KUCHING: Rising global fertiliser prices, driven by geopolitical tensions and supply uncertainties, are beginning to filter down to the retail level, reshaping buying patterns among farmers.
The shift echoes concerns raised by Food Industry, Commodities and Regional Development Minister Datuk Seri Dr Stephen Rundi Utom, as Sarawak government explores targeted fertiliser subsidies alongside longer-term agricultural reforms to cushion the impact.
For businesses like Mega Jaya Agrotech Sdn Bhd, the shift is already happening.
Its marketing officer Muhammad Syahir Mohd Tajuddin said higher prices have forced businesses to adjust, even as demand softens.
“Prices had to be raised slightly to absorb higher costs, but at the same time, we are seeing a decline in sales volume as customers, especially small-scale farmers, become more cautious with their spending,” he told Sarawak Tribune.
He said farmers are increasingly changing how they buy.
“Many are now purchasing in smaller quantities compared to before. Some are also switching to alternative products such as mixed fertilisers or organic options that are more cost-effective in the long run,” he added.
Beyond weaker demand, supply-side pressures remain a concern, particularly for imported fertilisers.
“The main challenge is the instability in both supply and pricing. Imported fertilisers sometimes face shipment delays and unpredictable cost increases, making it difficult for us to plan inventory and maintain consistent pricing,” he said.
Syahir welcomed the government’s proposal for targeted subsidies, describing it as timely support if implemented effectively.
“They can assist farmers who truly need support, especially small and medium players, while also helping to stabilise market demand,” he said.
At the same time, he noted a growing shift towards sustainable farming inputs, with demand for organic fertilisers steadily rising.
“We see this as an opportunity and are preparing to expand our product offerings. We are also improving our supply readiness and product knowledge to better meet customer needs,” he added.
The changing landscape highlights a dual challenge for the sector — managing immediate cost pressures while adapting to longer-term shifts towards sustainability and supply resilience.
