FNQ Growers is calling on the State and Federal Governments to urgently introduce targeted fuel and freight rebates for primary producers, warning that escalating transport costs are placing the viability of horticultural businesses across Far North Queensland at risk.
Horticultural producers across Far North Queensland are facing mounting financial pressure as fuel costs and freight levies continue to rise, adding to an already challenging operating environment where market returns often fail to cover the cost of production.
FNQ Growers, which represents producers from Rollingstone through the Atherton Tablelands and Mareeba district to Lakeland, says the latest increases in freight fuel levies are becoming increasingly difficult for growers to absorb.
Feedback gathered from producers across Cook Shire, Mareeba Shire, the Tablelands and the Cassowary Coast through the RDA-TN Fuel Impact Roundtables in July and October 2026 highlights the growing severity of the situation.
In July, growers reported freight fuel levies increasing from approximately 18 per cent to 31 per cent. By October, reported levies had climbed to between 42 and 44 per cent, charged on top of base freight rates.
One transport provider has since advised a further increase to 45 per cent plus GST for the period 2–8 November 2026, with fuel prices monitored weekly and levies adjusted accordingly.
FNQ Growers chairman Joe Moro says these increases are having a significant impact on businesses already struggling with rising fertiliser, chemical, labour, packaging and compliance costs.
He said the situation is particularly concerning given the region’s geographical disadvantage.
“Unlike producers located closer to major markets, Far North Queensland growers face considerable freight distances to transport fresh produce to Brisbane, Sydney and Melbourne,” Mr Moro said.
“They are also paying increased freight charges on incoming supplies, including cartons and other essential farm inputs.
“Growers have very little ability to pass these additional costs on through higher produce prices.
“They are effectively absorbing costs that are outside their control, further reducing already tight operating margins.”
The consequences are becoming increasingly evident across the region, with growers reporting reduced planting, staff reductions, deferred farm inputs, ongoing financial losses and, in some cases, fruit being left unharvested because the expected returns do not justify the cost of picking and transporting it.
These impacts extend well beyond individual farming businesses, affecting agricultural workers, local suppliers, transport operators and the broader regional economy.
FNQ Growers is calling for urgent, targeted and time-limited government assistance through fuel and freight rebates or subsidies for eligible primary producers.
Mr Moro said any assistance should recognise the cost of both inbound freight for essential farm supplies and outbound freight for fresh produce, while taking into account the additional freight disadvantage experienced by regional and remote producers.
“Growers need immediate relief. They commit significant money to planting, maintaining and harvesting crops well before they receive any income from those crops. With freight charges changing so rapidly, it is becoming increasingly difficult to budget, plan production and manage cash flow.
“We cannot continue to see growers reduce production, cut staff or leave quality produce in the paddock simply because the numbers no longer stack up.”
FNQ Growers also believes longer-term solutions are needed to improve growers’ bargaining power, achieve more sustainable market returns and reduce unnecessary and duplicated compliance costs.
However, the organisation stresses that these broader issues will take time to address and that immediate financial assistance is needed to help producers remain viable.
Far North Queensland is a nationally significant food-producing region, supplying fresh produce to markets across Australia and supporting thousands of regional jobs and businesses.
FNQ Growers says protecting the viability of its producers is essential to maintaining Australia’s domestic food supply and the economic strength of regional communities.
“Supporting our growers is about more than supporting individual businesses. It is about protecting food production, regional employment and the future of agriculture in Far North Queensland,” Mr Moro said.
FNQ Growers is urging the Queensland and Commonwealth Governments to work together to deliver practical and timely assistance before further production and employment are lost.
Member for Kennedy Bob Katter has been urging the federal government to drop the 53.4 cents a litre fuel excise tax which “is driving industries into the wall.”
He said Australia must develop the ethanol industry as quickly as possible which would save cane growers and the sugar industry from closing down due to continuous low sugar prices and now fuel costs at the same time reducing input costs for the farming industry and protecting the food supply.
Australia runs on diesel.
