Farmers and NSW Farmers vice president Bec Reardon urge major supermarkets to help cover soaring transport costs driven by high diesel prices, arguing it squeezes margins for dairy and fruit/vegetable growers.

Industry veteran Mr. Bennett warns the sector was already in decline before recent global tensions and cautions that without funding flowing to farmers, more cows could be culled.

The overarching aim is to prevent farm closures, maintain milk and produce supply, keep truck drivers employed, and avoid further grocery price increases, calling for shared responsibility across the supply chain.

Australia’s dairy farmers warn that rising input costs could push milk prices up sharply, threatening industry viability without fair price increases.

Woolworths will pay an extra 10 cents per litre to Farmers Own Brand dairy farmers, benefiting about 20 farmers; Lactalis will add 5 cents per litre to more than 800 farmers starting May 1.

Despite government fuel tax cuts, diesel prices have risen due to global oil dynamics, increasing costs for dairy operations.

Supermarkets including Woolworths and Coles acknowledge cost pressures and say they are absorbing some increases to protect consumers while safeguarding supply.

Australian dairy farmers and vegetable growers are especially affected, with trucking firms also suffering; farmers contend they cannot pass fuel costs onto prices, risking reduced profits.

Farmers point to sharply higher diesel and fertiliser costs—diesel around $3 per litre and fertiliser jumping from roughly $800 to $1800 per tonne—as squeezing margins and threatening herd reductions.

Australian Dairy Farmers president Ben Bennett calls for a 20% permanent milk price increase to sustain the industry, criticizing supermarkets for not addressing broader farmer needs.

Farmers currently bear transport costs to move goods to processors and retailers, and rising diesel prices have narrowed their take-home pay.

Farmers argue that the burden of rising costs should be shared more equitably across the supply chain to avert further industry decline.