This vintage, Lindy Wright is spending more time in the kitchen and less time driving the tractor through her family’s vineyards in South Australia’s Riverland.
Her cupcake-baking side hustle has become an important source of income as she and her third-generation grower husband, Gavin, struggle to pay the bills.
“Last year we had to borrow money to keep going … that’s why we’re doing things in between,” she said.
“When I’m making cakes, I don’t have to worry about what’s going on out there.”
Baking cupcakes has become a welcome distraction during a difficult time. (ABC News: Eliza Berlage)
With higher temporary water prices, heatwave-damaged vines, and another year of returns below the cost of production for red wine grapes, the fuel crisis has been biting.
The federal government has halved the national fuel excise for three months, cutting 26.3 cents off the price of fuel, but many farmers are still feeling pain at the bowser.
While Ms Wright bakes on the block, Mr Wright said he was spending more than $500 every few days to fill up the harvester.
Gavin Wright says it costs him about $500 to fill up the harvester every few days. (ABC Rural: Eliza Berlage)
“People will look at you like ‘they’re using all the diesel’ but … everybody on the land needs diesel,” he said.
Mr Wright said requests for his vineyard grafting business had dried up, with prices for white wine grapes also in decline.
“I’ve been operating by myself since 2004, and this is the worst financially … it’s ever been,” he said.
Lindy Wright says it has been enjoyable to sell her cupcakes in the community. (ABC Rural: Eliza Berlage)
Like many older growers in the region, Ms Wright said her small venture allowed the couple to diversify without investing in growing a new crop.
“Most of us are all older … so it’s too late to be doing anything else really,” she said.
“The government’s got this farm household allowance that’s sort of helped, but that’s not enough to cover the cost of everything going up.”
Australian Grape and Wine chief executive Lee McLean said it was a similar situation across the country’s wine-growing regions.
Lee McLean says the industry is working with the government for support. (ABC News: Luke Stephenson)
“Grapegrowers and winemakers are facing the most challenging set of commercial conditions they have ever faced in Australia,” he said.
“Additional costs to their ability to do business at a really critical time of year only serves to … decrease their margins,” he said.
Supply stress
It is not just wine grape harvesting being squeezed by the fuel crisis.
Untimely rain and humidity have caused delays for almond harvest, with nut quality affected by hull rot, insect and disease pressure.
At Century Almonds in Loxton, chief executive Brendan Sidhu said fuel supply to run their machines has been tight.
Brendan Sidhu says the business has just secured two weeks of fuel supply to get through the rest of the harvest. (ABC Rural: Eliza Berlage)
“We were down to about four days of fuel at one stage,” he said.
“The rain probably slowed us down enough to give the fuel guys a chance to top us up again.”
Mr Sidhu said higher diesel prices meant the business was facing tough budgeting decisions.
Many diesel-hungry machines are needed for the almond harvest. (ABC Rural: Eliza Berlage)
“The costs are horrendous. Our fuel bill has gone through the roof,” he said.
“We’ll have to try and tighten up our belts, maybe on labour not use as much. Look at our tree sprays, maybe cut one or two of those back.”
Price pressure
Almond Board of Australia chief executive Tim Jackson said the cost of fuel had doubled, adding pressure amid a challenging season.
Tim Jackson says the industry is also having trouble securing fertiliser. (ABC Rural: Eliza Berlage)
“We are using around a million litres a week harvesting,” he said.
“It’s hand-to-mouth, and the fuel suppliers are certainly assisting where they can.”
Wine and almond industry leaders said fertiliser access was also a looming issue.
“We’re having people already reporting that they’re having trouble getting their fertiliser committed,” Mr Jackson said.
“So a real challenging year as we try and do our post-harvest nutrition and then go into spring when the trees are coming alive again.”
Fuel supply has been particularly uncertain in regional and rural Australia. (ABC Rural: Eliza Berlage)
Consumers are expected to feel the pinch for some pantry staples like meat and dairy.
But industry leaders said prices for almonds and wine were unlikely to rise as the global oversupply made it difficult to pass costs on.
“Unfortunately, at the moment this is something that will sit with growers … as they work through this process,” Mr McLean said.
Dining and Cooking