Increasing volatility in agricultural commodity and fertilizer 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 fertilizer suppliers and customers regarding price and supply commitments.
The Fertilizer Industry Standard Contract has been developed to provide a clear understanding by buyer and seller of their obligations and rights when they forward contract fertilizer. The standard contract is made up of the Standard Contract Form and the Fertilizer Industry Trade Rules.
In 2016 the Fertilizer 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 Fertilizer 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 Fertilizer 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 Institute of Arbitrators and Mediators Australia.
Fertilizer Industry Trade Rules December 2016.pdf
Standard Contract Form July 2013.pdf
Standard Contract Form July 2013.docx
IAMA Provisions for Arbitration in the Australian Fertilizer Industry.pdf
IAMA Arbitration Rules.pdf