Dairy Consumption in Iran Hits Historic Lows Amid Economic Strain

This reduction comes amid rising economic pressures and the weakening purchasing power of the population, signaling a worrying trend for both the industry and public health.

A Declining Trend with Varying Estimates
While all parties agree that dairy consumption in Iran is on a downward trajectory, the extent of the problem remains a matter of debate. Mohammad Reza Bani Taba, spokesperson for the Iranian Dairy Industry Association, recently estimated that per capita dairy consumption is slightly higher at less than 70 kilograms. Despite this estimate, he acknowledged that it is only half of the global average. The Food and Agriculture Organization (FAO) also places Iran’s dairy consumption around 70 kilograms per capita, further highlighting the severity of the situation.

A Decade of Decline
Historically, Iran boasted one of the highest dairy consumption rates in the Middle East, peaking at 130 kilograms per capita in 2009. However, the past decade has seen a steady decline, driven by the country's prolonged economic crisis exacerbated by Western sanctions. The shrinking domestic market has stifled growth opportunities for milk farmers and dairy processors, many of whom have struggled to maintain profitability.

Local market players have voiced concerns that the continued downturn could severely impact the industry, potentially diminishing prospects for growth and innovation in the dairy sector.

Health Concerns on the Rise
Iranian officials are increasingly worried that the drop in dairy consumption could have long-term public health consequences. A reduction below critical levels may lead to a rise in health issues, particularly bone-related diseases such as osteoporosis. With lower calcium intake from dairy products, the burden on the healthcare system could increase significantly in the coming years.

Government Efforts to Boost Consumption
In response to the alarming trend, the Iranian government has initiated measures to revive dairy consumption. In May, the National Milk Committee of the Ministry of Education launched a program to provide free milk to 8.5 million students across the country. Each student is now eligible to receive 14 kilograms of free milk per month under the initiative. This program, which resumed after a 10-year hiatus, is expected to encourage dairy consumption among younger generations, similar to its impact in the early 2010s.

More Than Just Economics
While the economic crisis has undoubtedly driven the decline in dairy consumption, Bani Taba pointed out that other products, such as carbonated soft drinks and chips, have seen rising prices but have not experienced similar consumption drops. He urged authorities to ramp up public awareness campaigns on the health benefits of dairy, stressing the critical role it plays in preventing diseases like osteoporosis.

As Iran continues to navigate its economic challenges, the future of dairy consumption remains uncertain. However, government intervention and public education could be key to reversing the trend and restoring the country’s once-strong dairy market.