Skyrocketing food prices spark fuel storage plea

Prices for red meat, milk and other basic food items have soared over the past 12 months, strengthening calls from the SA Liberals for a strategic diesel reserve that would help shield primary producers from future fuel shocks.

The latest quarterly ABS inflation data indicated the rising cost of fuel and fertiliser is filtering through to everyday grocery items, with the year-on-year increases including:

• Lamb up 15.5%
• Beef and veal up 11.8%
• Coffee inflation up 10.7%
• Fruit prices up 4.3%
• Milk prices up 4%
• Meals out and takeaway food 3.9%

State Opposition Leader, Ashton Hurn, said the fuel crisis means every step in the food supply chain is costing more – from growing, to processing, packaging and distribution.

“Our farmers and producers do everything they can to absorb these costs, but this data is evidence that the pressure they face at the farm-gate is hitting at the checkout too,”

Mrs Hurn said.

“Everything from the meat on your dinner plate to your takeaway coffee is being impacted by the fuel crisis, making it vital that we support our farmers to weather this international storm.

“We need to back our farmers, because their hard work puts food on the table of every South Australian.”

The State Opposition has put forward a State Fuel Security and Resilience Framework, which includes a strategic diesel reserve as a backup.

“It makes sense to have a strategic reserve – other states are planning ahead and it would be smart for South Australia to do the same,”

Mrs Hurn said.

“These are the types of priority issues we want to see the government focused on, particularly as we face extraordinary economic uncertainty.”

Shadow Minister for Primary Industries and Regional Development, Nicola Centofanti, has urged the Government to implement the Liberals’ framework immediately.

“Without support for primary producers, we face further shortages of critical food supplies, as farmers scale back on plantings to bring down their costs,”

Dr Centofanti said.

“Diesel is essential to our economy. Without it, crops aren’t harvested, goods aren’t transported and services can’t operate.
“Farmers have long been forced to put up with piecemeal, band-aid solutions, what they need is ongoing certainty that support will be there when they need it.
“We want to see the government support our farmers in their time of need.”

State Fuel Security and Resilience Framework pillars:

• Governance and transparency: Establish a dedicated SA Fuel Security Coordinator and expand real-time fuel supply monitoring across the state.
• Critical infrastructure protection: Ensure hospitals, SA Water, emergency services, ports and power stations maintain at least 7-14 days of on-site diesel reserves.
• Strategic diesel buffer: Develop a state strategic diesel reserve over time, with an initial portion secured immediately using existing private terminal storage.
• Agricultural resilience: Grants and low-interest loans to help farmers install or expand compliant on-farm diesel storage.
• Commercial storage expansion: Incentives for logistics operators, manufacturers, mining companies and councils to increase fuel storage capacity.
• Efficiency and diversification: Back research into bio-based products using agricultural residues and encouraging future oil development in the Cooper Basin to strengthen domestic supply.

*All data sets are year on year as per the ABS Consumer Price Index