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Iran’s dairy products lose Iraqi market

Business Materials 17 June 2013 13:25 (UTC +04:00)

Azerbaijan, Baku, Jun.17/ Trend F.Karimov/

Iran's dairy products have lost Iraqi market due to imposing a 7 percent duty on exports, the Fars News Agency quoted secretary of the Iranian dairy industries union Reza Bakeri as saying.

"Dairy exports to Iraq will no longer be economically justified," Bakeri said, adding that Turkey and Kuwait have taken Iran's share in dairy exports to Iraq.

"Some 6.7 million tons of milk is produced annually in the Iran, five percent of which is exported after being turned into cheese, yoghurt, and ice cream," he noted.

In January, IRNA quoted Mohammad-Reza Esmaeili, the managing director of Iranian dairy industries union, as saying Production at Iranian dairies has been dropped significantly due to high production costs and also less consumption by people.

"The domestic dairies have the nominal production capacity of 20 million tons, but currently it is just 5 million tons," he added. "High production costs have raised consumer prices, so that buying dairy products by people has significantly decreased."

Esmaeili said that per capital consumption of milk has been reduced to 60 liters from 80 liters in the previous year in Iran.

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