Rural
21 April, 2026
Fertiliser costs surge
Farmers across Southern NSW are facing rising fertiliser costs and ongoing supply pressure, with a new report warning the global market remains under strain.
Farmers across Southern NSW are facing rising fertiliser costs and ongoing supply pressure, with a new report warning the global market remains under strain.
A report from agribusiness bank Rabobank says disruptions in the Middle East — including impacts on key shipping routes — have triggered a major supply shock, tightening availability and driving up prices.
The Strait of Hormuz, a critical trade corridor, has been a particular concern, with reduced flows of fertiliser and key inputs affecting global supply.
Prices for key fertilisers, including nitrogen and phosphates, have risen sharply, outpacing commodity prices and putting pressure on farm margins.
Rabobank analyst Paul Joules said Australia’s reliance on imported fertilisers leaves local producers exposed to global disruptions.
“Middle East granular urea prices have surged around 94 per cent year to date,” he said, while phosphate prices have also climbed.
Despite a stronger Australian dollar offering some relief, input costs remain elevated due to ongoing supply constraints.
Locally, the pressure is expected to influence planting decisions heading into the next season, with some growers likely to cut back on fertiliser.
The report warns that reduced fertiliser use could impact crop yields if conditions persist, with broader implications for production and food prices.
Even if geopolitical tensions ease, the report says a return to stable supply and pricing conditions is likely to be slow.
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