Sanctions and Currency Risks in Iran’s Food Machinery Sector

The food industry machinery sector is a crucial pillar for Iran’s food production self-sufficiency but faces numerous challenges. These include dependency on imported specialized parts, rising raw material costs, aging equipment, outdated technology, and export restrictions.

Additional obstacles such as insufficient government support, bureaucratic hurdles, currency fluctuations, and fierce competition from subsidized foreign machinery (mainly Turkish and Chinese) exacerbate the situation.

Naser Ali Khazaei, Secretary of the Food Industry Machinery Association and CEO of Mah Machine, highlights the lack of skilled labor and the compounded difficulties caused by international sanctions, domestic energy shortages, and transportation issues impacting service delivery.

Khazaei also points out problems with the quality of imported electronic components, which often fail under harsh operational conditions, necessitating in-house testing solutions. Despite these challenges, domestic manufacturers have made significant progress over the past 30 years, boosted by knowledge-based companies and currency depreciation, enabling some production previously hindered by sanctions and even leading to exports.

He calls for greater official support to help the sector compete globally and criticizes the Ministry of Finance for rejecting expenses related to attending international machinery exhibitions, labeling them as leisure trips. Lastly, he urges authorities to address the aging machine tools, some up to 25 years old, to sustain industry growth.