Feasibility Study of Construction of an Ice Cream Factory With aim of Export to Iraq
Abstract:
Ice cream, a frozen dairy product made from milk, sugar and icy fruit, appears to be known as
a cold sweetened dessert that revolutionized food industry.
As a matter of fact, the demand for this delicious frozen semi-solid food rises dramatically,
especially during spring and summer. If ice cream is prepared and packaged in a hygienic
process in accordance with standard principles, it will be a source of energy for the body
metabolism. Serving ice cream is not limited to a specific part of the community, in fact, all
people, especially the youths, are considered as the main consumers.
In a fact, there are lots of imported products in Iran’s market that compete with Iranian-made
goods but ice cream is an exception and it has no foreign competitors and all the total market
share of this popular product belongs to the domestic producers.
Special geographical condition of Arvand free zone due to transit and strategic channels in
business routes and easy access to international waterways and proximity to Basra (second
largest province of Iraq) has captivated international attention as an especial location for
commercial and business development.
Also 20-year tax exemption according to free zones law, exemption from customs duties for
importing machinery and raw materials and exporting goods, special facilities for the transfer
of goods produced in the region to the mainland, easy and unrestricted currency exchange
and proper situation for joint ventures have made an intriguing situation for investment in
Arvand free zone.
After pistachio, ranking as the first export product, ice cream is ranked the second and could
save $114 million for the country.
Iraq as the most interested country in Iranian ice cream export, contributing 98.4% to Iran’s
ice cream export, has the highest tendency to consume Iranian ice cream in countries like
Pakistan, Afghanistan and India.
Arvand Free Zone is one of the biggest commercial terminals benefiting from proximity to
Iraq. Moreover, being the top oil output producer and possessing 8 mini refineries and
Offshore Engineering and Construction Companies have made great potentials for intensive
expansion in this region.
According to development plans and bilateral trade’s enhancement with Iraq, there are good
opportunities for improving Offshore Engineering services, and developing oil, gas and
petrochemical industry. Abadan and Khorramshahr have joined Free Zones in order to
enhance their economic situation.
Advantages of investment in Arvand free zone:
The agricultural and livestock potential of the Arvand region for the production of milk as the
raw material for ice cream and its proximity to the markets of Iraq (the largest market), and
also the common taste and cultural factors of the people of the two neighboring countries
have created a good market for Iran and the Free Zone of Arvand can be the production site
for these products.
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