Soybean oil and fractions market in Iran

Earlier Report Observations

From 2018 to 2020, the soybean oil market in Iran saw fluctuating production and import levels. In 2018, the market volume stood at 574.7 thousand tons under a regulatory environment where only three genetically modified crops, including soybeans, were permitted for use, though labeling rules were not enforced. Production dropped to 328.5 thousand tons in 2019 but rebounded to 431.7 thousand tons in 2020, while imports rose in 2019 before declining in 2020. Overall, the market size grew from 574.7 thousand tons in 2018 to 677.9 thousand tons in 2020.

The market dynamics shifted markedly in 2021 and 2022. In 2021, the abolition of the preferential exchange rate and soaring global prices strained domestic oilseed crushers, reducing their working capital and limiting production to 339.2 thousand tons. To meet demand, imports surged to 532.6 thousand tons, pushing the total market volume to a peak of 871.8 thousand tons. The following year, Iran's Ministry of Agriculture launched a 10-year self-sufficiency program aiming to cover at least 70% of the country's oil needs domestically. This policy supported a rise in production to 414.9 thousand tons and a drop in imports to 378.4 thousand tons, shrinking the market to 793.3 thousand tons. The continued removal of the preferential exchange rate further impacted prices and distribution.

By 2023, the self-sufficiency drive appeared to accelerate. Domestic production increased to 449.0 thousand tons, while imports collapsed to just 27.7 thousand tons, leading to a sharp contraction in the overall market to 476.7 thousand tons. Preliminary data for 2024 shows imports remaining low at 14.0 thousand tons, indicating a sustained reliance on domestic output.

Production soybean oil and fractions in Iran

In kind, 2017-2020, K t

From 2017 to 2020, Iran ranked 18th globally in terms of soybean oil and fractions production volume.

Top producers of soybean oil and fractions, 2017-2020

World map of production of soybean oil and fractions, 2017-2020

In 2020, Iran produced 431.7 K t of soybean oil and fractions, marking a significant increase of 31.4% compared to the previous year. Over the 2017-2020 period, production grew by 22.9%, with a compound annual growth rate of 7.1%. The lowest production level was recorded in 2019 at 328.5 K t, which represented the largest decline of 23.1% during this timeframe.

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

Exports soybean oil and fractions from Iran

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment. Export volumes reached their lowest point in 2019 at 0.1 K t, then peaked in 2018 at 7.2 K t, representing a 75-fold difference between these years. The 2019 figure marked a steep decline of 98.7% compared to 2018, while 2018 saw the largest increase of 218.8%.

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

Between 2017 and 2020, Afghanistan was the dominant buyer of soybean oil and fractions from Iran, accounting for 70.6% of total exports in kind, with other countries sharing the remaining volume.

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

The market showed signs of volatility over the observed period. Export values reached their lowest point in 2019 at 0.1 M $ US, then peaked in 2018 at 11.8 M $ US, representing a 184-fold gap between these years. The 2019 figure showed a sharp decline of 99.5% compared to 2018, while 2018 recorded the largest increase of 259.1%.

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

From 2017 to 2020, the geographical pattern of exports in value terms was characterized by strong dominance from Afghanistan, whose share reached 74.0% of total flows, while other partners held relatively minor shares.

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

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

Imports soybean oil and fractions to Iran

Imports in kind, K t

There were noticeable fluctuations in market performance during the period. Import volumes reached their lowest point in 2018 at 154.9 K t, then peaked in 2019 at 313.1 K t, representing a 2-fold gap between these years. In 2020, Iran imported 246.2 K t of soybean oil and fractions, which was 21.4% smaller than the previous year. The largest decline of 43.3% was recorded in 2018, while 2019 saw the largest increase of 102.1%.

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

Between 2017 and 2020, Argentina (49.8% of imports in kind), Turkey (15.3% of imports in kind), and Switzerland (13.5% of imports in kind) made the biggest contribution to imports in kind, jointly accounting for 78.6% of total 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

The market exhibited an unstable trend throughout the timeframe. Import values reached their lowest point in 2018 at 121.9 M $ US, then peaked in 2019 at 236.8 M $ US, representing a 1.9-fold difference between these years. In 2020, Iran's soybean oil and fractions import volume was recorded at 219.0 M $ US, showing a drop of 7.5% compared with 2019. The largest decline of 46.6% was recorded in 2018, while 2019 saw the largest increase of 94.2%.

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

Between 2017 and 2020, Argentina (49.7% of imports in value terms), Turkey (14.8% of imports in value terms), and Switzerland (14.4% of imports in value terms) made the biggest contribution to imports in value terms, jointly accounting for 78.9% of total flows.

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

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