Fertiliser Price Surge Australia Drives Rising Vegetable Costs

The fertiliser price surge Australia is facing is lifting production costs for growers, contributing to higher vegetable prices amid Middle East supply disruptions.

Horticultural produce, particularly vegetables, has faced upward price pressure due to rising production costs linked to the Middle East conflict.

Australia relies heavily on imported fertilisers, sourcing around 70% of its requirements from overseas. This includes around 95% of urea imports, with roughly 30% originating from the Middle East.

The chart below shows movements in Australian fertiliser import prices. Ongoing conflict in the region has disrupted global supply chains and increased freight costs, leading to higher input costs for growers. These higher production costs are contributing to increased vegetable prices at retail.

This highlights the Australian horticulture industry’s exposure to global supply chain disruptions and input cost volatility, which may continue to influence produce prices.

The Australian horticulture industry remains vulnerable to global fertiliser supply disruptions and input cost inflation.

CHART: Australian Fertiliser Import Price Monthly Movement (Fertiliser Price Surge Australia)
Australian Nitrogenous Fertiliser Import Price Monthly Movement

Freshlogic’s Category Analysis service helps businesses understand how changes in production costs, supply, demand and consumer behaviour impact fresh produce categories across the supply chain.

For organisations requiring ongoing market monitoring, our Weekly Pricing and Trading Influences (WPTI) service provides real-time wholesale and retail pricing insights, historical trends and short-term price forecasts to support informed decision-making.

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