Coffee trade is the second largest business in the world after oil. Even in some Latin American countries there is a coffee department. In all over the world, this product is viewed as a strategic commodity, while coffee is considered to be a luxury commodity and drink in Iran for Iranian costumers. According to the chairman of the coffee association, if coffee is booming in Iranian market, its profitability is so high that it can substitute for oil exports in less than 10 years from marketing in Iran to marketing in a global level.
Iranian coffee has low quality
There are no coffee factories in Iran: Coffee grows in tropical regions such as Jamaica, Java, Brazil, Colombia, India, and so on. It comes into Iranian market as a beans (bean and raw). These coffee beans are packed in after processing. Therefore, Iranian market and Iranian agriculture has no activity in the field of coffee production.
At present time, about eight companies in Iranian market are engaged in traditional coffee processing. The only multi-cafe company is limited to exporting instant milk and instant coffee, to Central Asian countries like Azerbaijan, Tajikistan ... and in the Middle East; it also operates coffee from Syria, Iraq, Pakistan and Bangladesh. It is not that Iran can produce coffee at such a level and export it to European countries, because this ability is by no means present for marketing in Iran. Coffee is processed in food factories at an elemental and traditional level, even packaging is done in an unprofessional fashion, with neither labels nor expiration dates attached for marketing in Iran.
Member of the Commission for the Association of Juvenile Wholesalers and Coffee Shopkeepers regarding the quality of processed coffee in Iranian market says that the coffee in the country does not have a high quality that people want to use. Years ago, coffee from India, Java, and Indonesia came to Iranian market in spice.
Resale outdated coffee
"The coffee machines in Iranian market are usually imported from Turkey, Russia and Malaysia, which costs from $ 22 to $ 80 million,” Of course, the price of devices for use in large factories is up to 100 million USD. "Of course, coffee is processed in small, underground and smuggling workshops, while this should happen at the factory and under the supervision of specialists, which is unfortunately not the case due to marketing in Iran," It is worth mentioning that it is essential to process and pack coffee, having a 500-meter slab for storage and decoupling is essential for Iranian market, which can easily be achieved by advertising in Iran.
The lack of knowledge of coffee, the quality of imported coffee, and the lack of expertise in this area in Iranian market has damaged this area. Imported brands that have been smuggled into the Iranian market have also caused market problems, so they will resell them by extending the expiration date of these products on the market.
For example, a variety of American beverages on the market are history that shopkeepers change their history and sell them again. Iran does not have commercial relations with the United States to import coffee through legal channels, so these types of coffee are smuggled, and there is no oversight on their quality and health. By now we have 15% of imported coffee smuggled for marketing in Iran.
Across the globe, coffee is viewed as a strategic commodity that has been established in some countries by the Ministry of Coffee. For investment in this field, as in all other areas, the level of activity and investment is very important.
For example, investing in a 50,000-meter unit is necessary to have a $ 30 million on capital. At this level you will need 200 staff. However, those who at a small level and at the workshop have been able to work with 80 million currency of initial capital for marketing in Iran.
Of course, it should be kept in mind that the process of producing and supplying instant coffee with non-fermented coffee is very variable. Raw materials for coffee from countries such as Brazil, Java, Indonesia and Vietnam are imported into Iran as coffee beans. This coffee bean is processed and packaged in Iran for Iranian market and Iranian costumers.
Permissions and Risks
Iran's immediate coffee is able to be exported to other countries all around the world, but the widespread smuggling in this area is one of the damaging investments in this sector not only for marketing in Iran but also for global marketing too, with 15% of imported coffee being smuggled into the countries. The lack of quality imported coffee, the lack of expertise in this area and the lack of recognition of coffee have caused no good coffee in the Iranian market.
In order to obtain a license in this section, you should refer to the Food and Drug Administration as well as the standard organization in addition to referring to the Industries Organization for marketing in Iran. Coffee trade after oil is one of the most prosperous businesses in the world, which could increase the incentives for investment in this sector.
In line with this talk, it should be noted that in addition to the eight major coffee producers in Iran, many companies are also engaged in the processing and packaging of various types of coffee in a workshop on a small scale in Iranian market.