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Spokesman of the Iranian Dairy Industries Association: 80% of Dairy Companies Have Shut Down

Feb 4, 2026 February 4, 2026 2 min read 📰 VOA Persian
📋 Key Takeaway

The Iranian Dairy Industries Association reports that 80% of dairy companies have shut down due to economic policies and a significant decline in consumer purchasing power, leading to a 30% drop in dairy consumption. This situation highlights the broader economic challenges facing Iranian citizens and the dairy industry.

🔍 Quick Context Guide
💡 Bottom Line: The crisis in Iran's dairy industry underscores the urgent need for economic reform to address declining purchasing power and food security.

👥 Key Players

Mohammad Reza Bani Taba MENTIONED
Spokesman for the Iranian Dairy Products Industries Association
"He represents the interests of the dairy industry and highlights the economic struggles faced by producers."
Alireza Oliayi Manesh MENTIONED
Deputy Health Minister of Tehran University of Medical Sciences
"He provides insights into the health implications of declining dairy consumption."
Reza Bakri MENTIONED
Secretary of the Iranian Dairy Products Industries Association
"He emphasizes the economic challenges and purchasing power issues affecting consumers."
President Ebrahim Raisi MENTIONED
President of Iran
"His administration's economic policies are under scrutiny for contributing to inflation and food insecurity."

📰 What Happened

The Iranian Dairy Products Industries Association reported that 80% of dairy companies have shut down due to unfavorable economic policies and a significant decline in consumer purchasing power, leading to a 30% drop in dairy consumption.

  • 800 dairy production companies have gone out of business over the past two decades.
  • Dairy consumption in Iran has decreased by 30% due to economic difficulties.

💡 Why It Matters

🇮🇷 For Iran: The shutdown of dairy companies and decline in consumption highlights severe economic distress and food insecurity among the Iranian population.
🌍 Regional: The economic instability in Iran could have ripple effects in the region, affecting trade and food supply dynamics.
🌐 International: International observers may view this situation as indicative of broader economic mismanagement in Iran, potentially impacting diplomatic relations.

📚 Background

Iran has faced significant economic challenges, including high inflation and currency devaluation, affecting various sectors, including food production.

Economic sanctions on Iran Inflation and purchasing power in Iran
📡 Source: NEUTRAL
📊 Confidence: 70%
The information comes from industry representatives and health officials, providing a factual basis for understanding the economic situation.

The spokesman for the Iranian Dairy Products Industries Association has criticized the country's economic policies in recent decades, stating that 800 dairy production companies have gone out of business over the past two decades. Mohammad Reza Bani Taba mentioned that the decrease in dairy consumption in Iran, due to the decline in people's purchasing power, has resulted in losses for producers. Currently, about 100,000 tons of powdered milk are stored, indicating that exporting processed products is also not easy. The spokesman emphasized that the reduction in per capita dairy consumption, attributed to the decline in purchasing power, is a significant issue for the dairy industry today. Supporting this claim, the Deputy Health Minister of Tehran University of Medical Sciences reported on February 10 that dairy consumption among Iranians has decreased by 30%. The Deputy Health Minister of Qazvin University of Medical Sciences also stated on February 4 that economic difficulties are one of the reasons for the decline in per capita dairy consumption. Furthermore, the Deputy Health Minister of Tehran University noted that dairy consumption helps prevent osteoporosis. Alireza Oliayi Manesh also warned about the high salt consumption in Iran, stating that the body's salt needs are only met through bread consumption. The Tehran Chamber of Commerce reported on September 21 this year in a report titled 'Warning Signal for Dairy Consumption' that 'after the removal of preferential currency for animal feed, dairy prices increased, and consumption reached its lowest level in the past ten years.' The prevailing market trends and statistics regarding dairy consumption in Iran indicate that the government's policy of subsidizing animal feed and setting controlled prices for dairy products has not been effective. Accordingly, Reza Bakri, the secretary of the Iranian Dairy Products Industries Association, stated on December 5 of last year: 'People do not have the purchasing power for even controlled-price dairy products.' Media reports indicate that inflation is accelerating under President Raisi's administration; nuts have become inaccessible, and food inflation is 38% higher than the annual inflation rate. There are warnings about the rise of osteoporosis; dairy consumption in Iran has decreased by 30%. The interplay of inflation with public health has led to a decline in dairy consumption in Iran. Workers are facing food poverty, with bread and sugar replacing meat and dairy in their diets.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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