PoultryWorld: Iran’s egg market is caught in the crossfire of war with Israel

Egg production in Iran suffered no direct damage during a 12-day war with Israel, but logistics and sales to consumers faced significant short-term disruptions, Mohammad Moradi, CEO of the Central Union of Poultry Farmers, told local press.

Occasional reports indicated that food delivery to some Iranian cities was in turmoil during the active phase of the conflict. In some cases, the lack of products triggered price turbulence. According to Moradi, similar events occurred on the egg market.

“During these days, the issue of product sales was a topic of great concern as we struggled to prevent potential “abuse” of the existing situation. Our colleagues in the union and the [egg] producers did their best so that the product reached the final consumer on time, even in cities that were facing increased congestion,” Moradi said, noting that despite these challenges, egg production in Iran has been running without interruption.

Short-term crisis

Iranian egg manufacturers primarily attribute the price turbulence on the market during the war to unscrupulous retailers. “Unfortunately, in such circumstances, some people may take advantage, which is not far-fetched,” Moradi added.

However, Moradi emphasised, the initial problems with egg transportation and logistics were relatively short-lived.

Fear of conflict escalation

Although a peace deal has been struck, the Iranian egg industry is making preparations in case of a new escalation of conflict. “Even in the event of new challenges, necessary measures have been taken to ensure raw material supply, continued transportation and production,” Moradi said.

Looming oversupply

In the meantime, Moradi voiced fears that egg consumption, hampered by the country’s general economic crisis over the last few years, could decline even further in the coming months. He noted that the Iranian egg industry is braced for a seasonal drop in egg consumption during the hot summer months, and egg sales are expected to decline over the next 2 months.

“In such circumstances, the government is expected to support producers so that they do not face losses in the event of excess supply,” Moradi said.

Exports remain untouched

Iran currently produces around 115,000 tonnes of eggs per month, which is above the demand on the domestic market. According to Moradi, egg exports have been left seemingly untouched by the war with Israel. He estimated that since the beginning of the year, the country exported around 27,000 tonnes of eggs. Iran exports eggs primarily to the neighbouring Middle East countries.