WANA (Dec 13) – The fourth session of the 11th Annual Conference on the Resistance Economy, titled “Requirements for Transforming Iran into a Regional Food Hub,” was hosted by the Iran-Russia Joint Chamber of Commerce. The event brought together experts, officials, and private-sector representatives to discuss strategies, challenges, and opportunities in positioning Iran as a hub for food production, transit, and processing.

 

Key Insights

  • Strategic Advantages: Alireza Peymanpak, former deputy agriculture minister, highlighted Iran’s geographical and geopolitical advantages, including its proximity to grain-producing nations like Kazakhstan and high food-importing countries such as Pakistan and Gulf states. He noted that untapped capacities in Iran’s food industries, including flour and animal feed production, could be activated without significant new investments.
  • Three Pillars for Transformation: Peymanpak outlined three primary strategies:
  1. Expanding food product transit through Iran.
  2. Capitalizing on re-export opportunities, such as using Russia’s surplus production for export to Europe, despite internal challenges.
  3. Enhancing food processing capabilities to serve regional markets.

 

Challenges and Gaps

  • Underutilized Capacity: Peymanpak noted that much of Iran’s food production infrastructure remains idle. This includes over 20 million tons of unused capacity in food processing plants, partly due to inconsistent policies and underdeveloped trade frameworks.
  • Regulatory Hurdles: Hadi Tezhoosh Taban, president of the Iran-Russia Joint Chamber of Commerce, criticized Iran’s export policy, emphasizing the need for stable regulations and support systems similar to those in countries like Turkey. He argued that frequent market interventions disrupt exports, which should instead be stabilized by imports.

 

Economic and Regional Cooperation

  • Food Security Integration: Vladislav Perpelkin, Russia’s agriculture ministry representative, underscored the importance of collaboration within BRICS and the Eurasian Economic Union to enhance food security. He highlighted recent joint initiatives, including new trade terminals and increased private-sector engagement between Russia and Iran.
  • Revenue Potential: Farshad Awatefi, a strategic analyst, estimated that transforming Iran into a hub for grain and fertilizer trade could generate $1.5–$2.5 billion annually in transit revenue, with additional potential in processed food exports. He stressed that such integration would also reduce Iran’s vulnerability to sanctions by creating mutual dependencies.

 

Call to Action

  • Infrastructure Improvements: Experts highlighted progress in expanding ports, rail networks, and private investments in food transit but stressed the need for greater government coordination.
  • Export Leadership: Suggestions included appointing a dedicated export manager to streamline trade efforts and resolve logistical and regulatory issues, with the goal of tripling export volumes in the short term.
  • North-South Corridor Activation: Reviving the long-stalled North-South Corridor was described as essential for increasing Iran’s connectivity with global markets.

 

Broader Implications

Participants agreed that becoming a regional food hub would bring multiple benefits:

  1. Strengthening Iran’s economic ties with neighboring countries.
  2. Boosting national food security by leveraging import-export dynamics during crises.
  3. Generating sustainable revenue streams through transit and processing.

 

Despite these advantages, experts warned that achieving this vision requires overcoming entrenched challenges, including inter-agency conflicts, regulatory instability, and infrastructure gaps. They called for urgent, coordinated action to make this transformation a national priority.