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Aquaculture in Iran Prepared by Nordoest; Innovation Norway Representative in the GCC Region

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Aquaculture in Iran Prepared by Nordoest; Innovation Norway Representative in the GCC Region Aquaculture in Iran Prepared by NordOest; Innovation Norway representative in the GCC Region September 2016 www.innovasjonnorge.no 1. Iran Key facts about Iran www.innovasjonnorge.no 1.1 Key Facts Capital Tehran Area 1,648,195 km2 Natural Resources Petroleum, natural gas, coal, chromium, copper, iron ore, lead, manganese, zinc, sulfur Government Islamic Republic Head of State Ayatollah Ali Khamenei Regions 31 provinces divided into 5 regions: Tehran, Isfahan, Tabriz, Kermanshah, Mashhad Official Language Persian Population 80.1 million Iran Flag and Emblem The emblem features the Working days Saturday - Thursday Arabic word Allah Religion Shia Islam Currency Rial (IRR) 1.2 Climate Long, hot, dry summers and short, cool winters Northwest: Cold winters with heavy snowfall and subfreezing temperatures during December and January. Mild spring and fall and dry, hot summers. South: Mild winters and very hot summers with average daily temperatures exceeding 38 °C in July. Precipitation: October – April, 250mm on average in most of the country. 500mm at the higher mountain valleys of the Zagros and the Caspian coastal plain. 1000mm + in the western parts of the Caspian through out the year. www.innovasjonnorge.no www.innovasjonnorge.no 1.3 Geography Borders; North-West: Armenia, Azerbaijan North: Caspian Sea North East: Turkmenistan West: Afghanistan, Pakistan South: Persian Gulf, Gulf of Oman East: Turkey, Iraq Islands: ~43 Elevation Extremes Lowest: 28m – Caspian Sea Highest: 5,610 m - Mount Damavand Coastline: 2,440km Iran is a country located in the Middle East. It has a strategic location on the Persian Gulf and Strait of Hormuz, which are vital maritime pathways for crude oil export. www.innovasjonnorge.no 1.4 Demographics Iran has a very young population, with 60% being under the age of 30 and 41% under the age of 25. The ratio between sexes stands at 1.03 males/females. Median age is 29.6 years Age structure 65 and over 0-14 15-64 0-14 15-64 65 and over www.innovasjonnorge.no 1.5 Economy Iran was the 3rd largest economy in the Middle East last year (2015). Six years ago, the European Union was one of Iran’s main trading partners, however the sanctions took a heavy toll on trade relations resulting in a decline of 93% on exports to the EU and 72.8% of imports from the EU during 2010-2015. The lifting of sanctions are expected to resume trade relations with old partners. Iran is forming new agreements with countries such as France, India, Australia, South Africa and Pakistan. Iran is now regaining access to frozen foreign assets and previously restricted export markets. This boost will be relatively temporary however if reforms are not put in place to combat inflation, low productivity and a build-up of bad loans. The Central Bank of Iran is currently working to bring inflation down to single digits by next year. Milad Tower in Tehran houses the World Trade Center www.innovasjonnorge.no Iran has a largely controlled economic system in which the central government directs the economy regarding the production and distribution of goods, both directly and indirectly through semi-private entities, some of which are companies linked to the Revolutionary Guard. The exact level of control remains unclear as there is a lack of transparency in the operations of the semiprivate sector. As far as the role of fisheries in its economy, access to the Caspian sea, the Persian Gulf, the Gulf of Oman, the Indian Ocean & many river basins provides Iran the potential to develop excellent fisheries. Weather conditions differ greatly across Iran allowing a range of different types of aquaculture to be practiced. 2010 2011 2012 2013 2014 2015 Inflation; % change 10.1 20.6 27.0 39.5 17.5 13.8 Exchange rate per US$ 10,258.74 10,616.31 12,169.85 18,427.67 25,913.97 29,011.49 GDP % real growth 5.9 3.7 -6.6 -1.9 4.3 2.1 GDP; US% millions 467,582.2 592,037.8 587,484.4 511,253.6 425,780.6 407,774.9 Source: Euromonitor International www.innovasjonnorge.no 1.6 Iran’s Imports/Exports by product - 2014 Total imports for 2014: $53.8b - Total exports for 2014: $51b Top 5 Imports in Iran – 2014 Top 5 Imports in Iran – 2014 ($billion) ($billion) 1,23 0,92 1,58 2,7 0,92 2 1,19 1,19 37,2 1,31 Crude Petroleum Ethylene Polymers Iron Ore Wheat Rice Corn Soybean Meal Light Fixtures Alcohols Other Nuts www.innovasjonnorge.no 1.7 Iran’s Imports/Exports Partners - 2015 Iran’s top 10 Import Partners – 2015 Iran’s top 10 Export Partners – 2015 ($billion) ($billion) Switzerland Italy Russia Saudi Arabia Italy UAE Brazil Syria Germany Pakistan India South Korea Turkey Japan South Korea Turkey China India UAE China 0 5 10 15 20 0 5 10 15 20 www.innovasjonnorge.no 1.8 Purchasing habits Grocery retailing in Iran has maintained a traditional form such as local retail stores and bazaars - approximately 75% of the over 300,000 outlets are small independent grocery stores. Modern supermarkets and hypermarkets have been emerging and expanding in the past two years, especially in Tehran and other main cities like Mashhad, Shiraz and Isfahan. This trend is largely due to urbanisation, a fast change in lifestyles, westernisation and the increase in the number of working women which is driving a demand among the young population for quick and easy meals. This in turn is driving an increase in sales in The Grand Bazaar of Tehran - Source processed seafood and meat which was recorded at a volume growth of 6% in 2015. These stores are creating a wider distribution network for higher volumes and value sales seafood, particularly for seafood requiring storage and display in freezers and refrigerators. Such growth is changing shopping behavior as consumers are enjoying the benefits of shopping all products in one place rather than pay frequent visits to different traditional grocery stores. Modern grocery retailers have the ability to purchase higher volumes at lower prices passing such cost savings to consumers. Pricing of products is the main decision factor for most consumers in Iran. Standard or economy quality is considered satisfactory and as such will be more popular for middle and lower income households. Sales of Processed Seafood and Meat by Retailer type: % Value 2010-2015 % Value 2010 2011 2012 2013 2014 2015 Modern Grocery Retailers 10.30 11.20 11.70 13.00 13.60 14.30 Traditional Grocery Retailers 89.70 88.80 88.30 87.00 86.40 85.70 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources 2. Seafood in Iran www.innovasjonnorge.no 2.1 Seafood production overview - Fisheries Percentage of catches from At the end of the last Iranian year (ending March 2016), Iran Iranian waters (2013) produced over 1 million tons of seafood, its highest production levels so far. 40,000 tons 82,000 tons of seafood were exported with a value of $350 million, 15% more than the previous year. Out of this, 13,000 tons were shrimp. The rest consisted of sturgeon and caviar, shrimp and other fishes. 514,000 tons Vietnam and the UAE were the main destinations for Iranian shrimp. Southern waters Northern waters 1.5 tons of caviar was produced, over 65% of which was exported to Japan, Germany, the UAE, Britain, Italy, Belgium, South Korea and Norway. The total value of such exports was $1.7 million. Approximately 95% of catches come from Southern waters, the remaining comes from catches in the Caspian Sea (2013). Tuna and tuna-like species are a major component in large pelagic fisheries in Iran and one of the most important activities in the Persian Gulf & Oman Sea. www.innovasjonnorge.no 2.2 Seafood production – Fisheries vs Aquaculture - 2014 Seafood production in Iran 2014 700 Catches came from 947,000 MT the Caspian Sea, Sea 600 of Oman, the Persian Gulf and inland 500 waters bodies 400 300 200 Among the 2014 production there 100 have been 203m pieces of ornamental 0 fish 2002 2014 Catches Aquaculture www.innovasjonnorge.no 2.3 Seafood Consumption Iran is considered to have one of the lowest seafood consumption rates in the world. Trends have been changing over the past few years however, as consumption has increased from just 4kg in 2005 to 10kg per capita in 2014. (The world average currently stands at over 20kg). The trend in consumption has changed partly due to promotion of seafood as a source of protein and government encouragement for higher seafood consumption, development of the seafood processing industry through better quality methods and technologies and more appealing packaging. Iran seafood consumption – kg/capita 20 15 10 5 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 … 2025* *Forecasts The current preference in seafood for Iranians is fish fillets, fresh unprocessed fish or shelf stable fish/seafood, especially among middle aged families. This trend however is changing towards frozen processed fish/seafood due to lower pricing and longer storage. Mollusks and others such as crayfish, lobster, crabs and squid don’t seem to be very popular. Seafood product types consumed (2014) 6% 24% Fresh fish 44% Frozen Tuna Other* 26% www.innovasjonnorge.no 2.4 Seafood Retail Sales Sales of Processed Seafood by Volume 2010-2015 Thousand tonnes 2010 2011 2012 2013 2014 2015 Processed Seafood (Total) 88.64 92.67 95.89 100.83 104.82 109.70 Shelf Stable Seafood 85.25 88.77 91.52 96.30 99.96 104.46 Frozen Processed Seafood 3.39 3.90 4.37 4.53 4.86 5.24 Sales of Processed Seafood by Value 2010-2015 Billion IRR 2010 2011 2012 2013 2014 2015 Processed Seafood (Total) 8,649.29 9,881.57 16,431.66 26,306.40
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