GrainGrowers has warned fertiliser supply shortages on the eve of planting will have serious ramifications for Australia’s grain production without urgent action.
The growers’ industry body has called on the government to prioritise the following actions:
- Urgently establish a Fertiliser Supply Taskforce to coordinate immediate and long-term action to assist with access to critical fertilisers.
- Expand and diversify trading partners.
- Establish strategic fertiliser reserves to buffer supply shocks.
- Commence longer-term actions to support fertiliser supplies:
- Explore options to accelerate domestic fertiliser production including reducing regulatory barriers and providing cost-effective access to gas.
- Improve real-time understanding of total fertiliser supply in Australia.
GrainGrowers CEO Shona Gawel said fertiliser was critical to provide essential nutrients, enhance plant growth and deliver production yields, and the current threat of reduced access to fertilisers has the potential to significantly reduce Australia’s crop production.
“Globally the fertiliser market is under significant strain, with the Middle East conflict impacting access and limiting availability. The fact that Australia is entirely reliant on imported urea with no domestic production expected until 2027 has left growers highly exposed,” Ms Gawel said.
Growers are now facing a double hit due to Australia’s reliance on the Middle East for fuel and fertiliser inputs.
“As planting rapidly approaches, growers face tough decisions with availability of fuel and fertiliser uncertain and costs accelerating rapidly,” she said.
“Australia currently has around six weeks of fertiliser supply on hand, which provides some immediate coverage for winter sowing, but the long-term outlook is deeply concerning and now is the time to act.”
Ms Gawel said growers were making planting decisions now, with prolonged uncertainty increasing the likelihood of reduced production.
“With some 24,000 grain farm businesses contributing $23B to Australia’s gross value of production the flow on impact on farms, regional communities and the national economy should not be understated.”
“Limited or cost prohibitive access to fertiliser and fuel could mean that some growers will not be planting a crop in 2026, taking the significant financial hit that comes with that decision.
“In parts of Australia, this is compounded by the fact growers have faced years of drought and were banking on the recent rains as a turning point for their operations.”
Ms Gawel said strategic action in the areas outlined would help not just this season’s crop, but the long-term resilience of Australia’s food production system.
“Without action, we risk undermining not just this season’s crop, but the long-term resilience of Australia’s food production system.”
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