GLOBAL TURBULENCE EXPOSES RISKS FOR AUSTRALIA’S $26BN GRAINS INDUSTRY

Increasing turbulence across the globe is shining a spotlight on the absence of a secure domestic supply of farm inputs to support Australian grain producers with access to fertiliser, fuels, pesticides and machinery. 

Strong domestic policy settings to protect Australian grain producers from the impacts that will likely occur from conflicts, such as the evolving military action in the Middle East, are important to the security of the $26 billion grains industry. 

GPA Chair Barry Large said fertiliser, fuel and chemicals underpin secure grain production and issues with supply or price affordability is an unacceptable risk. 

“Australia is fortunate to be a major food producer, but food security today is about more than how much we grow,” he said. 

“It’s about reliable inputs, resilient supply chains and strong biosecurity systems that keep food flowing in uncertain times. 

 “We are currently at the mercy of global forces and that’s where national policy needs to play its role.” 

In June 2025, when Israel and the United States of America (USA) engaged in attacks on Iran, the impact on fertiliser and grain prices was swift and sharp. 

Mr Large said the short disruption had laid bare Australia’s reliance on global supply chains, with rising input volatility and uncertainty around trade routes like the Strait of Hormuz adding real risk for growers now moving into winter sowing. 

“Global events move quickly to farmgate realities and while grain prices can rally and present opportunities, many are heading into seeding and not in a position to capitalise,” he said. 

“Australia can’t control geopolitical events, but we can control how prepared our industry is to deal with them.” 

 GPA has consistently called for the Federal Government to prioritise and improve local supply chains and manufacturing HERE. 

“We will continue advocating to and working with government to ensure Australian grain growers are supported by policies that strengthen resilience, protect productivity and maintain our role as a reliable global food suppliers,” Mr Large said. 

ENDS 

Further Information: 

GPA Chair Barry Large: 0427 549 023 

GPA Executive Officer Rachael Oxborrow: 0416 705 193