By Helen Clark
PERTH, March 5 (Reuters) - The chemical and fertiliser division of Australian conglomerate Wesfarmers WES.AX said on Thursday it was possible some shipments of ammonium phosphate cropping compounds and urea would be delayed mainly due to the Iran war.
CSBP said it was "urgently" assessing its available inventory levels and alternative supply options.
Escalating war in the Middle East has shut down fertiliser plants in the region and severely disrupted shipping routes, potentially curbing supplies to key Asian importers just as farmers gear up for their major cereal planting season.
The Perth-headquartered company is one of the largest fertiliser suppliers in Western Australia, which has a large agricultural sector and is a significant wheat exporter.
The situation in the Persian Gulf is evolving rapidly, and CSBP is working closely with its suppliers in the region to understand the impact on fertiliser movements from Middle Eastern ports and through the Strait of Hormuz, a company statement said.
While the company sources its natural gas feedstock domestically from Western Australia's large reserves, it imports additional fertiliser supplies, including phosphates, ammonium phosphate cropping compounds and nitrogen-based products, which the firm said will be temporarily placed on hold.
"We expect to have better visibility of these matters over the next few days and we will continue to provide updates to customers," according to the statement provided to Reuters.
The company will supply fertiliser to growers this month when March is stated as the collection date in their contract but "contracts scheduled for April or later cannot be brought forward for collection at this stage."
Wesfarmers also owns the country's most popular hardware chain Bunnings and discount retailer Kmart.
(Reporting by Helen Clark, Editing by Louise Heavens)
((helen.clark@thomsonreuters.com;))
Comments