Why Is Full Fat Production Expensive in Iran? Challenges of Domestic Oilseeds and Guaranteed Prices

In recent years, full fat industry producers have not been able to directly purchase oilseeds cultivated in Golestan and the Mughan Plain, because these seeds are under guaranteed purchase, which has made their price much more expensive than foreign oilseeds. In addition, they are of lower quality due to high humidity and physical waste.

On the other hand, if domestic oilseeds are in excess of the needs of oil mills, they are made available to full-fat factories. Thus, oil mills sell the seeds to full-fat industries at a higher price.

If the input is made available to full-fat producers at a reasonable price, the full-fat industry will be able to succeed in exporting. In addition, fortunately, Iranian industrialists have been able to perform successfully in the field of manufacturing full-fat production machinery and, by using reverse engineering, make the machinery of this industry even better than its Turkish and German counterparts.

Currently, 30 factories in the country have licenses to produce full-fat milk, of which 10 to 15 are active. Therefore, given the importance of this industry in increasing milk production and the export advantage in the field of full-fat milk and machinery, if the input is made available to producers at a reasonable price, we can witness the country earning money from this field.