Imports, and Supply Chains as the Three Major Challenges of Iran’s Edible Oil Industry

Iran’s edible oil industry has entered a new phase in recent years, where the fundamental rules of the market have significantly changed. The removal of currency subsidies, rising production costs, and foreign exchange volatility have pushed an industry once shaped by state support toward a more competitive and higher-risk environment.

In this new landscape, the key challenge is no longer limited to securing raw materials. Instead, liquidity management and access to sufficient working capital have become critical factors for survival. Importers and producers are now required to fully pre-finance crude oil and oilseed purchases before shipment and customs clearance, placing substantial pressure on industrial cash flows.

At the same time, the industry’s heavy reliance on imports remains a major vulnerability. Any disruption in maritime transport, port operations, or foreign exchange allocation can quickly impact the supply chain and lead to fluctuations in domestic availability. Even packaging materials are affected, as they depend on petrochemical and steel industries, where disruptions can slow down or halt production.

To increase resilience, companies are adopting various strategies, including expanding cooperation with domestic farmers, increasing oilseed cultivation, diversifying international suppliers, and building strategic stockpiles of raw materials. These measures indicate a shift in focus from pure production capacity to risk management and supply chain stability.

Golbahar Jadeh Abrisham, as one of the key players in the sector under Afra Group, operates in the refining, processing, and packaging of edible oils. Beyond consumer oil production, the company is also active in the industrial food segment, producing formulated oils, shortenings, and margarines for confectionery, chocolate, and biscuit industries. Direct access to oil extraction and crude oil production within the group provides a significant competitive advantage in its supply chain.

Alongside its industrial activities, the company’s development strategy includes upgrading production lines, improving efficiency, and expanding into the household consumer market. This reflects a broader shift toward strengthening its FMCG presence and brand positioning. Overall, Iran’s edible oil industry is currently undergoing a structural transition, balancing economic pressures with new opportunities for competition and growth.