The trade association AUSVEG conducted a recent fertiliser survey which reported ongoing shortages across a range of fertiliser types.
According to that survey, some growers reported having less than a week’s supply.
AUSVEG argued that the industry faces sustained uncertainty over costs and input availability that threatens grower viability and national food security.
It called for the vegetable industry to be formally recognised as an essential sector and for growers to receive clear government assurances about priority access to critical inputs during the conflict and in its aftermath.
“As the immediate government response to the conflict has continued to focus on high-level measures and representations aimed at securing supply of key inputs internationally – and business relief largely landing further up the supply chain – growers are continuing to face severe cost pressures and uncertainty over future availability of critical inputs, while major concerns remain over their ability to pass the latest unstainable production cost hikes to their customers.”
Any reduction in yield caused by fertiliser shortages or inappropriate substitutes represents a further serious blow to growers already absorbing escalating costs.
The lack of certainty around farmgate returns, combined with surging costs and unreliable access to key inputs, is having a “chilling effect” on grower decision making.
Many growers are adjusting or delaying planting schedules in response to these pressures. While the immediate impact of early planting reductions may already be emerging as reduced availability of certain vegetables in some locations,
“It is critical all politicians and key decision makers understand the slow-burning yet severe impacts on future supply of Australian-grown fresh vegetables, the longer uncertainty continues,” it stressed.
“In a typically high-volume, low-margin industry like the vegetable sector, productivity is key and any decline in yield due to fertiliser unavailability represents a further major blow to vegetable grower viability.”
Veg growers’ fertiliser needs
On April 17, the Australian government announced that it had struck a deal with Indonesian Government to facilitate 250,000 tonnes of additional agricultural grade urea for Australian farmers.
According to the government, the deal would account for around 20 per cent of the remaining fertiliser needed for the current season.
“Having this additional supply locked in will give greater certainty for farmers as they make planting and management decisions for this season,” it said in a statement.
However, AUSVEG highlighted that vegetable growers required more than just urea.
“The widespread focus on bulk urea that has dominated national fertiliser procurement discussions and efforts also does not reflect the wide array of custom or bespoke fertiliser blends vegetable growers require to optimise productivity across a diverse vegetable industry that produces 10,000 tonnes of fresh produce for the domestic market each day.”
Long-term impact
As a year-round industry, vegetable growers make daily or weekly decisions about what and how much to plant.
AUSVEG emphasised that decisions to pause or reduce plantings at present could take weeks or months to appear in the market as reduced supply.
“The immediate and continuing effects of the conflict on grower decision making, combined with protracted uncertainty and disruptions mean the impacts will be long lasting and widely felt, regardless of a short, medium or long-term resolution to the war. Once production volume or capacity is lost, it is much harder to recover.”
In addition to getting vegetable growers recognised as an essential sector with priority access to critical inputs, AUSVEG said it was in talks with major retailers and supply chain stakeholders about price pressures facing growers.
“AUSVEG continues to emphasise that all fresh produce buyers have an obligation to consider genuine, evidence-based price increase requests from growers in good faith.”