S\u00e3o Paulo \u2013 Food processor MBRF, owner of meatpackers BRF and Marfrig, has shipment flows to the Middle East fully operational and active, according to a statement by CEO Miguel Gularte during the company\u2019s earnings release on Thursday morning (19). The Middle East includes several countries whose maritime access is limited to the Gulf, where the Strait of Hormuz is located and is currently closed due to the war involving the United States and Israel with Iran.<\/p>\n\n\n\n
Gularte described operational changes for deliveries, but said supply remains normal. According to the executive, since 2024, for strategic sanitary reasons\u2014first due to Newcastle disease and later avian influenza (Brazil recorded outbreaks in 2024 and 2025, respectively)\u2014the company made the strategic decision to maintain operational inventories in destination countries.<\/p>\n\n\n\n
\u201cWe adopted this measure, and now, as we face this situation of armed conflict, the step taken for sanitary reasons proves effective, allowing us to have our inventories positioned in destination countries when such events occur,\u201d he said. This measure has, in fact, led to higher storage costs for the company.<\/p>\n\n\n\n
Highlighting that BRF has operated in the Middle East since the 1970s, Gularte noted that the company has its own distribution in the region and has developed extensive logistics expertise, enabling it not only to serve the market with pre-positioned inventory but also to carry out rerouting.<\/p>\n\n\n\n
\u201cCargo that was already at sea was redirected to ports that are and were operational, and once it reached those ports, we distributed it internally\u2014either by maritime feeder services or by overland truck freight\u2014across different regions throughout the Middle East,\u201d he said.<\/p>\n\n\n\n
Arab countries in the Middle East such as Iraq, Kuwait, Bahrain, Qatar, and the United Arab Emirates depend on passage through the Strait of Hormuz to receive ships at their ports (the UAE has a small portion of its territory before the strait). Others, however, such as Saudi Arabia, Yemen, and Oman, do not depend on Hormuz. Saudi Arabia, in addition to its coastline along the Gulf, is also bordered by the Red Sea.<\/p>\n\n\n\n
\u201cThe rerouting we carried out, leveraging the local logistics network we have, has allowed us to serve all regions without any disruption for our clients or for the market across different countries. In other words, at this moment we are able, without any issues, to achieve our goal of meeting demand,\u201d said Gularte.<\/p>\n\n\n\n
The CEO also cited cost absorption, noting that the war risk freight surcharge has been incorporated into regional prices. \u201cThis market had already been showing stronger demand and rising prices. Naturally, when a war event occurs, this intensifies,\u201d he said. \u201cAs for costs, there is no issue. This war freight surcharge that shipping companies are applying today has been fully absorbed by the market\u2014indeed, even beyond that at this moment,\u201d the CEO added.<\/p>\n\n\n\n
In its earnings presentation, MBRF highlighted several investment projects in the Gulf in 2025, such as the construction of a processed foods plant in Jeddah, Saudi Arabia, scheduled to open in the second half of 2026; the expansion of the breaded products line in KEZAD, UAE; the expansion of the shawarma line in the Saudi city of Dammam; and entry into the chilled chicken segment, with the start of local slaughtering in Saudi Arabia through Addoha Poultry Company.<\/p>\n\n\n\n
Read more<\/em>: Translated by Guilherme Miranda<\/strong><\/p>\n
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