Analysis of the Value Chain of Medicinal Plants in Iran: The Role of Key Actors

Background and Goal
The Iranian economy has always faced serious challenges due to its heavy reliance on oil exports and the associated foreign income, which are susceptible to fluctuations and the finite nature of these resources. Economic experts believe that developing non-oil exports and freeing the economy from its monoculture dependence is an unavoidable necessity. Iran ranks among the top 20 countries in the world for the production of medicinal plants due to its high climatic diversity; however, it does not hold a favorable position in terms of exporting these products and their related outputs. This research was conducted exploratively with the aim of strategically analyzing the value chain of medicinal plants in Iran.

Materials and Methods
This study was carried out in two stages focusing on the role of key actors in the medicinal plant industry and the value-added processes. The performance of market actors was evaluated through the efficiency of the value chain links, and an analysis of SWOT (Strengths, Weaknesses, Opportunities, Threats) was employed to identify limitations and potential solutions, thereby illustrating the business environment surrounding medicinal plants. The statistical population comprised three groups of stakeholders, including medicinal plant specialists, managers, and experts from agricultural jihad offices, natural resources agencies, research centers, producers, traders, and managers of processing industries. A total of 31 participants were selected using purposive and snowball sampling methods.

Results and Discussion
The SWOT analysis revealed 10 strengths, 25 weaknesses, 11 opportunities, and 16 threats. The results indicated a predominance of weaknesses over strengths and threats over opportunities. Consequently, the dominant strategic area identified in the SWOT matrix was categorized under defensive (WT) strategies. Defensive strategies were proposed to mitigate weaknesses and counter threats, including “providing incentives for regional investment in the processing of medicinal plants” and “reforming and streamlining bureaucratic processes for obtaining necessary permits for the production of final products.” Furthermore, 15 actionable steps were suggested to enhance strengths and convert threats into opportunities.

Conclusion
Given the significance of producing and processing medicinal plants within the domestic economy and in support of non-oil export enhancement, this research seeks to provide effective strategies for the sustainable development of this industry through the identification and analysis of existing strengths, weaknesses, threats, and opportunities. Despite Iran's significant climatic potential for cultivating various medicinal plants, the country faces multiple challenges in the realm of exporting and processing these products. One critical finding of this study is that the export of medicinal plant products has thus far not been conducted within a structured and systematic marketing strategy. This highlights the need for new approaches and targeted marketing strategies to identify target markets and prioritize products. Understanding the needs and demands of target markets can assist in designing effective export development strategies and outlining practical approaches for exporters and relevant officials in national trade planning. Ultimately, proposing a long-term strategy for industrial development in the processing of medicinal plants and secondary product production can strengthen the value chain of this industry. A novel model of the value chain for Iran's medicinal plants, encompassing five links, has been introduced. This study can serve as a guide for policymakers and decision-makers in planning and sustainable development of the export of medicinal plants within the global value chain.