April 9, 2024

Iran's dairy industry witnesses sharp decline, says industry spokesman

Iran's Dairy Industries Association spokesman, Mohammad Reza Bani Tabba, revealed a significant decline in the country's dairy sector, citing an 80% reduction in the number of dairy product companies over the past two decades, Iran Focus reported.

Bani Tabba noted that the number of dairy companies in Iran has plummeted from over 1000 in the 2000s to approximately 200 at present. He pointed to government policies as the primary cause of this decline, emphasising that Iran's Ministry of Agriculture has yet to announce the guaranteed purchase price of raw milk for 2024.

Furthermore, Bani Tabba highlighted last year's communication of increased final product prices to producers in July, underscoring a decrease in dairy consumption within the country, which he attributed to declining purchasing power among the populace.

Statistics from the Food and Agriculture Organisation (FAO) validate this trend, indicating a nearly 14% reduction in milk and dairy consumption in Iran over just three years.

Despite a decrease in domestic consumption, Iranian dairy product exports have seen a sharp increase, as per FAO estimates, rising by 65% over the past three years to reach 1.85 million tonnes. Conversely, imports of Iranian dairy products have declined by 30% to 101,000 tonnes. This export surge comes amid reports of powdered milk shortages in the country, with approximately 100,000 tonnes currently stored.

-      Iran Focus