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Briefs

Middle East update and Member input requested

Middle East update and Member input requested

27 March 2026

Background

The Middle East conflict continues to place pressure on global supply chains. Recent developments suggest these pressures are intensifying, particularly across fuel, freight, and key inputs. AFGC is closely monitoring impacts and engaging directly with government to ensure food and grocery manufacturing remains recognised as an essential service.

What we are seeing now:

  • Escalating fuel, freight, warehousing, container and packaging costs, increasing risks to supply continuity.
  • Freight and fuel cost spikes remain the most immediate pressure point, with impacts already flowing through input suppliers.
  • Resin is an emerging risk for future packaging availability, both in cost and supply.
  • Ongoing uncertainty about how long these pressures will continue.
  • Government has advised fuel supply is secure through to mid-April.

AFGC actions

  • Established an internal response team and processes to manage the situation.
  • Engaging consistently with Ministers, federal and state agencies, National Emergency Management Agency, the National Coordination Mechanism, Office of Supply Chain Resilience, the Fuel Taskforce, and industry stakeholders.
  • Coordinating member feedback and elevating real time risks to government.
  • Attending the National Coordination Mechanism meeting today and will monitor outcomes from National Cabinet on Monday.

What happens next

  • AFGC will continue daily monitoring and regular engagement with government.
  • Weekly targeted member briefs will continue, with adhoc alerts issued if risks escalate.
  • Members are encouraged to flag emerging issues, particularly around fuel, freight or packaging inputs, so these can be raised directly with government.

Member Input Needed:
Supply Chain Pulse Check

Please take 2 minutes to complete this short survey (5 questions).

We will send this survey periodically to capture insights from members as conditions change and will turn this member input into a powerful industry signal — pinpointing what’s hitting hardest (and where), improving shared visibility across the network, and ensuring government hears consistent, high‑quality insights from industry.

Who you can talk to

For questions and emerging risks, please contact Lee Dittmar, Manager, Retail Supply Chain.

We will continue to keep you updated as the situation evolves.

Scott McGrath
Director – Stakeholders, Engagement & Policy