Overview of Iran's Dairy Industry
Iran is a key player in the Middle Eastern dairy sector, marked by a substantial commitment to dairy farming and milk production. With approximately 8 million dairy cattle, the nation achieves an impressive annual milk production of around 10 million tons, emphasizing its strong production capabilities. In 2024, Iran produced 8.4 million tons of whole fresh milk, highlighting its robust production infrastructure.
Milk Processing and Product Output
The country's milk processing operations are well-developed, handling about 8.5 million tons of milk per year. Iran's dairy industry not only focuses on milk but also diversifies its product portfolio. The production includes approximately 500,000 tons of cheese annually, along with 200,000 tons of milk powder and whey, showcasing 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. Major farms like Sepehr Dairy Farm and Sarir Agriculture and Livestock Company significantly contribute to the country's milk production strength.
International Trade and Market Dynamics
Iran actively participates in 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 notably expanded its presence in butter and other dairy categories in Central Asia, impacting regional markets.
Significant Events and Collaborations
A significant 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. This strategic dialogue focused on enhancing bilateral agricultural cooperation, promising substantial benefits for Iran's dairy sector through expertise exchange and potential new market avenues. 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 a total consumption of 15 million tons. This high level of consumption underscores the importance of the dairy sector to the Iranian economy and its people.
Challenges and Market Influences
The region is currently affected by geopolitical tensions, such as the rapidly deteriorating situation between Israel and Iran, which presents significant safety risks for international guests, speakers, and participants in various sectors. Additionally, attacks on ammonia and urea production plants in Iran have triggered a global market shortage, affecting the cost of fertilizers and feed, which are 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.
Modified: 2025/05/18