From rising poultry feed prices in Vietnam to plummeting egg prices in Pakistan – the global supply disruptions due to the war in the Middle East and the partial blockade of the Strait of Hormuz increasingly affect poultry trade.
In Pakistan, egg prices have plunged in recent weeks as exports to the Middle East have come to a halt, local media reported. Expanding overseas sales — particularly to Gulf markets — had been a key driver of growth for Pakistan’s poultry industry in recent years, Sohail Ahmed, CEO of Noor Poultry, told Asian Agribiz. With shipments now disrupted, the industry has taken a significant hit, he warned.
Farmers under pressure
Poultry farmers across Pakistan are struggling to stay afloat as supplies that would normally be exported are being redirected to the domestic market, creating a glut, according to a separate report by Dawn News.
The oversupply has driven prices down, squeezing already thin margins for farmers and poultry businesses, the report said, citing industry participants.
Exporters exposed
Pakistan is not alone in facing the fallout. Major poultry and meat exporters — including Turkey, Russia, Ukraine, the United States and the European Union — are also exposed to the disruption, particularly those heavily reliant on Middle Eastern demand.
Russia and Ukraine are among the most vulnerable, according to Nan-Dirk Mulder, senior global specialist for animal protein at Rabobank.
The conflict has already severely affected Russian meat exports to the region, said Sergey Yushin, executive director of the Russian National Meat Association.
Significant volumes of cargo are currently in transit, but delivery timelines remain uncertain, he said. Some exporters have been forced to offload containers en route to the Gulf, leading to delays and additional costs.
Freight costs are also rising. Insurance premiums per container have increased from about US$3,500 to US$4,000, prompting some shippers to reroute or unload cargo in alternative destinations such as Egypt, further disrupting supply chains and raising production costs, according to Yushin.
Vietnam faces feed cost surge
In Asia, the impact is being felt through higher input costs. Vietnam’s livestock sector is facing a fresh increase in feed prices, with producers raising prices in early March as supply chain disruptions pushed up raw material and logistics costs.
Several manufacturers reported increases of around US$7–11 per tonne, adding further pressure on producers already grappling with volatile market conditions.
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