Australia turns to Brunei for vital fertilizer supplies amid Middle East disruptions

Canberra's strategic pivot towards Southeast Asia for vital agricultural inputs, specifically urea fertilizer, highlights a pragmatic response to global supply chain vulnerabilities. Prime Minister Albanese's visit to Brunei underscores Australia's commitment to ensuring food security by diversifying beyond traditional Middle Eastern suppliers, whose exports are increasingly imperiled by regional conflicts and shipping disruptions.

This move is not merely about securing a commodity; it's about safeguarding Australia's agricultural sector, a cornerstone of our economy. Urea is indispensable for maximizing yields of key crops like wheat, barley, and oats. Without it, Australian farmers face potential reductions of up to 40% in yield and compromised quality, a scenario that could have significant repercussions on domestic supply and export markets.

While the Middle East has historically been Australia's primary source of urea, accounting for over 65% of imports, the current geopolitical climate necessitates a recalibration of our import strategy. Brunei, already a significant supplier of diesel to Australia, emerges as a crucial partner in this diversification effort, representing 11% of Australia's urea imports last year.

From an Australian perspective, this partnership with Brunei exemplifies our proactive approach to managing international risks. It demonstrates a clear understanding that reliable access to essential resources requires building robust relationships with a wider array of international partners, ensuring resilience in the face of global uncertainty.

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Brunei Darussalam and Australia share deep concern over the situation in the Middle East and its consequences for our region. We reaffirm our commitment to strengthen energy and food security, to support the flow of essential goods between our two countries, including petroleum oils, such as diesel and crude oil, as well as agriculture and agri-food essentials and key agricultural inputs such as urea.