Assessing the feasibility of establishing agricultural processing industries with an emphasis on economic efficiency and regional capacity

Abstract

The present study aimed to assess the capacities and determine the priorities for establishing agricultural processing industries in the rural districts of East Anzan and West Anzan in the central part of Gaz city port. Given the limited economic exploitation of agricultural and horticultural products, the development of processing industries is considered as an effective solution for increasing the added value of products, creating employment, and improving the income of villagers. The research method was descriptive-analytical and data collection was conducted in the field and library, and the sample size of 300 household heads was selected using the Cochran formula. Data analysis was performed using a single-sample t-test, Pearson correlation coefficients, regression, and the TOPSIS decision-making model. The findings showed that the region has appropriate capacities in natural resources, labor, infrastructure, and the market, which strengthens the capacity to establish transformation industries. The establishment of these industries increases household income, reduces unemployment, and improves labor productivity. Also, based on the results of the TOPSIS model, the villages of Gaz Sharqi, Gaz Gharbi, and Karkandeh are ranked first to third in terms of the ability to establish agricultural transformation industries with coefficients of 0.71, 0.68, and 0.32, respectively. This ranking can be a suitable basis for formulating sustainable development programs in the region. The research findings also emphasize the need for targeted investment in the field of transformation industries; an action that can play an effective role in improving the economic and social indicators of the villages in the region.

Keywords: Agricultural processing industries, economic efficiency, regional capacity, TOPSIS model, Gaz city port.



Introduction

According to Article 84 of Iran's Fourth Five-Year Development Plan Law, emphasis has been placed on supporting the expansion of agro-processing and complementary agricultural industries. Therefore, investment in these industries, by creating job opportunities and employing surplus agricultural labor, along with enhancing education and skills, provides a favorable foundation for rural development (Karshenas & Colleagues, 2017). Undoubtedly, establishing agro-processing industries in the rural districts o...

1. To what extent do the capacities and potentials of the agricultural sector in the central rural districts of Bandar-e-Gaz enable the establishment of agro-processing industries?

2. What is the impact of agro-processing industries on economic efficiency, including income, employment, and labor productivity in the region?

3. Based on regional capacities, which villages in the central rural districts of Bandar-e-Gaz should be prioritized for establishing agro-processing industries?

Methodology

This applied research follows a descriptive-analytical approach, aiming to assess the agricultural potentials of the Eastern and Western Anzan rural districts of Bandar-e-Gaz County, and the feasibility of establishing agro-processing industries and their economic effects, particularly on employment and rural income. Data were collected through both library and field methods. In the field section, a researcher-made questionnaire, expert interviews, and direct observation were used for data collection.

Findings

According to the results, the villages of East Gaz (C_i^ = 0.71), West Gaz (C_i^ = 0.68), and Karkandeh (C_i^ = 0.32) exhibited the highest C_i^ index values, indicating their strong suitability for agro-processing industry investment and development. These scores reflect significant agricultural capacity, robust infrastructure, and notable economic potential. Conversely, villages like Ebrahimabad (C_i^ = 0.10) and Kuh Sahara (C_i^ = 0.15) showed lower C_i^ values, suggesting limited feasibility for indu...

Conclusion

The study's findings indicate that despite abundant natural resources, a capable labor force, and favorable climate conditions, the region's agricultural sector has yet to realize its full potential in driving regional development due to structural challenges and performance inefficiencies. The targeted establishment of agro-processing industries can serve as an effective tool for enhancing productivity, creating sustainable employment, reducing product waste, and ultimately improving rural livelihoods.

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