Global shortage of key ingredient in winemaking is causing headaches for producers in Australia

Worldwide shortages of DAP fertiliser have winemakers particularly worried. (Supplied: Pixabay)

Australia's wine industry is worried about shortages of a key ingredient in the fermentation process, as Chinese export restrictions continue to disrupt global supply.

Diammonium Phosphate (DAP) is a nitrogen-based fertiliser used as a food source for yeast when making wine.

The bulk of Australia's needs would usually come out of China but the same export restrictions and freight issues causing a shortage of AdBlue in the trucking industry now have the wine industry concerned.

The Wine Industry Suppliers Association said the price of DAP had increased five-fold in some cases and shipping delays were making the crucial ingredient difficult to source in Australia.

Wineries across Australia will need the nitrogen source when they start harvesting the next vintage in early 2022.

DAP is used as a nitrogen-based food source for yeast during the fermentation process. (Lucy Barbour)

DAP is also used as a fertiliser and in food manufacturing so wine makers may be forced to compete with other industries for a limited supply.

"It's a fermentation agent, so it helps to convert the sugar into alcohol which is where you get the real taste of wine from,"  Mr Battaglene said.

Mr Battaglene said DAP was "widely" used across the industry and Chinese export restrictions and freight constraints had sent prices "through the roof".

The Wine Industry Suppliers Association says winemakers need to order early so the industry can gauge demand for DAP this vintage. (Supplied: Riot Wine Co.)

"It's almost impossible to get either ships or containers into and out of Australia," he said.

Mr Battaglene urged winemakers to order stocks early, with harvest set to start across the country in January and February next year.

"Bigger companies, other manufacturers and other users will be trying to get it first," he said.

He thinks small producers are the ones who could encounter trouble.

Tony Battaglene is concerned smaller wineries will struggle to get supplies of DAP if they don't order early. (ABC Radio Brisbane: Jessica Hinchliffe)

Communication key

The chair of the Wine Industry Suppliers Association, Jason Amos, said the shortage could impact the taste and quality of wine.

Mr Amos said Australia was turning to suppliers in Europe because of the Chinese export restrictions, but the shortage was global and countries all over the world were competing for supply.

He said it is important for winemakers talk to their suppliers and start organising stocks of DAP so suppliers can organise alternative arrangements if there is a supply mismatch.