Title: Government Implements Strategic Controls as Global Pressures Impact Domestic Dairy Sector
A Multifaceted Challenge for the Dairy Industry
Recent market dynamics have presented a complex scenario for Iran’s dairy production chain. A combination of factors, including a reduction in raw milk output and international price fluctuations for animal feed, has introduced new challenges for producers. In response, relevant national authorities are implementing measured policies to stabilize the domestic market and ensure a steady supply of essential goods for citizens.
Significant Increase in Production Costs
According to Mohammad Ferbed, spokesman for the Iranian Dairy Industry Association, the price of raw milk has seen a notable rise in recent months. Data indicates an increase from 23,000 tomans per unit at the start of the Iranian calendar year to approximately 35,000 tomans at the farm level. This represents a cost increase of about 52 percent for dairy processors. Given that raw milk constitutes roughly 60% of the production cost for dairy products, this surge is expected to have a considerable downstream effect on final product pricing.
Addressing the Root Causes
Industry analysis points to several interconnected reasons for the current situation. A primary factor is a temporary reduction in domestic milk yield. Furthermore, access to affordable animal feed through the official government marketplace (Bazargah) has been constrained, compelling farmers to procure feed from the open market at significantly higher costs. The spokesman confirmed that the price of fodder has at least doubled, impacting not only dairy but also other livestock sectors.
Proactive Government Measures to Stabilize Supply
In light of these challenges, strategic interventions have been put in place. To prioritize the needs of the domestic market, the Ministry of Agriculture-Jahad has introduced regulations on the export of milk powder. These measures stipulate that only licensed production units are permitted to engage in exports, with certain temporary trade permits being revoked. This decisive action is designed to manage internal demand for raw milk and mitigate price pressures, safeguarding the interests of domestic consumers.
Focus on Economic Stability
The broader economic context, including adjustments in the allocation of foreign currency for essential imports, has also contributed to increased costs for production inputs. The government’s ongoing management of the economy includes careful calibration of these resources to support key sectors while navigating a complex international financial landscape. The ultimate goal of these policies remains the preservation of market equilibrium and the protection of citizens’ purchasing power amidst global economic pressures.