Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
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The A$ has weakened by 28% from US$0.81 at
the beginning of 2018 to current levels of US$0.58. While global US$
fertiliser (urea (N), phosphate (P), potash (K)) prices have trended sideways
to down in recent years, a softer domestic currency will undoubtedly start
impacting on the fertiliser cost per acre for Australian farmers. Fertilisers
account for 25-30% of a farmer’s direct input costs; significant hikes in
fertiliser costs could flow through into higher crop and meat/milk prices. We
suggest that on the back of the global chaos caused by the COVID-19 pandemic, many
governments will be carefully reassessing their countries’ food security. Increasing
Australia’s self-reliance on fertilisers / reducing Australia’s dependence on
imported fertilisers, may well become an important government objective in the
next few years.