Leah Blyth (SA, Liberal Party, Shadow Assistant Minister for Defence Infrastructure) Share this | Hansard source

The duty of any government is to safeguard its nation and its people, and that does not begin and end with defence capability; it extends to fundamentals that allow a nation to function, like energy supply chains and, critically, food. At present, Australia is more exposed than it should be. Since the conflict in the Middle East escalated, global fertiliser markets have tightened. That is not a distant issue; it is already affecting Australian agriculture and will increasingly affect production and, ultimately, prices at the supermarket. These concerns have been raised directly with me by AUSVEG SA, which represents South Australia's $3 billion vegetable industry and provides a significant share of the nation's fresh produce. Fertiliser is a basic input for growing the food we need. Without it, yields fall, and, when yield output declines, prices rise.

The problem is that fertiliser production is energy intensive and geographically concentrated. A substantial proportion of global supply moves through the Strait of Hormuz. Disruption in that corridor has immediate implications for countries, like Australia, that rely heavily on imports. We get about two-thirds of our supply from the Middle East. Urea, the most widely used nitrogen fertiliser, is central to crop production. Prices have already risen sharply since the conflict began.

Australia is particularly vulnerable because we produce only a small proportion of what we use. Domestic output meets limited share of demand, and the vast majority of key products like urea is sourced overseas. That reliance creates practical problems for our farmers. Fertiliser is not something that can be substituted or deferred without consequence. It must be applied at specific stages of crop development. If shipments are delayed, even by a few weeks, the impact is immediate: lower yields, reduced output. That flows directly to consumers at the supermarket checkout.

In South Australia, the connection between fertiliser and food supply is especially clear. The vegetable sector is a major contributor to national supply. In crops such as fresh potatoes, production is heavily concentrated in the state of South Australia. The result is straightforward: less supply results in higher prices. AUSVEG SA has also made the point that uncertainty itself is becoming a constraint in its business. Lead times for fertiliser shipments are now extending out to 10 to 14 weeks. That's not compatible with time-sensitive agricultural production.

Our current system relies on just-in-time supply with very limited buffer. That is efficient in stable conditions, but it offers little protection when supply chains are disrupted. This is where the policy question arises. Australia is increasingly reliant on inputs that we do not produce moving through supply chains we do not control and arriving only at the moment we need them. That is a risk profile that has developed over time, largely without being addressed. AUSVEG SA has suggested a practical step: treat fertiliser as a nationally significant input, similar to fuel, so that it can be prioritised during shortages—that seems to be a sensible starting point. More broadly, we need to look at how we reduce exposure. That includes considering supply buffers, securing access to inputs and supporting domestic capability where it is viable. None of this is about self-sufficiency in an absolute sense. It is about reducing risk to a manageable level.

Food supply is not guaranteed. It depends on systems that need to function reliably, and ideology should play no role. Net zero is putting our very food security at risk. At the moment, systems are under pressure, mostly by self-inflicted policies that are risking our food security and our national prosperity. If that pressure continues without adjustment, the consequences will be seen in production levels and in prices. It's bad news for producers and for consumers. It's time we started making and growing what we need right here in Australia. It's time for government to get out of the way and let our farmers get on with farming.

Senate adjourned at 20:13