GRAIN PRODUCERS LEFT EXPOSED AS FUEL AND FERTILISER SUPPLY RISKS INTENSIFY

A lack of domestic production of both fuel and fertiliser has Australia’s grain producers and wider agricultural industry again at the mercy of global conflict and price rises. 

Domestic production of these critical inputs is not a new issue raised by Grain Producers Australia (GPA) and its State Farming Organisation (SFO) members, however, inaction now has producers paying the price. 

These discussions have been a key focal point of GPA’s Policy Council, comprised of elected representatives to Grains Council/Committees from SFOs, during its face-to-face meetings in Melbourne this week. 

Escalating conflict in the Middle East is again sending shockwaves through global fertiliser and fuel markets, reinforcing supply vulnerabilities that were already laid bare during the disruptions and price spikes seen in 2025. 

GPA Chair Barry Large said on the cusp of seeding, these flow on effects from global conflict is the last thing growers need. 

“This couldn’t be worse timing and while we’re assured this fuel access pressure should ease, it is distracting growers and industry from the bigger problem we’re facing,” he said. 

“Most of our fertiliser is due into Australia from April onwards and if that product hasn’t already been loaded, or can’t be loaded in the next few weeks, there is going to be supply issues. 

“There is a small amount of fertiliser in the country that cannot meet our requirements and we do not have domestic manufacturers to support us. 

“Similarly, our fuel security and the security that our producers can grow food for our country and the rest of the world, needs to be protected with domestic manufacturing. 

“This is not a new issue that GPA and its SFO team have raised with industry and governments and yet, we’re now seeing what a lack of action is doing to our $26 billion industry.” 

These messages have been reiterated by GPA today in a National Fuel Supply meeting coordinated by the National Emergency Management Agency. 

Mr Large said GPA would be seeking advice to communicate to grain producers on their rights in terms of contracts and if suppliers are unable to provide what has been contracted. 

Victorian Farmers Federation Grains President Ryan Milgate said it was unacceptable that farmers’ levels of anxiety have risen on the back of this war. 

“Supply chain issues that are now affecting our ability to do our job need to  be addressed by Government and industry urgently,” he said. 

NSW Farmers Grains Committee Chair Justin Everitt said recent events added to increasing stress affecting grain producers. 

“It’s another shock to the farming system that we don’t need at the moment and amongst the other stresses, this fuel supply and urea shortage is unsustainable going forward - we need certainty of supply and pricing” he said. 

WAFarmers Grains Council President Mark Fowler said the situation at play exacerbated what grain producers were already grappling with every day. 

“Grain grower terms of trade were under pressure prior to the war and the war has significantly amplified that pressure to unsustainable levels,” he said. 

WA Grains Group Chair Alastair Falconer said the risk of the grains industry being affected by world events was real and significant. 

“These supply chain issues highlight the fragility of access to some of our key agricultural inputs,” he said. 

“Without reliable domestic production we will continue to be left vulnerable to international tensions and conflicts.” 

AgForce Grains President Brendan Taylor said producers were facing these challenges at a critical time in the farming calendar. 

“With farmers across the state either harvesting summer crops, or preparing for winter planting, we’re in a period of high demand for fuel and fertiliser,” said Mr Taylor. 

“Fertiliser is a vital part of putting food on the table for everyday Australians. Without it, crops either aren’t planted or yields are significantly reduced, which ultimately means less food reaching supermarket shelves.” 

GPA’s policy priorities, released for the 2025 Federal Election as a yardstick for grains industry priorities for this term of government and highlights the importance of productivity, economic resilience and budget sustainability. HERE 

“It is well overdue for the Federal Government to be delivering proactive reforms to future-proof key areas of our industry to ensures we maintain momentum on productivity growth and have truly secure national food production,” Mr Large said. 

Other items on the GPA Policy Council agenda this week include: 

• Chemical access and affordability – APVMA processes and permits 

• Biosecurity preparedness of the grains industry – Plant Health Australia and the Australian Grains Biosecurity Plan 

• Grain levies review and grower poll 

ENDS 

Further Information: 

GPA Chair Barry Large: 0427 549 023 

Victorian Farmers Federation Grains President Ryan Milgate: 0428 858 251 

NSWFarmers Grains Committee Chair Justin Everitt: 0419 280 105 

WAFarmers Grains Council President Mark Fowler: 0429 856 050 

WA Grains Group Chair Alastair Falconer: 0428 523 220 

AgForce Grains President Brendan Taylor: 0429 347 434