No Fuel, No Food: A Priority Discussion with AllFresh
- 15 hours ago
- 4 min read
Fuel costs are rising, but for kitchens, the impact runs much deeper than a line item on a budget. From labour shortages to supply gaps, the pressure is building across every stage of Australia’s produce supply chain.
In a recent No Fuel, No Food podcast, SoupedUp Operations Manager Lee Ruane sat down with Matt Manno from AllFresh to unpack what is really happening behind the scenes and what it means for chefs and kitchen teams on the ground.
Here is a detailed recap, with practical insights for kitchens navigating ongoing volatility.
Understanding the Real Impact of Fuel Costs
Fuel does not just affect transport. It touches every stage of the supply chain, from growing and harvesting to packing and delivery.
Matt Manno explained that rising fuel costs are compounding across the entire system, creating instability rather than just steady price increases. While the industry is no stranger to fluctuation, the current environment is far more unpredictable.
This is not just inflation. It is volatility, making it increasingly difficult for suppliers and kitchens to plan with confidence.
Key Takeaways:
Fuel impacts every stage of the produce journey, not just delivery
Rising costs are creating instability, not just higher prices
Planning and consistency are becoming more difficult across the supply chain
Labour Shortages and Supply Gaps
One of the less visible impacts of rising costs and global uncertainty is labour.
Australia’s produce industry relies heavily on international workers, particularly on farms. With fewer workers entering the country and higher wage expectations, labour shortages are becoming more pronounced.
When labour drops, the effects are immediate. Crops may still grow, but without enough workers to pick and pack them, supply quickly tightens.
This is already showing up in the market, with examples like broccolini becoming temporarily scarce due to a combination of weather and labour constraints.
Key Takeaways:
The industry is heavily reliant on international labour, especially on farms
Labour shortages quickly lead to supply shortages
Gaps in availability are becoming more common across key produce lines
Seasonal Shifts and Rising Costs
The transition between growing regions is another factor adding pressure.
As supply moves from South Australia to Queensland, many staple items such as tomatoes, capsicums, zucchinis, and cucumbers are now being sourced from further away. This increases transport costs and, in turn, prices.
In some cases, kitchens may see price increases of up to 30% on certain lines due to distance, seasonality, and supply constraints.
At the same time, gaps between local seasons can lead to temporary reliance on imported products, such as oranges or asparagus, further increasing costs.
Key Takeaways:
Seasonal transitions impact both availability and pricing
Produce sourced from further away increases freight costs
Some items may see significant price increases during these periods
Temporary reliance on imported produce can drive additional cost pressure
Practical Strategies for Kitchens
Despite the challenges, there are practical steps kitchens can take to manage costs and maintain service quality.
Flexibility is the most important lever. Substituting ingredients, adjusting menus, and working with what is available can help reduce exposure to volatile pricing.
Examples discussed included:
Replacing asparagus with broccolini or broccoli
Switching from baby spinach to silverbeet or English spinach
Moving away from berries and toward seasonal fruits
Being open to change and avoiding rigid menu structures can make a significant difference in navigating supply fluctuations.
Key Takeaways:
Flexibility is critical in managing cost and availability
Substitutions can help maintain menu quality while reducing cost
Seasonal and local produce should be prioritised wherever possible
Ordering, Waste and Supplier Collaboration
Ordering patterns also play a role in managing costs.
Frequent small deliveries can increase overall costs due to transport and logistics. Consolidating orders where possible can help reduce these pressures.
Equally important is maintaining strong communication with suppliers. Open conversations allow kitchens to stay informed about availability, pricing trends, and suitable substitutions.
Avoiding panic buying is also key. Over-ordering fresh produce can lead to increased waste, which further impacts margins.
Key Takeaways:
Consolidating orders can help reduce delivery-related costs
Strong supplier relationships improve visibility and decision-making
Avoiding over-ordering helps minimise waste and protect margins
Communication and transparency are essential in a volatile market
Adapting to Ongoing Volatility
The overarching message from the discussion is clear. The industry is operating in conditions that many have not experienced before.
Rather than relying on fixed plans, kitchens need to adapt in real time. Flexibility, communication, and a willingness to adjust are essential.
As Matt Manno summarised, the most effective approach is to stay adaptable, work closely with suppliers, and trust the process of substitution and change.
Key Takeaways:
Volatility is likely to continue in the near term
Adaptability is more valuable than rigid planning
Collaboration across the supply chain is critical
Kitchens that remain flexible will be better positioned to manage change
Wrapping Up
The current pressures facing the produce supply chain go far beyond rising fuel costs. Labour shortages, seasonal shifts, and global uncertainty are all contributing to a more volatile environment.
For kitchens, the path forward is not about reacting with urgency, but responding with flexibility and informed decision-making.
Want to hear the full conversation and gain more practical insights from the discussion?
Watch the full podcast below.
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