Australia sets up working group to protect urea supplies
Australia has launched a government-industry working group on urea because a large share of supplies still depends on shipping through the Strait of Hormuz.
Australia has set up a government working group with the fertilizer industry to protect urea supplies that are exposed to disruption from the Iran war, according to comments by Agriculture Minister Julie Collins reported by Bloomberg and published by Financial Post. The move reflects concern that one of the country's most important farm inputs could become harder or more expensive to secure.
Collins said about 60% of Australia's urea, a key nitrogen fertilizer used to lift crop yields, normally passes through the Strait of Hormuz. Although a US-Iran ceasefire took effect on April 8, the shipping route was still constrained when she spoke, leaving agricultural supply planners wary of further interruptions.
The minister said Australia currently has enough urea in reserve and enough cargoes already on the water to cover immediate needs. At the same time, Canberra is working with industry on longer-term availability because fertilizer security matters well beyond the input market itself: Australia is a major exporter of wheat, beef, wool and dairy, and any prolonged shortage would eventually feed into production costs across those sectors.
The report also said domestic production is expected to start in mid-2027 at the A$6.5 billion, or about 4.6 billion US dollars, Perdaman Urea Plant in Western Australia's Pilbara region. That project is seen as a future buffer against import dependence, but it does not solve the near-term vulnerability created by heavy reliance on shipments moving through Hormuz.
Separate comments from Infrastructure Minister Catherine King underscored the wider supply-chain strain. She said Australia is operating at level 2 of its four-tier National Fuel Security Plan, meaning supplies are continuing but remain under pressure. The government is also considering additional support for households and businesses while pushing electrification, low-carbon liquid fuels and sustainable aviation fuel. For agriculture, the immediate message is that Canberra now sees fertilizer logistics as part of national economic security, not just a routine import issue.