Iran exported 7.1 million tons of agricultural and food products worth $5.82 billion in the last fiscal year that ended on March 19, 2020, to register a 2.34% rise in tonnage and 8.93% decline in value compared to the year before, the Agriculture Ministry `reported.
In-shell pistachio (fresh and dried) topped the list of exports in terms of value, as the country exported $724.2 million worth of the crop during the period.
Apple was the second major exported agricultural product in terms of value with $362.27 million followed by tomatoes with $259.21 million, unshelled pistachios with $240.58 million and watermelon with $175.97 million.
In term of tonnage, watermelons topped the list with 748,090 tons, followed by apples with 740,220 tons, tomatoes with 572,940 tons, potatoes with 480,440 tons, and onions and Persian shallot with 394,990 tons.
Horticultural products accounted for 1.95 million tons worth $2.72 billion of total exports, up 30.03% and 19.72% in tonnage and value respectively year-on-year. Exports of agronomical products stood at 4.41 million tons worth $2.09 billion, down 5.2% and 20.42% in tonnage and value respectively YOY.
Exports of livestock and poultry products stood at 586,400 tons worth $718.87 million, down 7.01% and 34.05% in tonnage and value respectively YOY.
The fisheries sector exported 126,590 tons worth $249.3 million, up 4.58% in tonnage and down 25.21% in value YOY.
Exports from the forest and rangeland sector hit 19,080 tons worth $31.2 million, down 29.45% and 46.19% in tonnage and value respectively YOY.
Exports from the veterinary sector amounted to 350 tons worth $2.31 million, up 16.23% in tonnage and down 27.68% in value YOY.
17% Rise in Import Value
Imports during the same period under review stood at 24.67 million tons worth $12.58 billion, indicating a 20.5% and 17.46% increase in tonnage and value respectively year-on-year.
Field corn had the biggest share in total imports in terms of value with $2.17 billion, followed by semi-polished and polished rice with $1.68 billion, barely with $1 billion, oilcake with $950.42 million and soybean with $905.43 million.
In terms of tonnage, field corn topped imports with 8.91 million tons, followed by barley with 4 million tons, soy oilcake with 2.19 million tons, soybean with 2.08 million tons and unrefined sugar with 1.81 million tons.
Agronomical products accounted for 23.02 million tons worth $9.56 billion of total imports, up 20.91% and 19.2% in tonnage and value respectively YOY.
Horticultural products stood at 1.27 million tons worth $1.42 billion, up 14.04% and 10.32% in tonnage and value respectively YOY.
Imports of livestock and poultry products hit 311,810 tons worth $1.39 billion, up 17.58% and 13.07% in tonnage and value respectively YOY.
The veterinary sector imported 1,270 tons worth $79.01 million, up 2.05% and 6.22% in tonnage and value respectively YOY.
Imports by the fisheries sector amounted to 26,540 tons worth $71.82 million, up 12.04% and 22.18% in tonnage and value respectively YOY.
Imports from the forests and rangeland sector totaled 34,950 tons worth $54.68 million, up 37.37% and 52.5% in tonnage and value respectively YOY.
The export and import volumes indicate that Iran recorded a trade deficit of 17.57 million tons in tonnage and $6.76 billion in value during the year in review.
$247m in Losses Due to Coronavirus
The novel coronavirus has caused 39,500 billion rials ($247 million) in losses to the consumption and export sectors of Iran’s food and agriculture, a recent report by the research arm of the Iranian Parliament suggests.
The United Nations’ Food and Agriculture Organization says the coronavirus pandemic is impacting global food systems, disrupting regional agricultural value chains and posing risks to household food security.
Large-scale lockdowns to contain the coronavirus outbreak have hurt the supply of manpower and disrupted supply chains in the agriculture industry.
However, according Majlis Research Center, the production and supply chains of farm crops, livestock and horticultural crops in Iran were less prone to be affected by the contagion given the time the outbreak began and the freedom of the movement of agricultural products in the country.
Typically, the 12th month of last Iranian year (ended March 19, 2020), is a peak selling season for agrifood retailers. They usually expect a 10% increase in prices for the month compared with the average of the first 11 months of the year.
However, price rise in the month was only 2.2% compared with the average of the first 11 months of last Iranian year (March 21, 2019-Feb. 19) due to the decline in consumption of agricultural products and food, which pushed down the revenues of agrofood providers by 7.8% or about 32,500 billion rials ($203 million).
The closure of a large number of food-related businesses, such as restaurants and hotels, as well as people observing self-quarantine have brought about changes in their diet and consumer basket.
The Statistical Center of Iran’s figures show that due to lower demand, red meat and poultry prices registered a 15.4% decline in the last 11 months’ index compared with the average of past 15 years.
On the other hand, prices of dairy products were 1.9% higher than the annual trend.
Red meat suppliers sustained an estimated loss worth 11,660 billion rials ($72.87 million) during the month ending March 19, 2020, nuts and dried fruits suppliers 4,790 billion rials ($29.93 million) and poultry suppliers suffered 4,370 billion rials ($27.31 million) in losses during the month under review.
With the virus still on the loose, red meat suppliers will see estimated losses worth 34,990 billion rials ($218.68 million) by May 20, nuts and dried fruits suppliers 14,370 billion rials ($89.81 million) and poultry suppliers will suffer an estimated loss worth 13,110 billion rials ($81.93 million).
Restrictions on movements at customs and border crossings amid the COVID-19 outbreak have caused a 10% decrease or about 7,000 billion rials ($43.75 million) in exports of agricultural products. This is while the coronavirus outbreak has accelerated agricultural imports resulting in a $1.14 billion trade deficit for the country in the month ending March 19.
The agriculture sector is one of the few economic sectors of Iran that is 90% owned and run by the private sector. It accounts for 10% of the country’s production and 18% of employment.
From the fiscal 2010-11 to fiscal 2019-20, the sector expanded by 43% despite years of sanctions. The sector saw a 7.5% growth in the fiscal 2019-20.
According to former agriculture minister, Mahmoud Hojjati, Iran meets 85% of its demand for agricultural products domestically and the remaining is provided through imports.
In Hojjati’s words, around $80 billion worth of agricultural products are produced in Iran annually, $75 billion of which are consumed inside the country.
Director General of the Ministry of Industries, Mining and Trade's Food, Medicine and Toiletries Industries Department Mehdi Sadeqi Niyaraki says 95% of Iran’s food industry are owned by the private sector, noting that the sector accounts for 15% of the country’s industrial employment.
