Southland's farming leaders have welcomed a National Party pledge to treat fertiliser supply as a matter of national security, while warning that the bigger problem on farms is price.

National's Invercargill candidate, Penny Simmonds, said this week that a re-elected National government would make the security and supply of fertiliser a priority to support Southland farmers. "Fertiliser supply is crucial to our farming future," she said.

Without reliable access, she said, the farming sector in the south could not sustain anything close to its current production base, and the country should plan for fertiliser security in the same way it plans for fuel and energy security.

The policy, announced on 9 October by agriculture spokesman Todd McClay and associate spokesman Mike Butterick alongside a $300 million concessional loan scheme for water storage, would see New Zealand negotiate fertiliser security agreements with key supplier countries. The aim is to protect New Zealand-bound product from export restrictions, provide early warning of supply disruptions and keep nutrients flowing to farms.

National also proposes a $10 million Critical Inputs Fund to partner with domestic manufacturers on long-term nitrogen production and a shift away from natural gas towards electrification.

Federated Farmers Southland president Chris Dillon said local farmers had faced product shortages at peak times and he welcomed the political focus on supply. But he said the real issue was price spikes and fluctuations, because all of the country's product was imported.

Dillon said comparing fertiliser security with fuel security was positive, but full self-sufficiency would require domestic refining infrastructure.

Prices staying high

Ravensdown chief operating officer Mike Whitty, in the co-operative's spring market outlook published in September, said processed phosphate prices were expected to stay elevated because of the exceptionally high cost and limited supply of sulphur. Nitrogen prices could strengthen as seasonal demand built, while potash remained comparatively stable.

With geopolitics, export controls and freight costs shaping the market, Whitty's advice to farmers was to plan early to manage availability and cost.

Ballance Agri-Nutrients, which operates the Awarua works near Invercargill, also backed the policy. Chief executive Kelvin Wickham said fertiliser security was food and economic security for New Zealand, and the co-operative welcomed the focus on working directly with supplier countries to keep product flowing when markets were disrupted. Ballance urged bipartisan support so farmers and investors could have confidence in the direction of travel.

Simmonds also pointed to Aspiring Materials, the Christchurch cleantech company that received a $15 million Regional Infrastructure Fund investment in August to build its first commercial-scale facility in Southland. The plant, proposed to open in 2028, is expected to create up to 200 jobs and supply magnesium and water-treatment products to southern pastoral and dairy farms.

Simmonds said magnesium was vital for pasture growth and for preventing metabolic conditions such as grass staggers in stock, and the company's magnesium hydroxide could also help with effluent pond management. A domestic manufacturer in Southland, she said, would give confidence of supply and a direct alternative to imported inputs.

The pledge is one of a series of rural policies being rolled out ahead of next month's general election.