Conflict in the Middle East disrupts Brazilian agribusiness exports to Arab countries

The conflict in the Middle East, ongoing since late February, has already led to a 31.74% drop in Brazilian exports to countries in the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain.

Exports to other markets, however, are rising, as vessels have been rerouted through alternative paths—such as via Turkey—to reach Asia.

Despite the decline in shipments to the Gulf, the year-to-date result remains positive. Exports to GCC countries rose 8.14% in the first quarter, totaling US$2.41 billion, according to data released on Monday by the Market Intelligence division of the Arab-Brazilian Chamber of Commerce.

Arab countries are among the main destinations for Brazilian exports, particularly agribusiness products. The closure of the Strait of Hormuz—a vital waterway connecting the Gulf of Oman to the Persian Gulf—has restricted access to key ports and disrupted trade flows.

Chicken, corn, and sugar

Agribusiness accounts for around 75% of Brazil’s exports to the region, and logistical disruptions have significantly impacted shipments. In March alone, exports fell 25.38%.

Chicken, the main Brazilian export to the region, declined 13.80% in the month, totaling US$185.50 million. Sugar posted an even steeper drop, falling 43.37%. The most severe impact was seen in corn shipments, which nearly ceased, plunging 99.96%.

On the other hand, some products continued to grow despite the crisis. Beef exports rose 23.87% in March, while coffee shipments increased 34.24% over the same period.

Mohamad Mourad, secretary-general of the Arab-Brazilian Chamber of Commerce, said the decline is directly linked to the conflict. According to him, the impact has not yet affected the overall results for the year, but a prolonged escalation could worsen the outlook.

“Sales to the GCC were rising in January and February compared to 2025. The drop in March is due to the conflict and, for now, does not affect the cumulative result, but it may still have further impacts,” Mourad said.

Fertilizer imports are also a source of concern for Brazilian farmers. Purchases of these inputs from the Gulf fell 51.35% in the first quarter. The region accounts for about 10% of Brazil’s fertilizer imports, which are essential for maintaining crop productivity.

Mourad noted that the situation is concerning for both sides. “This is a concern for both Brazilian agribusiness and Arab countries, which depend on Brazil’s ability to supply surplus food,” he said.

Source: Band.com

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