July 17, 2015

 

 

Iran and the six global powers of the US, UK, France, Germany, Russia and China have finally arrived to a historic agreement meant to diminish Tehran's nuclear programme and prevent exploitations for weapons development.

 

Although the deal could see the eventual lifting of sanctions that hampered the Iranian economy for years, the action will only occur after Iran has committed to measures curtailing nuclear-related activities.

 

For the development of its agricultural sector, Tehran's cooperation might prove crucial.

 

While much of its animal feed were sourced from other countries, trade was somewhat challenging for the last two years, given the difficulties of making overseas payments and buying maritime insurance due to the US-EU sanctions.

 

Without the impediment of sanctions, Iran could afford to consider more sources for soymeal imports, like countries in South America which provide lower-priced soymeal compared to India, another supplying nation. Nevertheless, India holds the "advantage of close proximity to Iran" so that it is able to expedite exports of small cargoes, B.V. Mehta, the executive director of the Solvent Extractors' Association of India, commented.

 

Additionally, a revitalised economy will raise the local GDP and disposable income, leading to rising demands for wheat and corn, said Ian Claxton, the managing director of Thoresen Shipping. These shipments will likely hail from Thailand, India, the US, South America and the Black Sea region.

 

Iran is known to be one of the world's biggest importer of milling wheat.

Iran and France to set up a fish farm

 

Favourable economic conditions could benefit Iran's agricultural projects but even then, some of those had progressed forth with adequate funding from both local and foreign parties, and despite the ongoing sanctions.

 

So far, six cooperation agreements were signed between Iran and France in May, for projects in livestock and fish farming as well as the delivery of organic Iranian products to the EU.

 

One project in particular involves a joint establishment of a fish farm with France, in the Iranian island of Qeshm.

 

About US$2.2 million had been invested in the site, by Iranian and French companies, according to Hossein Ali Abdollahi, an official with Iran's fishery organisation. The amount was also backed by another US$1.97 million allocated by Iran's National Development Fund.

 

Equipped with French technology, the farm is capable of producing some 10 million sea species of fish yearly and will help to replace the farming of freshwater fish with saltwater types.

 

Outside aquaculture, Iran and France will also be setting up a farm for dairy goats and sheep, while Tehran looks to obtaining French genetically-modified (GM) cattle.

 

Earlier, both countries have agreed to set up a research center for rearing salmons in Kalardasht near the Caspian Sea.

 

With the recent conclusion of the nuclear reduction deal in Austria, French interests in trade engagements with Iran are likely to be stoked further.  

 

Iran is also seeking for stronger agricultural cooperation with the Netherlands, one of the founding members of the EU. Both sides had previously exchanged views on related matters including the formation of a joint working group.