Page 56 - IRANRptSep22

Iran top for Russian wheat imports in July
Drought impacts on grazing prompt Iran to lift ban on livestock exports
Iran was the largest buyer of Russian wheat in July, purchasing 568,000 tonnes against 468,000 tonnes in the same month a year ago, Tehran Bazaar reported on August 3, citing ZOL on.
Iran’s cooperation with Russia, as a country that has long suffered the aggressive Western sanctions Moscow has been experiencing since its late February invasion of Ukraine, continues to grow across a range of fields including goods transit, aviation, oil and gas and efforts to displace the dollar from trade transactions. The US, meanwhile, remains on alert for confirmation that Iran is prepared to ship Russia hundreds of drones that might play a role in the Ukraine conflict.
According to analysts, Russian wheat prices fell in July by RUB 375 to RUB 11,200 RUB per tonne, with the Iranians buying up the biggest quantities. Turkey reduced its purchases of Russian wheat compared with July a year ago by 24% y/y, while Egypt cut its purchases by 44% y/y to 243,000 tonnes.
Egypt has been looking for new suppliers to reduce the risk of the non-delivery of goods. There is information that Cairo plans to purchase large volumes in India and Latin America to avoid US sanctions.
According to Russian Grain Union data, the export value of Russian wheat with 12.5% protein was $345 per tonne, while for wheat with 11.5% protein it was $330-335 per tonne.
Also in July, according to preliminary estimates, year on year 17% less grain was exported from Russia: 3.1mn tonnes against 3.7mn tonnes the.
Wheat exports decreased by 10.4% y/y to 2.8mn tonnes.
Barley exports decreased by 64% y/y to 181,000 tonnes (491,000 tonnes in July 2021) and corn fell by 7% y/y to 119,000 tonnes.
Iran is lifting its ban on exporting livestock, prompted by a market oversupply blamed on drought conditions that have caused a lack of land suitable for grazing, Fars News Agency has reported.
The country is burdened by several climate change issues that have become apparent in recent years, most notably rainfall reductions across several regions. This is while dairy farming in Iran stems from before the 1979 Islamic Revolution, when intensive farming practices applied to indoor herds were the preferred option. The Iranian dairy industry, meanwhile, is one of the largest in West Asia, with some 73mn livestock. Iran has contracts with Brazil and other countries to supply substantial amounts of red meat.
Iran’s National Farming Association said that 10,000 reproductive animals were being moved from southern provinces to markets because of drought conditions that have forced farmers off the land.
“Low precipitation and drought have caused a sharp decline in the amount of fodder in southern pastures and meadows. The main means for Iranian farmers to feed their light livestock is taking them to these grazing fields. With the drying up of pastures, this is no longer possible [for a great deal of farmers],” Mojtaba Aali, a representative of the farming association, was quoted as saying by Fars.
The official added that grazing fields in provinces along the Caspian Sea coast were in better shape. Many herds had thus been relocated to the north.
Amid persistent drought conditions in recent months, many Iranian farmers have responded by sending livestock to abattoirs, according to local reports. The Majlis (Parliament) Research Centre has listed Iranian provinces with critical water shortages. They include, Isfahan, Hormozgan, Sistan and Baluchistan, Ardabil (in the north), Fars, Markazi and Khorasan Razavi.
56 IRAN Country Report September 2022 www.intellinews.com