The federal government has announced a deal to facilitate 250,000 tonnes of additional agricultural grade urea for Australian farmers from Indonesia.
A deal between Incitec Pivot Fertilisers and PT Pupuk Indonesia, supported by both governments, will see about 20 per cent of the remaining fertiliser for the current season of November 2025 to October 2026.
The additional supply, the government said, would provide farmers with greater certainty as they make seeding and management decisions for the season.
The government added it was working closely with Australia’s key international partners and domestic industry to secure critical additional fertiliser supply.
“This is a significant outcome for our farmers. We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region, “ Prime Minister Anthony Albanese said.
“This deal also shows why it’s critically important that we have strong relationships with our regional partners.”
The government noted it would continue to work with partners across the region to support food and energy security.
Federal Agriculture Minister Julie Collins the deal guaranteed the supply of fertiliser to Australian farmers at a critical time.
“I have been working day and night with industry to support fertiliser getting to Australian farmers. I am very grateful for the cooperation and support of the Indonesian Government in finalising this,” she said.
“While this is a commercial deal, the Australian and Indonesian governments have been working to support this positive outcome.
“This will mean Australia can continue to play an important role supporting food security in Indonesia and our region at a time of global uncertainty.”
Incitec Pivot president Scott Bowman called it a positive outcome.
“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.
“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.
“Whilst there is more work to do to ensure farmers requirements can be fully met this upcoming season, this additional volume will go a long way to shoring up critical supplies to Australian farmers.”
Livestock SA said it was continuing to work with the government and industry on fuel and fertiliser issues, as rising input costs remained a significant pressure on South Australian farming businesses.
Chairperson Gillian Fennell said recent discussions reflected a shared understanding of how critical reliable access to fuel and fertiliser was for food and fibre production, regional safety and animal welfare.
“We welcome the fact that government is working with industry on fuel and fertiliser supply and that agriculture is clearly recognised as a priority,” Ms Fennell said.
“These are complex, globally driven issues, and constructive engagement is essential.”
