Design of a Strategic Model (TWOS) for Development of Date Complementary and Processing Industries in Khuzestan Province

مجله اقتصاد و توسعه کشاورزی

Article 6, Volume 34, Issue 4 - Serial Number 50, January 2021, Pages 463-481   

Document Type: Research Article

DOI: 10.22067/jead.2021.17808.0

Author

M. Savari^*

Department of Agricultural Extension and Education, Agricultural Sciences and Natural Resources University of Khuzestan, Mollasani, Iran

Abstract

Introduction: A common definition of agro-processing industry refers to the subset of manufacturing that processes raw materials and intermediate products derived from agricultural sector. Thus, agro-processing industry means transforming products originating from agriculture, forestry and fisheries. Indeed, it includes a very large part of agricultural production undergone some degree of transformation between harvesting and final use. The industries that use agricultural, fishery and forest products as raw materials comprise a very varied group. They range from simple preservation (such as sun drying) and operations closely related to harvesting the production, by modern, capital-intensive methods, of such articles as textiles, pulp and paper agriculture and industry have traditionally been viewed as two separate sectors both in terms of their characteristics and their role in economic growth. Agriculture has been considered the hallmark of the first stage of development, while the degree of industrialization has been considered to be the most relevant indicator of a country’s progress along the development path. Moreover, the proper strategy for growth has often been conceived as one of a more or less gradual shift from agriculture to industry, with the onus on agriculture to finance the shift in the first stage. Development of complementary industries and agriculture can be a good way to prevent injuries and to increase the value-added agricultural products. Given that in developing countries, especially in Iran, almost one-fourth of agricultural products are wasted only due to lack of storage facilities and conserving industries. Agro-processing industries, as a part of rural development process, can play a great role in preventing the waste of agricultural products, producing added value products, increasing rural families’ income, improving productivity, and increasing the share of industrial employment in rural areas. Many of the industries using agricultural raw materials have in fact those characteristics that make them particularly suitable for the circumstances of many developing countries. Where the raw material represents a large proportion of total costs, its availability at a reasonable cost can often offset such disadvantages such as lack of infrastructure or skilled labor. Furthermore, for many agro industries, a small plant may be economically efficient, which is another important factor in developing countries where the domestic market is limited by low purchasing power and sometimes by the small size of the market itself. Therefore, this research aimed at the overall Design Strategic Model for Development of Complementary Date Conversion Industries in Khuzestan Province. Since Khuzestan province is the first date producer in Iran.
Methodology: This research was conducted to compile a strategic model (TWOS) in developing industry of date palm complementary and processing in Khuzestan province. In this research, firstly, by using analytical studies and literature review, the subject of the four SWOT points including: 7 weaknesses, 7 opportunities, 7 strengths, and 6 threats were identified, and then were prioritized by the AHP technique. The statistical population of this study included experts in relevant organizations that 24 of them were selected, purposefully as a sample for the study. Data processing was performed using SWOT-AHP technique and using Expert choice software.
Results and Discussion: Findings showed that in evaluating the criteria, weaknesses, threats, strengths, and opportunities were ranked from best to worst, respectively, which indicates the dominance of risky space over useful space. Furthermore, the results showed that among the strengths, “reduction of date waste and its optimal use in order to increase the economic power of the regions” was the most important point. In addition, among the weaknesses, “technology weakness, and inability to compete with date producing countries” was the most prominent point. For opportunities; “changing in composition of export products, and getting rid of single-product and bulk export”, and also for the threat points,” reducing investment in agricultural sector and developing date palm cultivation” were the most influential points. Furthermore, in prioritizing strategic areas, it was concluded that the first strategy was WT (defense strategy), the second strategy was WO (adaptive strategy). Furthermore ST strategy (contingency strategy) was third, and finally SO strategy (invasion strategy) was the last strategy. Considering the predominance of hazardous space over useful space, it is recommended to pay special attention to this issue, because neglecting it in Khuzestan province, as a center of date production, would cause irrecoverable risks in long term.

Keywords

Industrialization; Rural industries; Strategic model; Sustainable livelihood; SWOT-AHP analysis

References

1- Abazari A., and Hosseini Yekani S.A. 2014. Prioritization of the Establishment of Agricultural Conversion and Complementary Industries (Case Study: Mazandaran Province). Agricultural Economics and Development Research 54(1): 174- 181.

2- Ahmadi Zadeh S., and Mostan A. 2018. Factors Inhibiting the Development and Development of Date Conversion and Supplementary Industries in Khuzestan Province. Journal of Agricultural Economics and Development 25(4): 183-217. (In Persian)  

3- Alemu M.M. 2016. Sustainable Land Management. Journal of Environmental Protection 7(2): 502-506. 

4- Alimirzaie E., Asadi A., Malek Mohammadi I., and Tahmasbi I. 2011. Identification of the hindering factors for the development of palm farmers' organizations in Khuzestan province. Iranian Journal of Agricultural Economics and Development Research 42(3): 335. (In Persian)  

5- Apeaning R.W. 2012. Energy Efficiency and Management in Industries: a case study of Ghana’s largest industrial area.

6- Apeaning R.W., and Thollander P. 2013. Barriers to and driving forces for industrial energy efficiency improvements in African industries–a case study of Ghana's largest industrial area. Journal of Cleaner Production 53: 204-213.

7- Azkia M., and Imani A. 2008. Sustainable rural development, Tehran, Etela’at publication.

8- Bahari I., Nori H., Taghdisi A., and Karimzadeh H. 2018. Challenges facing the development of agricultural conversion and complementary industries in Shabestar. Journal of Geography and Regional Development 16(1): 1-33. (In Persian)  

9- Baniasadi N., Samari D., Farajollah Hosseini S.J., and Omidi Najafabadi M. 2019. Development Strategies for Development and Conversion of Date Industries by the Entrepreneurship Approach in Rural Areas (Case Study: Bam Townships in Kerman Province). Development Strategies 4(24): 445-462. (In Persian)  

10- Basu A.K. 2013. Impact of Rural Employment Guarantee Schemes on Seasonal Labor Markets: Optimum Compensation and Workers’ Welfare. Journal of Economic Inequality 11(1): 1-34.

11- Bozorgmehr A., Rabbani Nasab M., Yavari A., and Heidari M. 2013. Development strategies horticulture processing industries in Northern Khorasan province Approach (SWOT) analysis of strategic factors, Agricultural Economics and Development 27(2): 103-113. (In Persian)

12- Bricas N. 2012. Strengths and weaknesses of Africa’s agrifood industries. Private Sector and Development (13): 6-9.

12- Das R., and Das A. 2011. Industrial Cluster: An Approach for Rural Development in North East India. International Journal of Trade. Economics and Finance 2(2): 161-165.

13- Davar Panah A.A., Noripour M., and Sharifi Z. 2014. The Role of Conversion Industries in Rural Waste Reduction. Journal of Rural Development Strategies 1(4): 39-53. (In Persian)  

14- Eghbali J., Asadi A., and Shabanali Fami H. 2018. Expansion of agro-processing industries in the county of Fereidan: challenges and perspectives. Journal of Rural Research 9(3): 360-375. (In Persian)  

15- Faggio, G., and Silva O. 2014. Self-employment and entrepreneurship in urban and rural labour markets. Journal of Urban Economics 84(2014): 67–85.

16- Faryab M., Ahmadvand M., and Karami A. 2019. Analysis of the consequences of establishing conversion and complementary industries in the agricultural sector Case: Central part of Jiroft city. Quarterly Journal of Space Economy & Rural Development 8(2): 223-228. (In Persian)  

17- Francesconia W., Srinivasanb R., Pérez-Minanac E., Willcockd S.P., and Quinteroe M. 2016. Using the Soil and Water Assessment Tool (SWAT) to model ecosystem services: A systematic review. Journal of Hydrology 535(6): 625-636.

18- Görener A., Toker K., and Ulucay K. 2012. Application of combined SWOT and AHP: a case study for a manufacturing firm. Procedia-social and Behavioral Sciences 58: 1525-1534.

19- Hai L.T., Schnitzer H., Thanh T.V., and Braunegg G. 2016. An integrated eco-model of agriculture and small-scale industry in craft villages toward cleaner production and sustainable development in rural areas- A case study from Mekong delta of Viet Nam. Journal of Cleaner Production 137(4): 274- 282.

20- Houben G., Lenie K., and Vanhoof K. 1999. A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises. Decision Support Systems 26: 125-135.

21- Jeshari S., and Moradi E. 2019. Develop strategies for the development of agricultural economics in rural areas of Sistan and Baluchestan province with a futures research approach.  Quarterly Journal of Space Economy & Rural Development 8(3): 51-66. (In Persian)  

22- Jun H., and Xiang H. 2011. Development of Circular Economy Is a Fundamental Way to Achieve Agriculture Sustainable Development in China, Published by Elsevier Ltd. Selection and peer-review under responsibility of RIUDS. Energy Procardia 5(2): 1530-1534.

23- Kahraman C., Demirel N., Demirel C., and Ates N.Y. 2008. A SWOT-AHP application using fuzzy concept: E-Government in Turkey, Fuzzy Multi-Criteria Decision Making Book-Edited by Cengiz Kahraman, Springer Science-Business Media.

24- Kalantari K., Rahnama A., and Movahed Mohammadi H. 2010. An Analysis of Location Factors Affecting Establishment of Agricultural Product Processing Industries, North Khorasan Province. Iranian Journal of Agricultural Economics and Development Research 70: 35-47. (In Persian)  

25- Kangas J., Kurttila M., Kajanus M., and Kangas A. 2003. Evaluating the management strategies of a forestland estate-the S-O-S approach. Journal of Environmental Management 69: 349-358.

26- Keding G.B., Schneider K., and Jordan I. 2013. Production and processing of foods as core aspects of nutrition-sensitive agriculture and sustainable diets. Food Security 5(6): 825-846.

27- Khuzestan Agricultural Statistics Center. 2018. Annual Report of Agriculture Department. Agriculture, July. (In Persian)     

28- Kumar S. 2015. Rural Marketing of Agricultural Produce in India: Problems and Prospects, Global Journal of Engineering. Science & Social Science Studies 1(4): 1-13.

29- Liu Y., Huang J., and Zikhali P. 2016. The bittersweet fruits of industrialization in rural China: The cost of environment and the benefit from off-farm employment. China Economic Review 38(3): 1-10.

30- Marjit S. 1991. Agro-hased industry and rural-urban migration: Acase for an urban employment subsidiy, development Economic, 35.

31- Mehta G.S. 2012. Agro-processing industry in Uttar Pradesh. New Delhi: Planning Commission Government of India.

32- Mohammadi A., Roknadin Eftekhari A., and Pourtaheri M. 2020. Capacity management analysis of conversion and complementary industries in rural areas of Zirkuh city. Quarterly Journal of Space Economy & Rural Development 9(1): 95-112. (In Persian)  

33- Mokhiri N., Taj Sh., Estelaji A., and Motiei Langrodi S.H. 2019. Assessing the social effects of creating and expanding conversion and complementary industries in industrial estates on rural areas (Case study: Gorgan industrial estates). Quarterly of Geography (Regional Planing) 10(1): 715-728. (In Persian)  

34- Moradi Kh., Agahi H., Zarafshani K., and Papzan A. 2015. Qualitative Analysis of Processing Challenges of Convertible Fruit Industry in Kermanshah Province. Journal of Rural Research 6(3): 483-514. (In Persian)  

35- Muehlfeld K., Weitzel U., and Witteloostuijn A. 2011. Mergers and acquisitions in the global food processing industry in 1986–2006. Food Policy 4: 466-479.

36- Nair V., and Whitelaw A.P. 2015. Redefining Rural Tourism in Malaysia: A Conceptual Perspective. Journal Asia Pacific Journal of Tourism Research 20(3): 314-337.

37- Noshad M., Savari M., and Roueita G.A. 2018. Hybrid AHP-TOPSIS method for prospectively modeling of ultrasound-assisted osmotic dehydration of strawberry. J Food Process Eng. 2018;e12928. https://doi.org/10.1111/jfpe. 12928.

38- Nosrati F., and Imani B. 2010. Challenges of Rural Industries in Iran. 29 (129): 97-86. (In Persian)  

39- Nouri S.H., Amini A., and Soleimani N. 2012. Locating Date Processing and Commodity Industries in Kazeroun. Spatial Planning Magazine 2(3): 23-34.

40- Olaoye O.A. 2014. Potentials of the agro industry towards achieving food security in Nigeria and Other Sub-Saharan African Countries. Journal of Food Security 2(1): 33-41.

41- Pahang S. 2018. Identifying and Prioritizing Rural Entrepreneurship Development Strategies in the Development of Agricultural Conversion and Supplementary Industries in Saravan with approach SWOT. Work and Society Monthly 224: 4-13. (In Persian)  

42- Pourrmazan I., and Akbari Z. 2014. The Effects of the Conversion and Complementary Industries of the Agricultural Division on the Rural Economy Case: Central District of Rasht. Quarterly Journal of Rural Space and Rural Development 3(4): 145- 164.

43- Rahmanian Koshki M., Mahdavi M., aand Khaledi Sh. 2016. Analysis of the Promoting Factors and Barriers to the Process of Entrepreneurial Development with Emphasis on Complementary Conversion Industries in Agriculture. New Attitudes in Human Geography 9(1): 53-70. (In Persian)  

44- Razzaghi Borkhan F., and Mohammadi Y. 2018. The Design of TOWS Strategic Model for Rural and Agricultural Tourism Development of Mazandaran Province. Iranian Journal of Agricultural Economics and Development Research 49(3): 509-525. (In Persian)

45-Ranjbar A., Danesvar Amer Zh., and Kalantari Kh. 2018. Strategies Formulation for Development of Horticultural Crops Processing Industries in Markazi Province. Agricultural Economics and Development Research 49(4): 123-167.

46- Rezvani M.R., and Akbarpour Saraskanroud M. 2011. Analyzes credit demand function of rural processing industries, case study: eastern Azerbaijan. Journal of Zonal Planning 1(1): 1-15.

47- Saidi Rezvani A. 1995. Cottage industries and rural youth occupation. Monthly Jahad, fifteenth year, 175: 22-26.

48- Sarani V., Shahpasand M., and Savari M. 2013. Analysis of barriers to entrepreneurship among the rural women in Divan-Darreh City using by grounded theory. International Research Journal of Applied and Basic Sciences 4(5): 1302-1308.

49- Savari M., Eslami M., and Monavarifard F. 2013. The impact of social capital on agricultural employees' job satisfaction, city of Divandarreh. International Research Journal of Applied and Basic Sciences 4(2): 291-295.

50- Savari S., Shabanali Fami H., and Daneshvar Ameri Z. 2015. Rural women's empowerment in improving household food security in the Divandarreh County. Journal of Research and Rural Planning 3(4): 107-121.

51- Savari M., and Shokati Amghani M. 2020. Factors influencing farmers’ adaptation strategies in confronting the drought in Iran. Environment, Development and Sustainability, 1-24.

52- Savari M., Damaneh H.E., and Damaneh H.E. 2020. Factors influencing local people’s participation in sustainable forest management. Arabian Journal of Geosciences 13(13): 1-13.

53- Savari M., Eskandari Damaneh H., and Damaneh H.E. 2020. Factors influencing farmers’ management behaviors toward coping with drought: evidence from Iran. Journal of Environmental Planning and Management, 1-49.

54- Savari M., Sheykhi H., and Amghani M.S. 2020. The role of educational channels in the motivating of rural women to improve household food security. One Health 10: 100150.

55- Shinno H., Yoshioka H., Marpaung S., and Hachiga S. 2006.  Quantitative SWOT analysis on global competitiveness of machine tool industry, Journal of Engineering Design 17: 251-258.

56- Singh S.P., Tegegne F., annd Ekenem E. 2012. The food processing industry in India: challenges and opportunities. Journal of Food Distribution Research 43(1): 81-89.

57- Slee R.W. 1991. Farm diversification and on form processing. Scottish gric. EconPer 6:39-49.

58- Sundar K. 2009. Rural Industrialisation: Challenges and Proposition, Commerce Wing DDE. Annamalai University, Tamil Nadu, India.

59- Tansel Y.T. 2012. Development of a credit limit allocation model for banks using an integrated fuzzy TOPSIS and linear programming. Expert Systems with Applications 39(5): 5309-5316.

60-Tuolabi Nejad M., and Hosseinjani A. 2018. Rural conversional and complementary industry optimal location of townshipPoldokhtar using ANP and GIS. Journal of Studies of Human Settlements Planning 13(3): 781-804. http://jshsp.iaurasht.ac.ir/article_545187.

61- Tuzmen S., and Sipahi S. 2011. A multi-criteria factor evaluation model for gas station site selection, 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceedings, 601-610.

62- Vadivelu A., and Kiran B.R. 2013. Problems and Prospects of Agricultural Marketing in India: an Overview. International Journal of Agricultural and Food Science 3(3): 108-118.

63- Walkers V. 2007. Policy Innovation for Rural Sustainable Development. New York: USA Rural Policy Research Institute.

64- Watanabe M., Jinji N., and Kurihara M. 2009. Is the development of the agro- processing industry pro-poor? The case of Thailand. Journal of Asian Economic 20: 443-445.

65- Weng L., Boedhihartono A.K., Dirks P.H., Dixon J., Lubis M.I., and Sayer J.A. 2013. Mineral industries, growth corridors and agricultural development in Africa. Global Food Security 2(3): 195-202.

66- Wickramasinghe V., and Takano S. 2009. Application of combined SWOT and analytichierarchy process (AHP) for tourism revival strategic marketing planning: a case for Lanka tourism. J. East. Asia Soc. Transp. Stud. 8: 954–969.

67- Yavuz F., and Baycan T. 2013. Use of SWOT and analytic hierarchy process integration as participatory decision making tool in watershed management. Procedia Technol, 8: 134–143. (In Persian)  

68- Zahedian Tajnaki R., Mojaverian M., and Hossieni A. 2019. Time or place? Which one is more effective in exploiting agricultural conversion and complementary industries?. Journal of Economics and Agricultural Development 33(3): 251-263. (In Persian)