Dialogue with Iran’s largest agricultural group Arman Sabz Adineh: The market expects advanced formulations and new biological products

Iran is a plateau country geographically with a large desert area and does not have very good agricultural conditions. In recent years, it has continued to be subject to sanctions. However, in this context, Iran’s agriculture has developed rapidly and has become the main producer and exporter of fresh and dried fruits in the Middle East region. In addition, Iran is also the world's largest saffron producer, with a total output of 95% of the world's total. 

In this interview, we had a dialogue with the largest local agricultural group in Iran. Mr. Meysam Moghadam Fard, CEO of Arman Sabz Adineh, introduced us to the basic situation of the company, as well as part of the development status of Iran's agriculture and agrochemicals market. Regardless of economic and political factors, Iran’s agricultural needs more efficient products and technologies, and the development potential of the agricultural input market is still attractive.

Meysam Moghadam Fard, CEO of Arman Sabz Adineh

AgroPages: Please introduce Adineh Group's history and its development.

Moghadam Fard: Adineh Group commenced its activities in 1987 and it comprises Arman Sabz Adineh, Arghavan Adineh, Adineh Vasl, Fadak Agro Industry, Pegah Adineh, Nasim Adineh, Ofogh Paksh and Tolo-e Sabz Adineh companies. Our group is the leading and biggest corporation in the import and production of agricultural tools, machinery, fertilizers, pesticides, seeds and some food products in Iran. 

The total turnover of Adineh Group is US$150,000,000 and currently, there are 700 people working in the head office and its factories, respectively. Adineh Group has pesticide and fertilizer production capabilities, and has also invested in a seed production plant for maize, wheat, and barley.

Fadak Agro Industry which is the first member of this group since 1987, specializes in food products including pistachio, all kinds of legumes, tea bags for black tea in different flavors, popcorn, cheese snacks, etc. 

A wide variety of products are provided and produced under the cover of the Adineh group, including fertilizers, pesticides, agricultural tools, seeds, FMCG products as nuts, popcorn, cheese snacks, and others. Recently we made a strong entry into exports.

AgroPages: In Adineh Group's entire food production chain, which part do you think is the most challenging? And in which part does Adineh Group have the most competitive advantages?

Moghadam Fard: The most challenging issues in the supply chain are currency fluctuations, on-time imports of products based on the selling season. These issues could delay the product delivery and the planned business program.

Adineh Group is equipped with high-tech packaging machinery which can provide sanitized products and ensure peace of mind to customers, especially when the world is suffering from the coronavirus pandemic that has affected people’s lifestyle and made them more selective about their choice of food raw material. 

AgroPages: We know that the Iranian government has given great support to agriculture in recent years. What is the current state of agricultural development in Iran? What is the main agricultural problems are you still facing? 

Moghadam Fard: In the past decade, attempts were made to encourage people and companies who are active in the agricultural sector to utilise agricultural inputs with less soil residue, fewer chemical products and seeds with maximum yield. There are still some problems from outside the borders, affected by sanctions and the exchange rate which lead to an increase in the price of imported products by up to 6 to 7 times. This issue enhanced the price of domestic products as a result. Considering the value position of agricultural inputs economically and its highlighted rule in Iran’s food security, this section has attracted the attention of the government, companies and farmers.

Farming has a remarkable background in Iran. While some farmers still follow the traditional methods for the planting structure of crops, others prefer to take advantage of sources and use advanced technology while the production process saves energy and cuts unnecessary expenses.

Currency transaction, transhipment which is due to sanction limitations, and supplying products in the most well-timed schedule adjusting the market requirement has helped.

AgroPages: How has Iran’s agrochemical market developed in recent years? How is the level of pesticide application of Iranian farmers?   What kind of new products or technologies are needed in the market?

Moghadam Fard: In the agrochemical field, the level of local production has been developed in the same way as has the import of raw material for domestic production. Currently, due to the limitations of the sanctions against Iran, the situation has changed in favor of Chinese and Indian companies. However, the competition is over quality and quantity.

Farmers are morally committed to a standard level of recommended dosage as a way of respecting Mother Nature. There is very strong monitoring from Iran PPO and Ministry of Agriculture (from the start to the import of the product, to the usage of the product by end customers). The available products in the market have passed the standard tests and are mainly off-patent products.

There is a tendency to apply new pesticides with lower side effects to the environment, the final product and customers, as well. Therefore, capsulated, slow-released, less soil residue, biofertilizers and biopesticides are needed in the Iranian market.

AgroPages: Please introduce the chemical production capability of the Adineh Group? 

Moghadam Fard:  Adineh Group has established pesticide and fertilizer plants with a variety of formulations. In the pesticide line, there are EC, SL, SC, SP, EW, OD, WP, WDG, pellet and wax in separated herbicide and none herbicide lines. The fertilizer factory is equipped with different production lines for a wide range of fertilizers such as Granular, Pellet, Powdered, Gel and Liquid, mixed types of seaweed, NPK and micro-element fertilizers, Humic acids, Fulvic acids, etc. 

Taking advantage of provided technologies in factories and production lines – already over 20 active production lines - it has the opportunity to produce 20 million liters of liquid fertilizers and pesticides and 30 MT of powder and granular forms annually.  Regarding the plant area, five hectares is allocated to the factory and in the future, it will exceed another 6,000 square meters. 

The production plant and facilities of Adineh Group

AgroPages: Which countries does Adineh Group mainly purchase the raw materials? How does the group manage the fluctuations of the supply chain?

Moghadam Fard: The raw material and formulated products are mostly imported from China, India, the United States, and Europe for pesticides and fertilizers. The market fluctuation severely affected the supply chain. However, we are determined to pass this difficult situation by accurately analyzing the market fluctuation and enhancing the supply chain process to provide agricultural inputs at the right time, with all efforts made to not lag behind the market. 

For more information about Adineh Group, please click: https://adinegroup.com/?lang=en, or contact commercial.mg@adinehgroup.co