• Domestic Economy

    Meat Production Increases by 49%

    A total of 45,779 tons of red meat were produced in official slaughterhouses during the month ending May 21 to register a 49% rise compared with the similar month of last year.

    Meat output witnessed a 1.6% month-on-month growth.

    The Statistical Center of Iran's latest report shows beef accounted for 25,551 tons or 55.8% of overall production, indicating a year-on-year increase of 49%.

    A total of 16,450 tons of lamb (up 50% YOY), 2,843 tons of goat meat (up 33% YOY) and 935 tons of meat from other types of livestock were produced during the one-month period, accounting for 36%, 6.2% and 2% of the total output respectively, SCI reported on its website.

    Domestic red meat consumption has considerably declined since the outbreak of the novel coronavirus pandemic wreaking havoc on the livelihood of livestock breeders and nomads.

    The decline in red meat consumption has inflicted the most harm on nomads and their economy which is mainly dependent on animal husbandry, the caretaker of Nomadic Affairs Organization affiliated with the Agriculture Ministry said recently.

    “Limitations placed on social events and gatherings due to the pandemic have resulted in the cancellation of weddings, funerals and religious ceremonies. Most restaurants have either closed down or have very few customers and delivery requests, which has in turn reduced red meat consumption,” Shahpour Alaei-Moghaddam was also quoted as saying by Mehr News Agency.

    The official noted that at present, nomadic tribes are facing an oversupply of livestock, which threatens their livelihood.

    According to the former head of Nomadic Affairs Organization, Karamali Qandali, nomads own more than 9.5 million head of livestock and produce 190,000 tons of red meat per year, which meet 25% of domestic demand.

    There are 213,000 nomadic households in Iran, which account for 1.2 million of Iran’s total population.

    The nomadic production of red meat accounts for about a quarter of Iran’s total output.

    According to Morteza Rezaei, deputy agriculture minister for livestock affairs, up to 160,000 tons of red meat are annually imported.

    “The absence of effective demand on the part of consumers and the imbalance between production costs and purchase prices have caused economic hardship to livestock farmers,” says Hossein Nemati, the head of Union of Iran Animal Farmers. 

    “The constant increase in the prices of livestock and poultry feed are burdening livestock breeders. Under the circumstances, the limiting pastures’ forage output due to drought has made production even harder and less sustainable,” he was quoted as saying by ILNA. 

    “Farmers of lightweight and native livestock breeds have suffered losses because their share of government-subsidized feed is small and they rely on pastures to provide a significant part of their animal feed resources. Under economic strain, farmers opt for depopulating their lightweight or heavyweight livestock or broiders.”

    Nemati believes that the supply of alternative animal feed ingredients such as hay might change farmers’ culling decisions, “but they will need financial assistance, perhaps through the government’s cheap loans. Livestock depopulation would pose a big threat to meat supply”.

    On the order of the National Coronavirus Headquarters, the travel of nomads from their winter to summer settlements has to take place via vehicles this year, in order to prevent the tribes from contacting the Covid-19 virus, according to the head of Nomad Affairs Organization affiliated with the Agriculture Ministry.

    “This will cost the government about 650 billion rials [$2.76 million],” Alaei-Moghaddam was quoted as saying by Mehr News Agency.

    The official noted that there are around 213,000 households in Iran’s nomad tribes.

    “These itinerant tribes have close to 21 million lightweight and 1.2 million heavy livestock,” he said.

    “Only five cases of Covid-19 have been reported in the nomads since the outbreak of the pandemic more than a year ago up until now.”