Meander dairy farmers Brian and Michele Lawrence receive a visit from TasFarmers CEO Nathan Calman (second from left) and Tasmanian Minister for Small Business, Trade and Consumer Affairs Guy Barnett (right) Photo: Guy Barnett

THE Tasmanian Government has helped secure additional nitrogen fertiliser for the island state as part of a deal with Australian company Incitec Pivot.

Tasmanian Minister for Small Business, Trade and Consumer Affairs Guy Barnett said the agreement was secured because of the latest trade and investment mission to Indonesia and Singapore following meetings with PT Pupuk Indonesia.

“The agreement is expected to deliver an additional 20,000 to 25,000 tonnes of nitrogen fertiliser (urea) into the state between now and the end of the year, providing significant additional supply ahead of peak seasonal demand,” Mr Barnett said in a statement released yesterday.

“Strong partnerships with industry and international suppliers are critical to protecting Tasmania’s agricultural productivity and food security.”

Tasmanian Primary Industries Minister Gavin Pearce said nitrogen fertiliser remained essential to Tasmania’s farming systems, supporting pasture, cropping, and food production across the state.

“This collaboration between government, industry and international suppliers is delivering practical outcomes for Tasmanian agriculture,” Mr Pearce said.

“The additional supply secured through this agreement will provide greater certainty for Tasmanian farmers as they make important seasonal decisions.”

Incitec Pivot general manager Tasmania Nick Saunders said the agreement would provide important confidence for Tasmanian growers ahead of the coming season.

“Tasmanian farmers are some of the most productive in Australia, and Incitec Pivot is committed to helping navigate these current global supply challenges,” Mr Saunders said.

Incitec Pivot chief operating officer Scott Bowman said the strengthened relationship with PT Pupuk Indonesia was helping bolster fertiliser supply security for Australian farmers.

“This additional volume for the period May to December is another critical plank in servicing the needs of Australian farmers,” Mr Bowman said.

TasFarmers has welcomed the Tasmanian Government’s announcement of a new fertiliser supply agreement, saying it provides much-needed certainty for farmers preparing for the coming season.

The agreement, facilitated through Indonesia and fertiliser manufacturer Incitec Pivot, comes after months of concern about global fertiliser availability driven by conflict in the Middle East and disruption to international supply chains.

TasFarmers chief executive officer Nathan Calman said certainty around fertiliser availability was critical for farm businesses making planting and production decisions in the months ahead.

“There’s been a great deal of uncertainty around urea supply at a time when farmers are making important decisions about planting crops and managing pasture growth,” Mr Calman said.

“This agreement gives producers confidence that supply won’t be an issue and allows them to plan their operations knowing inputs will be available when they need it.

“Nitrogen fertiliser plays a key role across Tasmania’s dairy, livestock and cropping sectors.

“Any disruption to supply can have significant impacts on productivity, farm profitability and food production.

“This announcement gives producers the ability to undertake the necessary gross margin calculations and make informed decisions about their farm businesses and expected returns.”

While welcoming the supply agreement, TasFarmers said producers still needed greater clarity around fertiliser pricing as supply certainty was only part of the equation.

“What we need now is greater certainty around price because that will ultimately influence the decisions farmers make.

“Having product available is critical, but farmers also need confidence around what it will cost so they can properly budget and plan.”

TasFarmers said the agreement would help address demand for nitrogen fertiliser but warned that other essential farm inputs also required attention.

“This announcement goes a long way towards meeting demand for nitrogen fertiliser, which is welcome news for producers across the state, but nitrogen is only one of the key fertiliser inputs farmers rely on.

“We can’t lose focus on the need to create greater certainty around other essential nutrients such as phosphorus, potassium and sulphur.”

TasFarmers said the announcement demonstrated the importance of proactive action to strengthen agricultural supply chains and improve resilience against global disruptions.

TasFarmers will continue working with government and industry to ensure Tasmanian farmers have reliable access to the inputs they need to maintain production, support regional communities and contribute to the state’s economy.

Source: Tasmanian Government, TasFarmers