Iran has resumed dairy exports to Iraq, according to Iran Dairy Industries Association, after the Iraqi government reversed its decision on raising import tariffs on Iranian products a week ago. The export of Iranian dairy products to Iraq has been on the decline since the beginning of the current Iranian year (started March 20), and nearly came to a halt after Baghdad recently imposed higher tariffs, Mehr News Agency reported. According to IDIA, a major factor contributing to the decline, apart from the Iraqi tariffs, has been high production costs in Iran, which has effectively eroded domestic producers’ competitive edge vis-a-vis rival exporters, such as Turkey, Saudi Arabia and Egypt. Iran is the second biggest exporter of dairy products in the Middle East after Turkey. The country is now self-sufficient in meeting its domestic demand for cheese, butter and milk powder. More than 600,000 tons of dairy products were exported to 30 countries in the last Iranian year.
