Industry Pulse: Middle East Impacts Tracker

9 April 2026

Background

As the Middle East conflict moves into a new phase this week, much remains uncertain about its ultimate resolution. What is certain, however, is that the reverberations will continue to affect global supply chains for some time to come.

AFGC has been actively monitoring the impact on the FMCG sector throughout this period. To better understand the real-world pressures facing members, we conducted a targeted survey and have been tracking results through our live Industry Pulse dashboard. This brief outlines what we are hearing so far, supported by insights from our live Industry Pulse dashboard.

In parallel, AFGC has raised emerging risks from supply chain disruptions with food regulators. See regulatory update below.

Survey Insights

Overall Impact: Majority reporting moderate impact (59%); 21% experiencing severe impacts requiring operational changes 
Primary Pressure: Domestic road transport (92%) and international shipping costs (82%) 
Cost Signal: Fuel and levy increases passing through quickly into logistics pricing 
Supply Position: Supply holding for now; shipping delays flagged as the main forward risk 
Main Areas of Concern: Fuel, resin, packaging

Industry Pulse – Middle East Impacts Tracker

View the interactive dashboard

Regulatory update – compliance considerations

AFGC has raised emerging risks with food regulators, including at FSANZ’s recent Binational Food Industry Dialogue (BFID). In particular, we highlighted the potential for Food Standards Code compliance issues, especially around labelling, where regular ingredient supplies or inputs are disrupted.

Regulators have agreed on a consistent approach for manufacturers to report and to seek regulator consideration where unavoidable supply disruptions create temporary compliance challenges. It is modelled on the approach developed in response to the COVID-19 pandemic. FSANZ has developed a dedicated webpage for food businesses that outlines the process.

Who you can talk to

For questions and emerging risks, please contact Lee Dittmar, Manager, Retail Supply Chain.

We will continue to keep you updated as the situation evolves.

Andrew Clark
Director, Retail