The conflict in Iran is usually discussed as an energy crisis. For Australia\u2019s meat and poultry sector, that\u2019s only part of the story. The challenge is broader, touching feed, fertiliser, logistics, packaging, and demand patterns all at once.<\/p>\n
Energy shock increases costs across the value chain<\/strong><\/p>\n With oil flows through the Strait of Hormuz disrupted, fuel and energy prices have jumped sharply. Diesel costs in Australia climbed fast, and some operators reported shortages. Global manufacturing and transport costs are rising in parallel, although the effects are not fully passed on or understood just yet.<\/p>\n For meat and poultry producers, that means:<\/p>\n Feed costs & fertiliser disruption puts further pressure on margins<\/strong><\/p>\n The more lasting impact is on fertiliser and feed. The conflict has disrupted fertiliser supply from a region that plays a major role in global production. At the same time, fertiliser prices are up – five of the eight major fertilizers had considerable price increases compared to prior month of 5% or more in March 2026, with projections of 15-20% increase in first half of 2026 year on year. Grain markets will be tightening as input costs rise and producers ration fertilizer<\/p>\n For meat and poultry producers, this translates to:<\/p>\n Poultry operators, who rely heavily on feed conversion efficiency, will feel this most acutely.<\/p>\n Supply chains face reliability issues<\/strong><\/p>\n Shipping routes are being disrupted around the Gulf, adding time and cost. Freight delays are now common, while inputs across food, chemicals, and packaging are taking longer to arrive.<\/p>\n For exporters, this means:<\/p>\n For Australian exporters serving Asia and the Middle East, reliability becomes a real competitive risk.<\/p>\n Demand volatility increases from domestic and international markets<\/strong><\/p>\n Demand is moving in two directions at once. Downward pressures from inflation squeezing consumers domestically but also in highly affected export regions such as the Middle East. However, opportunity for competitive plays exist as competitors from Brazil and other export markets are forced to deal with the same operational and cost pressures and may walk away from non-core markets.<\/p>\n For Australian producers, that means short\u2011term openings around replacing imported goods with domestic or challenging for space in international markets \u2013 but only if the operation is in order and can offer a long-term sustainable price to cost equation.<\/p>\n Action plan for the industry<\/strong><\/p>\n Producers need to shift from pure efficiency to resilience and margin protection. Key priorities for the leaders are:<\/p>\n Accelerate cost management initiatives across E2E operation to reduce waste and preserve margin. Review current feed and input hedging, exploring alternative fed formulations in addition to forward contracts.<\/p>\n Derisk inbound and outbound service through frequent and transparent communication with logistics partners, in addition to investing in contingency measures to maintain service levels (e.g. buffer stock of critical inputs, securing alternative fuel sources, alternatives for critical spare parts and capital equipment).<\/p>\n\n
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