Export volumes to the Middle East declined as logistics disruptions intensified

MIDDLE EAST – Rising tensions linked to the Middle East conflict pushed shipping costs sharply higher in March, with freight rates for refrigerated beef containers climbing from about US$2,800 to as much as US$7,000 per unit, according to the Brazilian Beef Exporters Association.
The spike in transport costs was driven by disruptions to maritime routes, including temporary restrictions around the Strait of Hormuz, which forced rerouting and increased operational risks for exporters reliant on sea freight.
As a result of these logistical challenges, Brazil’s beef exports to the Middle East declined during the month, with shipments falling to 18,220 tonnes from 22,919 tonnes in February, a drop of 4,699 tonnes, or 20.5%.
Export revenues followed a similar trend, decreasing from US$137.5 million in February to US$115.6 million in March, marking a 15.9% reduction in value terms.
The contraction in demand was most pronounced across several key markets, with shipments to the United Arab Emirates falling by 49.5%, Jordan by 44.8%, Qatar by 55.3%, Iraq by 42.5%, and Saudi Arabia by 7.6%.
Data from Datamar further showed that containerised beef exports to the United Arab Emirates totalled 854 TEUs during the period, reflecting ongoing volatility in trade flows linked to the region.
While beef shipments declined, chicken exports to the Middle East also fell by 19% from February, though volumes still reached approximately 100,000 tonnes despite ongoing disruptions.
At the same time, Brazil’s overall chicken exports, including fresh and processed products, increased to 504,300 tonnes in March, up 6% from 476,000 tonnes recorded in the same month last year, according to the Brazilian Animal Protein Association.
Export earnings from poultry reached a monthly record of US$944.7 million, a 6.2% increase from US$889.9 million in March 2025.
Industry data also indicated that China resumed import volumes from Brazil following earlier disruptions linked to an avian influenza outbreak, with purchases rising to 51,800 tonnes, up 11.6% year on year.
Other major destinations for Brazilian chicken included Japan, where imports rose 41.3% to 42,100 tonnes, South Africa with a 21.4% increase to 33,100 tonnes, and the European Union with a 33.7% rise to 30,700 tonnes, while shipments to Saudi Arabia declined by 5.3% to 38,700 tonnes.
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