Updated ,first published
Western Australian farmers are facing a wait of up to three weeks to receive fuel supplies due to panic buying across the capital region, with the state government setting out a seven-point plan to deal with the crisis after a roundtable meeting on Wednesday.
From potato farmers in Manjimup, to grain farmers near York, regional oil shortages can have an impact on the planting and harvesting of various crops.
Potato farmer Dom Dellavedova has about 10 days of oil left before he can stop harvesting.
“The (oil) tank has 10,000 liters, I have about 3000 liters left. Most of the irrigation is done by diesel engines. We easily chew that in 10 days,” Dellavedova told this topic.
“Down (south) here is the biggest horticultural area in Western Australia. You’ve got avocados, you’ve got potatoes, you’ve got apples, you’ve got just about everything. It all needs irrigation.
“Now, the worrying thing about all of this is that if the oil is stopped or delayed, it will have a big impact on us, it will have an impact on the grain farmers.”
Dellavedova said the lack of oil also affected the delivery of products to supermarket shelves.
“Even though everything seems fine at the moment, it worries me looking down the road when you have this gap of anything coming in,” he said.
Similarly, grain farmer Nick Emin faces significant impacts to his crops if the flow of oil on his family’s Wheatbelt farm does not improve.
“We farm west of York, which is about an hour east of Midland. It’s a clean 900 hectare farm and we grow canola and barley. So, at this time of year we are in full paddock preparation and preparing our machinery for seeding which starts in four to five weeks,” he said.
Emin was told he too would face a three-week waiting period to get access to his regular oil.
“We have had very good communication from the wholesaler, and they have said that the big refineries are reducing sales to the wholesaler to try to hold on to the diesel metro,” he said.
“Earlier in the week (we were told) ‘there is no oil and you can’t import any’ Now a small amount has been given to our wholesaler, but he has had to put 4000 liters per farm until he gets around to everyone trying to do it.
“But once his levels reach a certain target then he has to stop giving it again to allow it to stay for the emergency services.”
How far does 4000 liters go on a 900 hectare farm? Emin said it will only last for four to five days.
“Our diesel consumption naturally increases at this time of year, but not being able to get it means that many of the preparatory activities we do have to slow down or we can’t do them at all,” he said.
Both men wanted to put to bed the misconception that farmers were buying oil out of fear.
“Farmers can only store so much in their bowsers. So, a lot of panic buying seems to be coming from the metro area, and it seems that agriculture as an industry has been put on hold trying to maintain stock levels for the metro,” Emin said.
“There is a lot of misinformation about farmers storing oil and causing these issues.
“But it happens to have dropped during the year when farmers are collecting anyway for their seed preparation.”
WA Premier Roger Cook met with industry figures on Wednesday for a fuel security roundtable to address the fast-growing issue.
Following the meeting, Cook said a seven-point plan has been agreed, which will give priority to the import of fuel and fertilizers; ensure fuel providers are responsive to the needs of regional Western Australian residents; explore the use of high efficiency vehicles; and take action to address reservations.
The government will also convene a Sector Steering Group to meet weekly to address “specific local supply chain issues”.
“I understand there is a lot of concern right now in the community about fuel security, and I want to reassure West Australians that my government is doing everything it can to address these concerns,” Cook said.
“Western Australia has faced international challenges before, and we will do what we need to do
do it to be strong.”
WA Chamber of Commerce and Industry chief economist Dr. Daniel Kelly said government and industry consultation is important.
“We are particularly concerned about the impact on our members in the agricultural and industrial sectors, as well as those working in regional WA,” Kiely said.
“This crisis has not only increased the cost of the fuel they need to run the equipment. It is also increasing the cost of other inputs such as fertilizers and petrochemicals due to restrictions on shipping through the Strait of Hormuz.
“Businesses and households need the government to provide certainty and transparency about fuel security and supply at this time.”
During federal parliamentary questions on Wednesday, Nationals MP O’Connor Rick Wilson said that farmers were not “scared” and instead were “sensible.”
Wilson said farmers who produced 27.2 million tons of grain in the last harvest were also at risk of catastrophic consequences due to the lack of fuel.
“There are many things going on in the fields of the wheat belt of wide acres that need diesel in abundance. They are spreading lime, they are spraying in the summer, there is the stalking and at the end of the month they will start dry sewing,” he said.
“If they are not able to start sewing at the right time, then that will have a negative impact on the harvest at the end of the year.”
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