July 22, 2015

 

Iran a potential market for European dairy, analyst says
 

 

With Iran's recent deal with world powers to scale down its nuclear programme in favour of a withdrawal of trade sanctions, one Euromonitor analyst believes that it could lead to the opening up of the tenth biggest dairy market in the world.

 

According to the analyst, Lianne van den Bos, Russia, which itself is involved in an exchange of sanctions with western nations over the Ukrainian Crimea crisis, has presently shut its doors to any European milk deliveries. Hence, this situation will render Iran as an alternative market for such products initially bound for Russia, van den Bos said.

 

She is also optimistic that Europe's dairy products will be well-received in Iran. This will especially be more prevalent within the 15-35 years old age group which constitutes about 40% of the country's 80 million population.

 

Indeed, Iran is stirring interests from some European companies and these would likely intensify in light of a strengthening possibility that the US and EU could soon end sanctions on the country.

 

Furthermore, major producers like Denmark's Arla Foods, Finland's Valio and the Netherland's FieslandCampina, are expressing keenness to engage the Iranian market.

 

Interestingly, Iran also helped to supply dairy, fish, and poultry to Russia which is still coping with a languishing economy following its acrimonious fallout with western countries.

 

Iran, on the other hand, is witnessing a thaw in relations with the US and EU, which could liberate its agricultural development from longstanding economic constraints.

Video >

Follow Us

FacebookTwitterLinkedIn