Source : Perth Now news
The Albanese government says it has locked in the last 20 per cent of fertiliser needed by Australian farmers for the current season after a deal with Indonesia, as the war in the Middle East continues to disrupt world supply routes.
About 250,000 tonnes of urea, the world’s most used nitrogen fertiliser, will be delivered under the deal inked on Thursday between NSW-based Incitec Pivot Fertilisers and Indonesia’s PT Pupuk Indonesia.
The deal was supported by the both the Australian and Indonesian governments, and will cover the remaining fertiliser needs for farmers for the November 2025-October 2026 season.
Anthony Albanese said the deal was a “significant outcome” for Australian growers.
“We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region,” he said.
“This deal also shows why it’s critically important that we have strong relationships with our regional partners.”
The de facto closure of the Strait of Hormuz following the United States’ and Israel’s attack on Iran on February 28 sent shockwaves through the global energy market.
However, fertiliser was also impacted, with about 30 per cent of global nitrogen and phosphate fertiliser trade passing through the strait.
Agriculture Minister Julie Collins said she had been working “day and night with industry to support fertiliser getting to Australian farmers”.
“I am very grateful for the co-operation and support of the Indonesian government in finalising this,” she said.
“This guarantees supply of fertiliser to Australian farmers at this critical time.
“This will mean Australia can continue to play an important role supporting food security in Indonesia and our region at a time of global uncertainty.”
The announcement comes at the end of two multi-day overseas trips to the region by Mr Albanese, most recently to Malaysia.
The country’s Prime Minister Anwar Ibrahim said on Thursday Malaysia and Australia had agreed to deepen co-operation, including expertise in production and irrigation to ensure sustainable food supply.
“Let no one mistake the weight of what we signed today,” he said.
“When supply chains are disrupted and food prices are increasing and rising, agreements like this have a direct impact on people’s lives.
“The distance between a sign agreement and a family’s dinner table is shorter than most people imagine.”
Mr Albanese said Australian resources helped to “power our region and our farmers helped to feed the region”.
“Nearly 60 per cent of Malaysia’s wheat and 75 per cent of its lamb and beef come from Australia,” he said.
“Our neighbours know that providing fuel and fertiliser to Australia helps put food on the table in this region.
“We rely on each other for fuels including crude petroleum and natural gas, and Malaysian urea helps Australia grow crops like wheat that we supply here, contributing to Malaysia’s food security.”
Mr Albanese said a partnership had also been agreed to on red meat processing and trade.
Speaking on the fertiliser deal, Incitec Pivot Limited president Scott Bowman said the additional volume for the May to December period, at prevailing market prices was “another critical plank in servicing the needs of Australian farmers”.
“Whilst there is more work to do to ensure farmers requirements can be fully met this upcoming season, this additional volume will go a long way to shoring up critical supplies to Australian farmers,” he said.
