The import and export situation of livestock industry in Iranian market

Category: Blog Published: Tuesday, 01 January 2019 Print Email
The import and export situation of livestock industry in Iranian market

The livestock industry in Iranian market has lost its value due to non-technological decisions in the ninth and tenth governments. In particular, in 2011, the time administration, based on an irrational decision, cut the price of raw milk by 170 USD. Give livestock like barley, corn and soy and give it to the ranchers.

But this decision was not fully operational, however; the price of raw milk was reduced by the farmer, and unfortunately, in the absence of timely monitoring by market regulatory agencies, we saw a rise in dairy prices for marketing in Iran. As it was said, this misplaced decision led to the bankruptcy and destruction of many farmers.
Subsequently, with the advent of the new government and with the support of the Minister for Agriculture and the cooperation of the Association of Iranian Dairy Cowers, several solutions have been proposed to save the livestock industry in Iranian market from the crisis. One of these solutions was to allocate export to Iran incentives for the dairy industry in order to supply their products in the regional Iranian markets, and as a result of these exports to Iran, the demand for raw milk from the livestock grows.
Seyyed Ahmad Moghaddasi, chairman of the Board of Directors of the Association of Iranian Dairy Cows, said in interviews with the eminent reporter of the economic situation that the conditions of these days of the livestock industry out of marketing in Iran are getting improved. He believes that the government, through providing export incentives, has been helping large dairy companies to export products such as syringes stored in factories and increasing demand for raw milk from dairy farmers. He evaluates this plan positively, and in response to a question about the amount of export incentives to Iran, he says: The total amount of export to Iran approved by the government is 200 billion USD, of which 50 billion USD belongs to the Rural Cooperative Organization. The purchasing of milk and 150 billion USD for export incentives for the dairy industry has been paid out of these 150 billion tomans to this moment in the amount of 44 billion USD in two stages, and the third stage is still after routine, A payment order has been sent to the treasury and we hope to be paid soon.
The livestock industry activist believes that, along with these incentives, the government can allow the import of foreign dairy products into Iranian market, provided that customs tariffs are set at a level that will generate income for marketing in Iran. When a famous brand arrives in the Iranian market, it seems that it cannot sell its product in terms of tariff and shipping costs, it is better to buy or share dairy products inside Iranian market so that it can own branded products to produce and supply inside Iranian market. Apart from the fact that there is no longer a tariff, there is a huge potential for the prosperity of employment, production and food security, and it can be exported with great attention to the extent to which countries in the region cannot produce livestock products. He notes that the Netherlands is currently recognized as the largest dairy producer and exporter in the world, but in this country, imports of dry milk are free, but for import in Iran, 180 percent of the tariff is taken. Moghaddasi believes that the consumer and producer protection organization does not do its job well and is in fact the organization's support for some manufacturers.
Referring to the reference currency for importing commodities like Korea, he goes on to say why it is not worth paying attention to domestic production. Typically, a Korea-based company outside of Iranian market sells the price per ton of butter in its factory for $ 6,000, but the same butter with the cost of transportation, refrigerator, and tariff and reference currency; at a price $ 6700 goes to Iranian market. He believes that if we are able to take into account the potential of domestic production, we can not only supply the domestic demand for a product like Korea, but also think about exports, leaving the $ 700 difference in the price per ton of butter in domestic use but unfortunately, some people achieve huge profits in illegally import in Iranian market.
Moghadasi referred to the 12 million tons of raw milk production, saying that with the progress made over the past four years, we have been able to produce raw milk at 9 million and 200 thousand tons, but still about 3 million tons of empty capacity we have. He believes that in order to achieve a production of 12 million tons over Iranian market, in addition to incentives such as export incentives, it is essential to make a livelihoods supply. For example, in the last 4 months for the first time in the last 4 years, unfortunately, the government has cut off the reference import currency for barley imports and should use free currency to import this important input. It is questioning why the government allocates reference currency for imports of products such as butter and meat, and instead, by cutting off the reference currency for importing barley, it has actually raised the price of barley from $ 700 to $ 1050. He believes that this rise in barley prices has increased the price of raw milk for the farmer by %20.

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