Farmers, industry warn of over-reliance on imports to produce food

Fertiliser, fuel and chemicals are vital inputs for farmers. But the reliance on inputs means Australia’s food security is vulnerable.

Farmers say Australia is vulnerable because of the country’s reliance on fertiliser, chemicals and fuel imports to produce food. Picture: Kelly Barnes/NewsWire

Food producers have warned that Australia is underprepared to face significant global disruptions and fear that growing geopolitical instability has left the country’s food security situation vulnerable.

The warnings from industry, peak agricultural groups and policy think tanks come amid ­wars in Europe and the Middle East and uncertainty about the effect US president-elect Donald Trump’s proposed tariffs will have on global trade.

They have warned that Australia’s status as a net exporter of food has created complacency and masks weaknesses in the country’s supply chains. In particular, they highlight the ­nation’s reliance on imported fuel, chemicals and fertiliser.

The issues have been outlined by the Australian Strategic Policy Institute, which has ­announced the development of a national food security preparedness green paper, co-funded by industry groups including the National Farmers Federation and GrainGrowers. It will be presented to the Albanese government in March.

Food security was raised as an issue in the 2024 National ­Defence Strategy and the 2023 Australian Food Story report, which called for the establishment of a national food plan and a government strategy to deal with challenges such as climate change and political instability.

“Food security is the cornerstone of our national stability,” ASPI national security programs director John Coyne said. “Without a reliable, resilient food system, we jeopardise not only our economy but our sovereignty ­itself. This green paper is a crucial step in ensuring Australia’s preparedness for the challenges ahead, safeguarding the prosperity and security of future ­generations.”

ASPI senior fellow and ­agsecure principal Andrew Henderson said the 2023 Australian Food Story report identified strategic vulnerabilities but there had been no visible plan to ­address them.

“Food security plays a critical role in Australia’s social ­cohesion, stability, and national security,” he said. “Food security is also very important to Australia’s neighbours, and to the stability of our region.”

NFF deputy chief executive Charlie Thomas said Australia’s “privileged position” as a net ­exporter of food was reliant on imports for farm inputs.

“Geopolitical shifts and supply chain disruptions a long way from Australia can be felt here in a big way,” he said. “Not enough work has been done historically to understand these vulnerabilities, and put plans in place to mitigate them.”

Agriculture Minister Julie Collins said the Albanese government was working closely with ASPI and industry groups on the issue of food security.

“The government is considering the inquiry into food security in Australia report recommendations ... and is already acting on several issues raised,” she said.

“These actions include supporting the dairy industry to ­improve productivity and competitiveness, making the food and grocery code of conduct mandatory, reviewing the wheat port code, and developing a ­national strategy for food security in remote First Nations communities.”

GrainGrowers policy and advocacy manager Zach Whale said the fact that 70 per cent of the country’s grain was exported did not mean the industry was immune from shocks. In particular, farmers rely on imports of fertiliser, chemicals and fuel.

“You take any one of those components out of the system and the Australian grains industry productivity would be severely diminished,” Mr Whale said.

“I think it’s critical the government really zooms in on that and shores up our supply chains.”

“The last couple of weeks alone have highlighted that the world is going to be a more uncertain place in the future. There’s new rules of engagement in the international context and geopolitical uncertainty is there. It’s happening now.”