Dear Members,
I want to provide you with an update on the current fuel and fertiliser supply and price pressures facing the industry, and outline what CANEGROWERS is doing to represent your interests.
We have convened a dedicated supply chain taskforce alongside industry partners including Australian Sugar Manufacturers, Sugar Research Australia, Sugar Terminals Limited, and QSL to track supply, identify risks, and push for solutions that will keep fuel and fertiliser moving to farms. This group now meets on a weekly basis.
At the same time, we are representing growers in both state and federal disaster response forums, including weekly meetings of the National Emergency Management Agency, and directly with the Federal Minister for Agriculture.
CANEGROWERS has represented your interests at more than 30 such meetings over the past five weeks. We do this to ensure your voice is heard where decisions are being made.
Earlier this month, almost 500 of you contributed to our fuel and fertiliser survey. Your input, together with contributions from the supply chain taskforce, have been critical.
CANEGROWERS has delivered a comprehensive seasonal supply chain impact and demand report to government and industry. This report reflects our future needs and the potential impacts. It captures the reality on farm, not just assumptions made in boardrooms.
Where things stand right now
Based on the work carried out to date, we know that fuel and fertiliser supplies are tight across Queensland and NSW. We have determined that:
- The industry requires close to 91 million litres of diesel this year (about 82 million litres across all on farm operations and almost 9 million litres for the transport and milling of cane). Harvesting alone will require 74 million litres across the May to December crushing period, with demand ramping up in the coming weeks.
- Around 130,000 tonnes of urea will be needed across the season.
- As of 1 April, growers held around 3.5 million litres of fuel in on-farm storage, representing just over half of the industry’s total on-farm fuel storage capacity of approximately 6 million litres.
- Fertiliser supplies are also very limited, and in many cases, growers have little or no fertiliser on hand.
In short – demand is large, and the buffer is small.
Supply outlook
We are in direct discussions with fuel and fertiliser suppliers, but certainty is low.
- Diesel supply is expected to be available but inconsistent and expensive through to late April.
- Fertiliser supply is holding in northern regions until late April but is already constrained from Mackay south.
- Recent developments in the Middle East have significantly increased uncertainty around fertiliser shipments. Expected deliveries into Townsville and Mackay within the next two months are at risk of delay or disruption.
Peak demand will hit from May through to October, when pressure on both fuel and fertiliser will intensify across all regions.
What this means
Rising input costs are already biting. Current estimates suggest an additional $148 million burden across the industry. That’s not theoretical – it’s hitting your bottom line.
What we’re doing
Our focus is on practical outcomes, not just discussions. We are:
- Working with government to map when and where supply is needed, so distribution can be prioritised and managed more effectively.
- Pushing for financial assistance measures, through government and supply chain partners, particularly around cash flow pressures in farming and harvesting operations.
- Leading a response across the supply chain from mills, marketers, and researchers to identify practical ways to manage supply risks and reduce cost impacts for growers.
- Advocating hard for the future – demonstrating the obvious need for a better fuel and fertiliser supply strategy – one that recognises the role our industry can play and ensures this whole situation can never happen again.
What we need from you
Your continued input is critical. The information you’re providing is directly shaping our advocacy and ensuring decisions are based on real on-ground conditions. It strengthens our position in every forum from peak bodies like the Queensland Farmers' Federation (QFF) and the National Farmers' Federation (NFF), through to state and federal emergency response discussions.
Final word
This is an uncertain and challenging situation, particularly when it comes to availability and pricing of fuel and fertiliser. But we are at the table, consistently and forcefully representing growers. And we will keep pushing, across government and industry, to find practical ways to manage these impacts. CANEGROWERS will continue to lead this work on your behalf, and we will keep you informed as the situation develops.
Regards,
Dan Galligan
Chief Executive Officer
CANEGROWERS