JAKARTA/CANBERRA (AFP): Australia has brokered a deal for Indonesia to supply 250,000 tonnes of fertiliser to Australian farmers facing shortfalls, officials said Thursday, as the Middle East crisis disrupts supply.
Australian Prime Minister Anthony Albanese said the deal, which fills 20 percent of the fertiliser needed for the planting season, was a "significant outcome for our farmers".
"We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region," he said in a statement.
Albanese travelled to Brunei and Malaysia this week seeking to shore up supply of petrol and agricultural grade urea, amid global supply disruptions caused by the war in the Middle East and Iran's effective closure to shipping of the Strait of Hormuz.
A third of fertiliser shipped by sea comes from the Gulf region and cannot make it to the global market.
Spiking diesel prices and uncertainty over fertiliser supply had raised concerns Australian farmers would not plant crops.
Australia is a major supplier of food to South East Asian countries, including Indonesia.
"This deal also shows why it's critically important that we have strong relationships with our regional partners," Albanese said.
Indonesia's government assisted brokering the commercial deal between Australia's largest fertiliser provider, Incitec Pivot, and PT Pupuk Indonesia, Australian officials said.
Incitec Pivot's president Scott Bowman said produce from Australian farms was crucial for food security across the region.
"There is more work to do to ensure farmers requirements can be fully met this upcoming season," he said. - AFP
