Expect cost of tomatoes to rise as fuel prices batter SA’s food salad bowl
Families to pay more for fruit and veg: the state’s peak farming body is warning of growing costs for South Australians, as war in the Middle East impacts fuel supply for farmers.
As fuel prices continue to soar across South Australia, farmers in regional areas are struggling for reliable access to fuel with fears the growing costs will be passed on to supermarket customers.
Fuel prices across the state have skyrocketed as war in the Middle East disrupts the global fuel supply chain through the Strait of Hormuz. Unleaded petrol currently hovers around $2.50 per litre across SA, while some regional stations have hiked the price of diesel to more than $3 per litre.
Primary Producers SA chair Simon Maddocks said the rising cost of fuel across SA had been “outrageous”, with the state’s farmers producing grain, milk, grapes, citrus, stonefruits and meat struggling to cover the costs.
“Farmers don’t have the wherewithal to wear that cost, so these are going to have to have to get passed up the supply chain, and ultimately, it’s going to land on consumers,” Maddocks said.
“This is an important industry and one of South Australia’s core economic drivers, and they need guarantee of supply right now. It’s pretty critical.”
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He said all primary production sectors had been affected by the fuel crisis in “some way, shape or form”, with the state’s grape growers, grain producers, and livestock producers among the top industries feeling the pinch.
“We just don’t need this right now, and what farmers are looking for is some clarity, because we’re talking a lot of money that has been invested in putting a crop in the ground or preparing for the next seasonal production,” he said.
“Much of rural and regional SA is supplied by independent fuel sellers, and they’re having trouble getting supplies from the Big Four stations who have locked into their more historical contracts,” Maddocks said.
“A lot of regional stations have not been able to supply, and we’ve certainly had stories of farmers thinking they had an order placed and being told the order won’t be able to be fulfilled.
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His comments followed Prime Minister Anthony Albanese announcing on Saturday night that Agriculture, Fisheries and Forestry Minister Julie Collins would bring government, industry experts and communities together at a meeting of the National Food Council today.
Albanese told a food and beverage manufacturing event that Collins was “tasked with thrashing out how we can best support our farmers and producers across the whole food system, particularly on future fertiliser supply”.
Adelaide-based national veg producer Comfresh will incur hundreds of thousands of dollars in costs due to rising fuel prices in growing its tomatoes, cucumbers, lettuce and others staple foods.
Comfresh is one of the largest suppliers of fresh vegetables in Australia, and boasts more than 1000 growers nationwide. CEO Johnny Tran last year was recognised with the prestigious First Among Equals Award at the InDaily 40 Under 40 gala dinner and was recently recognised as one of nine top private Australian businesses in Deloitte Private’s Australia’s 2025 Best Managed Companies awards.
Speaking to InDaily, Comfresh CFO Winston Abeyeratne said the increasing fuel prices are a significant cost to the business.
Abeyeratne said that costs had risen across the business alongside spiking petrol prices, with the imposition on Comfresh described as “materially significant”.
This is alongside higher prices for materials, fertiliser, packaging, and fuel used for heating in the high-tech greenhouses operated by Comfresh.
“The biggest direct cost is the freight cost to our customers,” Abeyeratne said.
“If you look at everyday staples – cucumbers, tomatoes and other soft vegetables – they’ll definitely see a significant cost increase that will be passed on to the community as a whole.”
He said the business was in a strong position and was working closely with all its stakeholders to manage the situation.
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