Federal Government establishes fertiliser working group to address availability concerns as seeding starts

The Federal Government has established a working group to navigate the fertiliser crisis faced by farmers who last week began their seeding operations for the winter crop. Making the announcement on Tuesday, the Federal Government has deferred the phased transition to full cost recovery for export regulatory services for one year until July 1, 2027. Initially set to start from July 1 this year, the deferment will mean farmers hit with input pressures will be provided certainty for the future. It has also established a working group to address availability and shortages by amending legislation to underwrite the purchase of fuel and fertiliser by the private sector. The group — which will include representatives from the National Farmers’ Federation and Fertilizer Australia — will work with the Australian Competition and Consumer Commission to monitor and co-ordinate fertiliser supply, and engage with government and industry to source alternative fertiliser suppliers. Australia’s heavy reliance on imported fertiliser and low onshore production capability has become increasingly highlighted since the outbreak of the Middle East conflict — last year about 7.9 million tonnes were imported of the 8.7 million tonnes consumed. Urea prices from CSBP at Kwinana sat at $1414 per tonne last week. The move was welcomed by NFF president Hamish McIntyre, who said the measures provided breathing space for producers and exporters facing sustained pressures and market uncertainty. “These practical decisions we’ve called for that will deliver more certainty for farmers and exporters at a time when margins are under real pressure,” he said. “It reflects the realities facing agriculture right now, including the difficulties in securing critical inputs like fertiliser, which are needed for food production.” About 35 per cent of the world’s urea supply originates from the Middle East — where 68 per cent of Australia’s annual urea supply is exported from — and is currently constrained by the Strait’s closure through which about 140 ships usually travel through every day. Urea imported to Australia is predominantly produced in the Middle East, originating from Gulf states such as Oman, the United Arab Emirates, Qatar, Kuwait, Bahrain and Saudi Arabia. Federal Agriculture Minister Julie Collins said the Government was working “day and night” with farmers, fishers and producers to manage the impact of the conflict. “Our farmers and producers feed millions of people both here and abroad, but events like the conflict in the Middle East reaffirm why we cannot be complacent,” she said. “That’s why we’ve taken immediate action to help safeguard Australia’s food production system, and to support our farmers and producers — including to help get fuel and fertiliser into our regions. “We recognise the disruption the conflict in the Middle East has had on our farmers and producers, which is why we are deferring the commencement of the phased transition to full cost recovery for export regulatory services for one year. “Our Government will never leave farmers behind who are facing hardship.” Mr McIntyre said the formation of the working group was an “important step forward” as the NFF continues working with the Federal Government to address the impacts of the conflict in the Middle East.