Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Hansard source

Thanks, Senator Stewart, for that question. Of course, the conflict in the Middle East is not just an unprecedented shock for global energy markets. There are a series of other commodities that make their way through the Strait of Hormuz or are affected by global energy markets. This is particularly the case for fertiliser-grade urea. Australia relies on imports of fertiliser-grade urea for more than 65 per cent of our total demand. Industry has advised that near-term planting demand for urea is largely covered, but the risks to the Australian agriculture sector will increase the longer disruption continues.

We have strong trade relationships and experienced fertiliser distributors, with whom the government is working closely. Importers and officials from the government have been exploring, over the course of the period since the conflict began, contingency sources of fertiliser-grade urea, such as in South-East Asia, but the global nature of this shock means that spare production is likely limited.

We are less import dependent for ammonium nitrate and ammonium phosphate fertilisers. The purchase of Phosphate Hill has secured the future of Australia's only manufacturer of MAP and DAP fertilisers. My department is also engaging on the shutdowns at the Yara Pilbara facility—which we've been advised will only last for eight weeks but will allow the firm to bring forward elements of a planned June-July shutdown—and the shutdown at Kooragang Island, which Orica has advised will be resolved shortly.