SUPPLY CHAIN REVIEW NEEDS TO STACK UP AS SEEDING DECISIONS LOOM FOR GROWERS

Grain Producers Australia (GPA) is warning fuel and fertiliser pressures are already shaping seeding decisions and measures by the Federal Government to address the situation need to stack up with real-world impact.

The warning comes as the Federal Government has put in place a Fuel Supply Taskforce Coordinator and a food supply chain assessment in recent days. This is in addition to running an Australian fuel crisis scenario last year which revealed an extremely vulnerable system.

This risk now flowing directly through to agriculture, and in particular the grains industry, on the cusp of its critical planting period for 2026.

At the same time, analysis of fertiliser markets shows the pressure on growers is not just about price, but affordability. While global urea prices remain below historical peaks, the urea-to-wheat ratio has climbed well above long-term averages, highlighting the growing gap between input costs and grain returns.

GPA and its State Farming Organisation members have been working to communicate issues from growers in recent weeks, with a clear focus on fuel access, input costs and supply reliability as seasonal decisions are being made.

GPA Chair Barry Large said the Government’s decision to commission a supply chain assessment is a constructive step.

“This latest supply chain assessment can’t just be a report for the bookshelf, it needs to deliver immediately, growers are making decisions now with these pressures already in front of them,” he said.

“For a $26 billion grains industry, reliable access to fuel and fertiliser underpins production and Australia’s food security.”

GPA said the current environment reinforces the need for practical measures that can be implemented quickly to improve resilience across the system.

“We are continuing to call for targeted tax incentives to support on-farm fuel storage, using existing measures such as accelerated depreciation,” Mr Large said.

“That’s a practical step that can be implemented quickly and would make a real difference when supply is tight.”

Mr Large said the assessment must now lead to outcomes that strengthen the system and reduce exposure to global shocks.

“This needs to lead to changes that improve supply chain resilience, not just confirm what industry is already experiencing,” he said.

“Growers are heading into seeding managing fuel access issues, watching global conflict unfold, and now making fertiliser decisions in a very tight margin environment.

“It’s not any one issue on its own, it’s how they all land at once that makes it difficult on farm.”

There is also uncertainty around how long these conditions will persist. Historical fertiliser price shocks linked to energy markets have ranged from a matter of months through to several years, depending on how quickly global supply chains stabilise.

“That’s the challenge, we're making critical decisions now without knowing how long this runs for,” he said.

GPA will continue working with government and industry as the assessment progresses.

ENDS

Further Information:

GPA Chair Barry Large: 0427 549 023

GPA Executive Officer Rachael Oxborrow: 0416 705 193