1 Apr 2026
Global supply disruptions place mounting pressure on Queensland agriculture
The Queensland Farmers’ Federation (QFF), our peak body members and corporate partners remain concerned by the on farm impacts of global tensions in the Middle East.
Yesterday, the Federal Government committed to establishing a dedicated fertiliser taskforce and is exploring mechanisms to underwrite fertiliser shipments to stabilise supply chains.
Earlier this week, National Cabinet agreed to the National Fuel Security Plan aimed at coordinating a consistent response across the Commonwealth, States and Territories. The Plan outlines indicative policy settings across four levels, outlining individual, Commonwealth and State and Territory actions, including the potential for fuel rationing at level four.
QFF has welcomed the Government’s commitment to underwriting the imports of fuel supplies as one of the measures.
The Government has halved the fuel excise, reducing the cost of petrol and diesel by 26.3 cents for three months, with the heavy road user charge also reduced to zero during the same period to relieve freight costs.
QFF CEO Jo Sheppard said that while the reduction in the fuel excise will do little to assist farmers, QFF supports the Federal Government’s clear message acknowledging the importance of diesel to the national economy and that planning ahead is essential if we are to be in a position to act to support Australians through the impact of the global energy shock.
“The Federal Government advises that we do not have fuel supply issues per say currently, however, we need to see continued specific targeted actions to address key risks to the economy, the ongoing distribution issues and the very real affordability issue that is now impacting farm enterprise cash flows and business confidence more generally,” Ms Sheppard said.
“It is important to monitor closely as to how these measures play out throughout the supply chain over the coming three months and to get moving on a longer-term plan, should the disruptions continue. What we don’t want to see is this move, whilst helping consumers at the pump for the short term, leaving the real economic burden largely unaddressed. Agriculture needs clear direction on fertiliser and fuel supply into the medium term and targeted small business support is urgently needed to support those across the supply chain facing acute financial pressure. Urgent measures are required to keep the economy going.”
“Visibility for business and industry is critical as we move through this crisis. The establishment of a dashboard which can provide up to date information on the supply and distribution situation would be welcomed by industry. Transparency and visibility are fundamental when it comes to business confidence and assisting farmers to be able to make informed decisions as to whether they plant or harvest.”
“Australia is lucky enough to be home to some of the best energy resources in the world – gas, oil, coal, sun, wind and a significant bio-energy opportunity. A National Fuel Security Plan should not just be something we pull out during times of crisis but should be a long-term strategy with key implementable milestones so that we are continually building our sovereign energy capability.”
“As a nation we have been complacent. We can be complacent no more,” Ms Sheppard said.
CANEGROWERS Chief Executive Dan Galligan said the situation highlights how exposed Australia remains to global fuel shocks.
“Australia imports the vast majority of the fuel we use, and much of it moves through some of the most volatile regions in the world,” Mr Galligan said.
“In the sugarcane industry the crush is still almost three months away, but harvesting contractors are already asking whether they’ll be able to secure enough diesel to run their harvesters and haulout equipment when the season begins.”
“Ethanol made from Australian crops like sugarcane can replace a portion of imported petrol and provide a reliable domestic supply. An enforced E10 mandate would mean around 10% of the fuel Australians use could be produced right here at home rather than shipped in from the other side of the world.”
“Producing more of our own fuel here in Australia would make our supply more resilient and help reduce the impact of international shocks on prices at the bowser.”
Cotton Australia General Manager Michael Murray said while most growers appear to be getting their required diesel eventually, the cost is putting huge pressure on financial sustainability.
Looking slightly further out, cotton growers are increasingly concerned regarding their ability to source fertiliser, and in particular nitrogen fertiliser for their winter crops and next season’s cotton.
“We should have learnt a lesson from COVID-19, and we really must learn it now, we must boost our sovereign capability to produce inputs that are vital for our economy,” Mr Murray said.
Queensland Fruit & Vegetable Growers (QFVG) CEO Scott Kompo-Harms said horticulture producers are already operating under sustained cost pressures, and the current global disruptions are pushing many businesses to breaking point.
“Queensland horticulture growers have been dealing with rising input costs for years, but surging fuel prices, transport levies, and emerging shortages of critical inputs such as plastics and fertilisers are now compounding those pressures in a way that is simply unsustainable,” Mr Kompo-Harms said.
“For growers, the situation is impacting day-to-day operations, with some forced to make difficult decisions about whether they walk away from crops."
“Without clear and immediate government action to secure fuel and key inputs, the risks to Australia’s food security will only intensify. Growers need certainty to keep producing, investing, and employing Queenslanders - and right now, that certainty is in short supply.”
QFF Corporate Partner Toowoomba and Surat Basin Enterprise Acting CEO Josh Edwards said the Darling Downs’ intensive livestock industries are particularly exposed to rising fuel and fertiliser costs, given their scale and reliance on grain and transport inputs.
“The Darling Downs is one of Australia’s most productive food regions, and what happens here has national consequences,” Mr Edwards said.
“We’re home to around 65% of the country’s grainfed beef industry, with feedlot production alone worth approximately $1.4 billion annually. On top of that, our region produces nearly two-thirds of Queensland’s pork and around 85% of the state’s eggs.”
“These industries rely heavily on grain, freight and energy, so when fuel and fertiliser prices rise, the cost pressures ripple right through the supply chain and ultimately to the consumer.”
“What we’re seeing now is a compounding effect. Higher fertiliser costs increase the cost of growing feed, while fuel impacts everything from on-farm operations to transporting livestock and finished products.”
“If these pressures continue without intervention, it risks not only the viability of individual businesses but also the affordability and reliability of food supply more broadly.”
QFF Corporate Partner Power Tynan Executive Director Gilda Brisotto noted the impact a loss of predictability and ability to plan was already having on Queensland farmers.
“From our perspective working closely with farm businesses, the issue is not just cost escalation - it’s the loss of predictability. Farmers can plan around higher costs, but they cannot plan around constantly shifting ones. When fuel, fertiliser and freight prices are moving targets, it becomes extremely difficult to lock in margins, assess risk, or make confident production decisions,” Ms Brisotto said.
“Cashflow pressure is escalating. Input costs are often incurred well before revenue is realised, and without clarity on pricing, the financial exposure carried by producers increases significantly.”
“What is critically needed is clearer, more timely information. Improved transparency around supply availability, pricing movements and distribution constraints would allow businesses to make informed decisions earlier and manage risk more effectively.”
“Tools such as a supply chain dashboard would be a practical step forward - providing real-time visibility and helping shift the industry from reactive responses to more structured, forward planning. In the current climate, better information is one of the most effective forms of support we can provide to the sector.”
QFF and our peak body members are continuing to seek real time feedback from farmers and communities and are working with industry and government to support practical responses as the situation evolves. Farmers are encouraged to report supply issues to their peak industry body.
-ENDS-
Media contact:
Jak Kirwin
Acting Corporate Partnerships and Communications Manager, QFF
E: comms@qff.org.au
M: 0488 305 106