John Bennett’s farm is more than 11,000 kilometres from the Strait of Hormuz, yet the war in the Middle East is having a daily impact on the grain grower’s life. He estimates increased fertiliser costs could strip about $600,000 from his farm’s bottom line this season.
“Numbers are big in farming,” Bennett says. “And in the end not a lot comes out at the end of the pipe.” But it is not just cost that is weighing on calculations – it is uncertainty itself. Bennett says, for the first time, he cannot properly lock in yield expectations without knowing if fertiliser will arrive or what it will cost when it does.
Price Surge Since the Iran War
Since the start of this year, the price of urea from the Middle East has nearly doubled in Australian dollar terms, and is up about 75% since the outbreak of the Iran war. The conflict has disrupted shipping routes through the Strait of Hormuz, a critical chokepoint for global fertiliser trade.
Impact on Australian Agriculture
The rising costs are being felt across the agricultural sector, particularly among grain growers who rely heavily on urea-based fertilisers. Bennett’s experience highlights the vulnerability of Australian farmers to global supply chain disruptions. Without timely deliveries, planting decisions become a gamble.
“We’re used to price fluctuations, but this time it’s different,” Bennett explains. “We can’t plan ahead. Every day we wait, the price might go up again, or we might miss the window to apply fertiliser altogether.”
The war has also pushed up natural gas prices, a key input for urea production, further squeezing margins. Industry bodies are calling for government support to help farmers manage the volatility and secure alternative supply sources.
