<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national" rel="" target="_blank" title="Australians "><span>Australians</span></a><span> could be forced to pay more for groceries as the </span><a href="https://www.9news.com.au/usa" rel="" target="_blank" title="US"><span>US</span></a><span>-</span><a href="https://www.9news.com.au/israel" rel="" target="_blank" title="Israeli "><span>Israeli</span></a><span> war in Iran drives up the price of fertiliser.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The </span><a href="https://www.9news.com.au/middle-east" rel="" target="_blank" title="Middle East"><span>Middle East</span></a><span>, known for being one of the world's most dominant suppliers of oil, also supplies up to 45 per cent of the world's urea.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><span></span></em><span>Urea is the most commonly used nitrogen fertiliser that promotes high crop yields and is used for wheat and vegetables. </span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/us-israel-attack-iran-airlines-qantas-air-india-and-air-new-zealand-raise-fare-prices-due-to-surging-jet-fuel-costs/3f574ad4-c3b0-4cf7-bdd8-2972ac0d8c1d" rel="" target="_blank" title=""><strong><span>Qantas hikes fares due to Iran war's impact on jet fuel prices</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia does not produce urea and relies almost entirely on imports, which have all but halted as the war shuts down the critical </span><a href="https://www.9news.com.au/world/us-israel-attacks-iran-strait-of-hormuz-explained-oil-gas-prices/f8e7c1ed-f6d9-4fe5-8277-6a11c09d8de6" rel="" target="_blank" title="Strait of Hormuz"><span>Strait of Hormuz</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Luis Gazzola, director of Gazzola Farms on </span><a href="https://www.9news.com.au/victoria" rel="" target="_blank" title="Victoria"><span>Victoria</span></a><span>'s Mornington Peninsula, said the increasing cost of urea will leave </span><a href="https://www.9news.com.au/farming" rel="" target="_blank" title="farmers "><span>farmers</span></a><span> like him worse off.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Prices have been going up for the last four years. Our cost of production has gone up 25 per cent or more," he said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/us-israel-war-iran-urea-fertiliser-price-increase-australians-could-pay-more-for-groceries/16a4d95d-4778-4164-897d-45bedc6644b5" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"But our returns and our produce, fruit and veggies, haven't gone up, unfortunately."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>National Farmers' Federation president Hamish McIntyre said this could lead to higher prices at the supermarkets.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Fertiliser prices are already climbing, with urea now sitting at around $US584 a tonne, up nearly 30 per cent in the past month and more than 50 per cent higher than a year ago," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"That's deeply concerning as farmers prepare for winter cropping, because tightening supply and soaring costs could mean fewer crops planted and ultimately higher food prices."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/world/petrol-prices-international-energy-agency-agrees-to-record-release-of-emergency-oil-reserves/80752f03-7fe5-4db8-82a6-933452ae3da0" rel="" target="_blank" title=""><strong><span>Record release of emergency oil reserves in an effort to calm surging petrol prices</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Monash University professor of econometrics and business statistics Robert Brooks said the extent of the consumer impact would depend on when and how much the supply chain can bounce back from the conflict.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A lot of primary production is already operating with fairly tight margins and they're also operating in a situation where the planting and the growing cycle are seasonal, and so there are certain times where this becomes really time-critical," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"On the grocery price chain end, transport then becomes a bigger part of infrastructure, so the longer you get disruption, and the longer you get higher oil, petrol, diesel and urea prices, the more you get price stickiness.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"And we do know that aspects of the supply shock that came out of the Russia-Ukraine conflict are clearly part of the inflation that we face today."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In a research note yesterday, Commonwealth Bank noted the crisis could last months and pose significant issues for agricultural production this year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While some of the best prepared farmers have most of their fertiliser needs purchased for the year, many don't have it delivered onto their properties, leaving them at risk of future supply shortfalls due to shipment challenges," economist Dennis Voznesenski said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/iranian-football-players-senior-iranian-community-figure-says-more-footballers-seek-asylum/871406ab-bfe3-41ca-94aa-598f80eeeffe" rel="" target="_blank" title=""><strong><span>Security scare after Iranian player's change of heart over asylum decision</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"On the fuel side, some of the best prepared farmers have sufficient purchases for a few months, but only partially delivered.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Farmers with limited reserves could run into issues due to recent panic buying, with fuel rationing reported across different parts of the country." </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For farmers like James Duffell, who owns Farmer and Son in </span><a href="https://www.9news.com.au/new-south-wales" rel="" target="_blank" title="NSW's Riverina region"><span>NSW's Riverina region</span></a><span>, he will have to absorb the price increases.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's going to make a big difference to your bottom line, because a lot depends on petrol and diesel," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's very hard for us to pass that on when we're the first ones in on the food chain.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"But if everything stops, no one gets to eat."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a 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