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Fertiliser prices soar, leaving farmers struggling with cost of production

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With fertiliser costs reaching never-before-seen highs and the price of gas hovering, Australian farmers are struggling to maintain up with the price of manufacturing.

Up to now week alone, the price of uncooked supplies has risen 10 per cent.

Fertiliser Know-how Analysis Centre director Mike McLaughlin stated there have been two causes for the value hike.

Ukraine has deposits of key fertiliser elements potash and urea, and exports have been restricted. 

Russia is the world’s greatest fertiliser exporter however due to commerce sanctions, restrictions have been positioned on imports into Australia.  

A man's hands holding fertiliser pellets next to a very large pile of brown fertiliser pellets.
Along with record-high fertiliser costs, farmers are additionally coping with rising prices of gas, labour and chemical compounds.(ABC Rural: Bridget Herrmann)

“The demand continues to be there as a result of meals demand is at all times growing, however the provide of fertiliser is restricted, so the worth simply shot up,” Professor McLaughlin stated.

“These are the best costs ever for fertiliser uncooked supplies and which means it should circulation by.

“It’s one of many causes additionally that wheat costs have additionally gone up.”

The cost of vegetables such as broccoli, potatoes and cabbages have recently risen by up to 75 per cent, with the price of contemporary and frozen meals tipped to proceed to extend in coming weeks.

Report ranges

Thomas Elder Market analyst Andrew Whitelaw stated Australian farmers had not benefited from the rise in grain value. 

“The price of farming goes up at a price past the grain value,” he stated.

“Fertiliser is dear [as well as] chemical compounds, labour, and diesel.

“[They are] the 4 most important inputs {that a} farmer will face they usually’re all at file ranges.” 

A ripe wheat crop with a blue sky and white clouds.
Grain market analyst Andrew Whitelaw says the price of farming is exceeding the costs farmers can promote produce for. (ABC Rural: Jo Prendergast)

Mr Whitelaw stated Russia’s invasion of Ukraine had dramatically altered the market.

“It is modified provide chains in an enormous method,” he stated.

Seek for alternate options 

Professor McLaughlin stated some international locations have been searching for different provides of fertiliser in addition to making an attempt to ramp up home manufacturing.

“It’s troublesome to chop again on fertiliser use as a result of it’s going to get mirrored in decrease yields and decrease yields implies that the worth of grain will go up sooner or later,” he stated.

Close up of a hand with a fistful of fertiliser granules, mostly brown white white flecks throughout the handful;
Fertiliser is a vital enter for Australian grain farmers.(Provided: Trevor De Landgrafft)

“When oil costs go up, folks search for alternate options and with oil we now have substitutes by way of electrical automobiles and gasoline, however with fertiliser there aren’t any substitutes,” Prof McLaughlin stated.

“We may even see new mines or new services open up as a result of the fertiliser value is so excessive and it all of the sudden makes that exact useful resource financial.”

He stated excessive pure gasoline costs may also proceed to influence fertiliser costs as a result of pure gasoline is used to fabricate nitrogen fertilisers.

House gardener options 

Whereas the agricultural business searches for alternate options there are some ready-made replacements for these with a inexperienced thumb, in accordance with Professor McLaughlin. 

“You may change the mineral fertiliser you purchase in baggage on the grocery store with chook poo or animal manure like horse manure or cattle manure,” he stated. 

“You will get blood and bone from abattoirs [and] these types of issues. 

“They’ve additionally received different advantages for natural matter within the soil.”