The Iranian fruit export campaign kicked off this fall with apple and kiwi programs. Production costs have gone up considerably, but the instability of the Iranian rial and its depreciation against the US dollar are helping exporters stay competitive while strong demand in several markets boosts exports. Hadi Mirzaei, an Iranian exporter, reports on the situation.
© Hadi Mirzaei
Iranian producers have reported a slight decline in apple production volumes in some regions, versus an increase in kiwis. Mirzaei assures that the volumes available for export are consistent. He adds, "There is no problem with production volumes, especially for the apple and kiwi varieties most in demand on the market. Hyward kiwis in their three varieties, green, red, and golden, are available in consistent volumes, especially the green Hywards, which are most in demand by our customers. The same goes for Red Delicious apples."
It is mainly the significant increase in production costs and farm gate prices that mark the start of the season. Mirzaei quantifies this increase at 10-15% for kiwis and 20-25% for apples. He adds, "Our export prices have also increased but remain very competitive and reasonable compared to other European origins."
Contributing to maintaining the competitive position of Iranian exporters, the reinstatement of international sanctions on Iran at the end of September, coinciding with the launch of the campaign, caused the instant depreciation of the Iranian rial on the black/free market by up to 18%.
© Hadi Mirzaei
In terms of demand, Mirzaei reports strong Indian demand for Iranian kiwis. Back in India since 2023 after a long ban, Iranian kiwis are making their mark on the market thanks to consistent volumes and competitive prices compared to European origins. The exporter also reports strong Russian demand for kiwis as well as strong Indian demand for red apples.
As every year, it is the financial implications of economic sanctions that complicate operations for exporters. Mirzaei says, "Iranian traders and exporters always try to be flexible in receiving payments and accept trusted currencies such as EUR, USD, Rubles, AED, Turkish Lira... Some exporters even accept Chinese Yuan as an option in some cases."
The climate of sanctions means that Iranian exporters must rely on re-exporting hubs such as the United Arab Emirates and Turkey, and Mirzaei reports a new trend this season with Turkish traders showing remarkable activity in the re-export of Iranian kiwis and apples compared to the previous season.
For more information:
Hadi Mirzaei
Darya Noosh Payab Trading
Tel: +989352243937
Email: [email protected] / [email protected]
