The National Farmers Federation’s (NFF) Horticulture Council has written an open letter to the country’s leading supermarkets asking them to respond “promptly and constructively” to price increase requests from suppliers, in the wake of the oil crisis.
The council said that rising fuel and freight costs are placing immediate pressure on growers and suppliers, who rely on refrigerated, long-distance transport.
“Supermarkets are critical partners in the fresh produce supply chain. How they respond to these cost pressures now will directly influence whether growers have the confidence to keep planting, investing and producing for the future,” said the council’s chair, Jolyon Burnett.
Scott Kompo-Harms, CEO of Queensland Fruit & Vegetable Growers, said that fuel surcharges of up to 65 per cent of the shipment value are being applied in rural areas.
Queensland Fruit & Vegetable Growers CEO Scott Kompo-Harms said fuel surcharges applied by freight companies had risen rapidly, with those further away from capital city markets most heavily impacted.
“This increase blows out of the water the already thin margins for fresh produce growers,” he added.
The council said that transparent supplier relationships are fundamental to the future of reliable, cost-effective produce for consumers.
“We all share an interest in a resilient horticulture sector,” Burnett added.
“Supporting growers through periods of acute cost pressure is not only fair, but also essential to safeguarding the nation’s food security.”
