Starting tomorrow, Monday, September 23, supportive purchases of domestically produced chicken will commence in Iran. This news comes as the CEO of the Livestock Support Company has announced that the aim of this action is to strengthen strategic reserves, support producers, and increase market management capacity.
Will this action be effective?
It seems that this action has been shaped following a resolution by the Market Regulation Headquarters, but there are still many questions regarding its actual impact on the chicken market and the situation of producers. In a context where prices in the market are completely volatile, supportive chicken purchases could create a temporary calm in the market, but will this calm be sustainable?
Another point raised in this context is the real support for producers. Will this supportive purchase genuinely help producers or is it merely a temporary solution for controlling prices? While many producers suffer from high production costs and fluctuations in raw material prices, this supportive purchase requires a comprehensive and sustainable plan.
Challenges Ahead
Based on past experiences, there is a possibility that supportive chicken purchases may not effectively help solve the existing problems in the market. Many experts believe that merely increasing chicken purchases cannot resolve the fundamental issues of the market and requires deeper investigations. For example, can this purchase lead to a decrease in prices or will it only result in increased demand and consequently higher prices?
In the end, it remains to be seen what impact this action will have on the chicken market and producers, and whether it can serve as an effective solution in reducing market fluctuations. However, given the current conditions, it is expected that this supportive purchase will face many challenges.
