National Farmers Federation Chief Executive Tony Mahar says the green light for a major fertiliser manufacturing plant in regional Western Australia is hugely positive news.
"Today's announcement by the Federal Government of the granting of major project status to a urea processing facility, is exactly what is needed to propel Australia's self-sufficiency when it comes to critical inputs.
"During COVID, supply chains almost ground to a complete halt and exposed Australia's reliance on the import of key inputs including urea.
"Many Australians would be shocked to learn the nation imports 90% of its urea, the most commonly used fertiliser in agriculture. Without urea, crop production would fall 30-40%.
"Positive seasonal conditions meant many farmers were setting up for a bumper cereal crop but faced the worrying prospect they wouldn't be able to get the fertiliser they needed to realise their crop's potential.
"Similarly, we almost lost the ability to put groceries on our shelves due to disruptions to the supply of AdBlue, a diesel additive that is derived from urea."
Mr Mahar said the planned production capacity of the plant in Geraldton of 1.4 million tonnes per annum of urea from clean hydrogen and natural gas, represented a new era of manufacturing capability in Australia.
