Australia Secures 250,000 Tonnes of Urea from Indonesia

Australia has secured 250,000 tonnes of urea fertilizer from Indonesia in a government-facilitated deal aimed at addressing supply shortages for farmers amid ongoing disruptions from the conflict in Iran.

The agreement, reached between Incitec Pivot Fertilisers and PT Pupuk Indonesia, covers approximately 20 percent of Australia's remaining urea needs for the upcoming crop season, which runs from November 2025 to October 2026. Deliveries are scheduled from May to December at prevailing market prices. The deal comes as the Strait of Hormuz, through which about 60 percent of Australia's urea imports typically pass, has been largely closed since United States and Israeli strikes on Iran in late February. This closure has ripple effects on global trade, with roughly 30 percent of the world's nitrogen and phosphate fertilizer shipments affected.

Prime Minister Anthony Albanese, who helped broker the arrangement during a regional trade tour, described it as a significant outcome for Australian agriculture. "We understand how critical fertiliser is for Australian farmers, for our food production system and the food security of our region," Albanese said. He emphasized the role of...