Farmers fear fuel fallout
Access to fuel supplies and ongoing price increases dominated conversations at Farm World last week.
by Yvette Brand
Access to fuel supplies and ongoing price increases dominated conversations at Farm World last week.
As farmers continue to factor higher fuel prices into their production costs, Gippsland Jersey's Sallie Jones warned a bottle of milk may reach $8.
Diesel costs hit more than $3 per litre this week and Ms Jones said farmers were struggling.
Ahead of the Federal Government's announcement yesterday that fuel excise would be halved, Ms Jones called on state Opposition leader Jess Wilson to advocate for farmers to guarantee food security.
Ms Jones said Gippsland Jersey had been forced to impose a fuel levy on its deliveries to meet increased costs.
"This was not something we had in our business plan and was not something we predicted," she said.
But with increasing costs for bottles and transport - all the things needed to get milk from the farm to the retail outlet - they had no choice but to impose a $15 to $25 fee per delivery.
Ms Jones said the cost of freight had increased 22 per cent a couple of weeks ago, and continued to rise by 47 per cent and now 58 per cent.
"It has been intense and unfortunately we have to pass those costs on. We are asking retailers to not inflate those costs to the consumer.
"Being a small producer we don't have the luxury of having deep pockets so we can't absorb these costs."
She said if prices continued to escalate, consumers could potentially be paying $7.80 to $8 for a bottle of their milk in the future.
"Imagine if your tractor could run on milk because it's cheaper than diesel at the moment," she said.
Ms Jones said primary producers relied on diesel to run tractors and machinery, or pumps to fill troughs to feed stock.
"You (governments) have to keep us going, the cows don't switch off - you can't stop milking a cow and that milk has to get from the vat, to a factory to a shop," Ms Jones said.
Ms Wilson called on Premier Jacinta Allan to fight for cost of living relief.
She said Gippsland Jersey was an example of a business having to pass on the rising cost of fuel to customers, which would only push up the price of food on shelves.
Ms Wilson said the community needed a clear and transparent plan around supply. "We need a clear plan as this crisis unfolds in the coming weeks."
She said reducing the excise was the "most consistent and most immediate action" to provide cost of living relief.
At a national cabinet meeting yesterday, state and territory leaders agreed to a four-point fuel supply action plan.
The government has halved the fuel excise for three months, reducing the cost of petrol and diesel by 26.3 cents per litre. The heavy road user charge also will be reduced to zero.
The measures will come into effect tomorrow, April 1.
Fuel plan falls short
The Victorian Farmers Federation said yesterday's national cabinet outcomes fell short of delivering the certainty farmers needed.
VFF president Brett Hosking said while the temporary fuel excise cut may provide some relief for consumers, it did little to address the unique and massive impacts felt at the farm gate.
"Farmers are among the hardest hit by fuel and fertiliser price spikes.
"Farmers are telling me they are facing a real make or break moment. They can't keep absorbing skyrocketing input costs without a plan to at least break even in months ahead."
"This decision might help consumers in the short-term, but it leaves farmers out in the cold on price relief. Eventually, the pain felt by farmers now will hurt consumers at the supermarket checkout," Mr Hosking said.
The VFF said the national cabinet failed to commit to a clear framework that prioritised fuel access for critical industries such as agriculture, particularly in regional and rural communities already experiencing supply disruptions.
