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Bayer glyphosate, Roundup production takes a hit, but Australian farmers may have 'dodged a bullet'

Bayer says its global glyphosate production has taken a significant hit. (Supplied: AP)

Global chemical company Bayer has moved to reassure Australian farmers about glyphosate supplies after what it called a "force majeure" production setback.

The maker of weedkiller Roundup said one of its key raw material suppliers had experienced a mechanical failure in its manufacturing plant.

"We expect repairs of this production line to take around three months," Bayer told customers.

"As a result of this force majeure event, Bayer's ability to supply its customers with glyphosate or glyphosate-containing products as agreed upon in certain agreements or under accepted purchase orders has been impacted."

Force majeure is a legal term for an unforeseeable event that prevents a party fulfilling a contract.

What does this mean for Australian farmers?

On social media, farmers in the northern hemisphere have expressed major concerns about the news.

But the outlook seems brighter in Australia.

Bayer Australia told Landline it was confident of being able to supply customers and growers with glyphosate-based products and "meet current forecast seasonal requirements".

"We are working to understand if there are any immediate implications for Australian customers and growers and will be providing more information as soon as possible," it said.

Thomas Elder Markets analyst, Andrew Whitelaw, said it seemed Australian farmers may have "dodged a bullet".

"This force majeure event for Bayer has happened at a time of year where the impact should be minimal for Australian farmers," he said.

"This is the key point of the year where [Australian farmers] need glyphosate ahead of seeding, so the product is already here.

"I think if this had happened in November or December it would have a much bigger impact upon the Australian supply chain, but it's probably being felt in other countries like in North America and parts of Europe."

Mr Whitelaw said there should also be enough supply for Australian householders to keep weeds under control in the backyard.

Rising farm inputs

Mr Whitelaw said the price of glyphosate was more than double what it was last year and rising energy costs had played a big factor.

One of the big drivers of the price of glyphosate is energy costs (Credit: Thomas Elder Markets)

He said farm inputs such as glyphosate, fertiliser, fuel and labour costs were all on the up — putting a lot of pressure on growers.

"It's a tough time for farmers to make decisions on planting the crop for this year when everything that they look at in the budget is substantially higher than last year," he said.

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