Plan for food security in the face of supply chain issues

The National Food Council (the Council) met for the second time on Monday, 23 March 2026, with conflict in the Middle East and impacts on food supply chains being front and centre on the agenda.

Opportunities to improve Australia’s food security were discussed by members, including strengthening resilience in food supply chains in the context of national security risks. Members stressed the importance of resilient supply chains, not only for production, processing and distribution, but also for a stable and accessible food system for all.

The Council heard from ABARES on the likely impacts of the Middle East conflict on agriculture, as well as from the Australian Logistics Council on supply chain resilience for food, fuel and freight. The importance of fuel was highlighted, along with other key inputs such as fertiliser for production.

The Australian Government has now commissioned a National Food Supply Chain Assessment, as part of the National Food Security Strategy. The assessment is designed to feed into the work of the newly established Fuel Supply Taskforce, and provide advice to government on practical steps to strengthen preparedness for disruptions to food production and supply chains.

“While Australia is food secure, we recognise the importance of supply chain resilience, including the supply of fuel and fertiliser, which is why we have commissioned this assessment,” said Minister for Agriculture, Fisheries and Forestry Julie Collins MP.

“This assessment will provide advice to government on ways we can continue to strengthen preparedness for disruptions to food production and supply chains — building on frameworks already in place that help safeguard Australia’s food production.”

The assessment will initially focus on diesel supply chains, and will then expand to other critical agricultural inputs, including crop protection products and fertilisers. It will be led by Andrew Henderson on behalf of AgriFutures, who will step away from the National Food Council to undertake this work.

Simeon Gilding will join the National Food Council. He brings significant expertise in national security and international relations, having held senior positions at the Australian Signals Directorate, the Department of Defence, the Department of Foreign Affairs and Trade, and the Department of Prime Minister and Cabinet.

“I welcome Simeon Gilding to the National Food Council and the expertise he brings, and thank Andrew Henderson for his contributions alongside other members to date,” Collins said.

An interim report focused on diesel supply chains will be provided to the Minister for Agriculture, Fisheries and Forestry within one month, with a final report to be delivered by the end of the year.

Cost pressures mounting

Australian rural confidence declined in the first quarter of 2026, with the nation’s farmers already concerned about cost pressures in the year ahead, even prior to the outbreak of the current Middle East conflict — according to the latest Rabobank Rural Confidence Survey.

“We’ve seen fuel and fertiliser markets and freight rates react to the Middle East conflict due to the impact on prices and threat to supply and this flows directly into Australian farm budgets, adding to inflationary pressures,” said Rabobank group executive for Country Banking Australia Marcel van Doremaele.

“Some farmers are rethinking the application of nitrogen in particular as a result of high prices, and some crop farmers are adjusting their cropping programs. For graziers, increased fuel prices add to costs, particularly for transport.”

Van Doremaele said while the size and duration of the impacts of the Middle East conflict were not currently clear, Australian farmers were facing a testing time.

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