Brazilian meat exporters adjust routes to limit Iran war disruptions

Exporters report continued demand despite higher transport costs and logistical hurdles.

BRAZIL – Brazilian beef and chicken exporters are adapting to the Iran war by rerouting shipments through alternative sea and land routes while absorbing increased costs to maintain deliveries.

Industry officials report that Middle East shipments continue, with poultry exports in March projected to exceed last year’s 476,000 metric tons, according to ABPA President Ricardo Santin.

To reach buyers in Iraq, Qatar, the United Arab Emirates, and other markets, exporters are using the Red Sea, the Suez Canal, various ports, and overland trucking, despite longer transit times and additional costs.

Santin said the additional costs for fuel, storage, transport, and war-risk insurance are partially passed on to importers who aim to preserve inventory levels.

In 2025, the Middle East accounted for roughly 30% of Brazil’s chicken exports, making the sector highly sensitive to regional conflict, yet domestic markets show no signs of oversupply.

Beef exporters describe only minor effects so far, although Abrafrigo warned that an extended conflict could further increase shipping expenses for the global trade of Brazilian beef.

Brazil is also responding to China’s safeguard measures, which cap a lower-tariff quota at 1.1 million tons and apply a 55% duty on volumes beyond the limit, prompting exporters to seek alternative markets.

Abrafrigo said shipments have shifted to the United States, the European Union, Chile, and Russia, while tight global cattle availability supports ongoing demand.

In the first two months of 2026, Brazil’s exports of fresh and processed beef, including offal and byproducts, rose 39% in value to US$2.865 billion and increased 22% in volume to 557,240 tons.

Analysts say these adjustments allow Brazilian exporters to continue meeting international demand despite regional instability and rising operational costs, although longer-term outcomes depend on the conflict’s duration and escalation.

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