Forex Delays & High Renewal Costs Hinder Livestock Feed Imports

At a recent meeting of Iran’s Union of Livestock Feed Importers, industry members warned about prolonged currency allocation delays, burdensome bureaucracy, and inefficiencies in the distribution of animal feed.

Mohammadreza Kalami, the union’s secretary, stated that despite importing 17 million tons of feed (including corn, soybean meal, soybeans, and barley) last year, forex payments by the government have been delayed for 8 to 9 months, severely impacting companies’ financial health.

Kalami also criticized the high cost of order renewal fees—around 1 billion IRR per ship—and the administrative hurdles that slow down imports.

Although 660,000 tons of barley were imported in the first quarter of this year (a 26% YoY increase), poor planning led to delays in order registration for spring demand, causing supply issues.

Other members of the union pointed out that state-owned companies purchase feed at inflated prices (up to $58 more per ton), and then return to private companies for actual sourcing.

Meanwhile, private shipments are stuck in ports incurring demurrage costs, while the government allocates funds to state firms instead of releasing existing private cargo.

Warnings were also raised about potential price hikes and shortages in the market, as livestock farmers are forced to buy feed on the black market, increasing production costs.