Iranian Agriculture Minister Gholamreza Nouri has announced a 20% increase in the price of raw milk, likely exacerbating the growing problems of the Iranian people in the face of continuing inflation and economic difficulties. The new price of 18,000 tomans per kg ($0.30) follows a directive from First Vice President Mohammad Reza Aref and comes at a time of rising inflation and escalating cost of living for Iranian households.
The Market Regulation Office approved the price increase last week, raising the price from 15,000 tomans ($0.25) to 18,000 tomans ($0.30), although the decision was postponed for a week. This increase has caused concern throughout the dairy industry, especially because of the impact on related products. With the minimum wage in Iran hovering around $120 per month, it is becoming increasingly difficult for many families, especially those with children, to meet basic living expenses as a large portion of their income has to be spent on rent and other necessities.
Ali Ehsan Zafari, Chairman of the Dairy Products Union, emphasised that the biggest price increases will affect products such as cheese, while the price of drinking milk itself will only rise slightly. Zafari also pointed out that the prices of dairy products as a whole will rise by around 25 per cent, which would further exacerbate the already declining trend in the consumption of milk. According to Mohammad Reza Bani Taba, spokesman for the Iranian Dairy Industry Association, per capita consumption of dairy products in Iran has fallen to less than 70 kilograms per year. This is a sharp decline compared to the period before 2010, when per capita consumption was between 100 and 130 kilograms.
