China dairy ingredients could be a supplemental for Middle East countries
The military standoff among the United States, Israel and Iran has an impact on the global dairy industry.
The disruption of the Strait of Hormuz has severely impacted the major dairy product importers in the Gulf region, and has reshaped the trade flows from Europe, Oceania and South Asia.
Inflation and income decline in Iran have weakened the demand for dairy products, putting pressure on global producers and exporters.
The Gulf countries are major food importers, including dairy products. Due to the almost complete disruption of shipping through the Strait of Hormuz and the limited alternative routes, the import demand in this region was already under pressure. Imports from Europe, Oceania and South Asia have also been increasingly disrupted.
Meanwhile, the export ban imposed by Iran has had a direct impact on countries such as Iraq and Pakistan, where a large portion of their dairy product demand relies on Iran.
