Meat exporters seek support credit over Iran war

The Brazilian Animal Protein Association (ABPA) and the Brazilian Beef Exporters Association (Abiec) have asked for the meat export sector to be included in the support measures of the aid program Brasil Soberano, which was recently reinforced with additional credit to assist companies affected by the war in the Middle East, as well as for access to those credit lines, according to a statement Abiec sent to Valor.

The Brasil Soberano Plan was launched by the government in 2025 in response to import tariffs imposed by the United States on Brazilian products. More recently, in March, the government issued Provisional Measure No. 1,345/2026, which expanded the initiative’s available resources by another 15 billion reais to support Brazilian exporters affected by the conflict in the Middle East.

In Interministerial Ordinance No. 171 of April 13, the Ministries of Development, Industry, Trade and Services and Finance detailed which industrial export sectors would be eligible for the credit lines. Meat exporters, however, were not included on the list.

Brazil is the world’s largest exporter of both beef and poultry. The Middle East was the main destination for Brazilian chicken exports in 2025, accounting for 29.8% of total volume, according to data compiled by ABPA. In beef, Saudi Arabia, as well as Egypt, which is not part of the region but lies close to the conflict zone, ranked among the top 10 importers of Brazilian product. In addition, the maritime area affected by the conflict serves as a route for vessels carrying Brazilian beef to other destinations, and traffic has been disrupted in several ways by the war, as Abiec had previously reported.

In a letter sent to Finance Minister Dario Durigan, the associations argued that, given the uncertainty surrounding vessel traffic on routes used for Brazilian meat exports to the region, such as the Strait of Hormuz and the Suez Canal, along with the rerouting of services or even the temporary suspension of new shipments to certain destinations by international carriers, Brazilian exporters have faced a significant increase in maritime transit times, by an additional 10 to 15 days, as well as higher freight, insurance, risk surcharge and reefer container management costs.

“This scenario directly affects the financial dynamics of export operations, especially because of the increase in working-capital cycles. With longer logistics timelines, the interval between production, shipment, delivery and financial settlement becomes longer,” the associations said in the letter.

“This distortion creates significant pressure on the cash flow of exporting companies, especially small and medium-sized agribusinesses,” they added.

In the document, the associations ask for the animal protein sector to be “explicitly” included among those eligible for the financing lines. They also request that exporting agribusiness companies be granted access to working-capital facilities, given the increase in their financial cycle resulting from international logistics disruptions.

“Access to credit lines is essential to ensure liquidity, financial predictability and continuity of operations,” the associations said in a statement.

Source: Globo Rural

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