A 40% rise in the average price of poultry in Iran in recent months has led to lower consumption and lower production at poultry farms across the country, Gorgan Mobsri, secretary of the Iranian Meat and Poultry Producers Union, told a local newspaper.

According to Mobsuri, the price of poultry feed in Iran has risen from 4,200 Tman per kg (US$ 1 for him at the official exchange rate) to 26,000 Tman (US$ 6.2) per kg. In recent years, Iranian poultry farmers have been plagued by high feed prices.

Meanwhile, the Iranian government said he will limit food inflation this year to 40%. The price of chicken that hits grocery shelves, jumping 26% in the spring, and a few more percentage points in the summer. Mobsuri said there was no doubt that the upswing would continue for the industry.

On average, poultry consumption has already been negatively affected. As Mobsri explained, the domestic poultry market is experiencing a sharp drop in consumer demand. If this trend continues, prices may rise further, forcing poultry farmers to scale back production schedules.

“Low consumption inevitably forces the private sector to cut production. Against this backdrop, day-old chick production, which reached 33 million units in the first week of April, reached 20 million units this week,” said Mobsri.

Iran consumes about 2.1 million tons of chicken annually. Since 2013, following Western sanctions, Iranian authorities have made major efforts to boost domestic poultry production, including subsidizing the construction of new farms.

According to Mobsri, in the current situation he could see a 30-40% drop in chicken production due to a shortage of day-old chicks. He explained that poultry farmers and hatcheries are considering adjusting their production this year to minimize losses as market conditions remain unfavorable.

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Source: Tahli Bazaar