Rabobank
10 March 2026
A recent strategic analysis by Rabobank highlights the complex, multi-layered pressures that the ongoing Middle East crisis is exerting on both local and global poultry markets.
At the local level, the conflict has led to immediate operational setbacks. Direct impacts include damage to physical infrastructure, significant labor shortages, and logistical bottlenecks in distribution. These factors have created localized supply-demand imbalances, resulting in price volatility within the immediate region as producers struggle to maintain consistent output amid persistent security concerns. The most profound global consequence stems from heightened risks to maritime trade routes, particularly the Red Sea and the Suez Canal. With shipping companies rerouting vessels to avoid potential attacks, the industry is facing increased transit times, higher insurance premiums and fuel consumption, and delays in the delivery of critical production inputs such as specialized feed additives and genetic stock (grandparent and parent flocks).
The report notes that although global grain prices have remained relatively stable for the time being, the poultry sector remains highly sensitive to energy market fluctuations triggered by regional instability. A spike in oil and gas prices would directly inflate costs associated with heating, processing, and cold-chain logistics.
The analysis also underscores that poultry often becomes the “protein of choice” during periods of economic uncertainty. Its high feed-conversion efficiency and lower price point compared with beef or pork make it a preferred option for cost-conscious consumers, potentially sustaining demand even as production costs rise.
