Iranian poultry industry at verge to collapse

A shortage of poultry feed and consequent high prices have led 7,000 farmers to cease production in the Islamic Republic of Iran over last few months.

According to Habibollah Asad-Nejad, members of the organization are paying up to IRR120,000 (US$2.85) per kilo of feed. This compares with the regular price of around IRR40,000. As poultry growers under financial pressure leave the sector, breeders have cut back production of day-old chicks. They have cut output by around 10 million per month to 105 million-110 million.

This reduction is already starting to affect the chicken meat market in Iran. As a result, the consumer price index has been rising 10-20% year-on-year over the past two quarters. The deputy head of the Iranian chicken producers’ association blames the situation on a lack of commitment from government to provide subsidized poultry feeds. To avoid the grave consequences on an already volatile market, the association has called on the government to subsidize feed costs for the sector.