Rise of bran price in Iran affects meat and dairy industry

Tehran, Iran, Sept.16

Trend:

Over past six months, the bran price has increased by 60 percent in Iran, and this will affect the prices of animal feed, and meat and dairy products, Managing Director of Iran Animal Farmers' Central Union Saeed Soltani told Trend.

"The price of bran was 5,300 rial (about 12 cents) per kilo in February and it increased to 8,600 rial (about 20 cent) per kilo in March," he said.

"We calculated price of milk at 25,000 rial (about 59 cents) per kilo in June based on the price of 8,600 rial for one kilo of bran and managed to reduce the final price to 23,900 rial (about 56 cent) via market regulation headquarters," he added.

"However, the new price of milk has not been announced yet, as the bran price further increased up to 12,500 rial (about 29 cent) per kilo," he said.

In his words, the increase of bran price was caused by unpaid costs of flour factories; therefore, they raised the price to compensate the deficit. "In case of further increase of bran price, the prices of milk as well as meat and dairy products will definitely increase," he indicated.

"The quota for animal farmers is currently less than before, while Iran's Association of Flour Producers provides bran to livestock farmers at the price of 12,500 rial (about 29 cent) per kilo," he added.

"We have sent corresponding letters to the president office and the parliament, but we have not received any reply yet," he indicated.

"Further rise of the price of bran, which comprises 50 percent of animal feed, will change the livestock nutrition mode, especially in the villages, as the farmers may replace bran with bread to feed the animals," he said.

The decision of Ministry of Industry, Mine and Trade to increase bran price was objected by the union.

In his recent statement, Minister of Agriculture Mohammad Hojjati touched upon the issue of the increase of bran price. "It is not in our favor to increase the price of bran twice in past seven months and make it to grow up to 120 percent," he said.