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Analysis of statistics, cost of production, and the impact of currency fluctuations.

Written by Hamid Atharinejad

Economic analysis of the poultry industry:

Introduction

The poultry industry in Iran plays a vital role in providing animal protein and is considered one of the key components of the country's food supply chain. This industry is directly linked to the production and consumption of broiler chicken, and in addition, it contributes to job creation and ensuring food security in the country. This article will analyze the statistics of broiler chicken production and consumption and examine the effects of currency fluctuations on the cost of production. Furthermore, the advantages and shortcomings of this industry will be analyzed in comparison to production and consumption in neighboring countries.

Value chain of the poultry industry

The poultry industry in Iran, like in other countries, depends on a multi-stage value chain that includes the supply of day-old chicks, animal feed production, poultry farming, processing and packaging, and ultimately, distribution of the final product. Each of these stages directly affects the cost of production and the quality of the product.

  1. Day-old chick production:This is the initial stage of the poultry industry, which requires advanced technologies in egg production and incubation. Providing healthy and high-quality chicks for optimal growth of the chickens is a crucial aspect of this value chain.
  2. Animal feed supply:Animal feed constitutes the main production cost of broiler chicken. The raw materials for animal feed, such as corn, soy, and other protein sources, are primarily imported, and their prices are affected by currency fluctuations.
  3. Poultry farming:In this stage, chickens are raised in poultry farms. Energy costs, labor, and care for the chickens at this stage have a significant impact on the final cost.
  4. Processing and packaging:After being raised, the chickens must undergo processing and packaging for market distribution. This stage requires modern equipment and adherence to health standards.
  5. توزیعFinally, the finished product must be transported to the consumer market. Transportation and distribution costs at this stage also contribute to the final price of the product.

Statistics and figures on broiler chicken production and consumption.

Broiler chicken production in Iran has continuously increased in recent years. Iran holds a special position among chicken-producing countries in the Middle East. According to the Ministry of Jihad Agriculture's statistics, broiler chicken production in Iran exceeds 2.1 million tons per year. The per capita chicken consumption in Iran is also about 26 kilograms per year per person, which is higher than the global average.

Currency fluctuations and their impact on the poultry industry.

Exchange rate fluctuations, especially in Iran, which heavily depends on the import of animal feed ingredients, have significant impacts on the cost of broiler chicken production. An increase in exchange rates raises the cost of importing raw materials such as corn and soybeans, which directly affects the price of chicken. In situations where the exchange rate increases, producers are forced to raise chicken prices, which can lead to reduced consumer purchasing power and increased market volatility.

Cost analysis of broiler chicken.

The cost of broiler chicken production depends on various factors. One of the most important factors is the cost of animal feed. These costs are directly influenced by global feed prices and exchange rate fluctuations. Additionally, energy costs, labor, and poultry farm facilities also affect the overall production cost.

Comparison of broiler chicken production and consumption in Iran and neighboring countries.

In comparison with neighboring countries, Iran has certain advantages in broiler chicken production. These advantages include lower labor costs and high production capacity. However, issues such as currency fluctuations and infrastructure limitations can impact the overall cost. For example, in neighboring countries like Turkey and Saudi Arabia, where industrial infrastructure and animal feed supply conditions are better, the cost of broiler chicken production may be lower than in Iran.

Conclusion

The poultry industry in Iran is considered a vital sector in ensuring food security and creating employment. However, to improve the economic status of this industry, there is a need for optimal management of the value chain, reducing dependence on feed imports, and mitigating the negative effects of currency fluctuations. Additionally, by developing export markets and improving competitiveness, Iran can position itself as one of the major poultry exporters in the region.

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