MGA CEO Martin Stirling warns of aggressive fuel levies and price increases hitting independent supermarkets

Master Grocers Australia CEO Martin Stirling was featured in The Australian today warning that suppliers are hitting independent supermarkets with aggressive fuel levies and passing on transport and manufacturing costs through direct product price increases.

In the article titled “Independent grocers, cafe owners warn of spiking price pain,” Martin outlined how the supply chain crisis is particularly affecting short shelf-life items as inflation hit a three-year high of 4.6 per cent.

“Additional costs with fertiliser, with operating machinery, distribution costs … they are being absorbed into the supply chain, and those costs ultimately get passed on to supermarkets and sometimes consumers,” Martin said.

He highlighted how the pricing structure is changing as suppliers shift their cost models: “As an example, some milk suppliers are saying that they’re going to increase the charge or the cost of milk on a per litre basis as opposed to a per pallet basis.”

Martin explained that extra costs to farmers and transport companies were being tacked on to short shelf-life items such as bread and milk most clearly, creating immediate pressure on independent retailers already operating on narrow margins.

The article notes that the first full inflation reading since the start of the Middle East conflict showed transport and fuel costs driving the surge, with global oil prices spiking 60 per cent.

Australian Retail Council data backed Martin’s warnings, showing roughly two in five retailers expect they will need to raise prices by about 5 per cent within the next three months to offset rising costs.

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