Since the commencement of the Persian calendar year on March 20, Iran’s poultry farmers have reported a staggering net loss of 20 trillion tomans, approximately equivalent to US$48 million.
Hamid Reza Kashani, chairman of the Mihan Poultry Farmers’ Union, warned local media that urgent action is necessary to prevent the potential bankruptcy of the entire egg industry.
Currently, the average farmgate price for eggs is between 30,000 and 35,000 tomans per kg, which is considerably lower—45,000 tomans—than the production costs. Kashani added that the egg sector is experiencing a negative profitability margin of 20%.
Feedstuff Shortage
A persistent issue plaguing Iran’s poultry industry is a significant shortage of feedstuff. According to Kashani, the state-controlled distribution system is failing to provide adequate feed for farmers, forcing them to purchase feed on the open market at prices that are double the subsidized rates.
Iran has a state-regulated system for distributing agricultural feed to livestock farmers, managed by the Ministry of Agriculture, which aims to provide essential feed ingredients like rapeseed, corn, and sunflower at subsidized prices.
Actions Needed
Despite repeated complaints from poultry farmers to the Ministry of Agricultural Jihad, Kashani noted that these concerns are often ignored.
“To salvage the industry and maintain production, it is crucial to provide poultry farmers with necessary inputs urgently and sustainably, as well as to purchase and stock 50,000 tonnes of eggs at a guaranteed price of 74,500 tomans immediately,” he said.
A wave of bankruptcies could push domestic egg production below the self-sufficiency level. “Without state assistance, we will confront a severe production crisis in the latter half of the year that may force us back into egg imports,” Kashani cautioned.
No More State Orders
Iran is currently producing between 3,500 and 3,600 tonnes of eggs daily. In an effort to regulate the market, authorities have been buying surplus eggs from farmers for state reserves.
Since the beginning of the year, the Livestock Affairs Support Department has procured 23,000 tonnes of surplus eggs from farmers. However, Kashani indicated that this initiative has recently been halted, further straining the supply chain.
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