Page 61 - IRANRptJul22

Imports of animal feed raw materials to Iran topped $6bn in 11 months
Iran ‘fears war in Ukraine will halt vital wheat imports’
such as rice, to be cultivated in parts of the country not blessed with an abundance of water.
A total of 15.5mn tonnes of animal feed raw materials worth $6.47bn were imported to Iran during the first 11 months of the current Iranian year (March 21, 2021-February 19), indicating an increase of 11% and 51% in weight and value, industry data reported on March 15.
Data released by the Union of Livestock and Poultry Feed Importers showed more than 856mn tonnes of field corn worth $2.95bn were imported, indicating a decrease in volume of 7% and an increase in value of 28% year on year.
In addition, 2.11mn tonnes of soybeans worth $1.38bn and 2.27mn tonnes of soybean meal worth $1.24bn were imported, indicating an increase in value and weight of 59% and 17% respectively, compared to the corresponding period last year.
Barley imports amounted to 3mn tonnes worth $895.96mn, which means an increase in weight and value of 76% and 112% respectively y/y.
Iranian animal feed manufacturers can produce between 22 and 25mn tonnes per year (tpy) but are operating at about 30% of their full capacity, the food producers’ association said. Domestic annual demand is between 12 and 15mn tpy.
The Iranian government is seeking to abolish the cheap import regime at 42,000 rials per dollar for all permitted goods except wheat and medicines. The move is expected to put further pressure on the livestock industry in the country.
The war in Ukraine looks set to bring a halt to shipments of vital wheat supplies needed by Iran within days, according to the chairman of Iran’s National Union for Agricultural Products, ILNA has reported.
Some 25-30% of Iran’s grain imports are provided by Ukraine and Russia, Reza Nourani was quoted as saying. The lack of road and maritime transportation security amid the conflict would likely mean shipments from Ukraine would very soon stop, he was cited as saying.
Ukraine is one of Iran’s target countries for expanding overseas wheat farming but Nourani reportedly said: “We’ll have to wait for the end of war to be able to continue with trade relations.”
Noting that highly fertile land available in Ukraine convinced overseas farmers from various countries, including Iran, to invest in the country, he was also reported as saying: “We hope the war will not lead to the destruction of their investments.”
Iran has been substantially expanding its importation of wheat in the face of difficulties with drought that has undermined its grain output.
Separately, IRNA reported on February 26 that 6.2mn tonnes of wheat were imported by the country during the first 11 months of the current Persian calendar year (March 21, 2021 – February 19, 2022), according to the director general of the sales and distribution coordination department of the Government Trading Corporation.
“This year, the government bought around 4.5 million tonnes of the staple grain from local farmers as part of its guaranteed purchase plan. As domestic consumption of wheat was estimated to rise to over 11 million tonnes this year, the deficit had to be imported,” Hojjat Baratali was quoted as saying by the news agency.
In the previous Persian year (ended March 20, 2021), 10.5 million tonnes of wheat were consumed in Iran, official data showed.
Iran imports essential commodity wheat using its subsidised USD rate of 42,000 rial per dollar. The free market rate is 263,200 per dollar.
61 IRAN Country Report July 2022 www.intellinews.com