Finpro
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