IRAN - The main obstacles to supplying livestock inputs in the country

 

The Secretary of the Union of Importers of Livestock and Poultry Inputs pointed to the issues with the Comprehensive Trade Systems and the licensing process of the Ministry of Agricultural Jihad, citing their slowness and frequent outages as major obstacles to supplying livestock inputs. He identified sanctions, delays in foreign currency payments, and the growing monopoly in imports as serious threats to the sustainability of protein production in the country.

Mohammadreza Kalami – Secretary of the Union of Importers of Livestock and Poultry Inputs – The 'Bazargah System' (Marketplace Platform) serves as the Ministry of Agricultural Jihad's control mechanism to regulate agricultural markets and prevent artificial price inflation. It primarily monitors the activities of commodity suppliers.
For livestock input suppliers, the most significant systemic challenges stem from the 'Integrated Trade System' and the Ministry’s foreign permit issuance platform. These systems frequently face limitations, slowdowns, and outages—especially during order registration peaks or due to high user traffic. Crucially, they prohibit off-platform adjustments (e.g., edits to importer names, banks, origins, beneficiaries, etc.), requiring instead written requests and exceptional permits. This bureaucratic process creates long queues of applicants, delays in supply chains, and operational bottlenecks. 

Regarding the sourcing of required inputs, he stated: The primary suppliers of poultry and livestock inputs to northern ports are Russia and Kazakhstan, while southern ports mainly receive supplies from South American countries—particularly Brazil and Argentina—as well as Canada and Ukraine. With the exception of Ukraine, these countries generally maintain stable political and trade relations with Iran. However, key risks in foreign procurement include sanctions-related challenges, delays in foreign currency payments, supplier dissatisfaction at sourcing hubs, seasonal restrictions, internal regulations of certain suppliers, and political issues such as the recent 12-day war with the Zionist regime. These factors collectively pose significant risks to the stable supply of livestock inputs. 

When asked how potential currency fluctuations or global crises—such as escalating conflicts in the Red Sea or Ukraine—might impact import processes and prices, he replied:
"Undoubtedly, wartime conditions destabilize global trade, and the food industry—given its direct impact on nations' human geography—faces compounded shocks. We firmly believe that in crafting policies for such exceptional circumstances, the government must prioritize two key areas: facilitating trade and equipping/supporting the private sector." 

Unfortunately, it seems that with the reinstatement of the ceasefire, not only have these issues been forgotten, but recent discouraging signals—such as the failure to settle importers' foreign currency debts even after nine months, coupled with questionable support for certain state-owned companies to meet current market demands—pose a serious threat to the future of the livestock and poultry industry, its related sectors, and ultimately, the nation's protein supply. Currently, many importers' shipments remain stranded at ports due to the lack of foreign currency allocation and unpaid seller dues, incurring exorbitant demurrage costs (up to $30,000 per day for a 60,000-ton Panamax vessel). In such a critical situation, entrusting the task of procuring routine market-regulated inputs to state-owned companies defies all rational logic. 

The Secretary of the Union of Livestock and Poultry Feed Importers, when asked whether the import of inputs is monopolized by a select few companies, responded:
"Despite years of efforts by the Union to break monopolies and increase participation of small and medium-sized enterprises in input supply—aimed at optimizing foreign currency use and ensuring efficient procurement—recent currency policies by the government and the Ministry of Agricultural Jihad have, according to statistics, led to increased market concentration and monopolization, even a shift toward state dominance. This trend poses a serious threat to the sustainability of production in the nation's protein supply chain."  

Kalami concluded by addressing Iran's self-sufficiency in livestock inputs, stating:
"Unfortunately, our country is not self-sufficient in major livestock inputs such as soybeans, soybean meal, corn, and barley, and remains dependent on imports. Domestic barley production, in particular, is adversely affected by wheat-focused policies under the wheat self-sufficiency program, given its agricultural similarity to wheat." 

Domestic production of corn and soybeans is economically unviable due to their high water requirements, particularly given Iran’s ongoing water crisis. As a result, we remain dependent on imports for these critical commodities as well.