Increasing volatility in agricultural commodity and fertiliser prices in recent years has highlighted the importance of forward contracts in managing price and supply risk.
Between 2008 and 2010 extreme fluctuations in price and problems obtaining supply revealed shortcomings and misunderstandings between fertiliser suppliers and customers regarding price and supply commitments.
The Fertiliser Industry Standard Contract has been developed to provide a clear understanding by buyer and seller of their obligations and rights when they forward contract fertiliser. The standard contract is made up of the Standard Contract Form and the Fertiliser Industry Trade Rules.
In 2023 the Fertiliser Industry Trade Rules were updated to reflect the requirements of the Unfair Contracts Legislation.
The Standard Contract Form covers the critical components of a contract such as the product description, quantity, price and delivery period.
The Fertiliser Industry Trade Rules contain the detailed description of the components of the contract and the obligations and rights of each party. The Standard Contract Form also allows for the inclusion of varied terms which are different or additional to the default clauses in the Fertiliser Industry Trade Rules. Varied Terms are printed on the reverse of the Standard Contract Form.
The standard resolution process for contract disputes is arbitration by the Resolution Institute
Fertilizer Industry Trade Rules.pdf
Standard Contract Form October 2023.docx
Standard Contract Form October 2023.pdf