Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on actual price indexation mechanisms used by industry weighted by volume harvested. The previous index published in July 2021 showed a recovery in fuel prices as the economic growth returned following the COVID-19 pandemic. This continued to the end of 2021 and has accelerated into early 2022 with the average diesel terminal gate prices (TGP) being reported as ~1.80/L in early March. Fuel prices will likely go higher still as the impacts of the trade sanctions on Russian exports are felt following their invasion of Ukraine.
The harvest and haulage cost index reflects the rapid fuel price rises. Up 5% and 6% in the last half of 2021 and is anticipated to increase another 4-5% in the first half of 2022. Combined with increase to CPI and wages indices, the harvest and haulage cost indices are predicted to soar to record highs.
For further information and analysis contact Margules Groome.