Iranian poultry farmers have in- vested time and money to reduce the mortality rate of young broilers.
Feed market exposes farmers to sanctions While the domestic market guarantees a stable demand for poultry products, the feed market exposes the farmers to sanctions. Iran imports 80-90% of the raw materials for feed production. The biggest concern was that the re-introduced sanctions could cause production costs in the poultry indus- try to skyrocket and that is exactly what recently happened. “It was announced that due to sanctions money transfers for about 3 million tonnes of corn and soybean meal were not carried out on time and so the supply of those goods was af- fected. As a result, the price of animal feed went up,” Dr Majid Movafegh Ghadirly reports. The Tehran Poultry Farmers’ Un- ion says that it has been estimated that up to 15 million day- old chicks were culled in Iran in April 2020 because of the cri- sis. This meant that local hatcheries had no other option left other than to simply kill the day-old chicks, a market source explained.
International financial mechanisms The Iranian rial (IRR) currency has continued to lose value against major currencies in 2020, reaching as little as IRR160,000 to the US dollar at one point amid a quickly wors- ening coronavirus (COVID-19) pandemic, falling oil prices and sanctions. In February, the rial was trading at IRR130,000 to the dollar while two years ago before the re-introduction of sanctions this was at IRR40,000 against the US dollar. “The
10 ▶ POULTRY WORLD | No. 5, 2020
poultry industry is one of the industries in our country which needs large amounts of raw materials that must be imported from abroad to produce animal feed, medicine, vaccines and disinfectants. The lack of properly functioning international financial mechanisms together with sanctions, make it diffi- cult to get direct access to the [international] supply chain and this increases production costs and eventually disrupts the production cycle,” says Reza Savari.
Unfortunately, chicken meat has always been a
political commodity in Iran...” – Dr Majid Movafegh Ghadirly
“The sanctions have had an impact but the effect was damp- ened because the government introduced a special govern- ment exchange rate for imported feedstuffs,” Dr Majid Movafegh Ghadirly explains. This benefits poultry farming costs but the government is keen to protect consumers as
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
