Market Regulation at the Expense of Producers; The Chicken Price Puzzle

While the average price of whole chicken in the market is 85,000 tomans per kilogram, the Secretary of the Association of Broiler Chicken Producers has reported chaos in pricing, stating that the production cost of each kilogram of chicken is about 70,000 tomans, but it is currently being purchased from farmers at a rate of 53 to 54 thousand tomans. These statements by Parviz Foroughi indicate that the government is regulating the chicken market at the expense of producers, which will ultimately lead to reduced production and a subsequent increase in prices. Jabrial Baradari, head of the Agricultural Jihad of Tehran Province, also announced on February 1 that the price of live chicken in production units is between 57 to 58 thousand tomans, while for consumers it is between 78 to 85 thousand tomans. Meanwhile, a review of chicken prices in online stores shows that each kilogram of processed and cut chicken is sold for up to 250,000 tomans. The price of chicken in Iran has increased more than fourfold over the past two years. Experts have identified the main cause of this price surge as government economic policies and currency decisions. The removal of the 42,000 toman exchange rate without considering its consequences, as well as currency rationing and delays in currency allocation, are among the key factors that have increased production costs. The government predicts a worsening of people's livelihoods; the Minister of Labor announced the continuation of livelihood assistance. A decrease of $3.5 billion in Iran's deposits in foreign banks; an economic 'tsunami' is on the way along with rising exchange rates; fluctuations in the prices of meat and chicken in both the free and official markets; meat supply has decreased again.