Brazilian poultry exporters pressure Middle East prices after EU ban

Middle East poultry prices came under renewed pressure during the week to July 23 as Brazilian exporters lowered offers for chicken breast after losing access to the EU market, forcing suppliers to redirect higher-value volumes into alternative destinations, market participants said.

Platts, part of S&P Global Energy, assessed chicken breast CIF Middle East at $2,640/mt on July 23, $120/mt lower than previous assessments, after fresh offers were heard around $2,650/mt. Chicken shawarma was assessed at $2,790/mt, while grillers and chicken leg quarters were assessed at $2170/mt and $1,490/mt, respectively.

Participants said Brazilian suppliers have become increasingly aggressive in the Middle East market as exportable volumes previously destined for higher-value markets seek alternative buyers.

"Yes, for sure, because of Europe," one trader said when asked about the recent decline in breast offers. "The domestic market and Mexico can't absorb all. So they need to sell more here."

The pricing pressure follows the EU's decision to remove Brazil from its list of approved exporters, a measure due to take effect in September. Chicken breast represents one of Brazil's highest-value poultry exports to Europe, leaving exporters searching for replacement markets as shipments to the bloc become increasingly uncertain.

Participants said the Middle East has emerged as one of the most accessible alternative destinations because of its established Brazilian supply chain and year-round import demand, despite weaker seasonal consumption.

Traders said suppliers have continued offering normal, and in some cases larger-than-expected, export volumes into the region.

One trader told Platts that exporters were offering "normal volumes, even higher than expected," although some importers had delayed purchases.

While breast values declined sharply, participants said shawarma prices remained comparatively stable as available supply remains tighter and processors continue to support demand for the product.

Participants said the full impact of the EU decision is only beginning to emerge. If Brazilian exporters continue redirecting premium white-meat volumes away from Europe, the Middle East could face sustained pricing pressure over the coming months as suppliers compete more aggressively for regional demand.