Livestock Feed Market Struggles Amid Import Restrictions and Price Hikes

Despite officials’ claims of stability in the livestock input market, supply in the market is severely limited. Currently, imported barley is sold in the open market for up to 18,000 Tomans, and domestic barley, if found, for more than 20,000 Tomans. Imported corn is also priced at around 13,000 Tomans, which is a challenge to supply, and there is little corn available at ports.

Therefore, given the market’s monthly need for livestock inputs of 800,000 tons, the current supply and market inventory indicate a serious shortage in the input market.

Although imports of inputs are ostensibly free and any company can import, government restrictions, particularly on order placement and foreign exchange allocation, have effectively hindered effective private sector activity. For example, the order placement ceiling for new companies of 500 tons for barley and 1,500 tons for corn has made imports via northern ships virtually impossible, forcing importers to resort to more costly methods such as wagon transport or importing via a partnership ship.