Overview of Iran's Dairy Industry
Iran is a key player in the Middle Eastern dairy sector, largely due to its significant investment in dairy farming and milk production. The country is home to approximately 8 million dairy cattle, which contribute to an impressive annual milk production of around 10 million tons. In 2024 alone, Iran produced 8.4 million tons of whole fresh milk, underscoring its robust production capabilities.
Milk Processing and Product Output
Iran's milk processing operations are highly developed, handling around 8.5 million tons of milk annually. The industry is not limited to milk but also focuses on diversifying its product portfolio. Annually, Iran produces approximately 500,000 tons of cheese, along with 200,000 tons of milk powder and whey, which highlights strategic efforts to maximize milk utilization.
Key Dairy Enterprises and Farms
Prominent enterprises such as Pegah Milk Company, Kalleh Dairy Company, and Mihan Dairy Group play crucial roles in Iran's dairy production and processing landscape. Significant contributions to the country's milk production strength come from major farms like Sepehr Dairy Farm and Sarir Agriculture and Livestock Company.
International Trade and Market Dynamics
Iran actively participates in the global dairy markets, exporting around 300,000 tons of dairy products annually, primarily to the Middle Eastern region. With an import volume of about 50,000 tons, Iran demonstrates a strong domestic market supply and growing self-sufficiency in dairy production. The country has expanded its presence in butter and other dairy categories in Central Asia, impacting regional markets. In particular, Iran has become the largest exporter of butter to Kazakhstan, with exports growing by 64% year-on-year, reaching 1.6 thousand tons from January to July 2025.
Significant Events and Collaborations
A notable event in the industry was the meeting between Oksana Lut, Russia's Deputy Minister of Agriculture, and Gholamreza Noori Ghezeljeh, Iran's Deputy Minister of Agriculture, focusing on enhancing bilateral agricultural cooperation. Additionally, the Free Trade Agreement between the EAEU and the Islamic Republic of Iran, effective from May 15, 2025, exemplifies Iran's strategic market expansion and enhanced trade partnerships.
Dairy Consumption
Iran ranks as the second leading country in dairy consumption within the MENA region, with total consumption of 15 million tons, highlighting the importance of the dairy sector to the Iranian economy and its people.
Challenges and Market Influences
Geopolitical tensions, such as the situation between Israel and Iran, present significant safety risks for international engagements. Additionally, attacks on ammonia and urea production plants in Iran have triggered a global market shortage, affecting the cost of fertilizers and feed, key components in milk production costs. Despite these challenges, Iran remains a key external partner influencing the Central Asian dairy market, with Central Asia dependent on imports from Iran. The country's dairy exports experienced a notable increase, reaching $280.7 million in value over three months ending June 21, marking an impressive 32% increase compared to the same period last year.
Modified: 2025/11/15