{"id":601089,"date":"2026-04-12T01:02:11","date_gmt":"2026-04-12T01:02:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/601089\/"},"modified":"2026-04-12T01:02:11","modified_gmt":"2026-04-12T01:02:11","slug":"iran-war-forces-small-supermarkets-to-lower-margins-as-suppliers-farmers-pass-on-rising-costs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/601089\/","title":{"rendered":"Iran war forces small supermarkets to lower margins as suppliers, farmers pass on rising costs"},"content":{"rendered":"<p class=\"paragraph_paragraph___QITb\">Smaller and independent supermarkets say they are facing increased pressure to keep grocery prices stable as the cost of keeping shelves full continues to rise.\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">Increased costs of fuel and fertiliser as a result of trade disruptions in the Middle East have impacted farmers and suppliers, who have passed hikes on to supermarkets.<\/p>\n<p><img decoding=\"async\" alt=\" A close up of a sign on top of a building saying Drakes an a shopping trolley above. \" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/c88af8232e75efe772adb47375460154.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Independent retail chain Drakes Supermarkets has seen suppliers&#8217; costs jump due to rising fuel prices. (ABC News: Michael Clements)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Drakes director, John-Paul Drake, said he had seen more extra charges from suppliers over the past month.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Suppliers have been looking at making sure their costs are covered,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;They&#8217;ve been looking at all sorts of different ways to put a fuel tax, a surtax, a fuel levy, call it whatever you want.\u00a0<\/p>\n<p>&#8220;We are seeing a few interesting things coming up on invoices.&#8221;Holding strong<\/p>\n<p class=\"paragraph_paragraph___QITb\">Despite extra costs, Mr Drake said his business, which operates across South Australia and Queensland, had chosen not to pass on the costs to consumers.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;We are doing everything that we can to make sure we hold down the pricing,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;In the scheme of things, it&#8217;s only a small percentage that is in the whole cost of our doing business.&#8221;<\/p>\n<p><img decoding=\"async\" alt=\"Fresh vegetables on three black shelves with price stickers in front of the items.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/3ba29666761560cb6b334383f296cf95.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Many smaller retailers do not have the resources to keep paying increased costs from suppliers. (ABC South East SA: Josh Brine)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Mr Drake said he wanted the government to be more transparent about fuel supplies to help better inform businesses and consumers.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The fact that people are concerned, worried and panic buying \u2014 it&#8217;s all because we don&#8217;t have that certainty,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;If we just had some transparency, we might not be in this place where people are panicking to buy fuel [or] worrying that it&#8217;s going to run out.\u00a0<\/p>\n<p>&#8220;Let&#8217;s face it, we&#8217;re not going to run out of fuel.&#8221;More news from regional SAIndependent retailers hit first<\/p>\n<p class=\"paragraph_paragraph___QITb\">Master Grocers Australia Independent Businesses Australia director Lincoln Wymer said smaller supermarkets had been absorbing increased delivery fees from suppliers since fuel prices jumped weeks ago.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The big one&#8217;s been the increase in the minimum delivery cost,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Before, they might have been $200. They&#8217;re now saying we&#8217;re not sending it unless it&#8217;s a $500 order now.\u00a0<\/p>\n<p>&#8220;That&#8217;s really hurting the small suppliers because sometimes we don&#8217;t need to spend that much money on their products.&#8221;<img decoding=\"async\" alt=\"Lincoln smiles, has arms folded across chest. Caucasian, has brown hair and beard, glasses, stands in front of shop.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/0c4178cf0fe08a187467a2a522069518.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Lincoln Wymer says small supermarkets will not be able to absorb the rising costs for long. (ABC News: Iskhandar Razak)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Mr Wymer is also the chief operating officer of the Reddrop Group, which operates supermarkets across Victoria and southern New South Wales.<\/p>\n<p class=\"paragraph_paragraph___QITb\">He has been in constant communication with suppliers to navigate the situation.<\/p>\n<p>&#8220;I spoke to our main transport company &#8230; and he&#8217;s gone from about $20,000 a month to over $30,000 in fuel costs alone,&#8221;  he said.<a href=\"https:\/\/www.abc.net.au\/news\/2026-04-01\/petrol-diesel-price-tracker\/106513484\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Track the latest fuel prices around Australia<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">See what&#8217;s happening with fuel prices near you, updated constantly.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;He nearly exclusively supplies our stores and so that $10,000 a month has to come out of our businesses.&#8221;<\/p>\n<p class=\"paragraph_paragraph___QITb\">Mr Wymer added it was too expensive to change the price labels in stores due to uncertainty about how long increased fuel prices would continue.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The cuts [to the fuel excise] that were made by the government recently helped us make the decision not to move the prices in the short term,&#8221; he said.<\/p>\n<p>&#8220;If this continues much longer, I just can&#8217;t see how a grocery store or supermarket can absorb these costs into their narrow margins.&#8221;Loading&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"Smaller and independent supermarkets say they are facing increased pressure to keep grocery prices stable as the cost&hellip;\n","protected":false},"author":2,"featured_media":601090,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,99,63694,35431,72272,292979,206980,292980,292981,257918,292982,26687],"class_list":{"0":"post-601089","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-drakes","12":"tag-fuel","13":"tag-grocery-prices","14":"tag-independent-supermarkets","15":"tag-iran-war","16":"tag-lincoln-wymer","17":"tag-master-grocers-australia-independent-business-association","18":"tag-middle-east-war","19":"tag-reddrop-group","20":"tag-supermarkets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/601089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=601089"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/601089\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/601090"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=601089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=601089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=601089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}