Australia imports the bulk of its fungicides and key ingredients, from China, the US and Austria, and is therefore exposed to global uncertainty.
In response to the increasingly volatile freight environment (in terms of both costs and delivery), Australia’s imports have increased in recent years.
However, the product doesn’t appear to be in the right place at the right time. Many producers secured less product than usual in anticipation of a drier season, but the late winter rain has ramped up the disease risk, particularly for wheat, oilseeds and pulses, and in turn the demand for fungicides.
There are reports from farmers in the south-eastern states of not being able to secure the product they need. Furthermore, producers are not only having difficulty accessing the product, but the paddocks too.
Areas within parts of South Australia and Victoria are waterlogged with minor flooding in some parts, leading to a heavier reliance on aerial spraying, which comes at a higher cost compared to on-the-ground applications.
This can be hard to do in a timely manner when the neighbours are trying to book the plane in too. Timing is also crucial; not applying suitable treatment when required could mean significant impacts for both the quality and yield of crops in affected regions. At this stage, however, the good news is that strong moisture reserves and broadly favourable growing conditions are expected to outweigh any major losses.
– Bendigo Bank agribusiness report
