Red meat could soon become more expensive as the oil crisis caused by the ongoing war in the Middle East continues to wreak havoc for Aussie farmers.
More than three quarters of red meat producers surveyed by the Red Meat Advisory Council (RMAC) last month said they have enough fuel to continue for just one more week.
Less than half said they could potentially stretch their supply over two weeks.
Every part of the supply chain, from transporting feed and pumping water to the animals, to running machinery, and transporting, processing and storing product, is impacted by the fuel crisis.
“This isn’t a future problem – it’s happening now,” RMAC independent Chair John McKillop said.
“Producers are already facing difficult decisions, including the potential early slaughter of animals, where access to feed, water and transport cannot be guaranteed.”
MORE:Warning: Major bill for petrol ‘panic’ buyers
He warned the situation is “rapidly deteriorating” and consumers will likely see an increase in price and limited choices on supermarket shelves if urgent action to prioritise fuel access isn’t taken.
“Up to 76 per cent of producers identified April and May as a peak period when reliable fuel access is absolutely critical,” he said.
“Without it, they simply cannot operate.”
Australians are also bracing for an increase in the price of fresh produce with the rising cost of fuel and fertiliser hurting farmers.
The price of nitrogen fertiliser urea has roughly doubled since the war broke out. About two thirds of Australia’s supply of urea comes from The Gulf, with prices skyrocketing due to restricted passage through the Strait of Hormuz.
National Farmers’ Federation (NFF) President Hamish McIntyre told news.com.au last week that winter crops could be halved if farmers can’t get in-crop requirements of urea after May.
In a worst-case scenario “we’re looking at a massive reduction in production of winter crop, then we’re potentially very worried about securing next year’s summer crop as well”.
MORE: How petrol price spike could hit home values
On Thursday, the NFF’s Horticulture Council released an open letter to Australian supermarket chains, urging them to take up price increases as a result of rising fuel costs.
It said, “timely acceptance of cost‑reflective price adjustments was essential not only to maintain current supply, but to send the confidence signals required for growers to continue investing in future production.”
“Fuel prices, fuel levies and transport surcharges are rising rapidly and, in some cases, changing daily. For a sector that relies heavily on refrigerated, long‑distance freight, these increases are placing immediate pressure on growers and suppliers across Australia.”
Chair of the Horticulture Council, Jolyon Burnett, urged supermarket chains to “recognise the real costs being borne by suppliers.”
He said that by supporting continued domestic production through the passing on of increased prices, supermarkets help prevent future product shortages and food price spikes.