Synopsis #2: Fuel and Fertiliser Supply Disruptions

Synopsis #2: Fuel and Fertiliser Supply Disruptions

SADA has today attended the Fuel Security Roundtable hosted by Premier Malinauskas, alongside industry and government representatives to discuss the current fuel situation and its impacts across the supply chain and broader economy.

The key message is clear: South Australia is not facing a fuel supply shortage—but we are facing significant demand and distribution challenges. The Federal Government has indicated that formal demand management measures are not currently required, but is monitoring the situation closely and gathering further data.

Fuel shipments into Australia are arriving as scheduled, and overall supply remains consistent. However, panic buying and sharp spikes in demand have placed significant pressure on the system, leading to localised outages at service stations and delays in bulk deliveries, including on-farm supply.

At the same time, rising fuel prices, driven by global wholesale prices and flow-on costs are continuing to bite. We highlighted the limited ability for farmers to pass these increases on.

The roundtable also highlighted broader supply chain concerns. There are emerging risks around fertiliser supply, particularly urea. While the fertiliser sector has indicated there is enough product in the system for the autumn sowing season, global shortages and geopolitical uncertainty mean availability later in the season is far less certain.

Importantly, dairy and other agricultural sectors were strongly represented in the discussion. It was reinforced that farmers are largely price takers, operating under fixed contracts and tight production windows, with little flexibility to absorb sudden cost increases or supply disruptions.

SADA will continue to advocate on behalf of members, particularly around:

• Ensuring reliable access to on-farm fuel supply
• Addressing rising input costs and flow-on charges
• Supporting freight sector sustainability
• Monitoring fertiliser availability and pricing 

A number of possible response measures have been proposed to the government including a reduction in the federal fuel excise and increased payload limits for certain classes of road freight.

We encourage members to reach out if you are experiencing ongoing supply issues or if you have an idea, as real-time feedback is critical to informing government and industry responses.

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 remains engaged in State and National "Input Disruption" round tables and will continue to work with State and Federal government to ensure fuel supply to dairy farms and milk transport is prioritised.