Ballance Agri-Nutrients (Ballance) sources phosphate rock from various locations around the world, including Western Sahara.
Ballance Agri-Nutrients (Ballance) sources phosphate rock from various locations around the world, including Western Sahara.
Western Sahara is a non-self-governing territory, one of 17 worldwide, and the subject of a complex dispute that’s been going for many years. Ballance is mindful of the different perspectives and the public interest relating to Western Sahara.
PhosBoucraa rock from Western Sahara is used for the manufacture of superphosphate fertiliser. New Zealand soils are deficient in phosphorus and sulphur with PhosBoucraa rock being ideal for New Zealand’s specific soil conditions and environmental constraints, as it is high in phosphorus and has low cadmium levels.
OCP Group, headquartered in Morocco, holds around 70 per cent of all phosphate reserves, making it a critical source of nutrients to feed the world.
Responsible sourcing of phosphate rock
At Ballance, we place considerable importance on the integrity of our sources of raw materials and finished products. We only buy products from suppliers that have declared annual adherence to the Ballance ‘Supplier Code of Conduct’, which aligns with the guidance in the Organisation for Economic Co-operation and Development (OECD) Guidelines for Responsible Business Conduct.
We undertake routine due diligence in relation to compliance with the code of conduct for each of these suppliers. This may take the form of a site visit by Ballance procurement personnel or an independent third party.
Due diligence assessment by Tūhana Business and Human Rights
The Fertiliser Association of New Zealand (of which Ballance is a principal member) contracted Tūhana Business and Human Rights Limited (Tūhana), to carry out a human rights’ due diligence assessment on sourcing phosphate rock from OCP Group’s subsidiary Phosboucraa in Western Sahara. More information about the Tūhana statement of findings is available on the Fertiliser Association of New Zealand’s due diligence page.
Tūhana found that OCP Phosboucraa had the joint lowest overall human rights risk ranking score for human and labour rights compared with other viable alternative sources of phosphate rock.
The report also stated that OCP is well ahead of many companies, both internationally and in New Zealand, in implementing the United Nations Guiding Principles on Business and Human Rights. The assessment also recommended that further due diligence should be done by Ballance on phosphate rock sourcing.
The due diligence assessment by Tūhana Business and Human Rights has given the co-operative a level of comfort that current sources are meeting the requirements of our Supplier Code of Conduct and has helped provide guidance regarding potential future sources.
Ballance continues to undertake its own human rights due diligence in relation to sourcing from OCP Phosboucraa. This and our other ongoing work forms part of our sustainability and sourcing plan.