Soybeans market in Iran

Earlier Report Observations

The soybean market in Iran reached a peak volume of 2.7 million tons in 2018, driven by a surge in imports from the United States as American farmers sought alternative markets during the U.S.-China trade war. Subsequently, import volumes declined, leading to a smaller market size around 2.3–2.4 million tons through 2022, while domestic production gradually increased to 210 thousand tons.

In 2023, domestic production fell to 190 thousand tons as the elimination of preferential exchange rates multiplied the cost of imported feed ingredients, squeezing local processors. At the same time, imports rose to 2.36 million tons, pushing the total market volume to 2.55 million tons. The government assigned a state-owned company to organize the distribution of feed materials, aiming to remove intermediaries. Global price fluctuations and exchange rate movements continued to directly influence soybean costs in Iran.

For 2024, import data indicates a further increase to nearly 2.5 million tons, reflecting persistent reliance on foreign supply. Factors such as evolving online retail channels and product quality considerations are shaping the soybean products market, though currency policies and international price trends remain the primary influencers.

Production soybeans in Iran

In kind, 2017-2020, K t

Top producers of soybeans, 2017-2020

World map of production of soybeans, 2017-2020

Iran's soybean production has grown for the third year in a row. In 2020, the country produced 190.0 K t of soybeans, marking a modest increase of 5.6% compared to the previous year. From 2017 to 2020, production rose by 35.7%, which translates to an average annual growth rate of 10.7%.

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

Exports soybeans from Iran

Exports in kind, K t

The soybean export market experienced significant volatility during this period. In 2018, exports hit their lowest point at 0.0 K t, with a sharp decline of 55.0% from the previous year. By 2019, exports surged to a peak of 0.2 K t, representing an extraordinary increase of 785.3%. However, in 2020, exports dropped to 0.1 K t, a sharp decline of 37.5% compared to 2019. Overall, exports varied dramatically, with an 8.9-fold difference between the peak in 2019 and the trough in 2018.

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

From 2017 to 2020, Iraq dominated Iran's soybean exports in kind, accounting for 79.5% of total flows. Other trading partners held relatively minor shares during this period.

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 value of soybean exports also showed considerable volatility. In 2018, exports reached their lowest point at 0.0 M $ US, followed by a peak in 2019 at 0.2 M $ US, which represented a substantial increase of 615.5%. In 2020, exports fell to 0.1 M $ US, a sudden drop of 50.6% from the previous year. The gap between the highest and lowest values was 7.2-fold.

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

In terms of value from 2017 to 2020, Iraq was the dominant destination for Iran's soybean exports, making up 84.4% of total flows. Other partners contributed relatively small 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 soybeans to Iran

Imports in kind, K t

Iran's soybean imports declined for the second consecutive year. In 2020, imports totaled 2 123 K t, a slight decrease of 1.3% from 2019. The highest import volume was recorded in 2018 at 2 539 K t, which saw a significant increase of 20.2%. In 2019, imports fell by 15.3% to their lowest point during the period.

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

From 2017 to 2020, Switzerland, the Netherlands, and the United Kingdom were the leading sources of soybean imports to Iran in kind. Switzerland accounted for 34.6% of imports, the Netherlands for 25.2%, and the United Kingdom for 16.4%, together representing 76.2% 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

In 2020, Iran's soybean imports in value terms amounted to 1 048 M $ US, up by 12.2% compared to 2019. The lowest value was recorded in 2019 at 934 M $ US, which marked a decline of 19.5% from the previous year. The peak occurred in 2018 at 1 161 M $ US, with an increase of 23.1%. Overall, from 2017 to 2020, imports grew by 11.1%, averaging an annualized rate of 3.6%.

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

In value terms from 2017 to 2020, Switzerland, the Netherlands, and the United Kingdom were the main sources of soybean imports to Iran. Switzerland contributed 34.1% of the total value, the Netherlands 24.7%, and the United Kingdom 16.8%, combining for 75.6% of all imports.

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

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