Update: Fuel, fertiliser and supply chain pressures – AGW advocacy and next steps

Over the past few weeks, AGW has been participating in a series of government-led roundtables alongside industry representatives, including the National Farmers’ Federation, Fertiliser Australia and the Australian Institute of Petroleum. These forums are providing real-time input into government decision-making as it responds to global disruptions impacting Australian agriculture.

What we’re hearing
Consistent feedback across agriculture is that conditions are tightening rapidly, with:

• Significant increases in diesel, fertiliser and freight costs
• Ongoing uncertainty around supply availability, particularly for fertiliser
• Growing concern about the ability of producers to recover these costs through the supply chain

Importantly, issues raised in these forums closely mirror what we are hearing directly from wine businesses, particularly the pressure on margins and cashflow, and the cumulative impact of multiple cost increases at a time when market conditions remain challenging.

Our advocacy
AGW is using these forums to ensure the wine sector is front and centre in government’s response. In particular, we are:

• Feeding in member feedback in real time to inform government decisions
• Reinforcing that grape growers and winemakers must be recognised as primary producers in any support measures
• Highlighting the limited ability of producers to pass through rising costs, and the implications for business viability
• Emphasising the compounding effect of current pressures alongside existing structural challenges, including oversupply
• Supporting broader calls for agriculture to be treated as an essential service in any supply prioritisation decisions

We have also raised the importance of ensuring that any government response recognises the regional economic and community impacts, including increasing mental health pressures in wine regions.

Government response to date
The Australian Government has announced a number of measures, including concessional finance, temporary fuel excise relief, and steps to support fuel and fertiliser supply chains. While these are welcome, we are continuing to advocate that short-term relief must be complemented by targeted, structural support.

Alignment with our Pre-Budget Submission
These developments further reinforce the case we have made in our Pre-Budget Submission – that the sector is facing a structural crisis requiring coordinated government intervention, not just temporary assistance.

Our key priorities remain:

• Supporting business viability and orderly adjustment
• Rebuilding export markets
• Stimulating domestic demand and wine tourism
• Strengthening regional resilience, including mental health support

What we need from members
Your input is critical to ensuring we are accurately representing the impacts on the ground. If you are experiencing:

• Significant input cost increases
• Supply disruptions (fuel, fertiliser, packaging, freight)
• Difficulty passing on costs
• Changes to production, investment or staffing decisions

Please let us know. Specific examples are particularly valuable in informing our advocacy.

We will continue to keep members updated as the situation evolves. In the meantime, please be assured that we are actively engaged, well connected into government processes, and strongly advocating for outcomes that support the long-term sustainability of the Australian wine sector.