Fuel Security Is Wool Security: Advocating for Woolgrowers During Australia’s Fuel Shortage

As Australia faces continued uncertainty around national fuel security, WoolProducers Australia is working with the National Farmers Federation (NFF) and the Federal Government to proactively ensure the needs of woolgrowers and the broader wool supply chain are clearly understood and prioritised should fuel supply become an a tangible issue.

As the situation in the Middle East started to evolve and the ramifications regarding both fuel and fertiliser supply started to emerge, the NFF were quick to ensure that the impacts that their members, including WoolProducers, were facing were communicated to the government. This work has continued through weekly member briefings, which has ensured that the NFF can act as a conduit between the agricultural sector and the government to ensure the smooth transmission of information in both directions.

The NFF should be commended for their handling of this situation and being viewed as the considered and trusted voice of agriculture to government, industry and the general public in these uncertain times.

For their part the Department of Agriculture, Fisheries and Forestry (DAFF) moved swiftly to establish a critical incident team within the Department. This unit was set-up to receive on-the-ground examples of supply shortages and price shocks being experienced in the regions. I have seen first-hand how effective this unit is and would strongly encourage anyone with specific issues regarding fuel or fertiliser shortages to contact this unit at CEMB@aff.gov.au 

WoolProducers have also been attending weekly agricultural roundtables convened by the Minister for Agriculture, Fisheries and Forestry, the Hon Julie Collins, which is another avenue for the Federal Government to hear directly from industry representatives of any challenges facing their sector.

While to date there have been no reports of widespread or long‑term disruptions to wool harvesting or day-to-day operations in the wool industry, the ongoing situation in the Middle East has already highlighted vulnerabilities in remote and regional areas. If fuel availability were to cease, the impacts on the wool industry, like all industries, would be immediate, severe, and far-reaching, including the ability to shear sheep, move wool, and keep supply chains operating.

While acknowledging that wool is not a perishable good, the Australian wool industry is critically dependent on uninterrupted diesel and fuel supplies from farm gate to export port. Every stage of production relies on fuel, from shearing and animal husbandry to transport, storage, testing, auction systems, and exports. Without fuel, wool cannot move, harvest labour cannot travel, and sales cannot proceed, even when strong market demand exists.

Australia supplies around 40 per cent of the world’s raw wool trade and approximately 70 per cent of global Merino wool. In 2024–25, wool exports generated $2.8 billion in export income and supported a global supply chain, particularly in China, which sources around half of its raw and semi-processed wool from Australia. These figures underline the strategic importance of wool as a national export industry and emphasises another reason as to why fuel security is not optional.

Australia’s wool industry depends on fuel at every step, from paddock to port. Diesel powers wool harvesting, crutching, sheep transport, feed delivery, and day‑to‑day farm operations. Beyond the farm gate, fuel is essential to transport wool long distances for testing, storage, auction, and export.

Wool production is not confined to one location and occurs in all states in Australia, meaning wool is routinely transported long distances across state borders for testing, broking, and sale. Almost all wool produced in South Australia and Tasmania, and up to 40 per cent of wool from New South Wales, is transported to Melbourne. Samples from multiple states must also reach testing facilities in Victoria and Western Australia.

Any disruption to fuel supply threatens this highly coordinated system. Even short-term shortages could halt harvesting labour, delay shearing, and prevent wool from reaching testing houses, auctions or ports. The flow-on effects would ripple through brokers, exporters, warehouses, processors, and shipping operators.

Many woolgrowers are already under financial pressure following prolonged drought and other natural disasters, along with market volatility. Fuel shortages that disrupt shearing schedules, transport, or exports would immediately restrict cash flow making it harder to pay workers, service debt, and meet everyday household and business costs.

At an industry level, delayed shearing, stranded wool, or cancelled transport would directly impact growers’ ability to pay staff, meet loan repayments, and cover everyday household and business expenses. For an export‑focused industry with limited domestic alternatives, even short disruptions can have long‑lasting effects.

Fuel shortages are not just an economic issue, they are also an animal welfare issue. Aside from the need to shear sheep at specific times for cash-flow and budgeting purposes, for pregnant ewes, delayed shearing can increase the risk of death for both ewes and lambs. Missed or delayed crutching raises the likelihood of breech flystrike, and reduced cash flow can limit access to feed, water, and veterinary care.

These outcomes are unacceptable for producers and damaging to Australia’s reputation as a supplier of ethically and responsibly produced agricultural products.

The wool industry supports around 60,000 wool levy payers and employs approximately 200,000 people across the supply chain, including shearers, shed hands, woolclassers, transport operators, warehouse staff, brokers, exporters, and port workers.

Fuel disruptions would result in reduced activity, forced stand-downs, and job losses, hitting regional communities that are already exposed to climatic shocks and economic uncertainty. The social and economic consequences would extend far beyond individual farms.

Wool production is inseparable from sheep meat production. If fuel shortages prevent routine wool industry operations, the flow-on effects will also reduce the supply of lamb and mutton for domestic and export markets. At a time of heightened national vulnerability, this represents a systemic risk to food security.

WoolProducers will continue to actively engage with the Federal Government to communicate these risks and advocate for assured access to fuel for the wool industry. Priority fuel access for essential agricultural industries is critical to maintaining export earnings, animal welfare standards, regional employment, and Australia’s standing as a dependable global supplier.

Acting early to prioritise fuel access for essential agricultural industries is vital to keeping woolgrowers, communities, and supply chains moving.

Jo Hall

CEO, WoolProducers Australia