Energy in Action Episode 1: Resilience in Fertilizer Supply Chains

In the inaugural episode of Energy in Action, Intertek Caleb Brett's new podcast series exploring the challenges and opportunities shaping global energy and commodity markets, host Nick Davies sits down with supply chain and commodity trading expert Hiti Taluja to discuss the evolving landscape of fertilizer supply chains.

As Australia becomes increasingly reliant on imported fertilizers, the industry faces growing complexity driven by geopolitical uncertainty, shifting trade dynamics, biosecurity requirements, ethical sourcing expectations, and heightened regulatory scrutiny. Drawing on more than 20 years of experience across fertilizers, chemicals, and bulk shipping logistics, Hiti shares practical insights into supplier due diligence, supply chain governance, compliance risk management, and the importance of building trusted, resilient sourcing relationships.

Together, Nick and Hiti explore why transparency, verification, and independent assurance have become essential tools for organizations seeking to protect supply continuity and strengthen commercial performance in an increasingly volatile market. 

Listen in for expert perspectives on navigating risk, maintaining compliance, and building more resilient fertilizer supply chains for the future.

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Transcript

Welcome to the very first episode of Energy in Action, a new podcast series from Intertek Caleb Brett, focused on the people, challenges, and innovation shaping the global energy and commodities industries. At Caleb Brett, Energy in Action was created to bring together technical expertise and real-world industry experience to explore the issues that matter most across complex supply chains, from traditional energy markets through to emerging fuels, bulk commodities, and evolving regulatory landscapes.

The series is designed to provide practical insight from the people working closest to these challenges every day. Through conversations with industry leaders, technical specialists, and operational experts, Energy InShine Energy Action will examine how organizations are navigating risk, maintaining quality and compliance, and building resilience across increasingly dynamic global markets.

In today's inaugural episode, we're focusing on bulk materials handling for dry bulk fertilizers, an area that sits at the intersection of global trade, supply chain governance, cargo integrity, and operational assurance. Hosting today's discussion is Nick Davies, Australian National Director for Analytical Stockpile Assessments at Intertek Caleb Brett. Nick brings extensive experience in stockpile verification, cargo measurement, and bulk materials assurance, helping clients improve transparency, reduce commercial uncertainty, and make more informed operational decisions across the supply chain. Nick, over to you.

(Nick)
Hello everyone and welcome. Thank you for joining us today for this important fireside chat on fertiliser supply chain resilience. As we look at the current global landscape, the challenges facing fertilizer importers, handlers, and the entire supply chain are more complex than ever. From shifting trade routes and geopolitical tensions to tightening the regulatory frameworks, navigating this space requires deep expertise and a steady hand.

That is exactly why we are so fortunate to have Hitti Toluja with us today. Hitti is a global supply chain and commodity trading executive with over 20 years of leadership experience across fertilizer, chemicals, and bulk shipping logistics. She has held key roles such as CCO of Centrex Limited, where she led the commercialisation of the Ardmore Phosphate project in Northern Queensland in Australia.

She held the position of sourcing manager at Institec Pivot and also Regional Manager for TRAMO Australia, managing supply chain and procurement portfolios. Today, Hittie runs her own consulting practice, Vita Business, advising fertilizer companies in Australia and New Zealand on sourcing strategy and supplier due diligence.

Her deep expertise in global sourcing, freight markets and supply chain governance makes her uniquely positioned to help us unpack the complexities of fertilizer supply chains. Hiti welcome. It's a pleasure to have you.

Hiti (02:32.526)
Thank you. It is great to be here to have this conversation with you all.

Nick (02:38.296)
Thank you, Hittie. Let's start with the big picture. You've been in this industry for over two decades. Over that time, and particularly in recent years, we've seen a massive shift in how Australia sources its fertilizers. Can you walk us through what that transition has looked like from your perspective?

Hiti (02:58.126)
Absolutely. The landscape has fundamentally changed. If you look back, Australia used to have such a stronger domestic manufacturing base. But following the shutdowns of key domestic plants, specifically the SSP plant in Geelong, Queen Anna, as well as urea and ammonium sulfate plant in the past couple of years, we have now transitioned quite rapidly.

Into becoming a net importer of fertilizer. That shift changes everything. It means we are entirely reliant on global supply chain and that brings a new level of complexity. We are dealing with significant supplier concentration, much as driven by cheap gas prices in the regions like Kulf, which naturally attracts production.

But we also face unpredictable supply dynamics. For instance, we have seen situations where major players like China can simply ban fertilizer commodity export at their discretion to protect their domestic market. When that happens, it sends shock waves throughout the supply chain in Australia.

Nick (04:18.402)
Given that unpredictability, how does the industry adapt? What does the future of fertilizer supply chain in Australia rely on?

Hiti (04:27.854)
It relies entirely on trust and verification. In this business, success isn't just about finding the cheapest cargo. It builds on relationships that are developed over years. You have to demonstrate a commitment to supply reliability and product quality. A critical part of that relationship building here in Australia is achieving and maintaining an Aquaus Level 1 status. This biosector.

Biosecurity standard isn't just a regulatory hurdle, it's a foundation for trust. If you can't get the product cleanly through the port, the rest doesn't matter. I actually remember the exact moment when I realized how drastically things were changing. We had a vessel on the water and a sudden regulatory shift in the origin country meant our cargo was now on the

At risk of not meeting the new stricter biosecurity thresholds upon arrival. It was a scramble and it highlighted that the days of simple transactional buying were over. From that moment on, I knew that a rigorous end-to-end supply chain governance was going to be the only way forward.

Nick (05:53.858)
And Hidi, I believe those comments lead us perfectly into our main theme today, compliance and governance. The stakes seem higher than ever. Can you talk about the regulatory pressures importers are facing right now?

Hiti (06:08.066)
Yep, yeah, sure. So we are not just looking at a physical movement of goods anymore. Australian regulation let's leave, sorry. Australian regulations around sanction, anti bribery, and modern slavery are stringent and rightly so. But it means that the scrutiny on the cross border movement of fertilizer is intense. Globally, the pressure is mounting.

We have strict biosecurity laws to protect our agriculture and ethical sourcing is no longer a nice to have. It's a legal and commercial mandate now. When compliance fails, the operation and commercial risk are massive. The ultimate failure is the inability to supply product to our farmers when they need it for planting. We have seen historic examples for this.

For example, sourcing rock phosphate has occasionally created significant trouble for manufacturers in Australia and New Zealand due to geopolitical and ethical concerns at the region. If you get that wrong, the products stop moving.

Nick (07:29.166)
So how do we get it right? What does a truly rigorous supplier vetting process look like in practice?

Hiti (07:36.95)
It requires developing a robust due diligence process. You can't just take a supplier word for it. You have to deeply evaluate their product quality, their ethical practices, their safety performance, and their historic reliability. This is where an independent third-party verification becomes crucial. We all have blind spots and the third party providers.

offers an essential layer of security. They can go in and audit facilities, check labor practices and verify environmental standards. But you also have to back this up contractually. You need to get suppliers to explicitly commit to compliance within the purchasing contracts. And crucially you have to ensure that if there is a breach

The supplier is held responsible.

Nick (08:38.744)
So would it be fair to say that governance is shifting from being a back of office compliance function to a core business strategy?

Hiti (08:46.208)
Exactly. Governance is now a competitive differentiator. It absolutely improves your bottom line profit. Think about the alternative. You can lose a full year's profit with one wrongful decision, like buying a ship from a wrong source that's end up delayed, rejected at port, or caught up in a sanction violation. To strengthen procurement confidence, companies need

Need to make strategic investments. The leading importers are investing in supply chain transparency tools. They are building deeper long-term partnership with vetted suppliers rather than playing the spot market purely on price, and they are embedding compliance teams directly into their commercial operation. That is the only way to build a resilient supply chain in today's market.

Nick (09:45.048)
Hiti, this this has been incredibly insightful. Thank you for you sharing your expertise and giving us a clear roadmap on how to navigate these complex challenges.

Hiti (09:55.266)
My pleasure. Thank you for having me. I thoroughly enjoyed this chat.