Federal fertiliser relief welcomed

TASMANIAN farmers facing ongoing pressure from rising input costs and global supply disruptions could see some relief under a new federal fertiliser import deal aimed at stabilising supply ahead of the next growing season.

The Commonwealth has moved to secure additional imports by underwriting financial risk for major suppliers CSBP and Incitec Pivot, as international markets tighten following conflict in the Middle East.

The agreement has been triggered by disruptions to shipping routes through the Strait of Hormuz, a key passage for fertiliser exports, with supply constraints pushing prices higher in recent weeks.

Federal Agriculture Minister Julie Collins said the deal would help protect Australia’s food production system.

“We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region,” she said.

Tasmanian supplier Muirs still has fertiliser available in the state  but the company is uncertain about supply levels by spring.

Muirs national fertiliser manager Yannik Heller said the company’s fertiliser levels were looking okay.

“We’re coming into winter, which is a period where less fertiliser is used,” Mr Heller said.

“We feel okay at the moment, but there is a bit of uncertainty around what may happen come spring.”

Mr Heller said Muirs had been in regular contact with customers.

“We’ve been talking with them about what’s available now and whether they should be taking a position, if possible, to secure fertiliser now rather than waiting.

“The longer you wait, the more chance you have of missing out.”

TasFarmers CEO Nathan Calman said the uncertainty around fertiliser levels over the last few months.

“There was a lot of panic buying, we believe, early on,” Mr Calman said.

“However, I think our big concern there is around price.

“A lot of producers, particularly in horticulture, are starting to think more about next season, and there’s that unknown about what prices might be like.

“They would be making sure that if fertiliser costs increase, it can be passed on through a reflective gross margin model.”