Fuel shortages on farms spark call for action from Federated Farmers

Karl Dean says dairy farmers will be facing high diesel costs in the next couple of months due to stock movements between farms.

By Ellen O’Dwyer of RNZ

Federated Farmers says farmers are experiencing fuel shortages, with some two to three weeks behind their normal fuel drops.

The organisation’s dairy chair, Canterbury sharemilker Karl Dean, said fuel distributors have had the schedule of fuel allocations changed by importers, disrupting when farmers usually receive supply.

Most farmers – if they have an on-farm tank – will have a system set up with their fuel supplier to get filled up about once a month, Dean told RNZ’s Morning Report.

Dean said he was hearing from farmers daily that some were weeks behind usual deliveries.

“That is a big concern.”

He said he is urging fuel distributors and the Government to prioritise agriculture as an essential service for fuel supplies now.

“We’ve had instances where farmers have run out of water for stock water pumps ... that can’t happen.

“And I think the Government, personally, needs to start to make a stand and say ‘hey, there is shortages of fuel’, in terms of the distribution network in New Zealand, and that needs to be categorised and played through properly.”

RNZ has previously reported farmers running dry on fuel as rural distributors face limits.

Caroline Kirk, the co-owner of a Hawke’s Bay dry stock farm, said in late March her fuel drop was 10 days late, and her reticulating drinking water system for livestock ran on fuel.

Distributor Fern Energy said at the time it was doing its best to prioritise fuel deliveries based on need.

Dean said he hoped the fuel drops would return to normal as soon as possible.

He also said dairy farmers will be facing high diesel costs in the next couple of months due to stock movements between farms.

“We’ve got large trucking events that happen normally around the 1st of May for young stock moving in and off farms, and then 1st of June for herds moving and going to wintering, etc.”

A big concern was the flow-on effect of fuel and transport price rises for next season, as companies will be ordering supplies now for spring and next summer, he said.

When asked about farmers facing fuel shortages, Finance Minister Nicola Willis said supplies remained available, but price rises were extremely concerning.

She said the Government had published a fuel response plan which would call for “voluntary demand restraint” if there were disruptions in deliveries or orders.

She said while some farmers are seeing limited stocks, the Government has taken steps to stop stock-outs at some service stations.

She said the issues, as flagged by Federated Farmers, were not because of a lack of fuel in the country, adding that such issues could be raised directly with her and officials.

“We don’t want to see those problems becoming widespread, where they have occurred in isolated instances, we have worked with the fuel importing companies to understand the issues and ensure that they’re addressed.”

Such problems have become widespread in Australia, she said, and the Government is prepared to take more regulatory action if the businesses fail to address them effectively.

RNZ has approached MBIE for comment.

- RNZ