The ongoing conflict in the Middle East has significantly disrupted poultry supply chains, creating uncertainty across global trade routes and tightening access to critical inputs. The region, which plays a key role in global poultry consumption and trade, is now facing serious logistical and supply challenges.
Thank you for reading this post, don't forget to subscribe!According to RaboResearch, the research arm of Rabobank, Middle Eastern countries are heavily dependent on imported poultry products. With trade routes affected by regional tensions, supply chains have become unstable, particularly impacting major exporters such as Brazil. European suppliers, however, are expected to face relatively lower disruption.
The Middle East accounts for nearly 8% of the global poultry market and represents about 15% of international poultry trade. The region has also been a major contributor to global production growth, accounting for approximately 10% of the increase in poultry output worldwide.
Strait of Hormuz Disruption Intensifies Supply Crisis
The conflict has severely impacted logistics through the Persian Gulf, especially the Strait of Hormuz, a critical maritime route for transporting poultry products, feed ingredients, and essential production inputs. This disruption is affecting not only international exports but also local poultry production systems that rely heavily on imported feed and raw materials.
As supply tightens, local producers who are able to maintain operations may benefit from rising market prices. However, sustained disruptions could strain production capacity and increase food security concerns across the region.
Poultry: The Primary Protein Source
Poultry remains the dominant source of protein in the Middle East, accounting for approximately 55% of total protein consumption. Demand continues to grow at an annual rate of around 3%, driven by population growth, urbanization, and government food security initiatives.
Rapid Growth in Production and Consumption
Over the past two decades, the Middle East has witnessed significant expansion in both poultry production and consumption. Regional production has doubled since 2004, reaching more than 7 million tonnes, while consumption has risen to nearly 9 million tonnes.
Despite efforts to enhance self-sufficiency, the region continues to import approximately 2 million tonnes of poultry annually, representing over 20% of total consumption.
Saudi Arabia has made notable progress in reducing import dependency, increasing domestic production from 40% in 2016 to around 70% today. The country aims to achieve 85% self-sufficiency in the coming years as part of its food security strategy.
Outlook: Rising Prices and Supply Uncertainty
With ongoing geopolitical tensions, the poultry sector in the Middle East is expected to face continued volatility. Disruptions in feed supply, transportation bottlenecks, and reliance on imports may drive prices upward and challenge the stability of food systems in the region.
Industry stakeholders are closely monitoring developments, as prolonged conflict could reshape global poultry trade dynamics and accelerate regional efforts toward self-sufficiency.