Diversified Farming, Worthy of Investment?

June 25, 2001 - 0:0
Today, problems like the high rate of unemployment, unbridled inflation and poverty are the main concerns of both the government and the people.

The government and particularly the 6th Parliament are eager to solve the nation's economic problems. Consequently, they are encouraging investment, especially in the private sector, in order to solve this problem.

The question is whether agriculture and animal husbandry are good investments or not?

Following is the brief of a two-day visit of the three major farming companies of the Mostazafan and Janbazan Foundation (MJF) in Sari, Mazandaran Province.

The first company is Dasht-e Naz Farming Company with more than 2678 cubic meters of cultivable land. This company, which employs 200 personnel, produces important seeds like hybrid corn, soybean, wheat, barley rice and warm-water fish.

Managing Director Shokrollah Nouri said that during the current year cultivable land amounted to 4100 hectares. Wheat production rose by about 600 kilograms per acre. Some 20 billion rials has been invested for irrigation.

Nouri said that decreasing costs, saving time in water consumption and reducing the time of irrigation are the main goals of investment in this field.

This factory has achieved to important developments in the fields of corn and fish farming.

The 2nd company is Fajr-e Sari Farming and Horticulture Company with over 515 hectares of cultivable land. This company produces more than 10,000 tons of different types of citrus fruits every year.

The Managing Director, Ali Qayekhloo, said that the company has achieved its main objective - production of healthy saplings, protecting the environment and also deceasing pesticide use.

Mahdasht Milk and Meat Co. was the last company which we visited. Mahdasht, with over 2700 head of beef and dairy cattle, is the largest cattle-breeding company in Mazandaran Province. This company has produced over 8034 tons of milk during last year.

"At present our problem in animal husbandry is competition with imported products not exporting our goods", Managing Director Mohammad Hassan Lotfi said.

Although financial losses in diversified farming are very low compared to other sectors like industry, the rate of investment in this field is still weak.

Lotfi said, "Due to low levels of profits and the slow rate of returns, investors refrain from investing in the industry."

Therefore, diversified farming is in dire need of state financial aid. The government should subsidize the industry and guarantee prices to farmers.