Currency collapse and feed scarcity threaten poultry production

Iran's poultry industry is grappling with a severe crisis as a shortage of foreign currency has disrupted the import of essential feed components, namely corn and soybeans. This shortage has left many producers unable to secure necessary supplies, pushing the sector to the brink of collapse.

Economic Challenges

The Iranian rial has experienced a dramatic devaluation, reportedly plummeting to over 1.5 million per US dollar by early 2026. This currency collapse, exacerbated by international sanctions, declining oil revenues, and rampant inflation, has severely restricted the government's ability to allocate foreign currency for critical imports, including poultry feed. Under Iran’s current system, feed grains are imported using state-allocated foreign currency at preferential rates and distributed to registered producers at subsidised prices. However, the current economic situation has made it increasingly difficult to maintain this system.

Market Implications

The shortage of feed has forced some farmers to resort to the open market, where prices are exorbitantly high due to the real exchange rate. Smaller producers, in particular, struggle to afford these costs, leading to drastic measures such as reducing operations or even witnessing instances of cannibalism among poultry due to lack of feed. Sadra Ali Akbarkhani, former CEO of the Central Union of Poultry Farmers, highlighted that the industry requires approximately 240,000 tonnes of corn and 160,000 tonnes of soybean meal monthly, but current imports fall significantly short of these needs.

Impact on Production

The crisis has led to a decline in the production of day-old chicks as producers scale back breeding operations amidst uncertainty. Reza Mobasseri, secretary of the Iranian Poultry Chain Producers Association, warned that without reliable access to subsidised feed, farmers are downsizing to mitigate losses. He cautioned that if chicken prices do not cover production costs, many units may go out of business, leading to reduced supply and increased market prices. Mobasseri also noted that dismantling production capacity could have long-term consequences, making it difficult and costly to rebuild the industry.

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