Economy, Domestic Economy

Setting Up Potato Chips Factory

Setting Up Potato Chips FactorySetting Up Potato Chips Factory

Potato chips enjoy strong consumer demand in many countries, including Iran.

The Persian daily Forsat-e Emrooz recently published a report on production of potato chips in Iran and investment opportunities in this sector.

The raw material for producing chips is readily available in Iran. Studies show Iran ranks 13th in the world in terms of potato production. However, many foreign brands of potato chips are available in the domestic market while Iranian products do not have a favorable place in international markets.

Poor planning and packaging are blamed for the weak presence of this high value-added product in foreign markets.

According to experts, the production process has a great impact on the quality of potato products and methods of processing differ from one factory to another.

All stages of production to packaging need to be carried out with great care and under proper conditions due to the sensitivity of chips to humidity. In fact, potato chip production should not last more than 30 minutes. The less time spent on production, the crispier the chips.

A market player believes that creativity is missing among domestic producers and high cost of packaging hinders Iranian products from competing in international markets.

In tapping this field, investors should ensure that their products will have a competitive edge. They should also take the export market and foreigners’ preferences into consideration.

The industrial machines used in the skinning, slicing, blanching and frying processes require heavy investment. To purchase the machines, between 5 billion-20 billion rials (about $166,600-$666,500) are needed.

To produce 1,000 tons of potato chips per year, a 6,000-square-meter plot of land is required. It is advisable to set up the factory in an industrial township of potato producing cities such as Ardabil, Isfahan, Hamedan and East and West Azarbaijan provinces.

Raw materials needed for this enterprise include potatoes, oil, flavorings and spices. Each ton of potato chips requires 4 tons of potatoes, 450 kilograms of oil and 18 kg of salt and other spices.

Some 40 employees, including laborers, technicians and food industry engineers, are required to run the factory.