Indonesia is to export an extra 250,000 tonnes of fertiliser urea for Australian farmers under a new commercial deal.
But it will only supply about 20% of what is needed for the current growing season, Prime Minister Anthony Albanese says.
On Friday (April 17), he said a commercial deal was reached between Incitec Pivot Fertilisers and PT Pupuk Indonesia.
The government is now talking to other countries about making up the shortfall in urea supply.
“We understand how critical fertiliser is for farmers, for our food production system and the food security of our region,” Albanese says.
“This deal also shows why it’s critically important that we have strong relationships with our regional partners.”
INDONESIA THANKED
Foreign Affairs Minister Penny Wong thanked Indonesia for their support.
“Australia is working with our international partners, particularly in our region, to strengthen our shared energy and food security,” she says.
Agriculture Minister Julie Collins says she has been “working day and night with industry” to secure more fertiliser supplies.
She says the new deal “guarantees supply of fertiliser to Australian farmers at this critical time”.
“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 president Scott Bowman says their trading relationship with PT Pupuk Indonesia, aided by the two governments, “yielded a positive outcome for Australian farmers”.
“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 says.
“Australian farm output is necessary for regional food security. This is a crucial contribution to securing inputs via Incitec Pivot.
“While 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.”
On his recent visit to Brunei, Albanese said he talked about increasing fertiliser supplies to Australia; the South-East Asian island nation supplies 11% of Australia’s fertiliser urea needs.
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