Fertiliser not turning up: can your supplier walk away?

The Detail

If your fertiliser supplier calls force majeure this season, they may be trying to walk away from their obligations. Whether they can do that depends on your contract.

Force majeure has moved from the fine print of fertiliser contracts into everyday discussion this season. The question many farmers are asking is straightforward. If a supplier declares force majeure, where does that leave you?

In Australia, the answer sits in the contract. The Fertiliser Australia Trade Rules provide a proforma contract that is widely used across the industry, but not every supplier follows it word for word. Some contracts adopt parts of it, others amend it, and some use their own terms entirely. That means your position depends on the agreement you have signed. Reading your own contract matters.

At its core, force majeure allows a supplier to delay or suspend delivery when events outside their control prevent supply. The wording in the Fertiliser Australia rules refers to failure or delay caused by events beyond control. That is the foundation of the clause. It is designed for situations where supply cannot be met, not when the market has become more expensive.

This distinction is important. A supplier facing higher costs is not in the same position as a supplier who cannot physically source the product. The clause is built around the inability to perform. It does not exist to protect margins.

Under the Fertiliser Australia framework, a declaration of force majeure does not immediately end the contract. It suspends delivery obligations during the disruption. During that period, the supplier is not liable for delays, and the contract continues as far as possible. If the disruption extends, the unfulfilled part of the contract may be terminated.

For farmers, the practical outcome is clear. Fertiliser may arrive late, arrive in reduced volumes, or not arrive at all. In most cases, the real exposure is timing. A delayed shipment can have the same impact as no shipment if it misses the application window.

What is often overlooked is that the clause is not one-sided. The Fertiliser Australia rules place clear obligations on the supplier. A supplier must let you know within the period set out in the contract and explain what has occurred. They must show how the event has caused the failure to supply and prove that it falls within the clause.

The rules also require the supplier to take reasonable steps to reduce the impact of the disruption. This is where the issue becomes more commercial. A supplier is expected to attempt to source fertiliser from alternative suppliers or sources, if available. They are expected to consider different logistics if viable pathways remain open. The clause does not allow a supplier to stop at the first sign of difficulty.

This point is critical, and you must not overlook it. If fertiliser is available elsewhere in the market, even at a higher price, the supplier is expected to consider that option. Choosing not to supply because it results in a loss or reduced margin does not automatically satisfy the clause. The contract is built on the idea that the inability to supply must be genuine. A supplier’s cost position sits with the supplier, not with the farmer.

To take this a step further, the expectation is not passive. The supplier must actively investigate alternative supply options. That means looking beyond their usual source, testing other sources, and assessing whether the product can be secured and delivered through alternative means. If fertiliser exists somewhere in the world and can be moved, the obligation is to explore that pathway, even if it entails higher costs or reduces profitability. The clause does not allow a supplier to stop at their preferred supplier or the cheapest source. It requires a genuine effort to perform the contract. If that effort is not made, the basis for claiming force majeure becomes much harder to justify.

This is where your rights sit. You are entitled to proper notice of any disruption and a clear explanation of what has occurred. You are entitled to expect that the supplier has taken reasonable steps to source alternative tonnes where possible. You are entitled to question whether supply is truly unavailable or simply more expensive to secure.

In practice, this is also where tension develops. The product may still exist globally, but at higher prices or with more complex logistics. Suppliers may argue that supply is not workable under those conditions. You, as the buyer, may take the view that supply still exists and should be delivered. The contract provides a framework for assessing that position, but it does not remove the commercial pressure sitting behind it.

Force majeure is a legitimate part of contracts. It exists for situations where supply genuinely breaks down. It does not exist to protect suppliers from higher prices or tighter margins. That line is clear in principle, even if it becomes contested in practice.3

If the supplier calls force majeure, what do I do?

If a supplier declares force majeure, there are a few practical steps you should take.

The first place to start is with your contract. Check the force majeure clause and understand what events are covered, what notice is needed, and how long delivery can be delayed before you have the right to end. If you don’t have a contract with a force majeure clause specifically written in, then you are in luck.

You are entitled to more than a general statement from your supplier. Request a clear explanation of what has occurred, how it is preventing supply, and what steps have been taken to source the product elsewhere.

Ask what alternative supply options have been explored. Has the product been sourced from another region? Have different shipping options been considered? This goes directly to the validity of the claim. Get advice from a qualified source to tell you whether the fertiliser could be bought from alternative origins.

Assess your position. If the delay extends, check whether you have the right to cancel the contract or secure replacement tonnes elsewhere.

Ensure that all your communications with your supplier are documented, including. Do not rely on phone calls; follow up every conversation with an email confirming what was said. This is extremely important.

If you are dealing with a force majeure situation or believe you may be, it is important to seek proper legal advice. These clauses are specific to the contract you have signed. General commentary or opinions on social media will not reflect your position. The detail that matters sits in your contract, and in whether supply is truly unavailable.