WESTERN Australian fertiliser manufacturer CSBP has informed growers it would honour Flexi-N contracts affected by last month’s force majeure by supplying alternative products.

On March 25, CSBP notified customers that May and June Flexi-N contracts would be cut by 40-60 percent.

Flexi-N is a liquid nitrogen fertiliser manufactured and imported by CSBP using urea-ammonium nitrate (UAN).

Although not the same product, growers will be supplied an alternative at the same price per unit of nitrogen as set out in their original contracts.

CSBP customer and fellow supplier Summit Fertilizers declared force majeure on May-July contracts, cutting volumes by up to 30pc.

At the time of publication, Grain Central was not aware of any shift in Summit’s force majeure position on the contracts.

A CSBP spokesperson said the company had been able to increase local Flexi-N manufacturing after “work over recent weeks to secure alternative feedstock and adjust local manufacturing commitments”.

“Through increased production via CSBP’s own local manufacturing facilities, we are now able to supply a greater proportion of Flexi-N volumes than previously advised, providing growers with increased certainty as they plan for the 2026 season,” the spokesperson said in a statement provided to Grain Central.

“In addition, CSBP has provided impacted growers with alternative nitrogen products offered on equivalent pricing terms where Flexi-N cannot be supplied in full.

“Growers can choose the option that best suits their needs, or remain on their existing contracts while CSBP continues to actively pursue additional supply.

“CSBP has made a deliberate decision to supply shortfall tonnes at pricing equivalent to contracted prices.

“This is at a significant cost to CSBP and represents a commercial commitment to its customers.”

The spokesperson said CSBP waited until it was fully confident alternatives were available before notifying growers.

“Our priority throughout this period has been to provide clarity, certainty and practical options wherever it can be delivered responsibly.

“CSBP had been working on supply options throughout the global disruptions but could not responsibly confirm additional volumes until we had confidence they could be delivered reliably.

“Securing alternative feedstock and confirming we could adjust our local manufacturing commitments were critical steps before returning to growers with solutions they could plan around.”

Reputational impacts

While the latest developments have offered some reassurance to growers, the episode has undermined CSBP’s reputation as a reliable fertiliser supplier, according to WAFarmers grains president Mark Fowler.

“They’ve created a whole lot of anxiety for their customers and at a time of the year when, even though this is about post-seeding nitrogen, people are deciding what crops to plant and whether to plant,” Mr Fowler said.

“All those decisions were informed by this worry that they wouldn’t be able to get enough nitrogen at economic rates that they thought they’d contracted earlier.

“CSBP have badly damaged their brand in the process because it was transparently obvious that…they were basically making a call to protect their own shareholders rather than their customers.”

Mr Fowler questioned the extent that this move would financially impact the company.

He noted that CSBP was a major component of ASX-listed Wesfarmers’ Chemicals, Energy and Fertilisers business (WesCEF) which reported earnings before tax of $399 million for the 2025 financial year.

“It’s been badly managed.

“There are two questions.

“One is whether they’re legally able to call force majeure in those circumstances and there are some legitimate questions that could be asked with that.

“The second question is, even if they could, should they?

“They’ve done deep damage to their brand and the extent to which farmers trust them as being a safe pair of hands…they’ve shattered that.”

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