Australian Farmers Face Urea Crisis

0:00It's March 10th, here's your Sydney news in two minutes. Australian farmers are dealing with sharp rises in Urea fertilizer prices and the threat of shortages all tied to the ongoing Middle East conflict. Urea is the top nitrogen fertilizer used for crops like wheat, barley, and vegetables, and Australia imports nearly all of it with the Middle East. Supplying about 45% of global exports, prices have already climbed 20% since the war started, starting right before the peak sowing season in April. Global oil prices are also surging because of the conflict, raising fears of inflation topping 5% from higher fuel costs. For Urea, the disruptions could lead to record highs or even supply gaps if things drag on, forcing farmers to pay up without much choice. Farmers say they have to absorb these extra costs for now as they cannot easily pass them on to buyers, squeezing their profits and food production, margins. Vegetable growers and grain producers worry it could hurt crop quality in yields, especially

1:01after recent dry spells. Experts remain cautiously optimistic that grocery prices will not jump right away. Farm inputs like fertilizer make up only a small slice of what shoppers pay for bread or veggies, with bigger shares going to processing, energy, and transport. Past price spikes in Urea do not always lead to big consumer hikes thanks to rising grain sales offsetting costs. That said, the longer the conflict lasts, the more pressure builds down the supply chain. Analysts note it, takes time for these shocks to reach store shelves, but prolonged issues can mean higher inflation and tighter supplies ahead. The Daily News Now is powered by our sponsor, Lincoln the Description. Podcasts hit different when the sound comes from your pillow. Once you try it, it just makes sense.