Chicken exports banned to meet domestic demand

November 8, 2020 - 12:31

TEHRAN – Iranian Industry, Mining, and Trade Ministry’s Market Regulation Headquarters has released a decree to ban the exports of chicken as domestic markets are facing shortage.

The new regulation has come into force in collaboration with the Agriculture Ministry as of the beginning of the current Iranian calendar month of Aban (October 22) and will be effective until further notice.

Earlier this year, due to the overproduction of chicken, the Islamic Republic of Iran (IRICA) temporarily reduced the duty for chicken exports from June 9 up to July 20 to facilitate the exports of the said commodity.

However, the reduction of the duty on the poultry products resulted in the flow of most of the country’s production to the foreign export destinations, and consequently the prices in the domestic market increase sharply.

Iran could be a poultry production center in the region and in the world, with Iranian poultry farmers having the potential to boost exports to 500,000 tons of meat per year, but external factors like the U.S. sanctions and the shortage of feed remain an invincible obstacle on this path.

The sanctions have led to increased cost for imported inputs like feed ingredients and caused sharp price fluctuations on the consumer market. But the industry adapted to the new reality. When sanctions were renewed by the U.S. in 2019 the industry was much better prepared. The country is now self-sufficient in both poultry and eggs and has the highest production effectiveness in West Asia.

According to the Islamic Republic of Iran Customs Administration, Iran exported over 7,000 tons of chicken worth $13.28 million in the first three months of the current Iranian calendar year (March 20-June 20).

Most of the Iranian poultry products are exported to the neighboring countries including Afghanistan, Iraq, Turkey as well as some Persian Gulf Arab nations, but recently Venezuela also became a new destination for the exports of the mentioned commodity.

Afghanistan, Iraq, and Venezuela were the top three export destinations for the exports of the mentioned commodity in the first three months of the current year with $8.185 million, $3.599 million, and $585,287 of exports, respectively.

During the said period, Iran exported 4,116 tons of chicken to Afghanistan while sending 2,523 tons to Iraq and 246 tons to Venezuela.

EF/MA

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