PERTH, March 30, 2026, 01:07 AWST
CSBP, Wesfarmers Ltd’s fertiliser division, is hustling to boost local output and secure replacement shipments after conflict in the Persian Gulf disrupted urea and phosphate supplies bound for Australia, CSBP sales strategy and reliability manager Ben Sudlow said late last week. Earlier this month, Reuters reported that the Wesfarmers arm had notified some customers of potential delays to ammonium phosphate compound and urea cargoes. 1
This is a tough moment for Western Australian growers, just as seeding season kicks off. Urea, the nitrogen fertiliser that’s essential for boosting crop yields, is a top priority right now. About a third of the world’s fertiliser trade moves through the Strait of Hormuz, according to Reuters. The United Nations, citing the risks of deeper food shortages, said on March 27 it’s launching a task force aimed at keeping trade flowing through the strait. 2
Sudlow said CSBP “moved pretty quickly” to lock in alternatives after Gulf shipments hit snags, and flagged a “structural decline in urea production and flow” over the past three weeks. According to Grain Central, the company secured some phosphate out of the United States, was chasing UAN—urea ammonium nitrate, a liquid nitrogen fertiliser—from the US, Europe and Egypt, and aimed to keep ammonium phosphate output running through mid-May. CSBP stands as one of Western Australia’s main suppliers, alongside Nutrien, Sumitomo’s Summit Fertilizers, and CBH, the grower-owned co-op. Sudlow said contracts for March and April were in hand; the real pressure comes with May and June cargoes. 1
Options for buyers are getting thinner. On March 19, Reuters said China had ramped up fertiliser export controls to safeguard its own supply, blocking more than half of what it shipped out last year. That’s made an already pinched market, thanks to the Hormuz bottleneck, even tighter. According to Matthew Biggin, senior commodities analyst at BMI, Beijing is focused on “prioritising food security” and not looking to relieve pressure for the rest of the world. 3
Wesfarmers’ WesCEF division—smaller than Bunnings or Kmart but hardly insignificant—turned in first-half EBIT of A$210 million, an 18% lift, according to company filings. Fertiliser earnings improved thanks to stronger margins, even though volumes slipped due to seasonal timing. 4
The conglomerate can’t really absorb much more bad news. Back in February, when Wesfarmers posted half-year numbers, Chief Executive Rob Scott made it clear inflation is hitting lower-income households hardest. Still, as Reuters noted, even a profit beat was overshadowed by softer-than-hoped early second-half performance at Bunnings and Kmart. 5
Still, the situation could deteriorate fast. Back in mid-March, Reuters flagged a roughly 40% spike in Middle East urea export prices compared to before the war. Analysts at the time cautioned that nitrogen fertiliser costs might even double, should the conflict persist. That puts growers in a bind: absorb the extra cost, try alternative products, or cut back on usage. 2
CSBP maintains that its current inventory, along with shipments coming from outside the Persian Gulf, will cover immediate contract needs. But Hormuz remains a choke point, and China’s export pullback lingers—leaving Wesfarmers facing a fertiliser market that’s shifting at a pace few retailers or farmers can keep up with. 1
