The Secretary of the Iran Vegetable Oil Industries Association announced that vegetable oil production increased by 9 percent last year, noting that this growth was mainly recorded during the first seven months of the year, while production has been on a downward trend since Aban (late October–late November). He emphasized that the relative improvement in imports and the increased supply of oils used in trade and industry—especially shortening—could help meet part of the food industry’s demand for this strategic raw material in the coming months.
According to the Food and Agriculture Industry News Agency, Dr. Alireza Sharifi, Secretary of the Iran Vegetable Oil Industries Association, said in response to an AgroFoodNews reporter’s question about the state of vegetable oil production and the market in the country:
“Vegetable oil production last year reached approximately 2.15 million tons, showing about a 9 percent increase compared to the previous year. However, this growth was mainly the result of performance during the first seven months of the year, and unfortunately, production has been declining since Aban.”
Explaining the market situation, he added:
“Over the past few weeks, the import situation has improved to some extent. Therefore, it is expected that, along with the start of the warm season and the gradual emergence of the effects of removing the preferential exchange rate—including reduced smuggling and lower consumption—the market will move toward stability and relative improvement.”
Sharifi stressed that the confectionery and chocolate industry, along with other trade and industrial sectors that are the main consumers of refined oil (shortening), will face greater supply in the coming months. According to him:
“With the increase in palm oil imports, it is predicted that from the second half of Ordibehesht (early May) onward, the supply of shortening oils will grow, easing some of the concerns of industrial users.”
The Secretary of the Vegetable Oil Industries Association also addressed changes in oil prices, saying:
“Since the removal of the preferential exchange rate, the increase in consumer prices for oil has been far lower than the rise in production costs. Meanwhile, the exchange rate, wages, customs exchange-rate calculations, value-added tax, and packaging costs have all increased significantly.”
He emphasized that the sustainable operation of factories depends on a reasonable adjustment of product prices in proportion to the growth in production costs.
