Local Networks Help Mitigate Impact of Rising Costs
SYDNEY — Rising fuel costs are contributing to an uneven increase in food prices across Australia, according to community food network Box Divvy. As diesel prices approach $3 per litre in some regions, the impact on transport and fertiliser costs is beginning to be felt throughout the food supply chain.
Box Divvy co-founder Anton van den Berg noted that while fuel prices affect all parts of the food system, the resulting price increases are not uniform. “People are joining the dots,” van den Berg said. “What we’re seeing so far is not a uniform increase, but pressure building in different parts of the system.”
Diesel price hikes are leading to increased transport costs and fuel levies, especially in regional areas. However, softer demand for fresh produce is helping to offset some of these increases, leading to a more varied pricing landscape across different food categories.
Community Solutions to Pricing Pressures
Box Divvy, which operates over 350 local hubs in NSW, ACT, and Victoria, is witnessing shifts in consumer behaviour as a response to these pressures. Members are reportedly planning purchases more carefully and focusing on seasonal produce to mitigate costs. “When fuel prices rise, distance matters,” van den Berg explained, highlighting the benefits of shorter supply chains in limiting cost pass-throughs.
Farmers are particularly affected by rising diesel and fertiliser costs. Box Divvy has responded by increasing farmgate prices by 10–15% for many growers to help manage these pressures. “In many cases that increase covers most of the cost pressure growers are facing,” van den Berg stated. However, he cautioned that price adjustments must be managed carefully to avoid dampening demand where supply remains strong.
The current situation underscores the vulnerability of food systems to global disruptions and fuel price volatility. The challenges illustrate the need for more resilient, locally connected supply networks to better withstand such economic shocks.
Source: newshub.medianet.com.au
Last updated: 1 April 2026, 10:26 am
