Economy, Domestic Economy

British, NZ Firms Eye Dairy Opportunities

British, NZ Firms Eye Dairy OpportunitiesBritish, NZ Firms Eye Dairy Opportunities

Following the lifting of sanctions on Iran, UK dairy businesses are now expressing an interest in entering what is described as the last, large untapped emerging market in the world: Iran.

The attractiveness of this market lies in the country with a population of 80 million people and ranked as an upper middle income country by the World Bank in 2014.

Between January and October of 2015, Iran imported around 43,000 tons of butter, up 29% on the same period of last year, UK-based agricultural news outlet 5m Publishing reported.

Meanwhile, New Zealand-based cooperative Fonterra is expecting the relaxation of restrictions will expand the dairy market in Iran, with potential for growth beyond butter in milk powder and milk protein products.

Fonterra welcomed Wellington’s move to lift restrictions on trade with Iran, following the elimination of UN sanctions this month.

New Zealand’s Foreign Ministry has confirmed it has started the process of updating its regulations and removing the UN sanctions, which it expects to complete next month.

“Iran is a valuable trading partner and a key butter market for Fonterra. The removal of UN sanctions and our government’s unwinding of restrictions will only improve the outlook for us in Iran,” said Fonterra’s Managing Director of Global Ingredients, Kelvin Wickham.

“Our customers in Iran are growing and we’re seeing them make significant investments in infrastructure and capacity to meet demand. We have skilled people in the region who understand the opportunities and potential of doing business in Iran and who welcome more normalized trade relations.”