The Australian Government has today assured farmers that more fertiliser imports are on the way.

Utilising new strategic reserve powers, the government confirmed an agreement has been reached with Wesfarmers subsidiary – Export Finance Australia CSBP – and Incitec Pivot.

This new agreement sees the government underwrite the financial risks of importing fertiliser from overseas as the ongoing conflict and closure of the Strait of Hormuz continues to disrupt global commodities.

Speaking on ABC's Radio National program, Agriculture Minister Julie Collins says Australia has enough fertiliser on the way for the "initial planting season", and is seeking to secure further supplies.

"What we're doing is we're outsourcing more fertiliser right across the globe," she says.

More Fertiliser On The Way

Last week, it was announced that Indonesia would be sending an additional 250,000 tonnes of urea to Australia. The deal, between Incitec Pivot Fertilisers and PT Pupuk Indonesia, is supported by the Australian and Indonesian Governments.

Collins says that this additional 250,000 tonnes would cover 20% of the shortfall Australia needs for this coming season.

The Indonesian fertiliser has been welcomed by the National Federation of Farmers (NFF).

"Securing an additional 250,000 tonnes of urea provides some much-needed certainty. This is around 20 per cent of the remaining fertiliser needed for the season ahead," said NFF President, Hamish McIntyre

Minister for Foreign Affairs, Penny Wong, said the government was working to strengthen our shared energy and food security.

"Indonesia is one of Australia's closest neighbours and friends, and we thank the Indonesian Government for their partnership," she said.

"Australian farm output is necessary for regional food security, and this is a crucial contribution to securing inputs via Australia’s largest fertiliser distributor, Incitec Pivot," remarked Scott Bowman, President, Incitec Pivot Limited.

"This additional volume for the period May to December, at prevailing market prices, is another critical plank in servicing the needs of Australian farmers," he said.

While a fixed price has not been set with Indonesia's state-owned Pupuk, the minister is hopeful that the combination of the Indonesian deal and what is currently on the water being shipped to Australia will get farmers through the coming season.

This announcement comes on the heels of Prime Minister Anthony Albanese's visit to Brunei to shore up supplies of urea and diesel.

Brunei Darussalam currently supplies 11% of Australia's fertiliser-grade urea imports.

While no official deal was struck on this visit, a joint statement from Prime Minister Anthony Albanese and His Majesty Sultan Haji Hassanal Bolkiah, Sultan of Brunei Darussalam, reaffirmed the two countries' relationship.

"We are committed to working together to strengthen energy supply chain resilience, including by deepening regional cooperation, accelerating alternative energy resources including renewable energy, and maintaining open trade flows," it noted.

Sources: ABC, NFF

Australian Government media releases:

Securing more fertiliser for Australian farmers

Getting fertiliser to farmers faster

Joint statement on energy and food security