Policy Reform Urged as Iran's Dairy Consumption Plummets
Source: The DairyNews
Iran faces a concerning decline in dairy consumption, with a reported 30% drop in 2023, raising alarms among analysts about its potential impact on public health, according to local news outlet ISNA.
The decline was attributed to a governmental reform in 2023, which ended the system allowing livestock companies to exchange currency at preferential rates for purchasing feedstuff. While aimed at easing strain on the national budget, the move led to soaring retail prices, as reported by the Tehran Chamber of Commerce.
The surge in retail prices, ranging from 20% to 40% on key dairy products, has significantly deterred consumption, pushing it to its lowest level in a decade. ISNA highlighted concerns over the decline falling below the critical threshold necessary for maintaining bone health, potentially leading to increased cases of osteoporosis in the long term.
Jalal Rahmani, vice president of health at Qazvin University of Medical Sciences, emphasized the importance of dairy consumption, underscoring that Iran's current intake is far below the recommended level of 250 grams per day, standing at a mere 104 grams.
Meanwhile, dairy industry representatives, including Seyed Mohammad Reza Banitaba, head of the Iranian Dairy Products Industry Association, voiced grievances over price caps that have strained their operations. Despite cost hikes due to rising wages and inflation, companies have been constrained by price regulations, exacerbating financial pressures.
Banitaba disclosed that promises to revise price cap policies, allowing a 30% increase for regulated products, remain unfulfilled, leaving dairy manufacturers to bear the burden of subsidizing consumption. He warned that such policies could exacerbate challenges in the dairy sector, which has seen a significant number of closures over the past two decades, dwindling from 1,000 to just 200 companies.
Highlighting the government's role in addressing the crisis, Banitaba stressed the need for policy reconsideration, asserting that ensuring sufficient dairy consumption is not solely the responsibility of manufacturers. With the industry's viability at stake, calls for policy reforms grow louder to alleviate the strain on Iran's troubled dairy sector.
The surge in retail prices, ranging from 20% to 40% on key dairy products, has significantly deterred consumption, pushing it to its lowest level in a decade. ISNA highlighted concerns over the decline falling below the critical threshold necessary for maintaining bone health, potentially leading to increased cases of osteoporosis in the long term.
Jalal Rahmani, vice president of health at Qazvin University of Medical Sciences, emphasized the importance of dairy consumption, underscoring that Iran's current intake is far below the recommended level of 250 grams per day, standing at a mere 104 grams.
Meanwhile, dairy industry representatives, including Seyed Mohammad Reza Banitaba, head of the Iranian Dairy Products Industry Association, voiced grievances over price caps that have strained their operations. Despite cost hikes due to rising wages and inflation, companies have been constrained by price regulations, exacerbating financial pressures.
Banitaba disclosed that promises to revise price cap policies, allowing a 30% increase for regulated products, remain unfulfilled, leaving dairy manufacturers to bear the burden of subsidizing consumption. He warned that such policies could exacerbate challenges in the dairy sector, which has seen a significant number of closures over the past two decades, dwindling from 1,000 to just 200 companies.
Highlighting the government's role in addressing the crisis, Banitaba stressed the need for policy reconsideration, asserting that ensuring sufficient dairy consumption is not solely the responsibility of manufacturers. With the industry's viability at stake, calls for policy reforms grow louder to alleviate the strain on Iran's troubled dairy sector.
