- Australia secured approximately 90,000 tonnes of urea to stabilise fertiliser supply amid global market disruptions linked to Middle East conflict.
- The government partnered with CSBP and Incitec Pivot, with Export Finance Australia facilitating the procurement of the first three shipments to ease immediate supply pressures for farmers.
- These shipments are intended to provide farmers with greater confidence for planting and growing operations, ensuring continuity in domestic food production and exports.
On May 14, the Australian government announced that supplies were secured through Export Finance Australia (EFA), with the government partnering with CSBP and Incitec Pivot to support the purchase of the first three shipments.
The shipments were intended to ease immediate supply pressures and provide producers with greater confidence ahead of key cropping decisions.
“We’re backing Australian farmers and producers during this time of global uncertainty. We know how critical fertiliser is for the sector, which is why we’re securing important additional shipments like this,” said Prime Minister Anthony Albanese.
The agricultural-grade urea would help maintain planting and growing operations across the country, ensuring continuity in both domestic food production and export supply.
“This is positive news for our farmers and means they can continue planting with confidence during this current season and know that additional supply is on the way for the future,” said Minister for Agriculture, Fisheries and Forestry, Julie Collins.
“Having access to critical inputs like fertiliser underpins the food security of Australia and the countries we export to, particularly in the Indo-Pacific region, which is why we’ve been working day and night with industry to get fertiliser to our farmers.”
Bringing certainty to farmers
This move was in response to volatility in global fertiliser markets, particularly stemming from the ongoing conflict in the Middle East, which has constrained supply and heightened uncertainty.
Additional shipments are expected to be secured in the coming weeks as authorities work to reinforce availability.
The latest procurement builds on a separate agreement to secure 250,000 tonnes of fertiliser from Indonesia through state-owned producer PT Pupuk, also facilitated in partnership with Incitec Pivot.
These deliveries mark the first use of the government’s newly introduced Strategic Reserve powers, designed to enable intervention in critical supply chains during periods of disruption.
Under the Strategic Reserve framework, EFA is also in discussions with other businesses to support further fertiliser procurement, shipping and distribution into the domestic market.
The government said this coordinated approach aims to strengthen the entire supply chain, from international sourcing through to delivery at farm level.
In addition, the government has committed A$7.5bn to establish a Fuel and Fertiliser Security Facility, to increase supply and storage of fuel and fertiliser by providing financial support including loans and price support.
It also streamlined border processes for imported fertiliser and established a Fertiliser Supply Working Group between Government and industry.
The National Farmers’ Federation has previously welcomed the Australian government’s efforts to ease pressure on farmers amid ongoing uncertainty.
“These are practical decisions we’ve called for that will deliver more certainty for farmers and exporters at a time when margins are under real pressure,” said NFF President Hamish McIntyre on in a statement on March 31.
“It reflects the realities facing agriculture right now, including the difficulties in securing critical inputs like fertiliser, which are needed for food production.”
