Families in Iran say soaring dairy prices are eating into daily budgets
Steep increases in the price of dairy products are putting unprecedented pressure on Iranian households, with many consumers saying they have stopped buying milk, yogurt and cheese altogether, according to accounts gathered by Iran International from across the country.
Iranian media report sharp product price increases despite no official hikes, with some dairy producers quietly raising prices in recent months. Industry officials cite a needed 35% rise due to production costs.
Data sent by viewers to Iran International show the price jumps, with the cost of a packet of cheese or a tub of yogurt in some areas exceeding the entire daily budget of a household. The average monthly wage in Iran is roughly $150 at today’s exchange rate.
Many respondents said they no longer buy dairy products, with some reporting they have gone months without them. In their messages, families said they now focus only on “essential and cheap” purchases.
“The price of yogurt we use has gone up by 40,000 tomans (about 55 US cents) in just one week,” a resident of Mahallat, Markazi province, told Iran International. A consumer in northern Gilan province said prices there were even higher than in Tehran.
One viewer wrote: “I don’t buy industrial cheese anymore because half the packet is water.”
In several reported cases, a tub of yogurt now costs about 70 percent more than a few weeks ago.
Another reported that Lighvan cheese – among Iran’s finest -- had jumped from 240,000 tomans (about $2.5) before the recent 12-day conflict with Israel to 600,000 tomans (about $6.5).
Iranian hardline daily Kayhan has criticized what it calls an unregulated surge in dairy prices and the lack of clear action from officials following a recent government-approved rise in the purchase price of raw milk.
“Within just a few weeks, milk, yogurt, cheese, and buttermilk have appeared on shelves with noticeably higher price tags — in some cases exceeding a 30% increase — placing the burden squarely on households,” it wrote.
According to the paper, industry representatives blame weak oversight and unclear policymaking for enabling opportunistic pricing, while experts warn that without consumer protections, the policy aimed at supporting livestock farmers has instead added pressure on ordinary Iranians.
According to Mohammadreza Banitaba, spokesperson for the Iranian Dairy Products Industries Association, per capita dairy consumption in Iran has dropped from around 100–130 kilograms in 2010 to below 70 kilograms today — less than half the 150–160 kilograms recommended by global health standards and far below consumption levels in developed countries, which often exceed 200 kilograms per person annually.
Declining quality
In addition to price hikes, consumers have complained about declining quality. One reported that a bottle of milk was delivered spoiled and “resembled yogurt.”
Another said that packaged cheese labelled as 400 or 500 grams turned out to be “half water.” Others reported milk spoiled before opening or tasted sour on purchase.
Some people linked spoilage to frequent power and water cuts. “Because of electricity outages, dairy products are not sold fresh and when we buy them, they are already spoiled,” one person told Iran International.
Producers call for 35% price rise
Industry representatives say higher prices are inevitable given rising costs. Ali Ehsan Zafari, head of the Dairy Cooperatives Union, told state-run Young Journalists Club earlier this month that the increase in raw milk prices had significantly raised production costs.
He said the price of raw milk had risen from 18,000 tomans per kilogram to 23,000 tomans (from about 20 to 25 cents). According to Zafari, “the overall increase in fat and milk prices is more than 20 to 25 percent, and therefore dairy prices should increase by 35 percent.”
Zafari urged the Ministry of Agriculture and the market regulation authorities to quickly set “logical prices” for dairy to prevent “chaos in the market.”
“Given that people’s salaries have not increased, we agree that this price increase should not happen. But when raw materials become more expensive, production units should not suffer losses,” he added.
Silent price hikes in recent months
The government’s official news agency IRNA reported in July that several dairy companies had quietly raised prices in multiple stages without official approval in recent months, even as cattle farmers complained that the official raw milk purchase price was below expert estimates.
According to the Ministry of Agriculture’s livestock affairs division, Iran produced 11.7 million tons of raw milk last year and aims to exceed 12 million tons this year, with more than nine million tons for domestic consumption and 2.4 million tons of dairy products exported.
Both Iranian media and industry officials say higher prices have reduced consumption among middle- and low-income households, raising concerns about public health. Dairy producers argue that without further price adjustments, the industry’s survival is at risk due to higher costs for feed, transport, labor and energy.
Livestock farmers say increasing the raw milk purchase price is unavoidable if their sector is to survive.