Annabel Johnson, CEO of the NSW Farmers Federation, is calling for Australia to double its national fuel reserves to 100 days [1].
The proposal highlights the vulnerability of the agricultural sector to global supply shocks. Because farmers rely heavily on fuel for machinery and transport, any disruption in international imports could halt food production and destabilize domestic markets.
Australia currently maintains fuel reserves that cover 50 days of supply [1]. Johnson said the current levels are insufficient to protect the industry during prolonged crises. "We’d like to see that doubled, so we’re able to keep operating when our international suppliers dry up," Johnson said.
The push for increased storage comes as the Australian Labor government commits $10 billion to boost national fuel security [1]. This funding is intended to shore up the infrastructure necessary to maintain a stable energy flow across the continent.
Agricultural leaders argue that the risks are magnified by the position of producers in the economy. Johnson said farmers are at the end of the supply chain, and their margins evaporated overnight.
Supply chain risks and volatile margins have created a precarious environment for regional operators. Without a larger buffer of fuel, farmers warn they may be unable to operate if international supplies fail, a scenario that could lead to widespread economic losses in the primary production sector [1].
“"We’d like to see that doubled, so we’re able to keep operating when our international suppliers dry up."”
The demand to increase fuel reserves from 50 to 100 days reflects a strategic shift toward energy sovereignty in Australia. By leveraging the $10 billion government commitment, the agricultural sector seeks to insulate itself from geopolitical instability and shipping disruptions that typically impact the most vulnerable points of the supply chain first.
