Escalating conflict in the Middle East is increasing freight risks and adding cost uncertainty for exports of Australian chilled and frozen beef, as air and container lines divert away from the region, according to trade sources and industry advisories.
The duration of the conflict will dictate the scale of disruption, Australian exporters said.
Chilled beef transported by air can typically remain in refrigerated storage at distribution centres for more than a week before alternative arrangements are required. Meanwhile, frozen beef in containers can be held for longer periods. But the final destination of any product already in transit will depend on shipping lines' willingness to unload at Middle Eastern ports. Some Australian processors have received returned consignments from regional distribution centres as a temporary measure while logistics providers assess the evolving situation.
The Middle East is a long-standing market for halal-certified chilled and frozen beef from Australia, which supplies retail, hospitality and food service sectors in the region.
Saudi Arabia remained the largest destination for frozen beef, at about 13,300t in 2025, slightly below levels a year earlier, following a 53pc increase in 2024.
Beef shipments to the UAE reached 14,375t carcass weight in 2025, up by 35pc on the year after a 17pc rise in 2024.
Dubai is the core regional hub for premium chilled Australian grainfed beef, exporters said. This is supported by strong tourism flows and high-end retail demand. Australia's position has been supported by the Australia–UAE Comprehensive Economic Partnership Agreement, which was signed in November 2024. Tariffs on Australian red meat were removed under the agreement.
Broader economic effects from the conflict, including oil price movements, inflation pressure and potential currency volatility, could influence medium-term protein purchasing patterns, market analysts said. Meanwhile, competition from Brazil remains a key risk, with South American suppliers expanding shipments into Gulf markets, Australian exporters said.
Recent geopolitical developments in the Middle East were creating "complexities for Australian meat exporters with product in transit", Australian Meat Industry Council (AMIC) chief executive Tim Ryan said. The closure of key shipping lanes and airspace adds to the uncertainty, he said. The situation was dynamic and likely to have "flow on effects to global logistics", he added.
"Australian meat exporters are managing the situation to the best of their ability," Ryan said, noting the industry's established record of adapting during challenging conditions.
