Woolworths has outlined growing pressure on fresh food supply chains in Australia, pointing to climate disruption, supplier relationships and logistics scale as key challenges shaping supermarket operations in 2026.
The comments were made by CEO Amanda Bardwell at The Australian’s Global Food Forum, where supply chain resilience and national food security were central themes.
Woolworths said fresh food supply depends on both farm-level innovation and a stable logistics network, with disruptions such as floods, fires and cyclones continuing to affect product flow across the country.
What is fresh food supply resilience?
Fresh food supply resilience refers to the ability of the food system to maintain consistent production, transport and availability of perishable goods despite disruptions such as extreme weather, labour shortages or infrastructure constraints.
For supermarkets, it combines sourcing stability, supplier relationships and logistics capability to ensure shelves remain stocked.
Quick note
• Woolworths sources around 20% of Australia’s fresh produce
• The retailer processes about 10% of weekly national beef supply
• Around 2,400 suppliers support its fresh food network
• Over 2,000 farm visits were conducted in the past year
• The company moves roughly 30 million cartons each week
• Climate events continue to disrupt national distribution routes
How is Woolworths responding to supply pressures?
Woolworths said it is strengthening supplier relationships through shorter payment terms of 7 to 14 days for smaller partners, aiming to improve cash flow at farm level.
The retailer is also allowing more flexibility in product specifications during extreme weather, enabling growers to supply produce that may not meet standard cosmetic requirements.
In addition, new ordering systems are being introduced to provide greater demand visibility and planning certainty for suppliers.
The company also supports increased market transparency, proposing the publication of aggregated wholesale pricing data across the sector.
Why is Australia’s supply chain particularly exposed?
Australia’s geography and production concentration create structural challenges for food distribution.
Large volumes of fresh produce are sourced from specific growing regions, meaning disruption in one area can impact supply nationwide.
Woolworths said it moves around 30 million cartons each week, highlighting the scale and complexity of maintaining consistent availability across a geographically dispersed market.
What does this mean for supermarket supply chains?
The update reflects broader pressure across supermarket supply chains, where climate volatility, cost control and supplier sustainability are becoming central operational concerns.
Retailers are increasingly investing in closer supplier collaboration, improved data systems and flexible sourcing strategies to maintain availability in fresh categories.
This is particularly important in fresh produce, where shelf life is limited and supply disruptions can quickly affect in-store availability.
What happens next?
Woolworths is expected to continue expanding supplier support programmes and supply chain investments as climate risks and operational complexity increase.
Across the sector, similar approaches are likely as supermarkets prioritise resilience, transparency and long-term sourcing stability to protect fresh food availability.
