São Paulo – Institutions, government, and companies involved in the production and export of chicken meat are working to ensure deliveries to Arab ports amid the conflict between the United States and Israel against Iran. According to the head of industry group ABPA, Ricardo Santin, even with the closure of the Strait of Hormuz, off Iran’s coast, exporting companies and shipping lines transporting containers of chicken meat are continuing to move the production to their clients. On Wednesday (4), he told ANBA that adjustments to deliveries may be made.
“All the bookings (space reservations on cargo ships) that were ready to depart are being maintained. We expect that alternative routes will at least be established so we can continue contributing to food security in the Middle East, a long-standing partner,” Santin said.
“A ship that has already departed may either enter the destination country or wait at a safe port, whether by passing through the Middle East and heading to Singapore, stopping in Sri Lanka, or stopping somewhere in Africa,” he said. He mentioned as an alternative route delivering the cargo to the port of Jeddah, in Saudi Arabia, and from there sending it by land to Riyadh, the Saudi capital, as well as to other destinations.
Jeddah is located on the western coast of the Arab country, on the Red Sea, on the opposite side of the Strait of Hormuz, near which lie the United Arab Emirates, Oman, Kuwait, Bahrain, and Qatar. Measures being assessed by exporters may extend the cargo transit time from an average of 42 days to around 57 days, which is feasible because the cargo is refrigerated.
“Today the Red Sea is open, and there are bookings to that route. It is already clear that the main risk lies in the Strait of Hormuz,” Santin said, noting that routes via the Cape of Good Hope, which goes around South Africa, are an option. Alternatives, he said, create logistical challenges but allow products to reach their destination.
Arab countries are among the largest consumers of Brazilian chicken. According to Santin, they import on average between 100,000 and 120,000 tons per month, equivalent to 25% to 30% of the country’s total exports. Companies such as BRF and Seara have factories and distribution centers in Gulf countries.
The executive said he is in contact with companies and the Brazilian government. He spoke with Brazil’s Minister of Agriculture and Livestock, Carlos Fávaro, on Tuesday (3), when the minister said the country will make efforts to ensure supply to its Gulf partners.
“I spoke with Fávaro, who made himself available to make every possible effort to help minimize the effects of the war on populations already living under the tension of direct or indirect conflict. He also said he would help companies ensure food reaches the region. This will require some bureaucratic adjustments,” Santin said. Freight, insurance, and fuel costs, among others, are expected to rise, he added.
Arab countries, which are predominantly Muslim, are in the holy month of Ramadan, a period when followers fast during the day and eat after sunset. Countries typically increase food purchases ahead of the holy month and build up food stocks.
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Translated by Guilherme Miranda
