Feed Standards Australia Releases Hay Fuel Calculator
The new levy tool helps growers and contractors manage volatile transport costs through a rise-and-fall pricing mechanism.
Updated on Oct. 21, 2026 in Agriculture
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Feed Standards Australia has introduced a fuel-levy calculator to help the hay industry navigate rapidly fluctuating freight prices. This mechanism incorporates a rise-and-fall structure into freight contracts to provide price stability.
Why it matters
Uncertainty caused by volatile global oil prices and freight costs has created significant friction between hay buyers, growers, and transport operators. The calculator aims to formalise deal pricing by assessing unknown future fuel expenses at the start of a contract.
The Australian Fodder Industry Association identifies fuel, fertiliser, and crop-protection as key drivers of rising production costs. While LFK Contracting reported sales losses due to freight pricing this year, the full impact of fuel surcharges remains variable.
The players
Feed Standards Australia
This organisation develops standards and tools to support the efficiency and transparency of the Australian hay industry.
Australian Fodder Industry Association
This peak national body represents the interests of the fodder industry and publishes reports on production and market challenges.
LFK Contracting
This contracting business based in Shepparton has faced operational challenges due to increased freight costs.
The details
The tool allows parties to negotiate freight rates that adjust based on fuel cost changes throughout the duration of a contract. This comes as some transport companies report daily surcharge fluctuations, leading some hay customers to arrange their own logistics.
Timeline
October 2026: Feed Standards Australia launched the new fuel-levy calculator.
2026: Hay supply from the Goulburn-Murray Valley is expected to increase.
Market Landscape
The introduction of this calculator addresses the broader trend of rising input costs identified by the Australian Fodder Industry Association report. By formalising freight adjustments, the tool positions the industry to mitigate the impact of global oil shocks on domestic supply chains.
Hay growers and buyers can now utilise a standardised tool to negotiate transparent freight rates and reduce uncertainty in transport agreements. This shift may help stabilise costs for customers who have previously been forced to manage their own transport logistics.
The takeaway
The calculator provides a practical solution for industries struggling with unpredictable energy costs by allowing for flexible contract adjustments. Growers and contractors are encouraged to use this tool to standardise agreements and protect profit margins against future fuel price volatility.
Further reading
For more context on regional production, visit the Australia Agriculture section.
Source note: This article includes information reported by Stock & Land.
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