Milk market in Iran

Earlier Report Observations

Between 2018 and 2019, Iran's milk market volume remained stable at around 7.4 million tons. This period saw upward pressure on raw milk prices from feed shortages and currency fluctuations, while an outbreak of foot-and-mouth disease reduced daily raw milk production by 10%. Some small dairy units closed due to distribution weaknesses. Concurrently, major player Pegah entered the sports nutrition segment with high-value protein products, diversifying its offerings.

Market volume expanded sharply from 2020, reaching 8.6 million tons by 2021. The growth was primarily driven by increased dairy exports to Eurasian and European markets led by state-owned Iran Dairy Industries, which stimulated higher production. Furthermore, the government's decision to set a fixed annual price for raw milk at the start of 2021 provided producers with greater certainty, supporting continued output growth.

After peaking in 2021, the market contracted to 8.1 million tons in 2022 amid global dairy market volatility and an 18.5% drop in Iran's export price for milk powder. A renewed focus on exporting to regional markets such as Russia, Oman, and Qatar provided some offset. Volume partially recovered to 8.3 million tons in 2023.

Production milk in Iran

In kind, 2017-2020, K t

Iran ranked 22nd globally in milk production between 2017 and 2020.

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Iran's milk production increased for the second consecutive year. In 2020, the country produced 8 344 K t of milk, marking a 10.7% year-over-year rise. From 2017 to 2020, production grew by 8.4%, which translates to an annualized rate of 2.7%. The lowest production level was recorded in 2018 at 7 532 K t, with the largest decline of 2.2% occurring that same year.

Annual dynamics of production in Iran in kind, 2017-2020, K t

Exports milk from Iran

Exports in kind, K t

Iran's milk exports rose for the second year in a row. In 2020, exports reached 171.6 K t, showing a 35.9% increase compared to the previous year. Between 2017 and 2020, exports surged by 50.4%, equivalent to an annualized growth rate of 14.6%. The lowest export volume was in 2018 at 105.4 K t, when the largest decline of 7.6% was recorded.

Annual dynamics of product's exports from Iran in kind, 2017-2020, K t

From 2017 to 2020, the three largest markets for Iran's milk exports were Iraq, Afghanistan, and Pakistan, which together accounted for 83.5% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Iran in kind, 2017-2020

Exports in value, M $ US

After a two-year decline, Iran's milk exports in value terms increased. In 2020, exports amounted to 179.9 M $ US, reflecting a moderate 5.8% year-over-year rise. However, between 2017 and 2020, exports fell by 41.5%, with an annualized decline rate of 16.4%. The lowest value was recorded in 2019 at 170.0 M $ US, when the largest drop of 32.1% occurred.

Annual dynamics of product's exports from Iran in value, 2017-2020, M $ US

During 2017–2020, Iraq, Afghanistan, and Pakistan were the top markets for Iran's milk exports in value terms, accounting for 50.0%, 23.0%, and 10.0% of exports, respectively. Together, they made up 82.9% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Iran in value, 2017-2020

Imports milk to Iran

Imports in kind, K t

In 2020, Iran's milk imports totaled 6.4 K t, a 10.6% decrease from 2019. Over the 2017–2020 period, imports declined by 14.7%, with a compound annual growth rate of -5.1%. The lowest import volume was in 2018 at 5.8 K t, when the largest decline of 23.5% was observed. The largest increase occurred in 2019, with a 24.8% rise.

Annual dynamics of product's imports to Iran in kind, 2017-2020, K t

From 2017 to 2020, the United Arab Emirates, Turkey, and Belgium were the key partners for Iran's milk imports in kind, representing 45.7%, 27.2%, and 22.1% of imports, respectively. Together, they accounted for 94.9% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Iran in kind, 2017-2020

Imports in value, M $ US

In 2020, Iran's milk imports in value terms amounted to 45.2 M $ US, showing a modest 3.6% reduction from the previous year. The lowest value was recorded in 2018 at 36.4 M $ US, while the highest was in 2019 at 46.9 M $ US. The largest decline of 19.1% occurred in 2018, and the largest increase of 28.8% was in 2019.

Annual dynamics of product's imports to Iran in value, 2017-2020, M $ US

Between 2017 and 2020, the United Arab Emirates, Turkey, and Belgium were the principal markets for Iran's milk imports in value terms, together comprising 89.2% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Iran in value, 2017-2020