Iran Plans Poultry Exports as Producers Face Higher Costs and Funding Pressure

Exports expected to begin soon

Iran is preparing to start chicken exports as the country’s broiler industry seeks a more stable outlet for production. Habibollah Asadollahnejad, chief executive of the national broiler farmers’ union, said exports would begin soon and described continuity in foreign sales as one way to regulate the market, according to EcoIran.

The announcement did not specify a launch date, planned shipment volume or destination countries. It nevertheless signals an attempt to use external demand to manage conditions in Iran’s poultry sector. A dependable export channel could give producers another outlet when domestic supply exceeds immediate demand, but irregular access to foreign markets would offer less support for production planning and producer margins.

Production costs strain farmers’ liquidity

The export plan comes as poultry farmers face a sharp increase in operating expenses following the removal of Iran’s preferential exchange rate. Asadollahnejad estimated the current production cost of chicken at 280,000-290,000 tomans per kilogram, compared with 87,000 tomans before the preferential rate was abolished. He said prices for production inputs had increased fourfold to fivefold.

According to the union executive, the government has effectively provided no working-capital facilities to poultry farmers since the currency policy changed. Producers have therefore struggled to finance the higher cost of inputs. Some farms have been unable to return to the production cycle, he said, raising questions about the industry’s ability to maintain output while also developing regular export business.

Asadollahnejad said the subsidy reform was supposed to provide farmers with the support needed to continue producing without relying on market financing at high interest rates. He also referred to the Novipo wallet as a guarantee mechanism that requires poultry farmers to provide adequate collateral. In his account, the mechanism existed before the preferential exchange rate was removed, while producers did not receive effective support afterward.

Regional sales face policy and competitive barriers

Turning exports into a durable market-balancing instrument will depend on more than the availability of chicken. Asadollahnejad identified unstable export policies, duties imposed by Iraq on imported Iranian chicken and strong competitors in target markets as major obstacles. These factors can affect the final cost of Iranian poultry for regional buyers and make long-term sales contracts more difficult for producers and traders.

Iraq’s duties are particularly relevant because they add a border cost outside the control of Iranian farms. At the same time, competitors in destination markets can limit the extent to which Iranian producers pass higher input and financing costs to buyers. Without predictable export rules, farmers also risk increasing production for foreign sales only to face a policy change before shipments are completed.

Market impact hinges on continuity

Regular exports could help absorb marketable supply and provide poultry farms with an additional revenue channel. However, exports may support the domestic market only if production remains sufficient and sales abroad operate under consistent rules. The union’s figures show that the immediate constraint is not simply access to buyers: farms must first fund production at costs far above the level recorded before the currency reform.

For processors and traders, the next indicators will be the timing and scale of shipments, the markets selected and the treatment of Iraqi duties. Domestic buyers will also watch whether exports change chicken availability or prices inside Iran. With no volume or timetable yet disclosed, the commercial impact remains dependent on implementation and on whether the authorities can maintain an export policy long enough for producers to plan around it.