What Are the Reasons Behind High Fertiliser Prices in Australia?

 In Australia, fertiliser prices are recorded high. This price increased due to a combination of increased global energy costs and export restrictions imposed by traditional overseas suppliers. These fertilisers prices have been increasing since the beginning of 2021, but it has accelerated in recent months. Recently fertilizer costs reached a record prices level of $1,320 per tonne for purchase, freight, and discharge. According to agricultural market researcher Andrew Whitelaw, these prices have been raised since the beginning of the year, but have surged since August.

These Are the Reasons for Record High Fertiliser Prices in Australia

1. Production of Fertliser Using Hydrocarbons -

Production of fertliser using hydrocarbons such as natural gas and coal is one of the main reasons for rising fertiliser prices. Gases prices are very high due to these impact fertiliser production costs is also very high.

2. Difficulty in Import -

COVID-19, lead the less production of fertliser, due to this difficulty in imports from China and Russia. Export restrictions have been imposed by China, while a quota has been imposed by Russia. Because of the record high fertiliser prices, freight charges also increase between these countries.

Impact of High Fertiliser Costs on Food Prices

Food prices are also increasing in Australia due to high fertiliser costs and COVID-19. Wheat production is reduced by 30% as a result wheat prices increases. Australian agriculture industry finds alternative fertliser such as natural fertliser. They belives that it improves the quality of the soil. But the problem is still continuing as the organic fertliser is not able to fulfill the needs of the Australian farmers.

Read this article by Australia's leading Shed Contraction service provider to know more reasons and impact of these high record fertiliser prices. Visit their website to know more