Albanese Government secures fertiliser supply deal with Indonesia
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The news: The Federal Government has secured access to 250,000 tonnes of urea from Indonesia, bolstering fertiliser supply for Australian farmers.
The context: The deal between Incitec Pivot Fertilisers and PT Pupuk Indonesia was facilitated by the governments of the respective countries.
The agreement will see around 250,000 tonnes of the world’s most widely used nitrogen fertiliser, urea, delivered to Australia to cover around 20% of the fertiliser needs of farmers for the November 2025-October 2026 season.
Prime Minister Anthony Albanese said the deal was a “significant outcome” for Australian farmers.
“We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region,” he said.
Agriculture minister Julie Collins said: “While this is a commercial deal, the Australian and Indonesian governments have been working to support this positive outcome…This guarantees supply of fertiliser to Australian farmers at this critical time.”
With 30% of the world’s nitrogen and phosphate fertiliser typically passing through the Strait of Hormuz, the ongoing war in Iran drastically impacted nations’ access to the product.
The deal is one of the final to be announced as Albanese returned from travels to Brunei and Malaysia, having secured 100 million litres of additional diesel from Brunei and South Korea, as well as an agreement with Malaysia that its Petronas will prioritise Australian fuel shipments.
The sources: The Australian, Crikey
