Macadamias: fuel supply disrupted in Australia

Fuel and disaster support required

Background is that rural communities are running dry on fuel as prices have soared on the back of the Iran war. On top of this, farmers affected by the historical flash floods at the start of the month may be eligible for disaster assistance.

Fuel supply pressures

AMS continues to actively monitor fuel supply challenges affecting regional Australia and is advocating on behalf of growers through national industry channels. The Society is speaking with growers daily and gathering direct feedback on fuel availability, delivery delays and pricing pressures to ensure real on-ground impacts are clearly communicated.

Close cooperation with the National Farmers’ Federation (NFF) is also underway and AMS participated in a government roundtable briefing on the evolving situation on 19 March. While fuel continues to arrive into Australia, there is growing uncertainty across many regions, particularly for independent fuel suppliers who rely on the spot market, where supply has significantly tightened or ceased.

There is increasing industry concern about the availability of fuel through these independent distribution networks, which many growers rely on. Industry bodies are calling for government action to ensure fuel continues to flow where it is needed most.

These impacts are being felt across agriculture, with strong recognition at government level of the potential risks to harvest operations, planting windows and broader food production. With the macadamia harvest underway, reliable access to diesel is critical for orchard operations, machinery use and transport. The ramifications of diesel shortages also extend throughout the supply chain, with transport levy surcharges increasing significantly.

The Federal Government has released part of the national fuel reserve and established a Fuel Supply Taskforce to improve coordination and response. AMS supports this move and is calling on the taskforce to ensure geographic and sector-specific measures are in place, so diesel supply is prioritised for farms and the food supply chain.

AMS will continue working with the NFF and other industry bodies to ensure the needs of macadamia growers are clearly represented as the situation develops, including reinforcing the need for a reliable and prioritised diesel supply for agriculture.

Feedback from growers is essential

AMS is also calling on growers for feedback as timely, on-the-ground feedback from growers is critical to ensure industry impacts are accurately communicated to the government. Growers are asked to contact AMS if they are experiencing fuel delivery delays, restricted supply or challenges securing fuel for harvest operations or significant cost increases, for both diesel and in associated transport levy surcharges.

Flash flood disaster support

Flood affected primary producers in the local government areas of Boulia, Bundaberg, Diamantina, Fraser Coast, Gympie, North Burnett and South Burnett may be eligible for a range of assistance, including small businesses for Exceptional Disaster Assistance Grants of up to AUD 25,000 and primary producers for grants up AUD 75,000. Primary producers may also be eligible for Disaster Assistance Loans of up to AUD 2 million, Essential Working Capital Loans of up to AUD 100,000 and Freight Subsidies of up to AUD 5,000 along with Personal Hardship Assistance including emergency grants and essential services support.

Funding can be used for a range of recovery and operational activities unique to each support measure, such as clean-up, repairs, supply, paying wages, rent or rates, replanting, or the purchase of fuel or water. AMS also provides practical support or assistance in connecting with the right people through the Rural Financial Counselling Team.

View the original AMS updates
- Fuel Supply Update
- Disaster Support Activated for Primary Producers