TasFarmers warn of looming supply chain crisis


24 October 2024

Tasmania’s peak body for primary producers has raised concerns following the announcement that the new Spirit of Tasmania vessels will be delayed from being brought into operation. 

The government has made a commercial decision not to develop a short-term berthing solution for the new spirit vessels, it is decision which will have significant repercussions for the state’s fresh produce exporters.

TasFarmers President, Ian Sauer, acknowledged the government’s need to make a commercial decision to bridge the gap until new Spirit birthing facilities are built and operational. However, he highlighted the potential negative impact on Tasmania’s fresh produce exports.

"We understand other shipping operators are scheduled to take their vessels out of service for essential maintenance. Without the new, larger Spirit vessels in operation during that time, there will be significant issues for producers."

He cautioned that the state's freight supply chain is facing a looming crisis. "We’re forecasting a market failure in the state’s freight supply chain that will soon place enormous pressure on the agriculture sector and fresh produce exporters,” Mr Sauer said.

TasFarmers is calling on the government to develop a solution, stating that if no action is taken, the damage will be real and the impact on the industry will be substantial.

"It's the old mantra: certainty and consistency equal confidence. TT-Line's handling of this situation has not only eroded confidence but has also harmed our state's brand and reputation, which is intolerable and difficult to repair."

The Tasmanian taxpayer expects that our TT-Line and TasPort businesses are able to work together to deliver infrastructure projects on time and for the benefit of the state.

"We must have consistent and timely freight services across Bass Strait to strengthen trade relationships, as we are connecting to both national and international markets," Mr Sauer emphasised.

He added that when producers and end customers lose confidence and access to reliable services, it is ultimately the producers who bear the cost. This underscores the necessity for government intervention to provide protection against market failure.

“We must have access to adequate freight services so that farmers can have confidence, especially as we approach a potential market failure by January.”

“Going forward, TasFarmers sees this as an opportunity regarding Government Business Enterprises (GBEs). We want more accountability and transparency from them; otherwise, we risk further market failures.”