Australian Harvest & Haul Cost Index – June 2022
Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by industry, weighted by volume harvested (Figure 1). The previous index published in March for December 2021 showed a continued recovery in fuel prices as economic growth returned post-COVID-19 pandemic. The advent of the Russia-Ukraine war, subsequent trade sanctions on Russia, and ensuing impact of global energy prices have seen fuel prices go higher as predicted. The average diesel terminal gate prices (TGP) were being reported as ~2.10/L in June 2022. They have never been this high in nominal terms. Unfortunately, fuel prices will likely go higher still as the war drags on, Russian trade sanctions continue, and the Federal Government re-imposes the full fuel excise from late September.
