Iran, the sixth corn importer in the world

Category: Blog Published: Saturday, 12 January 2019 Print Email
Iran, the sixth corn importer in the world

The Corn in Iranian market is a major consumed product, especially in the animal feed and poultry sector. But its production in Iranian market is low, and as a result, importing corn to Iran is increasing day by day,

to the extent that corn is the fourth most important import commodity for marketing in Iran has made Iranian market as the sixth largest corn importer in the world. The most important reason for this situation is the drought, but the minister of Agriculture promised that the next five years will increase corn production out of Iranian market. However, the US Department of Agriculture predicted no change will occur at least this year.
Corn is one of the most important food products in the world. In Iran, however, corn is more used in animal feed and poultry, which accounts for 70% of the price of protein production over Iranian market. Therefore, corn influences important sectors of the Iranian agricultural market, requiring precise, quick and operational planning to improve the corn status.
The four countries of America, China, Argentina and Mexico in 2012 were the major corn producers in the world, of which the United States and China had the largest corn crop in the world with 39.4 percent of the land and 55 percent of the world's corn crop. The global trade volume of this vital product in the world in 2012 was 120 million tons, up from 3.8 percent year-on-year, and the countries of America, Brazil, Argentina, Ukraine and France have 75 percent of its exports, and, on the other hand, Japan, Mexico, South Korea, Spain and China are the largest importers of corn. Iran is also the sixth largest corn importer in the world with a share of 9.6%.
Indeed, Iranian market is a good market for corn producing countries, which the US Department of Agriculture has estimated with Iran's corn market and corn market that Iran's corn production will not increase this year and the country will need 4.8 million tons of corn imports. According to the US Department of Agriculture, this year's corn production has been unchanged for the past year and has been around a million to 250,000, which has been steady over the past three years. The US Department of Agriculture has even reported an increase of nearly 350,000 hectares of corn cultivars in Iran in 2011, which shows no increase in crop cultivation over the past three years, and a 40 percent crop in 2012.
Increase production in the next five years
The 11th Minister of Agricultural, two months ago, commenced cooperation with the International Center for Wheat and Maize Research to increase the yield of wheat and corn production in the country. Mahmoud Hojjati pointed out that the cooperation of the Ministry of Agriculture with the International Center for Wheat and Maize Research in the 1980s led to the country's self-sufficiency in wheat production in 1380, called for the start of scientific and administrative cooperation with the center to witness the increase in the production of strategic products over Iranian market.
He also pointed to the country's growing demand for corn crops, and imported about 4 million tons of corn annually to cater for the needs of the livestock, poultry and aquaculture industry. A strategy to provide this requirement is the use of new seeds and the use of modern agricultural practices to reduce the limits on the development of corn crop production for marketing in Iran. According to him, "To increase the production of corn, a three-fold plan has been developed that will increase dramatically in the course of five years by increasing the level of crops and yields."
Downtrend in the past decade
According to a study by the Institute for Planning Research, Agricultural Economics and Rural Development, the level of corn crop has fluctuated in Iranian market during the 1980s and declined to 21% in 87 years, which can be attributed to drought. In the same year, production declined by as much as 25 percent, and as a result, corn imports in the 80s to 92 percent increased. For example, only in 87 years, due to a 25% reduction in domestic production, imports of this product increased by 27% compared to 86 years. However, the highest corn yield in the Iranian market occurred in 89, which was 8939 kg / ha. On the other hand, the importation of this product has also been attempted to support seasonal tariffs for corn production for marketing in Iran. Accordingly, each consignment of maize imported from the beginning of April to the end of September and from the beginning of February to March will be subject to 4% customs duty and commercial interest, but if the corn cargo arrives from the beginning of October until the end of the month, customs duties and commercial profits Increases by 8%. But since corn has good storage, current seasonal tariffs do not help much to protect this product. On the other hand, comparing the price of imported corn in 2013 with a guaranteed price in the same year indicates that imported corn is more expensive than the lowest price offered to farmers.
Although the price increase offered to farmers can increase their incentive to produce more and more stable, but the most important challenge facing Iranian agriculture in the corn sector, which is also transmitted to the protein industries, is production with the highest efficiency; production with the use of technologies that it will optimize water consumption and increase harvest per hectare.

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