📷Photo:
Fuel uncertainty continues to place pressure on farmers already dealing with rising fertiliser, freight and input costs. Picture by James Baltz..
TasFarmers Chief Operating Officer Neil Grose said fuel supply in Tasmania remained stable for now, but uncertainty around future diesel availability and fertiliser costs continued to create concern for farm businesses.
“Bulk fuel prices have eased from recent peaks and availability is generally good, however the key issue for farmers is not simply price, it is confidence that fuel and fertiliser will continue to be available when they are needed most,” Mr Grose said.
“As we move through June and July, uncertainty in global energy markets and disruptions affecting crude oil movements from the Middle East continue to raise questions about longer-term diesel supply.”
Mr Grose said the Federal Government should be acknowledged for securing additional fuel shipments and supporting supply into Australia, but agriculture remained heavily reliant on reliable diesel supplies to keep farms, freight networks and food production moving.
“Diesel is not optional on a farm. It powers everything from planting and harvesting through to irrigation, transport and day-to-day operations. Any disruption to supply would be felt right across the agricultural sector.”
Mr Grose said fertiliser markets also remained volatile, with urea prices elevated ahead of spring.
“One of the greatest concerns for farmers looking to establish new crops or pasture is can we get fertiliser, and what’s the price?” he said.
“It’s hard to commit to a new crop if you don’t know what your basic inputs are, so you’re not quite sure what your gross margin model will be.”
“Farmers need certainty around the cost and availability of key inputs before making production decisions. When those costs remain unpredictable, it becomes much harder to plan and invest with confidence.”
Mr Grose said rising fuel, fertiliser and freight costs continued to place significant pressure on farm margins, although some processors had stepped up to provide growers with support.
“There has been some relief provided by processors. One of the potato processors and one of the dairy processors have come to the party and provided growers with assistance.”
“TasFarmers is continuing discussions with other processors about what further support may be possible as farmers continue to face escalating input costs.”
“You get paid wholesale, but you buy retail and pay the freight both ways.”
“Farmers are dealing with escalating costs across fuel, fertiliser, freight and other inputs, while many continue to operate under fixed-price contracts or markets where they have limited ability to recover those costs.”
“It reinforces the need for reliable supply chains and policies that support the long-term productivity and resilience of Australian agriculture.”