Dairy Farmers' Association: Milk at 15,000 Tomans Per Kilogram is Not Profitable

The head of the Iranian Dairy Farmers' Association reacted to the price of 15,000 tomans for each kilogram of milk, stating that a decrease in production should be expected in the coming months due to 'lack of economic justification and loss-making production.' Ahmad Moghadassi told the state news agency IRNA that at this price, 'we should expect a reduction in production in the coming months and the exit of small units from the production cycle.' According to him, when the average inflation rate is 47.3 percent, as reported by the Statistical Center of Iran, it is not possible to convince producers that the selling price of their products does not cover production costs. Last year in Ordibehesht, the price of raw milk per liter at farms increased from 6,400 tomans to 12,800 tomans, but despite rising operational costs, the price of milk has remained stable over the past year. Mr. Moghadassi warned that the continuation of this trend will ultimately lead to a crisis in the dairy industry. Milk consumption in Iran has significantly decreased in recent years due to rising prices. In this regard, Hossein Chamani, an advisor to the Iranian Dairy Industries Association, stated in Khordad 1401 that the per capita consumption of dairy products for the bottom eight deciles of society has dropped to less than 70 kilograms per year, while the average per capita consumption of milk and dairy products in 27 European countries is about 260 kilograms, indicating a significant gap from the global average. Previously, wheat farmers had also criticized the establishment of a price of 15,000 tomans for purchasing one kilogram of wheat. These farmers, noting the increase in costs, are demanding a price of 20,000 tomans for each kilogram of wheat and have warned that they will either sell their products to foreign countries or to dairy farmers. The government has not yet revised the wheat purchase price. Inflation and rising prices have impacted public health, leading to a rise in malnutrition in Iran. Reports from Iranian media indicate a shrinking food basket for 'economically disadvantaged groups.' The prices of essential life items have increased two to four times in one year, and there has been a reduction in people's purchasing power during Ramadan 1401, with sellers complaining about a sluggish market. The government insists on the approved price, and the meeting to 'reassess the wheat price' was not held. The government price is set at 15,000 tomans for each kilogram of wheat, and farmers are not selling.