As an industry that relies on diesel for the majority of its energy use, agriculture requires a secure supply of liquid fuel to ensure its operations can proceed uninterrupted. With approximately 89% of Australia’s food supply being sourced from Australian farms, a shortage of liquid fuels will hinder the industry in its efforts to produce and distribute this food (and fibre).
Australia is highly dependent on international supply chains for its fuel supply. Approximately 90% of the country’s liquid fuel is sourced from overseas. This has significant cost advantages but creates vulnerabilities should a disruption to these supply chains occur.
The NFF considers that the current level of liquid fuel security in Australia is inadequate. The current arrangements for the sourcing and distribution of liquid fuel in Australia leave the agricultural industry vulnerable to a range of supply risks. The NFF considers that the Australian Government should take action to reduce this vulnerability.
To view the NFF’s Liquid Fuel Security Policy, click here.