Synopsis #1: Fuel and Fertiliser Supply Disruptions
SADA members should be aware of emerging disruptions to fuel and fertiliser supply chains linked to ongoing instability in the Middle East. While national fuel supplies remain adequate overall, there are increasing reports of shortages and price spikes in regional areas, particularly affecting independent fuel distributors that rely on the spot market.
A surge in demand (in some cases up to 4 x normal purchasing volumes) has placed additional pressure on supply chains. Major fuel suppliers are prioritising contracted customers, limiting availability through the spot market—where many regional suppliers operate.
SADA has highlighted that diesel access is critical for milk collection, feed transport and on-farm operations. Any disruption risks immediate impacts on milk supply chains, given the perishable nature of production.
Rising input costs (fuel and fertiliser) are expected to increase cost pressures on farm and across dairy supply chains. While short term fertiliser supplies appear to be secure, there is a medium term supply and price risk.
To date government has allowed temporary changes to fuel standards to increase supply, release of up to 20% of national fuel reserves (approx. 762ML) targeted to priority users, established a Fuel Supply Taskforce Coordinator and directed ACCC investigation into potential anti-competitive conduct in regional fuel markets.
SADA remains engaged in State and National "Input Disruption" round tables and will provide further advice as it becomes available. Together with the NFF and ADF we are calling for a clear Government “Plan of Action” if conditions worsen.
SADA members should:
- monitor fuel availability closely and engage early with suppliers,
- avoid panic buying where possible, but ensure operational continuity planning,
- report supply shortages or extreme price movements (SADA can escalate through both state and national channels)
The situation is not yet a national supply crisis, but it is already a regional supply and pricing issue—with real implications for dairy operations if it escalates.
SADA will continue to work with NFF and government to ensure fuel supply to dairy farms and milk transport is prioritised.
Further Information
Andrew Curtis | CEO | Mobile: 0419037569
Date: 20 March 2026
SADA is seeking a quick snapshot of current fertiliser and diesel supply and pricing pressures being experienced by South Australian Dairy farmers due to global uncertainty created by the conflict in the Middle East and what this could mean for supply and rising costs. Your responses will help inform SADA's advocacy with governments and the supply chain.