Friday, March 29, 2024

Statement on Adblue supply measures: NFF

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David Jochinke, Vice President, National Farmers’ Federation, Media Release, 15 September 2022

Moves to secure AdBlue supplies past the end of this year will come as a relief to farmers.

Diesel Exhaust Fluid (commonly known as AdBlue) is critical to keeping our farm sector moving. Without AdBlue, modern tractors, trucks and utes simply stop moving, and our supply chain grinds to a halt.

Last year we came uncomfortably close to a full-scale crisis, when the Government stepped in to extend production.

As that stopgap comes to an end this year, we’ve been calling for longer term measures to secure Australia’s supply.

The new Government stockpile, coupled with grant support for domestic producers, will position Australia well for future volatility. What’s important now is that the private sector steps up and uses these grants to increase domestic production.

We thank the Government for its close engagement with industry leading to its announcement today.

While the AdBlue market in Australia is currently stable, we’ve seen fear sweep through Europe this week as the energy crisis cripples supply and raises concerns of a looming shortage.

Ensuring we can feed and clothe ourselves is about the most important thing a government can do. While we’re lucky as Australians to enjoy an abundance of food and fibre, in an increasingly uncertain global environment we can never take this for granted.

The AdBlue crunch should prompt broader thinking by governments about long term supply chain vulnerabilities. This includes the availability of fertilisers and farm chemicals. We’re also live to the challenges the farm sector will face as the economy transitions away from liquid fuels, and the current lack of technology alternatives for remote transport and on-farm machinery.

The input that has made AdBlue scarce, urea, is also crucial for fertilisers that underpin global food production. The logical next step would be to look at opportunities to increase local fertiliser capacity.

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