The citrus industry timebomb?

A SENIOR local citrus grower is wary the full impacts on the Riverland industry of the fuel and fertiliser crisis will be seen months down the line.

Horticultural producers across the Riverland have been struggling with fuel and fertiliser supplies and costs, caused by global conflict in the Middle East.

Sunlands-based grower, and Citrus SA chair, Mark Doecke said while the current crop was already fertilised before the cost increases, uncertainty surrounded the next season.

“The actual price increase of fuel is an impact,” Mr Doecke said.

“Fertiliser hasn’t been much of an impact yet. That will be spring, as in the citrus industry we’ve virtually finished fertilising for the year.

“It will depend on what the prices for urea are in spring. If you’re putting some away for next season (that will help), but if it’s too dear, you won’t do it.

“The cost of growing (this season) hasn’t been affected, because the diesel and fertiliser prices (weren’t impacted) to grow this current crop we’re about to start harvesting. But it’s going to impact us in road freight to port, and sea freight to destination.”

Mr Doecke said the potential variability in fertiliser pricing made any decision to stockpile supply difficult.

“How long is a piece of string?” he said.

“There’s not much point in stockpiling now, as the price might go down.

“It also might go up, so the question is what’s your appetite for risk if you purchase now?

“We can use ammonium nitrate, or sulphate of ammonia… there’s several nitrogen products out there, and nitrogen is the most impacted from what I gather,”
Mr Doecke said increased costs to transport produce to domestic and international markets would add financial burdens to growers.

“The biggest impact on this industry will be freight rates internationally, and transport rates for going to port,” he said.

“What are container shipping rates going to do? I’ve read it could go up between 11 and 30 per cent, and that’s a hit straight from the grower’s pocket.

“This is a problem that comes straight back to the grower, and that’s the way it’s always been.”

Mr Doecke said growers were unable to rely on potential higher returns to cover added fuel and fertiliser costs.

“You always do your best to maximise your return, and hopefully we can get a couple more dollars per box to cover some of it,” he said.

“But you can’t guarantee that. Domestically, hopefully supermarkets pay a little more to cover it, but often you find that price increase in the supermarket doesn’t make it back to the grower.”

Mr Doecke said individual Riverland growers were currently at the mercy of changing international circumstances.

“It’s just out of our control,” he said.

“We’re just passengers in this, that’s the fact.

“I would like to see an improvement, as would everyone else on the planet, but we’re at the whim of others.”