Increasing Poverty Impacts Iranian Dairy Consumption

Poverty levels in Iran have reached such depths that even dairy is becoming increasingly unaffordable for the general population.

Customs statistics reveal a notable increase in the export of Iranian dairy products during the first seven months of this year compared to the same period last year. While this initially appears as positive news, the underlying reality paints a more complex picture.

Contrary to a surge in production, the surge in dairy exports is attributed to a surplus of raw milk. The primary driver behind the surplus, however, is not an excessive production beyond consumption needs but rather a significant decline in the purchasing power of the Iranian people, for whom dairy products are becoming increasingly out of reach.

Reza Bakeri, the secretary of the Iranian Dairy Processing Industries Association, commented on the development, noting that “the per capita consumption of dairy products in Iranian society has dwindled due to the diminished purchasing power of the population, resulting in a surplus of raw milk.”

Adding to the economic woes, the inflation rate in the past Iranian month reached its highest point in two years. The government, grappling with substantial budget deficits, has resorted to printing more money, exacerbating the challenges faced by the Iranian economy.

The trend began last year, when Iran’s health ministry announced that the average consumption of milk and dairy products had decreased about 30 percent in the last two years due to rising food prices and inflation.

Despite having the biggest dairy products factory in the Middle East, Iran has a per capita consumption of about 60 to 80 kilograms a year, that is about half of the global average.

The Iranian currency has experienced a significant devaluation, losing its value by 12-fold since 2018, a period marked by the US withdrawal from the JCPOA nuclear accord and the imposition of sanctions.