By Tabasom Khosropour
1. The Position of the Poultry Industry in Iran
Iran's poultry industry, with an annual production of over 2.5 million tons of chicken meat, 1.4 million tons of eggs, and approximately 140 million one-day-old chicks per month, is one of the largest agricultural industries in the country. The industry's turnover is estimated to exceed 280 trillion tomans, providing direct and indirect employment for more than one million people.
2. Export Trends and Challenges
According to reports, the poultry industry exports have experienced a decline of over 60% in recent years, with items such as frozen chicken, one-day-old chicks, eggs, and poultry feed seeing the largest decreases. The main reasons for this decline are as follows:
- Increase in Iraq's domestic production and the country's food self-sufficiency
Government interventions in price-setting (such as mandated pricing of chicks and poultry) have eliminated the profitability of exports.
- Foreign exchange and customs issues, including lack of access to the international banking system.
Lack of long-term export contracts and incoherence in the export supply chain.
3. Iraq's role in Iran's export market
Until 2019, Iraq was the most important export destination for Iran's poultry; geographical proximity, low transportation costs, and food dependency had given Iran the largest share. However:
- The Iraqi government has increased the production of chicks, eggs, and poultry by investing in the domestic industry and providing subsidies.
- Imports from Iran have decreased, while imports from Turkey have increased.
4. Turkey; a strong regional competitor
With government support, export-oriented production, modern logistical infrastructure, and full access to the international banking system, Turkey has succeeded in capturing markets that were previously held by Iran. The country exports over 400,000 tons of eggs annually, along with large volumes of poultry and chicks, to Iraq, Syria, and the CIS.
Turkey’s advantages include:
- Stability of exchange rates and export prices
- Complete cold chain for transporting chicks and poultry
- Access to the global banking system and LC
- Stronger branding in the Iraqi market
5. Economic analysis of Iran's advantages compared to Turkey
Index | Iran | Turkey | Result |
---|---|---|---|
Production capacity | High but underutilized | High and fully operational | Turkey has an advantage |
Geographical access to Iraq | Major advantage (direct land border) | Limited to northern Iraq | Iran has an advantage |
Currency and banking system | Deprived of SWIFT, reliance on exchange offices | Access to LC and SWIFT | Turkey has an advantage |
Cold logistics chain | Incomplete, expensive, and inefficient | Strong and coherent | Turkey has an advantage |
Export policy | Interventionist and unstable | Supportive and export-oriented | Turkey has an advantage |
Regional branding | Weak | Strong with a continuous presence | Turkey has an advantage |
6. Proposed solutions for revitalizing Iran’s exports
- Liberalizing export product prices to increase economic attractiveness.
- Developing logistical infrastructure, especially the cold chain at the western borders.
- Facilitating customs and banking processes, including through regional agreements or common currencies.
- Signing long-term export contracts with Iraqi buyers.
- Establishing a national export brand for strategic products such as eggs and fertile chicks.
- More active trade diplomacy to stabilize market share and reduce preferential tariffs with Iraq and Syria.
Final summary
The decline of Iran’s share in Iraq’s poultry export market is the result of internal factors (weak export infrastructure, price suppression, logistical weaknesses) and external factors (increased competition from Turkey, Iraq’s self-sufficiency). Although Iran’s production capacity is very high, without reforming macro policies and strengthening trade instruments, this capacity will remain underutilized. Only through a structural, economic, and regional approach can Iran’s export position be revitalized.