A high risk market with high profits

Category: Blog Published: Saturday, 03 March 2018 Print Email
A high risk market with high profits

The trade of agricultural products and foodstuffs is a high level of economic out of Iranian market due to social and environmental activities. The industry now has $ 5 trillion, 10% of consumer spending and 40% of employment. The industry alone also produces 30% of global greenhouse gases. Although significant advances in the food and agricultural industry over the last 50 years for marketing in Iran have led to the arrival of food to many parts of Iranian market and global market, the centrality of food companies is still very important for marketing in Iran.

Iranian market has long been recognized as one of the key markets in agriculture field. Agriculture in Iran has been controversy for many years by advertising in Iran and marketing in Iran. By the time of currency reforms to the present day, the food and agricultural sector has had great importance. At the moment, 15% of the investments made and employment in the industry sector is vital in Iranian market.
The importance of food and investment in this area is also increasing in Iranian market day by day. Although Iran is a country with a young population that meets the needs of its people due to agriculture for marketing in Iran, it offers opportunities for investors. This is particularly important in the field of modern packaging and packaging foods too. One of the positive features of investing in food production or in the food conversion industry is it’s early on, which is of the great importance to investors. What is at Iranian stake now is why the food industry is important and why it should be invested.
Food industries operate in the Iranian capital market in various groups such as edible oils, dairy products, etc. Of course, this industry is in the two general categories of sugar companies and non-sugar products on the Iranian stock market. The importance of this industry is not overlooked by anyone, because the demand for the products of this industry is always present in various economic situations, as well as its high dependence on the import of raw materials, has a relatively high status. On the other hand, the presence of the companies in the Iranian capital market will improve the quality of their products and achieve relevant standards in competitive conditions.
The entry of food industry companies into the Iranian capital market and the attraction of domestic and foreign potential capital cause the dynamism of most industries and their efforts in raising productivity for marketing in Iran, since the investments are naturally absorbed into more successful industries, this will create competition among the industries accepted in the capital market. Iran's food industry is in a good position for profitability, and its relatively low coefficient can be exploited by low volatility. Among the foreign trading industries, the industry is ranked ninth in terms of the P / E index, and with a ratio of about 9, it can be deduced that there is optimism about these shares in the market, with the average of this ratio is above the higher market average.
Minor but important
The food industry is also a non-food industry, in the sense that in all seasons and in different economic situations, the demand for the products of this industry due to marketing in Iran is constantly there. The food industry produces about 10% of the country's gross domestic product, which is a significant figure. These industries are now more responsive to domestic needs, so their anti-cyclical behavior is evident.

♦ Political Risks (Supply of Raw Materials): Although these risks have less impact on companies, sanctioning companies can easily deliver their raw materials, which will reduce their risk.
♦ Exchange Rate Risk: Companies provide their dollar with the reference dollar rate, which means that the technical specification of the currency or the increase in the exchange rate and reaching the price of 35,000 Rials will increase their price.
♦ Risk of product pricing: The prices of some of these companies are set by the consumer protection organization and, on the other hand, they do not allow the sale of their products. This issue is intractable, and its lack of compliance with the consumer price index has hit companies.
♦ Risk of interest rate fluctuations: All financial services contracts received by companies with a maximum maturity of one year and in the event of a change in the profitability of the facility in the banking system arranged for marketing in Iran, the cost of profit will change. This is a major issue for these industries due to the need for working capital.
♦ RISK OF REDUCTION: Fortunately, in recent years, we have seen a great deal of attention to the research and development of this important industry in Iranian market; however, it is worth noting that the food industry is an industry that has enough potential for growth and now, despite the elimination The sanctions will smooth the conditions for the export of food products and will provide the necessary ground for job creation and growth in the industry, which could create many other brands in Iranian market.
In the industry, those companies whose activities are dependent on the state, such as industries whose raw materials depend on flour or primary materials that are under the control of government policies, by government decisions and policies, most companies are affected due to marketing in Iran. But to mention the problems of the food industry, one can be the problems that are related to agriculture, because the raw materials of food-producing companies are related to agricultural products, and the mechanization and also the growth and development of agricultural industry will affect the food industry.

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