Title: Market Dynamics: Domestic Challenges and Strategic Imports Shape Iran’s Livestock Sector
Tehran – The head of the National Union of Farmers has outlined a series of economic factors currently influencing Iran’s domestic livestock and meat market, highlighting both challenges and strategic governmental measures to ensure market stability.
Key Input Shortages Impact Production Costs
Mr. Mojtaba Aali, the CEO of the National Union of Farmers, reported that farmers are currently facing a shortage of barley, a primary animal feed. This scarcity has led to price volatility for livestock inputs within the market. According to Aali, the current production cost for each kilogram of livestock has risen to over 34,000 tomans. However, the purchasing price from farmers remains at 23,000 tomans per kilogram, creating a significant margin.
Trends in Live Animal Pricing
Aali provided an update on live animal prices, noting a continuing downward trend. The current market rate is set at 280,000 tomans per kilogram for light livestock (such as sheep and goats) and 200,000 tomans per kilogram for calves.
Projected Impact on Raw Milk Production
The production of raw milk is also expected to see a reduction. Aali attributed this anticipated decrease to two main factors: power outages and the ongoing shortage of animal feed. Union estimates indicate that raw milk production may reach 12 million tons this season.
Strategic Market Regulation Through Imports
Addressing strategies for market regulation, Aali referenced a proposal made last year by the Union. The suggestion was to utilize domestic livestock, managed through the unions, to provide meat to consumers at a rate of 450,000 tomans per kilogram. In response, the responsible authorities employed a strategic measure, importing meat using preferential foreign exchange rates. This imported meat was subsequently supplied to the market at approximately 300,000 tomans per kilogram, a move aimed at controlling domestic price levels and ensuring availability for consumers.
Addressing Market Intermediaries
Aali also commented on the role of intermediaries within the supply chain, noting that some speculators purchase livestock from farmers at lower prices and then distribute it through the network at a higher rate. This practice underscores the complex dynamics between production, distribution, and final consumer pricing.
