Australian beef exports face rerouting as Middle East conflict disrupts shipments

Australian beef exporters are exploring alternative destinations as ongoing Middle East conflicts have led to emergency shipping surcharges and insurance coverage withdrawals, potentially redirecting high-value products to the US and European markets.

According to an Australia-based trader, shipments to the Middle East have been on hold due to a lack of marine insurance coverage.

A Western Australia-based exporter said that many bookings for shipments to the Middle East have reportedly been cancelled.

"It is very challenging. It is difficult to send the products to the Middle East. Redirecting the products is something we need to work on," said a Queensland-based exporter. The high-value beef, mainly supplied to high-end food services and restaurants, has been disrupted, and it is still too early to provide feedback on the lower-value cuts, the exporter added.

According to multiple Australian exporters, traders, an analyst and a Japan-based importer, an emergency surcharge has been imposed on routes to and from Middle Eastern countries.

Australian beef exports to the Middle East totaled 40,522 metric tons in 2025, accounting for 2.6% of the country's total exports, Department of Agriculture, Fisheries and Forestry data showed. In February 2026, total Australian beef exported to Middle East amounted to 3,098 mt, up 19% year over year.

"They are not among Australia's largest beef export markets compared to the US, Japan, and China, which limits the immediate volume risk for the overall export program," Tim Jackson, Global Supply Analyst at Meat and Livestock Australia, said.

Nonetheless, this region accounts for a larger market share of Australian sheep meat exports, about 10% of the total Australian sheep meat export volume, Jackson added.

A Japan-based beef importer said Australian high-value beef products, especially Wagyu and Angus, could be redirected to other markets such as the US and Europe in the near future. A New South Wales-based trader echoed this sentiment, saying such redirection would not be surprising.

Jackson said redirection is entirely possible due to strong demand from these countries for Australian high-value beef products. An Australia-based trader said production continues as usual, as products can be redirected to other regions like North America and North Asia.

North Asia

While North Asian markets remain largely unaffected by direct shipping disruptions, concerns are mounting over secondary effects.

In North Asia, beef imports in Japan and South Korea were largely unaffected at this moment, according to the Japan-based importer and a South Korea-based importer.

"There was no impact on the business between North America and Japan, as US packers don't have much big-volume business with Iran, Israel, and Middle East countries," the Japan-based importer said.

However, the importer expressed concern about rising oil prices resulting in higher beef industry costs. The biggest impact on the beef market would be shipping, freight, logistic fees, truck transportation, and anything that requires fuel, and this is going to impact all market participants, including packers, shippers, importers, and exporters, the importer added.

The South Korea-based importer said there has been no direct impact on shipments, but currency rates and oil prices are rising rapidly.

Platts assessed FCA Australia 90CL beef prices at $7,718/mt on March 3, stable day over day.