Rising fuel costs and ongoing supply pressures have rippled through the Illawarra’s food system.
As transport and production costs climb, concerns have emerged for regional food security, with fuel central not just to farming, but to the transportation of food products.
Increased diesel prices have driven up freight costs, which in turn has amplified production expenses for farmers already facing tight margins.
Data from Australian Competition and Consumer Commission (ACCC) shows that diesel prices has surged a significant amount ever since the Middle East conflict.
Prices in Sydney fluctuated from 174 cents per litre on February 20, to peaking at 321 cents per litre on March31.
Source: ACCC: Fuel price monitoring during the current Middle Eastern conflict
The ACCC data shows diesel prices slightly drop on April 1. However, the fluctuation is not considered a sustained trend, with prices remaining volatile over time.
Fuel prices in regional areas such as Wollongong and the Central Coast have had higher fuel prices than major cities like Sydney, contributing to higher transport costs across regional supply chains.
Warrawong’s Green Connect Farm activities coordinator, Stephanie Viles said despite Green Connect being an organic farm with minimal farming machinery, rising fuel prices have impacted delivery costs.
“The vehicles that we run to send out [fruit & vege boxes] every week…these are places where we have noticed that our costs have gone up considerably just in the last few weeks,” Ms Viles said.
Freight is a critical link between farms and retailers, particularly in regional areas like the Illawarra.
As transport costs rise, this can create delays, disrupt supply consistency, and increase overall prices along the chain.
For local producers in regional areas, fuel is a constant expense to worry about.
Victorian dairy farmer Steve Ronalds said that producing milk requires constant energy.
Source: 9 News Australia
“We use diesel to feed the cows, then a milk tanker comes on the farm that relies on diesel as well,” Mr Ronalds said.
“Then we process the milk…that’s a lot of [energy] in the process.
“Then we deliver the milk to the stores. Diesel again. So it hits us so hard on every different angle.”
Source: Australian Bureau of Statistics: Consumer Price Index
Fuel is required at nearly every stage of production. According to Australian Bureau of Statistics (ABS), the annual inflation for food and non-alcoholic beverages was 3.1 per cent in the 12 months to February this year.
Some experts warn of a potential 20 per cent increase on staples like meat, fruit, and vegetables by late April.
As fuel prices continue to fluctuate, the dual pressure on freight and farm operations is tightening across the Illawarra.
Mr Rolands said that or producers and distributors alike, the challenge is not just staying profitable but maintaining a stable food supply in the face of rising costs.
