Middle East chicken breast prices hit all-time low amid global bans on Brazilian poultry

The Platts CIF Middle East chicken breast price fell to its lowest level since the assessment was launched in June 2024.

Platts, part of S&P Global Commodity Insights, assessed Middle East chicken breast at $2,700/mt on May 30, unchanged on the day but down $200/mt week on week. That marked a $300/mt decline from May 16, when the outbreak was first reported.

Offers and traded prices to the UAE continued to decline during the week of May 26-30, the second week after the announcement of a H5N1 bird flu case.

Several major importers, such as China, the EU, and South Korea, have imposed full bans on Brazilian poultry following a confirmed H5N1 bird flu case on a commercial farm in Rio Grande do Sul on May 16. Other countries, including Saudi Arabia and the UAE, issued regional restrictions but kept trade open from unaffected areas.

In the first week after the announcement, May 19-23, many suppliers paused negotiations and held back on pricing. Market participants said sellers were waiting for government guidance and using the time to reassess their sales strategies.

In the second week, suppliers resumed activity, focusing on markets that remained open. The UAE, which has the highest number of Brazilian-approved facilities, emerged as a key destination.

While not all volumes originally bound for China or the EU are being sent to the Middle East, regional participants noted an increase in availability at reduced offer prices as sellers work around the recent bans.

"Larger exporters are offering lower prices to food processors, but they are doing it quietly. No one wants to make too much noise in the market," one trade source said.

Offers into the UAE ranged from $2,700-$2,750/mt CIF May 26-30, depending on supplier and pack type. One trader reported a $2,650/mt offer, although that level was not confirmed elsewhere in the market.

Buyers across the Middle East remain cautious, citing sufficient stocks and expectations of continued price pressure. Some said further softness is likely if stock levels remain high and more sellers look to clear inventory.