Iran’s dairy industry is facing sharp cost pressures after the price of raw milk jumped roughly 60% in five months, a surge that industry officials say matches half a century of previous increases and is driving daily price changes across supermarket shelves.

Ali Ehsan Zafari, head of the national dairy products union, told ILNA news agency that the cost of raw milk had risen from about 230,000 rials per kilo (around 20 US cents) five months ago to roughly 390,000 rials (about 35 cents).

“This rate of increase is equal to what happened over 50 years.” He said factories were raising retail prices almost every day because “raw milk is the main input and its price rises every day.”

Dairy producers warn that demand has already fallen as households struggle to absorb higher food costs, raising fears of factory closures. 

“With prices rising, demand has dropped, and this will ultimately lead to plants shutting down one after another,” Zafari said.

Producers and local media say drought-driven pressure on livestock farmers and sharply higher feed costs are among the main factors behind the jump. 

Supermarkets have reported 50-60% increases across popular dairy items in recent weeks.

Iran’s broader inflation remains high, squeezing household purchasing power. Economists say official figures – including an annual inflation rate reported around 38% – understate real price pressures.