2022 Input Management

Fertiliser and chemical supplies for 2022 are expected to be tight, as either the products themselves or their ingredients are imported into Australia.  

The combination of logistical and shipping issues caused by COVID-19, Chinese production cuts, plus widespread back-to-back bumper seasons driving increased demand, has caused this massive jump in prices. Forecast MAP prices are well above $1,000/t while some quotes for generic 450 Glyphosate are already at $7.50/L. Many other inputs are experiencing the same rapid increase in prices. 

Much of the price rise is due to increased shipping costs, especially for container freight. The fiscal stimulus provided to American consumers has resulted in a 40% increase in the demand for containerised goods, which has translated into a 40% increase in shipping volumes on the Trans-Pacific trade lane, compared to pre-pandemic levels. 

As the price for transporting containers by ship has increased by as much as 370%, it is significantly more profitable for shipping lines to transport containers from China to America in higher numbers, than it is to transport containers to Australia. As a result, it has become more difficult and expensive to get imported goods to Australia. 

Growers are urged to be proactive with securing the inputs which are vital to their operation. These include starter fertiliser, urea, diesel fuel, plus key herbicides and fungicides. Having discussions with fertiliser and chemical suppliers as early as possible, should help growers decide whether to secure product now at the current high prices or hold off, in the expectation that supply will increase and prices will ease.  

One common option would be to secure the bare minimum products now to sow the 2022 crop, with additional requirements being purchased closer to when they are required, or earlier if prices decrease. However at some point, the security of supply becomes more important than the price paid.