Skip to content
Agriculture Farming Rural

Australian farm fertiliser outlook: a recovery in demand and application rates

Rabobank 2 mins read
Rabobank farm inputs analyst Vitor Pistoia

Improved affordability of agricultural fertiliser is set to prompt a recovery in demand and application rates by farmers next season, Rabobank says in a recently-released report.

In its Australian Fertiliser Outlook 2024/25, the specialist agribusiness bank says Australian farm fertiliser consumption had declined 20 per cent in 2022, as the agricultural sector grappled with historically-high prices for farm inputs, driven by factors including Covid and the Russia-Ukraine war.

However, with prices now returning to more average levels and farmers seeking to replenish soil nutrients, another potentially good winter crop planting next year should see a strong recovery in fertiliser demand, according to report author, Rabobank farm inputs analyst Vitor Pistoia.

“In the past few years, economic shocks, Covid-19, the Russia-Ukraine war and other factors caused fertiliser prices to hit historic highs. This triggered farmers to change farm practices, with many trimming fertiliser application rates,” he said.

“In Australia, fertiliser consumption in 2022 declined by 20 per cent year on year, with different nutrients showing different magnitudes of reductions. For example, nitrogen showed a smaller cut than phosphate, potash and sulphur.”

Mr Pistoia said farm input costs had begun to decline substantially from mid-last year, allowing fertiliser affordability to improve back close to historically-average levels, despite significant drops also being experienced in the prices of agricultural commodities such as grain, oilseeds, beef and dairy.

Mr Pistoia said the “largest price relief” for fertiliser had come late in the buying period for the 2023/24 cropping season, so a recovery in demand and application rates was most likely to be seen in the coming 2024/25 season.

Further support for a recovery in demand would also come from farmers wanting to replenish depleted soil nutrients, after three years of good crop yields, he said.

While another large winter crop planting next year – above the 23-million-hectare mark, weather-permitting – would further support demand recovery.

Mr Pistoia said Rabobank’s expectations of a strengthening Australian dollar in the coming 12 months should also make purchase of imported goods, like fertilisers and ag chemicals, more affordable.

The report said anticipation of strong demand for fertiliser for next cropping season may drive Australian farmers to change their usual procurement strategies and purchase ahead to secure supply.

“Anticipatory procurement is a strong contender as a ‘budget saviour’,” Mr Pistoia said.

“By the end of the year, the majority of farmers are focused on harvest, which typically results in a period of low fertiliser demand. This could lead to buying opportunities for farmers in Q4 2023, with early buyers potentially avoiding a period of much stronger demand in Q1 2024, the usual procurement period.”


Media contacts:

Denise Shaw                                                    Will Banks     

Media Relations                                               Media Relations

Rabobank Australia & New Zealand               Rabobank Australia  

Phone:  02 8115 2744 or 0439 603 525          Phone: 0418 216 103           

Email:                Email:

About us:

Rabobank Australia & New Zealand Group is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 120 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 38 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1000 offices and branches. Rabobank Australia & New Zealand Group is one of Australasia’s leading agricultural lenders and a significant provider of business and corporate banking and financial services to the region’s food and agribusiness sector. The bank has 90 branches throughout Australia and New Zealand.


More from this category

  • Agriculture Farming Rural
  • 21/06/2024
  • 20:52
Vista Gold Corp.

Vista Gold Corp. Announces Receipt of the $10 Million Final Instalment Payment Under Wheaton Precious Metals Royalty

DENVER–BUSINESS WIRE– Vista Gold Corp. (NYSE American and TSX: VGZ) (“Vista” or the “Company”) is pleased to announce that its wholly-owned subsidiary, Vista Gold…

  • Contains:
  • Agriculture Farming Rural, Animal Animal WelfareRights
  • 21/06/2024
  • 14:48
House of Representatives

Ending Live Sheep Export Bill: Report Released

The Australian Parliament’sAgriculture Committeehas presented its advisory report for its inquiry into theExport Control Amendment (Ending Live Sheep Exports by Sea) Bill 2024, which will end the live sheep export trade by sea by 1 May 2028. The inquiry examined the provisions of the bill, including the authority for Commonwealth spending to assist those impacted to prepare and adapt. Committee Chair,Ms Meryl Swanson MP, said: ‘The bill fulfils the Albanese Government’s election promise to end the live export of sheep by sea while providing time and money for the orderly transition of industry to new avenues of production and trade.’…

  • Agriculture Farming Rural, Environment
  • 21/06/2024
  • 11:35
Farmers for Climate Action

Farmers congratulate climate leader on new World Farmers’ Organisation appointment

Friday, 21 June, 2024. Farmers for Climate Action congratulates former National Farmers’ Federation President Fiona Simson on being elected vice-president of the World Farmers’ Organisation. Farmers for Climate Action CEO Natalie Collard said Farmers for Climate Action and its 8200 farmer members were thrilled at the appointment. “Fiona Simson has been an effective leader for farmers and for the climate,” Ms Collard said. “Fiona Simson led the National Farmers’ Federation to the net zero 2050 climate policy. She is valued by the farming community for advocating for Australian agriculture and the climate farmers rely on in a balanced and sensible…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.