Agrifood exports from Iran are on the decline, as imports rise significantly.
The latest data released by the Agriculture Ministry show Iran exported 6.94 million tons of agricultural and food products worth $4.28 billion during the current fiscal year’s first ten months (March 21-Jan. 20).
The figures indicate a 2.15% decline in tonnage and a 15.24% decrease in value compared with last year’s corresponding period.
Pistachio topped the list of exports in terms of value by earning $797.4 million.
Tomato was the second major agricultural export product in terms of value with $314.29 million, followed by dates with $216.46 million, apple with $199.62 million and watermelon with $191.04 million.
In terms of tonnage, watermelon topped the list with 819,110 tons, followed by tomato with 707,240 tons, potato with 568,220 tons and onion, shallot and garlic with 324,480 tons.
Agronomic products accounted for 4.41 million tons worth $1.55 billion of total exports, down 1.72% in terms of tonnage and down 10.77% in terms of value year-on-year.
Horticultural exports amounted to 1.94 million tons worth $2.07 billion, up 0.6% in terms of tonnage and down 17.91% in value YOY respectively.
Exports of livestock and poultry products reached 481,760 tons worth $448.73 million, down 16.57% in tonnage and 23.83% in value YOY.
The veterinary sector exported 887 tons of products worth $8.1 million, up 19.56% and 24.06% in weight and value YOY respectively.
The fisheries sector exported 97,920 tons worth $176.64 million, posting a rise of 10.24% and 1.69% in total volume and value respectively YOY.
Exports from the forest and rangeland sector hit 16,870 tons worth $24.31 million, down 1.72% and 10.77% in tonnage and value respectively YOY.
Iran exported 8.83 million tons of agricultural and food products worth $6.21 billion during the last fiscal year (ended March 2021).
Agrifood imports stood at 25.61 million tons worth $14.51 billion during the same period, indicating a 27.31% and 63.88% growth in volume and value respectively year-on-year.
Feed corn had the biggest share of imports in terms of value with $2.63 billion, followed by sunflower oil with $2.33 million, wheat with $1.88 billion, GM soybeans with $1.28 billion and soymeal with $1.15 billion.
In terms of tonnage, feed corn topped imports with 7.65 million tons, followed by wheat with 5.51 million tons, barley with 2.8 million tons, soymeal with 2.08 million tons and GM soybeans with 1.96 million tons.
Agronomic products accounted for 24.2 million tons worth $12.12 billion of total imports, up 26.5% and 70.31% in tonnage and value respectively YOY.
Horticultural products stood at 1.21 million tons worth $1.5 billion, up 43.34% and 43.72% in tonnage and value respectively YOY.
Imports of livestock and poultry products hit 154,900 tons worth $489,180 million, up 83.42% in tonnage and up 30.68% in value YOY.
The veterinary sector imported 4,618 tons worth $333.48 million, up 60.63% and 41.84% in tonnage and value respectively YOY.
Imports by the fisheries sector amounted to 10,280 tons worth $27.68 million, down 41.43% and 31.05% in tonnage and value YOY.
The forest and rangeland sector’s imports totaled 28,770 tons worth $46.44 million, down 20.69% and 4.53% in tonnage and value YOY.
The export and import volumes indicate that Iran recorded an agrifood trade deficit of 18.66 million tons in tonnage and $10.23 billion in value during the first 10 months of the current Iranian year.
Impact of Drought
The growth in agrifood imports comes amid rising import of essential goods amid a decline in production, which is partly due to water shortage and drought.
Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels.
In a report, Iran Chamber of Commerce, Industries, Mines and Agriculture has warned agricultural officials of an imminent drought that would cripple the country’s agricultural activities and hamper economic growth in this sector in the current Iranian year (March 2021-22).
The ICCIMA report says precipitation levels have fallen drastically, Mehr News Agency reported.
The Majlis Research Center has released a list of Iranian provinces in a critical state of water shortage: Isfahan, Hormozgan, Sistan-Baluchestan, Ardabil, Fars, Markazi and Khorasan Razavi.
“Drought has inflicted 670 trillion rials ($2.4 billion) in losses on Iran’s agriculture sector since the beginning of the current crop year,” Mohammad Mousavi, director general of the Agriculture Ministry’s Crisis Management Department, said in June 2021.
Assessments carried out over 11.2 million hectares of farmlands in 30 provinces show 43% of the total losses pertained to the decline in production of agronomic crops, as well as 26% to horticultural products, 13% to fisheries and livestock, and 11% to forage crops, he said in June.
“In addition, 4% of the total damage are to blame on challenges created in water transportation infrastructures, pools, pipes, aqueducts and springs, and 3% of losses can be attributed to water supply complications and the animal feed used by nomads,” he was quoted as saying by Mehr News Agency.
Noting that precipitation rate in the current crop year has decreased by 54% compared with last year and 41% compared with the long-time average, the official said, “Beside the decline in precipitation rate, increase in heatwaves and evaporation, and the inappropriate distribution of rainfall have resulted in drought that had adverse consequences for the agriculture sector.
“Reports by Iran Meteorological Organization show that 92% of the country have been affected by drought at different levels: 20% of the country’s area are facing extreme drought, 28% severe drought, 25% moderate drought and 19% of the country are going through stages of becoming abnormally dry, and only 8% of the country are having normal conditions.”
Mousavi noted that the emergency plans put together by Agriculture Ministry underline the management of strategic reserves, animal feed and essential goods in proportion to the decline in production.
“Easing pressure on groundwater resources and soil in the country and fair distribution of water shortage in different sectors, when used as potable water, or in agriculture and industrial sectors, have been underscored in this plan,” he said.
