Page 49 - IRANRptFeb21

meat market price fluctuations. However in the past few months, demand for feed rose to a level higher than the government could meet. On the open market, poultry farms have to pay Iranian rial (IRR) 120,000 ($0.5 at the free market exchange rate) per kg of poultry feed, which is three times more expensive than the government price, Asad-Nejad was cited as saying, adding that since May the government has only been able to supply an estimated 50% of poultry farms’ demand for feed.
The feed supply problems have already driven 7,000 poultry farms out of operation and prompted numerous hatcheries to cut down on production, according to local reports.
The supply disruptions have been caused by the ongoing downward rally of the Iranian currency. The rial has lost around half its value against the dollar in 2020 to date. All imported products, including feedstuff, have thus become that much more expensive.
Iran imports approximately 80% of feedstuff for poultry feed production. Poultry World concluded: “At this moment in time, the total production of day-old chicks is about 110 million per month, while before the Covid-19 pandemic, this was 120 million. In May of 2020, the acute shortage of poultry feed on the domestic market prompted hatcheries to bury day-old chicks alive because no one was buying.
“According to the Iran Feed Industry Association, the Covid-19 pandemic was not to blame. The US sanctions have blocked payments for 3 million tonnes of imported corn and soybean, leaving the domestic market short of feedstuff. Iran’s poultry farmers called the government to take urgent steps to protect the domestic poultry industry. According to Asad-Nejad, the current crisis could have a severe and long term impact on Iran’s poultry industry.”
9.1.9​ Retail sector news
Iran’s clothing sales fall “to almost zero” amid retailers’ virus woes
The head of Iran’s Association of Clothing Manufacturers has said clothing sales in the country have fallen “to almost zero” amid coronavirus (COVID-19) restrictions, according to ILNA.
Tehan’s Grand Bazaar, stores across Iran and production workshops in the country have since the spring been forced to close for extended periods, decimating the domestic clothing manufacturing and retailing sectors, Abolghasem Agahhossein Shirazi was quoted as saying. Iran’s clothing industry remains traditionally based on in-store shopping unlike in the West where many consumers now prefer to shop online.
"Sales of clothing are down to almost zero compared to last year when the market was booming and Iranian production was stable. Unfortunately the coronavirus outbreak has dealt a fatal blow to clothing manufacturers," Shirazi said.
The latest severe decline of the Iranian rial (IRR) was yet to affect offered prices on clothing as an abundance of items was already sewn before it began, noted Shirazi. However, items produced after the new Persian year commenced on March 20 were seeing 30% to 40% price hikes due to the weaker rial driving up costs on imported raw materials, he added.
“As people are housebound, they have few or no requirements for new clothes and the industry now has a glut of items to move,” Shirazi concluded.
9.1.10​ Property sector news
49​ IRAN Country Report February 2021 www.intellinews.com
Iranians hold on to
Iranians this year for the first time have overtaken Iraqis as the top foreign