Iran’s poultry industry, once a pillar of food security and domestic protein production, is now teetering on the edge of collapse. Faced with a cascade of compounding challenges—including skyrocketing input costs, the removal of government subsidies, erratic feed imports, inflationary pressures, and policy volatility—thousands of poultry farms and producers across the country are grappling with severe financial distress. Industry insiders warn that without immediate and structured intervention, a wave of bankruptcies could decimate one of Iran’s most vital agricultural sectors.
💰 Economic Pressure Cooker: Costs Surge Beyond Sustainable Margins
The most pressing challenge lies in the exponential rise in production costs. Poultry farmers have reported that the price of essential inputs—corn, soybean meal, medicines, vaccines, and energy—has more than tripled in the past 18 months. These inputs, often heavily reliant on imports, have been subject to international price hikes, coupled with Iran’s deteriorating currency value, making imports significantly more expensive.
- Corn prices have jumped from 9,000 IRR/kg to over 28,000 IRR/kg.
- Soybean meal, another crucial feed component, has become increasingly scarce and unaffordable.
- Energy costs—especially for heating and ventilation in winter months—have surged following subsidy cuts.
Many farmers, unable to pass these costs on to consumers due to government-imposed price controls on chicken and eggs, are now operating at a net loss per bird.
⚖️ Policy Volatility and Removal of Subsidies: A Dangerous Combination
In 2022, the Iranian government began phasing out long-standing subsidies on imported poultry feed as part of a broader economic liberalization plan. While the goal was to reduce budget deficits and encourage domestic feed production, the abruptness and lack of transitional support caught the industry off guard.
- Subsidy removal led to a 2x–3x increase in feed prices within months.
- Lack of alternative support mechanisms left producers without safety nets.
- Delayed government payments for previous subsidies further strained farm cash flows.
A report from the Iran Poultry Farmers Association warned that the policy changes have created more harm than reform, likening the situation to “cutting the wings of the industry mid-flight.”
🚚 Supply Chain and Logistics Breakdown
Compounding the crisis is a fractured supply chain, exacerbated by global tensions, sanctions, and domestic mismanagement. Iran relies heavily on imports for veterinary medicines, feed supplements, and breeding stock. Disruptions at ports, delays in customs clearance, and a lack of foreign currency for importers have caused acute shortages across the poultry value chain.
Additionally:
- Cold storage facilities are overwhelmed due to unsold inventory.
- Transport costs have risen due to fuel prices and vehicle shortages.
- Egg and broiler chick production has been throttled as breeders scale back operations.
🗣️ Producers Speak Out: Bankruptcy No Longer a Threat, But a Reality
Many small and mid-sized poultry farmers say the situation is no longer hypothetical. They have already shuttered operations or are days away from doing so.
- “We are selling chickens at 100,000 IRR/kg, but it costs us 120,000 IRR/kg to produce them,” one farmer in Mazandaran told local media.
- “More than 40% of poultry farms in our region have closed in the past year,” another producer in Isfahan reported.
Even large-scale commercial farms are resorting to mass culling of chicks to cut losses, a tragic indicator of the desperation gripping the sector.
🍗 Consumer Impact: Higher Prices, Lower Quality, Food Security Risks
While farmers struggle, Iranian consumers are already feeling the ripple effects.
- Chicken and egg prices have spiked by over 70% year-over-year.
- Black-market prices are emerging as regulated prices become unsustainable.
- Food security concerns are mounting, especially among lower-income households who rely on poultry as an affordable protein source.
Experts warn that if the situation persists, Iran could face a nutritional crisis on top of an economic one.
📣 Calls for Government Action and Structural Reform
The Iran Poultry Federation and other advocacy groups are urging authorities to:
- Reinstate targeted subsidies or provide low-interest loans to struggling farmers.
- Regulate feed prices through domestic production incentives.
- Establish a stabilization fund to buffer against currency and global commodity shocks.
- Develop an emergency support mechanism for bankrupt farms to avoid total industry collapse.
Without these interventions, Iran risks permanent structural damage to a sector that contributes nearly 2% of the country’s GDP and employs hundreds of thousands across its supply chain.
🌍 Regional Ramifications and International Attention
Iran’s poultry crisis is also drawing attention from neighboring countries and international agricultural observers. Given that Iran has previously exported poultry to neighboring regions, a collapse could destabilize regional protein supply chains, especially in Iraq, Afghanistan, and parts of the Persian Gulf.
Moreover, the crisis underscores the vulnerability of food systems in heavily sanctioned and policy-volatile nations.
⚠️ Conclusion: A Sector at the Crossroads
The Iranian poultry industry stands at a perilous juncture. What was once a self-sustaining, export-capable food sector is now facing a perfect storm of rising costs, broken policies, and collapsing confidence. Without decisive, well-planned, and immediate government intervention, the sector may face irreversible decline, with dire consequences for national food security, employment, and inflation control.
This is not just an agricultural issue—it is a national emergency.
❓ Frequently Asked Questions (FAQs)
1. Why is the Iranian poultry industry facing a crisis?
A: The crisis stems from a combination of factors including subsidy removals, skyrocketing feed and energy costs, supply chain disruptions, currency devaluation, and inconsistent government policies. These factors have severely impacted farmers' profit margins, making it difficult to sustain operations.
2. How much have feed prices increased for poultry farmers in Iran?
A: Feed prices such as corn and soybean meal have more than tripled in the last 18 months. Corn has surged from around 9,000 IRR/kg to over 28,000 IRR/kg, making up a significant portion of overall production costs.
3. What role has the government played in the crisis?
A: The Iranian government removed key subsidies and implemented policy shifts without providing adequate transition mechanisms. Additionally, delays in financial support and regulatory instability have worsened the situation.
4. What are the potential consequences for consumers in Iran?
A: Consumers are already experiencing higher prices for chicken and eggs—over 70% inflation year-over-year. If the crisis continues, food security may become a major national concern, especially for low-income populations.
5. Can the Iranian poultry sector recover from this crisis?
A: Recovery is possible but will require immediate and comprehensive intervention, including financial aid for farmers, regulatory reforms, stabilization of feed costs, and long-term planning to rebuild the domestic supply chain and restore confidence in the industry.