Iran Transforms from Dairy Importer to Asia's Leading Exporter

According to SAEDNEWS, Before 1979, Iran was heavily reliant on imports for its dairy needs, bringing in approximately 200,000 tonnes of cheese each year alongside other products like butter and industrial milk powder. The country's dairy production method during that time was characterized by traditional practices, with livestock farms typically operating on a small scale and resulting in raw milk that had a high microbial load due to non-industrial processes.

However, a significant transformation began in the early 1990s, marking a new era for Iran's dairy industry. This period saw an explosion in the establishment of dairy factories, driving up the demand for quality raw milk and leading to the rise of industrial livestock farms. Today, Iran has transitioned from being an importer to an exporter of various dairy products, supplying around 50 countries and generating over $700 million in annual revenues.

The predominant markets for Iranian dairy exports include Iraq, Pakistan, Afghanistan, Azerbaijan, and the United Arab Emirates, which accounted for nearly 90% of these exports in the first two months of the current Persian year that began in March. In stark contrast to the past, when Iranians consumed about 30,000 tonnes of butter annually — all imported before the revolution — the country now boasts a production capacity that is three times greater than that figure.

Recent statistics indicate that raw milk production is approximately 9.5 million tonnes, according to the Statistical Center of Iran, and about 12 million tonnes based on figures from the Ministry of Agricultural Jihad. A significant portion of this production is converted into milk powder, reflecting the industry's modernization and growth. Notably, during the first nine months of the Persian year, Iran exported about 80,000 tonnes of industrial milk powder, a stark contrast to the 450,000 tonnes it imported annually before the revolution.

The economic landscape shifted dramatically with the influx of oil revenues, leading to a consumerist market reminiscent of pre-revolution days when supermarkets were filled with imported dairy brands. In 1979, Iran's dependence on imports was striking, with 65% of its food needs sourced from abroad. Traditional livestock farming left the country ill-equipped to produce enough dairy products, leading to an over-reliance on imports.

Since the revolution, the focus has shifted from subsistence to commercial farming, striving for self-sufficiency in food production and reducing economic reliance on Western nations. This shift has allowed for remarkable growth in the production of dairy, eggs, and poultry. The sector has thrived, particularly in exporting surplus products amidst a significant decline in the value of the rial.

According to the Food and Agriculture Organization (FAO) statistics, Iran emerged as a net exporter of milk and dairy products in 2022. While it imported 86,000 tonnes of milk and dairy products, the country exported 1.58 million tonnes of staple foods. Thus, Iran accounted for 17% of the total milk and dairy exports in Asia last year, cementing its status as the largest exporter of these commodities on the continent.