Iran’s Dairy Exports Surge in 2025 Amid Market Expansion and Regional Diversification

Iran’s Dairy Industry Reaches Export Milestone in 2025

Record Growth Driven by Regional Demand and Infrastructure Expansion

Iran’s dairy exports soared to new heights in 2025, cementing the country’s role as a key dairy supplier in the Middle East, Central Asia, and beyond. According to data from Iran’s Ministry of Agriculture Jihad and corroborated by China Informatics’ regional trade trackers, total dairy exports—including milk powder, cheese, yogurt, and sterilized milk—grew by over 22% year-on-year, reaching an estimated value of US$1.1 billion by Q1 2025.

The increase was primarily driven by rising demand from Iraq, Afghanistan, the UAE, Pakistan, and Russia. Iran’s competitive pricing, improved food safety certifications, and geographic advantage helped it outpace several global suppliers in these key import markets.

Top Producers and Exporters in Focus

Iran’s top dairy exporters include:

• Pegah Dairy (Pegah Food Industry Group): The largest dairy company in Iran, with export reach to over 17 countries. Known for milk powder and UHT milk.
• Kalleh Dairy Co.: A global brand under Solico Group, producing cheese, yogurt, and probiotic drinks. Kalleh has expanded into EU and Southeast Asian markets.
• Mihan Dairy: One of Iran’s oldest dairy brands, focused on ice cream, milk, and yogurt production, with ongoing investments in automation and packaging.

These companies have upgraded their production capacities and embraced international HACCP and ISO standards to improve shelf stability and regulatory compliance abroad.

Global Dairy Market Size and Trends

The global dairy market was valued at approximately USD 871 billion in 2023 and is expected to reach USD 1.12 trillion by 2030, with a CAGR of 4.2%, according to China Informatics analysis. Growth is being driven by:

• Urbanization and dietary shifts in emerging markets.
• Rising demand for protein-rich and fermented dairy products.
• Investments in cold chain logistics and powdered milk technologies.

Iran’s dairy expansion aligns with this trend, and the country is now positioning itself as a low-cost alternative to traditional exporters such as New Zealand and the EU.

Strategic Outlook: Challenges and Opportunities

Despite the strong performance, Iran’s dairy sector faces hurdles, including:

• Fluctuating milk supply due to drought and feed costs.
• Export financing challenges stemming from banking sanctions.
• Global competition from subsidized European producers and New Zealand’s high-efficiency model.

However, ongoing government-backed initiatives such as subsidized feedstock, low-interest loans for cold storage, and trade diplomacy with neighboring countries are likely to cushion these constraints.

Export Volumes and Major Importers (2025, Estimates)