Iranian Agricultural Economics Society (IAES)
Volume & Issue: Volume 40, Issue 1 - Serial Number 70, Spring 2026 
Research Article Agricultural Economics

The Impact of Foreign Direct Investment and Trade Openness on the Performance of Iran's Agricultural Sector

Pages 16-1

https://doi.org/10.22067/jead.2025.88372.1274

R. Babaki, M. Efati

Abstract Introduction Given the importance of foreign direct investment (FDI) and trade openness in the economy and the theoretical ambiguity surrounding their effects on agricultural performance, this study employs the AutoRegressive Distributed Lag (ARDL) approach to empirically assess their impact. Specifically, it examines how FDI and trade openness have influenced the growth of gross domestic product (GDP) in Iran’s agricultural sector over the period 1970–2022.   Materials and Methods The model utilized in this research is based on the study by Sultana and Sadkin (2023) as follows: The variables employed in this research include: AFF: agricultural production growth, FDI: foreign direct investment, GDP: gross domestic product (economic growth), CPI: inflation rate, TRADE: degree of trade openness (free trade), GFC: gross fixed capital formation, and : stochastic term. The necessary data were gathered from the World Bank for the period from 1970 to 2022.   Results and Discussion In this research, the generalized Dickey-Fuller tests were employed to assess the stationarity of the time series and the presence of unit roots. The order of their aggregation was determined accordingly. The generalized Dickey-Fuller test indicates that at a significance level of 5%, all variables, except for the growth of the agricultural sector with a one-time difference, are stationary in both the cases of having an intercept without a trend and having an intercept with a trend. Based on the results of the generalized Dickey-Fuller unit root tests, the accumulated model variables are of order one and zero. Consequently, the ARDL method is applied in this research. To estimate long-run coefficients, it is essential to first verify the existence of a long-run relationship. Therefore, the F-Bound test introduced by Pesaran, Shin, and Smith (2001) is also utilized. This method confirms the existence of a long-run equilibrium relationship among the model's variables. The results of the LM test indicate that there is no autocorrelation among the residuals in the examined model. In fact, the null hypothesis of no autocorrelation is not rejected. Additionally, the results of the heteroscedasticity test suggest that the null hypothesis of the absence of heteroscedasticity is not rejected, indicating homogeneity of variance. The following table presents the results of model estimation using the ARDL method.   Model estimation results using the ARDL method Long-run relationship Variables Coefficients standard deviation t-Student Prob. FDI 22.91 6.25 3.66 0.00 GDP 1.36 0.39 3.48 0.00 GFC 0.82 0.38 2.14 0.05 INF -0.37 0.13 -2.68 0.02 TRADE 0.16 0.15 1.04 0.32 C 67.43 11.57 5.82 0.00 Source: Research findings The error correction model is employed to assess how short-run imbalances of dependent variables are corrected towards long-run equilibrium. The results from estimating the error correction model indicate that the coefficient of the error correction term in the model is -0.20. This means that in each period, 20% of the imbalance in the agricultural sector is corrected, moving closer to its long-run equilibrium trend. To ensure the stability of the estimated regression coefficients and the accuracy of the results obtained, stability tests, including cumulative residual (CUSUM) and cumulative residual squared (CUSUMSQ), are conducted for the residuals of the short-run model. The results confirm the stability of the estimated coefficients during the studied period.   Conclusion The findings of this research indicate that foreign direct investment (FDI) has a positive and significant impact on the long-term production growth of Iran's agricultural sector. However, commercial openness does not have a significant effect on the growth of production in this sector over the long run. Additionally, gross domestic product (economic growth) and gross fixed capital positively and significantly influence agricultural production growth. Conversely, the inflation rate negatively and significantly affects the production growth of the agricultural sector.   Acknowledgement Given the positive and significant impact of FDI on agricultural production in the long run, it is essential to attract appropriate and efficient foreign direct investment to enhance local employment and investment, thereby boosting production and productivity in Iran's agricultural sector. Consequently, it is recommended that policymakers refine their strategies to foster an environment conducive to attracting foreign direct investment in agriculture, aiming to draw in more effective investments to elevate agricultural productivity. In this context, the country can adjust its tax and agricultural investment policies to establish a "suitable investment environment" that encourages long-term foreign investments in the agricultural sector. Furthermore, the government should implement policies aligned with agricultural needs and initiate relevant and practical training programs for farmers to enhance agricultural skills, enabling FDI to further develop the nation's agricultural sector. Additionally, to bolster the country's economic growth within the agricultural sector, innovative methods must be adopted to attract foreign direct investment. The lack of a significant effect of trade openness on the production of Iran's agricultural sector underscores the necessity to reassess the country's free trade policy to support various segments of the agricultural sector, thereby increasing production and improving the overall performance of agriculture.

Research Article Agricultural Economics

Investigating the Affecting Factors on the Consumption Pattern of Whole Grain Bread in Mashhad

Pages 30-17

https://doi.org/10.22067/jead.2025.89076.1280

A. Karbasi, B. Zandi Dareh Gharibi, S. Noredini

Abstract Introduction Bread is one of the most important staple foods in human history, holding a central place across cultures and in household diets. It is commonly classified into two main types: whole wheat bread and white bread. Whole wheat bread is made from flour that retains the bran and germ, resulting in roughly twice the vitamins, minerals, and dietary fiber compared to white bread, which is more refined. Numerous clinical studies have shown that regular consumption of whole wheat bread is associated with a reduced risk of various health conditions, including cardiovascular disease, diabetes, digestive disorders, obesity, and metabolic syndrome.  Despite this, in recent decades, wheat bran has been separated from flour in various quantities in many factories in the country, and the bread made from this flour not only has a very low nutritional value; rather, it causes the spread of all kinds of diseases. The study of food consumption in Iran reveals that the primary food group contributing to daily energy and protein intake is bread, which includes various types, such as Barbari, Lavash, and Sangak. Based on the compiled standards, each bread has a specific amount of bran removed. Sangak bread is the richest bread in terms of nutrition. Lavash and Tufton bread have lower bran content than Sangak, and Barbari bread flour has the highest percentage of bran removal. It is considered the whitest flour among traditional breads. Considering the importance of bread consumption as a complete food item in the household basket and its direct effect on people’s health, in this study, breads are classified into three groups: whole-wheat bread (Sangak), low-bran bread (Lavash and Tufton) and bran free bread (Barbari) and the influencing factors on the choice and consumption of the type of bread of the households have been investigated   Materials and Methods A questionnaire was developed to achieve the research aim, and data were collected through a random sampling method from households living in Mashhad city. Face-to-face interviews were conducted with 265 households in 2023. Because of the ordinal nature of the bran percentage of flour for all types of bread, first, an ordinal logit model was estimated to investigate the probability of each household being placed in 3 groups of bran-free bread, low-bran bread, and whole-bran bread, But due to the violation of the assumption of parallel regressions in this model, the Generalized Ordinal Logit Model was used.   Results and Discussion  The results of this study showed that a significant percentage of households (56%) consume bread with low bran (Lavash and Tafton), and only 15% of households consume bread bran-free (Berberi). Also, 29% of households consume bread with high bran (Sangak). The results showed that increasing the variable level of household income, the importance of bread health, the importance of bread quality, and the satisfaction of consuming bread increases the probability of consuming bread with higher bran than bread bran-free. The negative and significant coefficient of the importance variable of bread shape shows that households that attach more importance to the shape of bread increase the probability of consuming bran-free bread compared to whole-grain bread. This issue could be due to the darker color of bran bread compared to bran-free bread. Additionally, the marginal effects of the coefficients at different levels were estimated, which interpret the change in the predicted probabilities of a household consuming whole-wheat bread per one unit change in a specific explanatory variable (based on the average of consumer data.   Conclusion Based on the results, the household's monthly income, the importance of bread to health, the importance of bread quality, and the satisfaction with the consumed bread were the main and significant factors affecting the choice of bread type consumed in Mashhad households. Therefore, considering the importance of health in changing consumption behavior, providing educational programs and awareness campaigns to inform people about the benefits of wholemeal bread—such as its effects on digestive health, reducing the risk of chronic diseases, and improving nutrition—will be effective in changing the eating habits of the community and improving the overall level of health. These programs can position the consumption of wholemeal bread as a healthier choice in the minds of consumers. The results indicate that, all else being equal, higher consumer satisfaction with high-bran bread increases the likelihood of its consumption. In contrast, placing greater importance on bread appearance reduces the probability of choosing high-bran options. Overall, consumer satisfaction is a key driver of wholemeal bread consumption, whereas its darker color and distinct appearance tend to discourage it.  Therefore, to increase the attractiveness of wholemeal bread for consumers, it is suggested that manufacturers focus on improving the appearance of bread and use techniques that make wholemeal bread more similar in color and appearance to white bread. This could include using improved formulations to enhance the color and texture of the bread. Additionally, to address concerns about the taste of wholemeal bread, manufacturers can offer different varieties of wholemeal bread with varying characteristics in appearance and flavor to attract consumers with diverse preferences. Improving the quality of bread in terms of taste, texture, and other characteristics can lead to increased consumer satisfaction and, ultimately, a rise in the consumption of wholemeal bread. To reduce the negative effects of price increases on the consumption of bread with high bran, it is suggested that producers or policymakers adjust the price of this bread so that it remains attractive compared to bread with low bran. This can be done by reducing production costs or government support in the pricing of wholemeal bread. Also, to encourage more consumers to buy bread with high bran, it is possible to use the combined packaging of wholemeal bread with regular bread or bread with low bran, and consider discounts for buying these packages.

Research Article Agricultural Economics

The Impact of Exchange Rate Uncertainty on Agricultural Investment in the Provinces of Iran: An Analysis Using the Two-Stage Swamy Approach

Pages 43-31

https://doi.org/10.22067/jead.2025.91433.1323

M. Mogaddam

Abstract Introduction The Real Effective Exchange Rate (REER) is a crucial indicator used to assess a country's currency value against a basket of foreign currencies, while accounting for inflation differentials. This measure reflects a country's competitiveness in international trade, particularly in sectors such as agriculture, which are highly sensitive to economic fluctuations and investment dynamics. Given the critical role of agricultural investment in driving economic growth, this study investigates the impact of REER uncertainty on agricultural investment across various provinces of Iran between 2008 and 2023. By employing the two-stage Swamy estimation approach, the research explores the regional disparities in the effects of exchange rate uncertainty and offers insights into how such volatility influences agricultural investment decisions across diverse geographical regions.   Materials and Methods This study utilizes the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to quantify uncertainties in the Real Effective Exchange Rate (REER). The research applies panel data econometric techniques to examine the relationships between REER uncertainty and agricultural investment, using data from sources such as the Iranian Statistical Center, the Central Bank of Iran, and the World Bank. To address the heterogeneity of regional dynamics, both static and dynamic models with variable coefficients were employed. The analysis included key explanatory variables, such as provincial GDP in agriculture, interest rates, bank credits, and trade openness. The estimation and solution of the regression functions were conducted using Eviews9 and Stata14 software. Unit root tests, including the Fisher and Dickey-Fuller tests, were applied to assess the stationarity of the variables, while Pedroni cointegration tests were employed to confirm the existence of long-term relationships between the variables.   Results and Discussion The findings of this study demonstrate that REER uncertainty has varying effects on agricultural investment across different provinces of Iran. Specifically: Positive Impacts: In provinces such as Isfahan and West Azerbaijan, REER uncertainty had a positive and significant effect on agricultural investment. This could be attributed to adaptive strategies employed by investors that help enhance competitiveness in these regions despite currency fluctuations. Negative Impacts: Conversely, provinces such as Semnan, Sistan and Baluchistan, Mazandaran, East Azerbaijan, and Kermanshah experienced negative effects, where higher REER uncertainty led to reduced investor confidence and disrupted long-term financial planning in the agricultural sector. Moreover, variables such as provincial agricultural GDP, interest rates, and bank credits exhibited a significant positive impact on agricultural investment. Conversely, higher interest rates tended to discourage private sector investment, demonstrating the importance of stable and favorable macroeconomic policies. These findings are consistent with existing literature, which underscores the need for a stable exchange rate policy and a conducive investment environment to promote agricultural growth.   Conclusion Agriculture plays a vital role in Iran’s economic stability and food security; however, the sector faces significant challenges associated with real effective exchange rate (REER) uncertainty. Research indicates that exchange rate volatility can negatively affect agricultural productivity, investment, and trade by increasing economic risk and reducing planning efficiency. In this context, fluctuations in REER can disrupt input costs, market stability, and competitiveness, thereby constraining the overall performance of the agricultural sector.  The findings of this study emphasize the need for region-specific policies that mitigate the negative impacts of exchange rate fluctuations and harness potential opportunities for agricultural investment. Policymakers should focus on stabilizing exchange rates and implementing supportive policies to encourage sustained investment in agriculture, especially in economically vulnerable provinces that are more affected by exchange rate volatility. By addressing these challenges, the agricultural sector can contribute more effectively to Iran's overall economic development and food security goals.   Acknowledgement I would like to thank the Iranian Statistical Center, the Central Bank of Iran, and the World Bank for providing the essential data for this research. Special thanks are also extended to colleagues and peer reviewers who offered valuable insights and constructive feedback during the research process.

Research Article Agricultural Economics

Optimization of Cropping Pattern and Its Effect on Water and Energy Productivity (Case Study: Farm Lands of Dehloran County, Ilam Province)

Pages 65-45

https://doi.org/10.22067/jead.2025.93513.1354

P. Ghaderinejad, S. Shirzadi Laskookalayeh, M. Mardani Najafabadi, F. Kashiri Kolaei

Abstract Introduction Constraints such as the limited availability of key resources particularly water and energy, have driven the adoption of approaches aimed at improving the productivity of these inputs. Because agricultural inputs are inherently finite, farmers and planners in the agricultural sector have long sought ways to increase production while using fewer resources, especially those that are scarce. As a result, achieving efficient and sustainable management of water and energy has emerged as a major global challenge in recent decades. Dehloran region, as an agricultural hub and the largest agricultural sector of Ilam province, is located in the south of this province. The decrease in rainfall in recent years and climate change have also affected the agricultural sector of the Dehloran region. Given that the Dehloran region is located in the path of permanent and seasonal rivers, and also due to its proximity to Khuzestan Province and the benefit of water from the Karkheh Dam, unfortunately, due to the lack of sufficient infrastructure, irrigation channels, and sufficient dams, these water resources are not used optimally. Therefore, it seems necessary to pay attention to the sustainability of agriculture in this region through the improvement and proper management of water and energy resources and the promotion of their productivity. Therefore, in the present study, an attempt was made to consider economic and environmental goals in the form of a multi-objective planning model with an emphasis on the management of water and energy resource consumption. Therefore, considering the necessity of the subject, the effect of determining the optimal cultivation pattern on water and energy productivity in the production of crops was investigated.   Materials and Methods In the present study, a multi-objective nonlinear mathematical programming model has been used to simultaneously achieve multiple goals that are subject to a certain set of constraints. In the present study, considering the regional conditions and the importance of the issue, four goals were used, including maximizing gross profit, maximizing production, minimizing energy consumption, and minimizing water consumption. Considering the aforementioned goals, considering several different goals leads to a model in the form of a multi-objective programming. Considering the objective functions and regional conditions, constraints were defined, including water, labor, poison, fertilizer, machinery, land, and maximum and minimum production of agricultural products. Physical and economic productivity indices of water and energy were also used to calculate productivity. GAMS software was also used to run the model. Results and Discussion In Dehloran region, there are five important agricultural sectors including Anaran, Dasht-e Abbas, Musian, Zarinabad and Meimeh. If the multi-objective optimal model is implemented in the aforementioned sectors, an increase of 7.31, 0.74, 2.57, 6.62 and 29.78% of the cultivated area is observed, respectively. In the autumn group of crops, this increase is for irrigated wheat, rainfed and grain corn, and in summer crops, it includes profitable crops such as watermelon, melon, onion, potato, cucumber and cotton. The results of the research also showed that by considering the multi-objective optimal model, important variables such as total cultivated area, total production and gross profit show an increase of 3.85, 8.48 and 4.70 respectively. Also, the implementation of the optimal cultivation pattern improved the physical and economic productivity of water and energy by 22.09, 17.84, 10.16 and 6.33. This improvement was able to save 11.14 and 1.52 percent in water and energy consumption. In terms of energy consumption, chemical fertilizer input accounted for the highest share of total energy resources with a share of about 0.44 percent. Fuel and electricity input energy is in second priority with a share of about 0.33 percent. This is while the use of fuel and electricity input in the optimal model is about 88.5 percent less than the current one. Also, the lowest share of total energy consumption is related to the energy source of animal manure and labor. Implementing an optimal cultivation pattern based on multi-objective planning models in the Dehloran region by reducing water and energy consumption and increasing the productivity of these inputs while increasing total production and gross profit in the region can be an important step in advancing the goals of the region. Also, the results of implementing water inventory reduction scenarios also indicate that a 30% reduction in water inventory reduces total production, total gross profit, and energy and water consumption by about 0.6, 1.5, 2 and 21%, respectively. However, water and energy productivity increases in the scenarios under study. Therefore, it can be said that by implementing the optimal cultivation pattern in the Dehloran region, while reducing water and energy consumption, it has also achieved an increase in productivity. Which can be an important step in advancing the goals of the region.   Conclusion Given the primary objective of the study—to examine the impact of determining an optimal cultivation pattern on water and energy productivity in crop production—the results are noteworthy. The application of a multi-objective mathematical programming model led to improvements in both physical and economic productivity of water and energy, while simultaneously reducing their overall consumption. These findings suggest that, with proper implementation and management, the model can deliver meaningful savings in water use and enhance resource efficiency in agricultural systems.  Using multi-objective optimal models in the region can, in addition to increasing gross profit in the region, reduce water and energy consumption and increase physical and economic productivity in the region. Accordingly, it is suggested that the optimal cultivation pattern obtained in the region be used to increase farmer's profit, reduce water and energy consumption, and increase regional productivity. Similarly, holding extension classes to raise awareness in determining the optimal consumption of inputs and changing the cultivation pattern under the supervision of agricultural Jihad experts can be an effective step in advancing the appropriate goal of implementing an optimal cultivation pattern that matches the conditions of the desired region.

Research Article Agricultural Economics

The Relationship between Stock Prices and Financial Efficiency of Active Agricultural Companies Active in the Iranian Stock Market

Pages 82-67

https://doi.org/10.22067/jead.2025.95208.1373

B. Nazerani, J. Hosseinzad, M. Ghahremanzadeh

Abstract Introduction
In developing countries, including Iran, the agricultural sector has not fully benefited from participation in the stock market due to several structural constraints. These include weak supporting infrastructure, a lack of active capital market institutions, limited financial literacy, insufficient technical expertise, and inadequate understanding of environmental conditions. In addition, over the past decade, agricultural firms have recorded the lowest sales performance among listed companies. This situation is further exacerbated by severe price volatility, poor transparency and information flow in domestic agricultural markets, and the extensive presence of brokers and intermediaries in distribution and sales channels. Collectively, these challenges have significantly weakened the position of agricultural companies in the stock market. These problems have mainly affected the agricultural sector of Iran in the absence of a coherent, organized and competitive market. The stock market, by using trading tools and methods, can significantly solve these problems by creating a competitive, transparent and efficient market and provide a very strong potential for agricultural enterprises to enter the stock market in Iran. Entering the stock market and offering shares of agricultural enterprises, in addition to providing capital, will lead to the discovery of the real price of shares and greater prosperity and profitability, and ultimately increasing the financial performance of these enterprises. There is. In order to better understand and further investigate this issue, the present study attempts to study the exact relationship between financial performance and stock price.
 
Materials and Methods
In the present study, the simultaneous equations method has been used to examine the relationship between stock prices and financial efficiency of agricultural firms and companies. In the present study, four financial ratios such as return on assets ratio, total asset turnover ratio, debt-to-capital ratio and Tobin's Q ratio have been used to measure financial efficiency. Also, in the system, a set of control variables that affect the stock prices of companies were considered, such as liquidity, financial leverage, company size and history, sales growth, company cash flow, and profit performance or efficiency. Statistics and information related to performing calculations and estimating models have been collected from various relevant sources and organizations such as Tehran Stock Exchange, Central Bank and Ministry of Agricultural Jihad.
 
Results and Discussion
The results of the system estimation using simultaneous equations have shown that there is a positive and significant relationship between return on assets, asset turnover ratio, debt-to-equity ratio, and Tobin's Q with stock price. While the relationship between debt-to-equity ratio and stock price has been negative and significant. This indicates the importance of paying attention to financial efficiency in determining the value of companies' stocks. In fact, improving financial efficiency makes the company's stocks more valuable to customers. That is, the better the company's financial performance or efficiency, the more investors who are interested and need to buy shares in the company, which also leads to an increase in stock price. An increase in stock price is often associated with improved financial ratios, which typically reflect stronger financial performance. This highlights the importance of financial efficiency in determining a company’s market value. In practice, higher financial efficiency enhances the attractiveness of a company’s shares to investors. As a firm’s financial performance improves, investor interest and demand for its shares increase, which in turn can contribute to a rise in stock prices. Changes in stock prices affect financial ratios, and these ratios can be used in the evaluation and analysis of companies and investments.
 
Conclusion
Stock price and financial efficiency are interrelated. In other words, stock price de-graphication increases financial efficiency by improving financial ratios. Improving financial ratios and increasing financial efficiency also increase shareholders' expectations for profit and capital increase if the company's financial ratios improve. This also increases the demand for shares and ultimately increases the value and price of shares. By examining the factors affecting financial efficiency and stock price and their relationship in agricultural enterprises, it is possible to identify and eliminate the causes of the decline in the acceptance of agricultural enterprises by the stock market and to encourage and facilitate the presence of these enterprises in the stock market by removing obstacles.

Research Article Agricultural Economics

Strategy for the Development of Iran's Medicinal Plants Exports from the Private Sector's Perspective

Pages 102-83

https://doi.org/10.22067/jead.2025.95365.1376

M. Mohammadi, J. Yazdimoghadam

Abstract Introduction The diverse applications of these plants and the emergence of a healthy lifestyle trend have led to an increase in their demand in recent years. Consequently, the global trade of these products (within specific tariff codes) has seen a significant increase, growing from approximately $10 billion to $39 billion between 2005 and 2024. In this regard, some countries (including China, India, and Turkey) have sought to capitalize on the growing market opportunities and, through appropriate planning, have managed to increase the export value of these products by an average of 8% annually during the aforementioned period. In Iran, the presence of diverse climatic regions and vast natural areas provides favorable conditions for the growth and development of various medicinal plant species. According to conducted surveys, there are over 2300 species of medicinal plants in Iran, of which 1728 are endemic and grow in 85 million hectares of natural areas. Additionally, a number of high-demand and commercial species are cultivated in over 250,000 hectares of the country's land. Despite this, Iran's share of the global medicinal plant trade value is meager, and the export value of these plants has not been stable in recent years. A review of empirical studies suggests that Iran's failure to leverage the growing opportunities in the global medicinal plant market, despite its high domestic potential, may stem from problems related to cultivation and production, processing and packaging, domestic and international marketing, management and supervision, and environmental threats.   Materials and Methods The present research aims to formulate a strategy for the development of Iran's medicinal plant exports to benefit from the considerable production capacities of these products and their significant economic and environmental advantages for the country. In this context, the study drew on the perspectives of private sector experts considered the primary drivers of the strategy to guide the analysis. The SWOT (Strengths, Weaknesses, Opportunities, and Threats) framework was used to formulate strategic options, the Quantitative Strategic Planning Matrix (QSPM) was applied to prioritize plans and policies, and the Analytic Hierarchy Process (AHP) was employed to rank medicinal plant species.   Results and Discussion The research findings indicate: 1. Considering the total weighted scores of internal factors (2.4) and external factors (2.5), the development strategy should be formulated in a conservative manner from the perspective of producers and experts. However, from the perspective of exporters, whose weighted average of internal factors is 2.4 and external factors is 2.2, the export development strategy should be defensive. 2. Given the importance coefficients of the proposed plans, establishing a marketing information system (0.0912), increasing market stability (0.0832), upgrading the technology of processing and conversion industries (0.0825), promoting the cultivation model in the country (0.0789), removing trade barriers and providing export incentives (0.0732), and supporting agricultural mechanization (0.0675) are of higher importance in planning for the advancement of the country's medicinal plant value chain. 3. Considering six criteria (profitability, export advantage, added value, climatic adaptability, water and soil conservation, and marketability), medicinal plants with extracts and gums (with an importance coefficient of 0.338), aromatic and essential oil medicinal plants (with an importance coefficient of 0.253), and medicinal plants with seeds (with an importance coefficient of 0.164) hold higher value.   Conclusion The research results indicate that the export development strategies for the country's medicinal plants should be formulated to eliminate the undesirable gap between the country's production capacities and the export value of these products. In this regard, based on the findings of the SWOT analysis, the strategies are identified: The first strategy is market penetration (i.e., selling current products in current markets) through improving product quality, which necessitates enhancing knowledge and technology in the production, processing, and packaging of medicinal plants. The second strategy is market development (i.e., selling current products in new markets) by strengthening the foreign marketing of Iran's medicinal plants from an external perspective. Improving knowledge and technology increases the added value and export value of medicinal plants. In the agricultural sector, implementing educational and extension programs to enhance farmers' knowledge and awareness of good agricultural practices and supporting agricultural mechanization are of greater importance. In the industrial sector, supporting knowledge-based companies and providing financial support to active industrial units for process modernization are prioritized.In the marketing and sales sector, developing an efficient, up-to-date marketing information system capable of meeting the needs of traders and merchants can significantly enhance the knowledge and awareness of the country’s exporters. The marketing sector, as the final link in the value chain, plays a primary role in signaling and directing other sectors in this chain. In other words, marketing, with an outward-looking approach, can organize the medicinal plant value chain according to the preferences, needs, and standards of target markets, leading to the optimal allocation of the country's resources and facilities in this area. Therefore, it can be said that strengthening marketing, especially in the foreign sector, plays a primary role in developing the production and export of Iran's medicinal plants. In this regard, based on expert opinions, the establishment of a marketing information system and commercial support were introduced as priority programs for strengthening international marketing. Appropriate financial and commercial support can increase the competitive advantage of domestic producers in global markets and enhance their ability for market penetration and market development. One of the obstacles to the competitiveness of the country's medicinal plants is the use of traditional methods in their production and processing, which leads to reduced productivity, increased production costs, and a decline in product quality, ultimately diminishing their competitive power against foreign rivals. The government, by implementing targeted financial support policies and subsidies, can facilitate agricultural mechanization and the modernization of processing and conversion industries. Furthermore, in line with advancing the strategies, it can develop exports by granting export incentives and removing trade barriers, and replace imports by imposing trade restrictions. Finally, to ensure the effectiveness of program implementation, considering the expert valuations and export values, it is proposed that licorice, asafoetida, Damask rose, green cumin, coriander, and henna be considered as drivers for export development in this field. It is also proposed that by establishing necessary regulations and standards and implementing specialized controls to prevent bulk sales and smuggling, the grounds for enhancing the added value and export value of these products in the country be provided.