A SECOND Western Australian-based fertiliser company, Summit Fertilizers, has declared force majeure on urea ammonium nitrate (UAN) contracts.

Force majeure is defined as an unforeseen circumstance that prevents a business or individual from fulfilling a contract.

It may include events such as war, embargo or acts of government provided they are beyond the control of the parties and not due to their own acts or negligence.

In a letter to affected growers, the company said the decision followed an earlier move by its unnamed supplier, believed to be CSBP, to invoke force majeure on its UAN contracts.

UAN, which CSBP markets as Flexi-N, is a liquid nitrogen fertiliser manufactured and imported by the company.

“On 25 March 2026, Summit received a written Force Majeure Notice from its third-party supplier of UAN advising that export restrictions imposed by the Chinese government had resulted in the cancellation of shipments of UAN from China,” the letter said.

“Accordingly, performance of Summit’s obligations to deliver goods under the contract may be affected due to causes beyond its reasonable control.”

“At this stage, Summit anticipates that the impact on the contract to be a reduction of up to 30pc of the outstanding (UAN) contracted for May, June and July.

“Summit will separately confirm the impact on customers’ contracted UAN once the effects of the Force Majeure Event have been fully assessed.

“Should the Force Majeure Event result in a shortfall, Summit remains committed to mitigating its impact, including offering additional granular nitrogen, subject to availability.”

Grain Central understands that growers, and presumably Summit, are being supplied with 40-60 percent of their contracted UAN tonnages by CSBP.

In a statement, CSBP Fertilisers general manager Ryan Lamp said that it would “take all reasonable steps” to reduce the impacts on contract holders.

These included: pursuing alternative markets and products; exploring options to increase local manufacturing; continuing discussions with Chinese suppliers; working with industry and government to improve import access and supply chains.

“We are being transparent with our customers about anticipated shortfalls in Flexi-N product volumes for the May to July period and are in direct communication with all affected, providing specific details on anticipated delivery timeframes,” Mr Lamp said.

“This is not a decision we have taken lightly, and we understand the impact it will have on growers’ plans for the 2026 cropping season.

“The situation continues to evolve rapidly, and we are monitoring developments closely and communicating directly with customers as further information becomes available.”

Summit Fertilizers is owned by Sumitomo Australia.

CSBP is a subsidiary of Wesfarmers Chemicals, Energy and Fertilisers, or WesCEF, a division of ASX-listed company Wesfarmers.

CSBP manufactures liquid fertiliser using ammonia produced in WA and offshore, and imports urea and phosphates.

CSBP supplies about 40pc of the WA market.

Grain Central has been told that Nutrien may also be a buyer of CSBP’s Flexi-N product.

However, Grain Central understands Nutrien has not declared force majeure on any of its fertiliser contracts.

Summit Fertilizers has been contacted for comment.

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