GRAIN growers have said they are not fussed by whether an international business buys Australia's largest fertiliser operation Incitec Pivot Fertilisers (IPF), with the priority a move towards structural reform within the fertiliser sector that leads to more local manufacturing and more transparent pricing.
IPF has been strongly linked with Indonesian state owned enterprise and fertiliser business Pupuk Kaltim in a deal reportedly worth $1.5 billion.
Brendan Taylor, AgForce grains section president, said whether IPF was owned by local or international interests was of less importance to grain producers than generating greater fertiliser self-sufficiency domestically or creating a better pricing system with more transparency.
"Unless this Indonesian business came in and said they did not want to pursue more Australian production I wouldn't have a problem with it, IPF is already operating as a private business," he said.
"I think in the fertiliser industry I have more questions of government than private business, such as why, when we have such strong natural gas reserves that could go towards making nitrogen-based fertilisers, are we importing virtually all our urea needs, why is there not an environment more supportive of those making fertiliser here."
"We've seen in recent years with geopolitical unrest that international supply chains can break down quickly and access to fertiliser is a matter of national interest, I'd love to see governments come out and create af framework supportive of those willing to start manufacturing fertiliser here."
Justin Everitt, NSW Farmers grains committee chairman, said he was against the sale of another leading Australian agribusiness but added if it was to be sold to offshore interests he was not concerned where the buyer was based.
"I do think an Australian business will be conscious of our national interests to an extent, given fertiliser is mainly imported I have some concern as to whether the product may be sent elsewhere if there is a higher price, which is a private company's prerogative to make money, but if it is to be sold internationally to me whether it is Indonesia or somewhere else is not relevant," he said.
"I feel like in agriculture allowing businesses to be sold off overseas has not always had the best results for growers, in spite of what is said at the time of the sale."
However, he agreed with Mr Taylor in saying the ownership of IPF was a secondary concern to fixing issues within the fertiliser industry.
"I'd love to see fertiliser, and agriculture more broadly, recognised as something of national importance by the government."
Mr Taylor said farmers were apprehensive about the increased move towards a 'just in time' model of supply, not only for fertiliser but for other key inputs such as fuel and pesticides.
"Even this year, which is quite dry here in Queensland, there have been reported shortages of urea in southern Australia, we definitely feel more local production is a good start to help mitigate this and there are other things worth discussing, such as a more transparent disclosure of stocks which would help growers with their decision making."
IPF declined to comment on speculation that Pupuk Kaltim was set to be announced as the buyer of the company imminently, saying all media reports so far are speculation.