Driving Forces and Hampering Factors Affecting Establishment and Development of Agro-Processing Industries in Khuzestan Province of Iran

Agro-processing industries play an important role in contributing to sustained growth and development. The agro-industries provide value added products with less wastes along with generating more employment opportunities and net income. The scope of the agro-processing industry involves all processes from farm to fork. Khuzestan province of Iran has a special place in agriculture of the country, due to its climate, productive areas and large and permanent rivers flow; however, the development of agro-processing industries in this province is not at the expected level. This study was an applied research in terms of nature and a descriptive analytic one in terms of methodology and it aimed at providing solutions for development of food processing industries in Khuzestan province. For this purpose, situations and problems were identified using phone and face to face interviews through the questionnaires completed by Khuzestan government employees (food and drug administration, agriculture-Jahad organization, department of industry and trade and mines, industrial estate company) as well as industrial experts and top executives of food processing plants (totally, 107 people). After checking interviews texts and questionnaires, internal matrix (strengths and weaknesses) and external matrix (opportunities and threats) were verified. Finally, suggested strategies using Quantitative Strategic Planning Matrix (QSPM) were prioritized. As shown by the study results, the development of technology and innovation using the scientific power of experts with balanced score of 0.170 and inequality in benefiting from existing facilities and regulations and the existence of personal preferences with balanced score of 0.034 were identified as the most important driving factor and hampering factor, respectively. As final scores of 2.435 for internal factors and 2.325 for external ones were less than median (2.5 for either factors), food industries in Khuzestan were not in good situations. Suggested strategies according to QSPM were ranked and three strategies of "land use planning challenge for food industries" (6.75), "the government's efforts in supporting laws and policies" (6.34) and "payment of credits and low interest loans" (5.98) were ranked higher in scores. It might be concluded that the food industries in Khuzestan province were not in good situation and the producers face many challenges. Therefore, though the land use planning challenge for the food industries is an important issue, other strategies should also be followed.