fertilizers & agriculture, november 2013

14
bles ps crops 11.7 9.3 5.8 3.0 4.2 4.1 5.2 16.1 14.3 15.8 fertilizers & agriculture November 2013 www.fertilizer.org The world's need for potas- sium fertilizers remains strong 7 Fertilizer use by crop at the global level 9 Convergences and reality checks 5 D uring the latest IFA Annual Con- ference in Chicago, I had the hon- our of being elected IFA’s President. At the beginning of my mandate I believe it is important to offer a clear indication to IFA members and stakeholders of the priorities that will guide my actions and decisions for the next two years. In view of the attention currently being given to agriculture, food security and nutrition internationally, the fertilizer industry is in a unique position to demonstrate its global role. To do so, we must act stra- tegically and provide clear direction to our 560 members. Sustainable intensification My first priority area is sustainable in- tensification. As demand for food in- creases, so does competition for land, water and energy. In order to achieve food security worldwide and reduce the environmental footprint of the agricul- tural sector, we need to make better use of arable land. We must produce more crops and nutritious food from the same acreage with efficient allocation of natural resources, thus increasing ag- ricultural productivity sustainably. Product and nutrient stewardship My second priority is to address the fertilizer lifecycle and, in particular, the environmental impact of fertilizer production and use. IFA and IPNI were at the origin of the 4R nutrient stew- ardship framework. This framework conveys to farmers, policy-makers and all other stakeholders the principle of using the right fertilizer sources at the right rate, right time and right place so as to achieve economic, social and envi- ronmental goals. Moreover, IFA has developed a product stewardship initiative that promotes responsible Safety, Health and Environ- mental (SHE) management throughout the product’s lifecycle. cont’d on page 3 cont’d on page 2 Reforming fertilizer subsidies in Nigeria IFA Director General Charlotte Hebebrand had the opportunity to get Akin Adesina's, Minister of Agriculture, views on the important fertilizer subsidy reforms undertaken in Nigeria. IFA: You have undertaken a very impressive set of reforms in order to stimulate greater agricultural production in Ni- geria, a country well suited for agriculture although that potential has not been pursued in recent decades. Could you explain how fertilizers fit into these reforms? Forty years is the average life expectancy in rural areas, but in that period millions of farmers never see or get subsidized fertilizers supposedly meant for them. Despite the billions of Nigerian Naira spent over four decades, no more than 11 percent of smallholder farmers received subsidized fertilizers from the government. The corruption in the system was massive due to direct govern- ment procurement and distribution of fertilizers. Subsidized fertilizers were sold off on the open market and exported into neighbour- ing countries. Farm productivity continued to decline, food security worsened, and the incomes of farmers declined, despite massive increases in fertilizer subsidies for decades. Determining future priorities for the fertilizer industry by Esin Mete, IFA President Woman farmer working in the field, Turkey.

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Page 1: Fertilizers & Agriculture, November 2013

Figure 1: Contribution of different crops to global fertilizer consumption

Other crops

Vegetables

Fruits

Roots/Tubers

Sugar crops

Fibre crops

Other oilseedsOil palm

SoybeanOther cereals

Maize

Rice

Wheat

11.7

9.3

5.8

3.0

4.2

4.15.2

2 3.9 4.6

16.1

14.3

15.8

f e r t i l i z e r s& a g r i c u l t u r e

November 2013

www.fertilizer.org

The world's need for potas-sium fertilizers remains strong

7

Fertilizer use by crop at the global level

9

Convergences and reality checks

5

During the latest IFA Annual Con-ference in Chicago, I had the hon-

our of being elected IFA’s President. At the beginning of my mandate I believe it is important to offer a clear indication to IFA members and stakeholders of the priorities that will guide my actions and decisions for the next two years. In view of the attention currently being given to agriculture, food security and nutrition internationally, the fertilizer industry is in a unique position to demonstrate its global role. To do so, we must act stra-tegically and provide clear direction to our 560 members.

Sustainable intensification My first priority area is sustainable in-tensification. As demand for food in-creases, so does competition for land, water and energy. In order to achieve food security worldwide and reduce the environmental footprint of the agricul-tural sector, we need to make better use of arable land. We must produce more crops and nutritious food from the same acreage with efficient allocation of natural resources, thus increasing ag-ricultural productivity sustainably.

Product and nutrient stewardshipMy second priority is to address the fertilizer lifecycle and, in particular, the environmental impact of fertilizer production and use. IFA and IPNI were at the origin of the 4R nutrient stew-ardship framework. This framework conveys to farmers, policy-makers and

all other stakeholders the principle of using the right fertilizer sources at the right rate, right time and right place so as to achieve economic, social and envi-ronmental goals. Moreover, IFA has developed a product stewardship initiative that promotes responsible Safety, Health and Environ-mental (SHE) management throughout the product’s lifecycle.

cont’d on page 3

cont’d on page 2

Reforming fertilizer subsidies in NigeriaIFA Director General Charlotte Hebebrand had the opportunity to get Akin Adesina's, Minister of Agriculture, views on the important fertilizer subsidy reforms undertaken in Nigeria.IFA: You have undertaken a very impressive set of reforms in order to stimulate greater agricultural production in Ni-geria, a country well suited for agriculture although that potential has not been pursued in recent decades. Could you explain how fertilizers fit into these reforms?Forty years is the average life expectancy in rural areas, but in that period millions of farmers never see or get subsidized fertilizers supposedly meant for them. Despite the billions of Nigerian Naira spent over four decades, no more than 11 percent of smallholder farmers received subsidized fertilizers from the government. The corruption in the system was massive due to direct govern-ment procurement and distribution of fertilizers. Subsidized fertilizers were sold off on the open market and exported into neighbour-ing countries. Farm productivity continued to decline, food security worsened, and the incomes of farmers declined, despite massive increases in fertilizer subsidies for decades.

Determining future priorities for the fertilizer industryby Esin Mete, IFA President

Woman farmer working in the field, Turkey.

Page 2: Fertilizers & Agriculture, November 2013

2 fertilizers & agriculture

Within the first 90 days of my becoming Nigeria’s Minister of Agriculture, we succeeded in ending four decades of corrup-tion. With strong support from the President, we embarked on a massive overhaul of the na-tional fertilizer and seed supply system – the boldest ever done in the nation’s history. Direct procurement and distribution of fertilizers and seeds were eliminated. All fertilizer and seed companies now sell directly to farmers, not to the government. IFA: What are the key lessons from the fertilizer reforms that Nigeria has carried out so far, and how do you see them unfolding further?We did the same clean-up in the seed system. Direct govern-ment procurement of seeds had led to entrenched corruption and rent seeking, as government officials gave away contracts to cronies who supplied grains instead of high-quality seeds to farmers. The system in which government monopolized the supply of foundation seed was scrapped. Today, all foundation seed supply – the lifeline of a viable seed industry – is fully lib-eralized and handed over to the private sector.With those reforms has come major investment in that sec-tor. The number of seed companies has grown from 11 at the start of the administration to 70. Global seed companies such as Syngenta and DuPont have decided to invest in the Nigerian seed sector, with Syngenta deciding to open a representative office in the country for the first time. Private sector fertilizer investors are cashing in. Notore and Mitsubishi Corporation are expanding Notore’s plant with an investment of US$ 1.3 billion. New investors such as Dangote plan to put up the largest urea plant in Africa at US$ 3.5 billion, and Indorama is investing US$ 1.2 billion in a new fertilizer plant.This has to be done all across Sub-Saharan Africa. All it takes is political will. Agricultural policies first and foremost have to benefit farmers. That must be the litmus test for effective policies to stimulate agricultural productivity, generate better livelihoods for smallholder farmers, and address food security.

IFA: While you were at the Rockefeller Foundation, you played a key role in the 2006 Fertilizer Summit held in the Nigerian city of Abuja, which highlighted the dire need to increase fertilizer use in Sub-Saharan Africa and concluded with far-reaching recommendations from the highest lev-els of African governments. While some progress has been made, there is still much that needs to change. What are the key actions that governments and private industry need to take?Governments should provide the enabling environment, through its policies, research and extension services, to allow the private sector to do what it does best – run competitive businesses. We must focus on how to support farmers so that they have expanded access to productivity-enhancing tech-nologies and inputs, adapt to climate change, improve natural resource management, expand market access, and acquire the skills needed to make farming a business. In Nigeria, we are now executing a “government-enabled, pri-vate sector-driven” transformation agenda which ensures that agriculture is being treated as a straight-line business, not a development project. Indeed, the government recognizes that there are financial returns to be made in the sector, while at the same time creating jobs and economic sustainability.Together, we must empower both farmers and agro-input dealers. IFA: Whereas fertilizer use in Sub-Saharan Africa is low compared to that in developed and emerging economies, IFA has signalled that it is actually one of the areas where fertilizer consumption is growing at the fastest rate. IFA has made Sub-Saharan Africa a priority in our statistics and advocacy programme. What are your suggestions for how an international fertilizer industry association can best pro-mote increased and efficient fertilizer use to enable all of Sub-Saharan Africa to live up to its tremendous agricultural potential?Improved seeds have been described as the engine of any agri-cultural revolution and fertilizer as the fuel. Access by farmers to these modern agricultural inputs is therefore the backbone of agriculture transformation in Africa and of ending hunger and poverty. IFA has an important role to play in representing the industry as a responsible and important player in address-ing global food security.

Distribution of fertilizers

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Women selling in local market

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Reforming fertilizer subsidies in Nigeria

Page 3: Fertilizers & Agriculture, November 2013

November 2013 3

Esin Mete is CEO of Tekfen Hold-ing’s Agri-Division and Chairwoman of Toros Ag-r i - Indus t r y Group. She

was elected President of the Inter-national Fertilizer Industry Associa-tion during IFA’s Annual Conference in Chicago. Ms. Mete succeeded William J. Doyle, President and CEO of Potash Corp.Ms. Mete was awarded “Most Suc-cessful Woman” in her sector for 2000 and 2003. She ranked 23rd in the survey of CAPITAL magazine’s “Most Powerful Women in Turkey” and as a contributor in the “Zinc Project” she has been found wor-thy of receiving the award for “Ser-vice to Humanity and to Turkey”. In 2011, she was bestowed the Order of Ouissam Alaouite by the King of Morocco for her perennial close co-operation and contributions to the development of the country.

Read also: Fortifying fertilizers can fortify food"Why add nutrients to food all the time? Why not add them to the soil itself?"www.foodsecurity.ac.uk/blog/index.php/2013/10/fortifying-fertilizers-can-fortify-food/

IFA Press Releasewww.fertilizer.org/ifa/HomePage/MEDIA/Press-releases-2013/22-May-2013

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Companies that obtain the IFA Protect & Sustain certification benefit from safer working conditions, better environ-mental protection, safer communities and improved reputations, while avoid-ing incidents such as the West Fertiliz-er Company explosion in Texas. As IFA President, I will encourage IFA members around the world to join Protect & Sus-tain1 and to replicate successful product and nutrient stewardship programmes.

Outreach to farmersAnother aspect of sustainable develop-ment is empowering smallholders world-wide, especially women and youth, to become professional and commercial farmers. At a time when most govern-ments can no longer bear the cost of ex-pensive public extension programmes, advisory services, training, and sharing of best practices can only be carried out by means of public-private partner-ships. IFA is one of the founding orga-nizations of Farming First, a coalition of agricultural organizations that aims to make the voice of farmers heard in in-ternational policy-making regarding ag-riculture, food security and nutrition. In this context, IFA works closely with the World Farmers’ Organization. However, outreach to farmers cannot take place at the international level. It is up to IFA members, both companies and associa-tions, to implement such programmes at the local, regional and national levels in their home countries.

NutritionA fourth important point for me is the role of fertilizers in providing solutions to malnutrition and stunting. Millions of people in the world (mostly children and women) suffer from micronutrient defi-ciencies that have irreversible impacts on their health and on the economic de-velopment of their countries. Micronutrient fertilization is one of the techniques which demonstrate that nu-trition-sensitive agriculture is the key to improving nutrition worldwide. I have first hand knowledge of this issue since my company, Toros Agro-Industry Group, was the first fertilizer company

in Turkey involved in the development of zinc-enhanced blends of NPK. We have now eradicated zinc deficiencies in Turkey. I would like to use my experi-ence to encourage all nutrient deficient countries to adopt this simple, afford-able and sustainable solution to malnu-trition. Concrete examples from other countries also show the positive impacts micronutrients have on human health. A review of these findings was published by IFA and IPNI in late 2012 in Fertil-izing Crops to Improve Human Health. IFA will pursue its communications and outreach campaign to share the results of this review widely through the use of compelling visuals and side events to target policy-makers. (See page 12)

Member engagementFinally, IFA and its members are in the midst of re-thinking the Association’s role and strategy. In this context I plan to strengthen IFA’s image as the only organization that represents the fertil-izer industry globally by encouraging IFA members to be more active in the Association. IFA is unique in its diversity and broad coverage. All actors along the supply chain are part of our membership – from the production, trade, transport and dis-tribution of all types of fertilizers, their raw materials and intermediates, to na-tional associations, engineering compa-nies, consulting firms and research insti-tutes. IFA’s scope extends from business networking during our conferences to statistics and data gathering; from in-ternational engagement to benchmark-ing and sharing of best practices. There is much to learn from each other, and IFA constitutes a solid platform for such exchanges. Speaking from personal experience, I can say that the many positions in which I have served at IFA have expanded my vision of our industry. The knowledge I have gained has helped me to imple-ment many new ideas in my own com-pany and country.

1 www.protectandsustain.org

cont’d from page 1

Determining future priorities for the fertilizer industry

Page 4: Fertilizers & Agriculture, November 2013

On 7-9 October, around 100 del-egates from some 50 countries

attended the 34th IFA Production and International Trade Conference in Kiev, Ukraine. They heard key experts discuss topics related to fertilizer markets, natu-ral gas supply, global fertilizer capacity, and trade. Two main themes emerged: convergence and reality checks.

ConvergenceThe first group of speakers, all from Ukraine, highlighted the strong con-vergence of future supply and prospec-tive demand in the country’s domestic market. According to the Ministry of Agrarian Policy and Food of Ukraine, fertilizer demand is projected to nearly double over the next ten years to reach 3 million metric tonnes (Mt) nutrients in 2022. This growth will be driven by an increase in cultivated area, combined with a sizeable improvement in fertiliz-er application rates from 62 to 95 kg/ha. Ostchem, Ukraine’s main fertilizer pro-ducer, plans to double its UAN capacity, expand its CAN capacity, and start NPK production during this period.Convergence in the natural gas market is seen in Europe and other parts of the world. Europe’s natural gas market has been shifting from oil indexation towards gas-to-gas competi-tion. This trend will be supported by increas-ing LNG import capac-ity and potential shale gas development in a few large natural gas consuming countries in Europe. At the global level, RWE Supply & Trad-ing (Germany) reported that the combi-nation of growth in natural gas supply and a shift in export flows would press natural gas prices in Japan and the Unit-ed States to converge in future towards European prices, which will show both maturity and resilient volatility. Fertilizers Europe, based in Brussels, demonstrated that, with an adequate

policy framework, there would be a convergence of interest between Eu-rope and Ukraine regarding the estab-lishment of a pan-European natural gas single market, with stronger leverage for consumers in future.Convergence in fertilizer market dynam-ics was seen at the global level. FRC-CRU Group (United Kingdom) has projected that more than 9 Mt of incremental sul-phur supply would soon be available for

export to international markets, notably from Abu Dhabi. Green Mar-kets (United States) point-ed to a growing global phosphate market that will remain adequately supplied in future, with new capacity in Saudi

Arabia and Morocco. Nexant Ltd (United Kingdom) reported that there would be ample urea supply in the near future, with new sources emerging in Africa and the Middle East while strong potential growth in import demand was seen in Asia Pacific. JSC Be-laruskali (Belarus) highlighted its major expansion projects: increasing its potash production capacity by up to 3 Mt by the next decade, and entering the NPK com-

pound markets with plans to construct up to four units, each with a capacity of 240 Kt.Convergence of fertilizer distribution modes was seen in China. A recent study by the China Agricultural Univer-sity shows a shift in the Chinese market-ing system from a traditional producer-town level, retailer-small farmer model to a diversity of models linking fertilizer producers to farmer cooperatives, along with the expansion of wholesale bulk blending facilities across China.Convergence of interest between ser-vice providers and suppliers was dem-onstrated by Euroports (Belgium), with its extensive expertise in managing all logistical aspects of handling bulk com-modities using a one-window concept at its terminals. Rabobank International (The Nether-lands) emphasized current economic opportunities and a convergence of interest between junior potash mining projects and large-scale importing enti-ties for securing supply, with a dual ob-jective of reducing reliance on imports and gaining possible additional lever-age in contract negotiation.

Reality checks NPK Fertilizer Advisory Services (United States) described the reality of shale gas development in the United States and the likelihood of very marginal returns on investment for most of the 25-30 pos-sible nitrogen projects announced across North America. With only a handful of projects at most likely to be complet-ed in the near term, the United States would reduce its import reliance on am-monia, urea and UAN while remaining a net importer of ammonia and urea. The United States would not become a net nitrogen exporter. The ERCOSPLAN Group of Companies (Germany) provided a reality check on the perceived advantages of potash so-lution mining compared with conven-tional underground mining. Solution mining could have inherent advantages

4 fertilizers & agriculture

cont’d on page 5

Convergences and reality checksby Michel Prud'homme, IFA

2013 ProducTIon And InTernATIonAl TrAde conference, KIev, uKrAIne

According to the Mi-nistry of Agrarian Policy and Food of Ukraine, fertilizer demand is projected to nearly double over the next ten years to reach 3 Mt nutrients in 2022.

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Page 5: Fertilizers & Agriculture, November 2013

November 2013 5

On the occasion of IFA’s 39th Enlarged Council Meeting in Paris on 4-5 December, IFA is pleased to announce

that the commemorative lecture for the 100th anniversary of the Haber-Bosch process will be presented by Thomas Hager, an award-winning popular science and narrative non-fiction writer. His bestselling book The Alchemy of Air received ex-cellent reviews and opened the world of science to a broad range of readers − no small feat for a book about nitrogen.Nitrogen is an inert gas that makes up 80 percent of the Earth’s atmosphere. We inhale and exhale nitrogen without assimilating any of it. However, it is essential for nutrition. Nitrogen is the fourth most common element in our bodies and is the building block for proteins and nucleic acids. The nitrogen fixation process developed by the German scientists Fritz Haber (1868-1934) and Carl Bosch (1874-1940), each of whom received a Nobel Prize for Chemistry as a result, was a turning point in modern history. The ammonia, ammonium nitrate and urea manufactured by this method are the key ingredients of the fertilizers used today to grow the crops that sustain the lives of billions. Inside the human body every protein molecule, cell and stitch of DNA contains atoms that are the product of the Haber-Bosch process. In terms of direct societal impact, therefore, this can be considered the most important chemical discovery ever made.Nitrogen fixation is an energy-intensive process that tears apart the two nitrogen atoms tightly joined by triple covalent bonds and forges them into new molecules. These molecules contain atoms of other elements such as oxygen, carbon and hy-drogen, and can be incorporated into our bodies. The synthetic nitrogen fertilizer produced using this process is essential to grow crops that feed both animals and humans. The Alchemy of Air captures the exhilaration of the period in which the much an-ticipated discovery of nitrogen fixation was made, relates the discovery to historical events (particularly the two world wars), and describes the fate of the two main characters. Haber and Bosch were geniuses who, despite their monumental discov-ery, ended up disillusioned and disgraced. Having achieved greatness, they were sub-jected to severe public and peer criticism for their roles in the German war effort. For example, the nuclear physicist Ernest Rutherford refused to shake Haber’s hand when Haber (who had been involved in developing poison gas) went to Cambridge to work in 1933. Bosch, who had helped to keep Germany armed during the First World War, fell out of the good graces of the Nazi leadership because he criticized its policies.On the 100th anniversary of the Haber-Bosch process, the fertilizer industry (as well as farmers, scientists, corporate lead-ers and consumers) will be reflecting on the tremendous benefits of this discovery. We need to build on the work of these scientists and focus our efforts on further expanding research and development in the industry to help achieve food security.

Commemorating the 100th anniversary of the Haber-Bosch process' industrial application

The moST ImPorTAnT chemIcAl dIScovery ever mAde

Thomas Hager holds master’s de-grees in medical microbiology and immunology from the Oregon Health Sciences University and in journalism from the University of Oregon. The Al-chemy of Air, published in 2008, was a finalist for the National Academies Communication Award. It was listed as one of the “Best Books of The Year” by Kirkus Reviews and was a Borders “Original Voices” selection.www.thomashager.net

for deeper deposits and for ore body with wide and low-grade potassium content. However, conventional mining benefits from lower operational costs and greater availability of expertise worldwide. Another reality check concerned “hand-shake” contracts between suppliers and buyers, which could ultimately lead to litigation where these contracts are in-adequately documented. Proactively, the Agricultural Retailers Association (United States) has recently developed a supplier-buyer standard fertilizer con-tract that is attracting interest beyond its membership in North America. In periods of market tensions and volatil-ity, such a practice is seen as potentially being adopted more widely internation-ally.

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More information

PIT Kiev conferencehttp://ifa-kiev2013.org/Home.aspx

Production and trade statistics cov-ering nitrogen, phosphate, potash and sulphur products from 2002 to 2011www.fertilizer.org/ifa/HomePage/STATISTICS

Fertilizer market outlook summary reportswww.fertilizer.org/ifa/HomePage/FERTILIZERS-THE-INDUSTRY/Market-outlooks.html

Latest statistical reportswww.fertilizer.org/ifa/HomePage-Member/PIT-COMMITTEE/Statistics/Online-statistical-reports

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OCP Foundation, whose head-quarters are in Rabat, Morocco,

is committed to implementing projects that are socially, economically and envi-ronmentally sustainable in Morocco and other countries. In 2010, in line with its South-South cooperation goals, OCP Foundation launched its first Indian pilot project to support resource-poor farmers in their struggle against food insecurity in rural areas. This four-year project involves 3000 farmers in three districts of the State of Karnataka in southwest India. It is be-ing implemented by the Indian Society of Agribusiness Professionals (ISAP) in collaboration with a Moroccan technical partner, the National Institute for Agri-cultural Research (INRA). The project is aimed primarily at building farmers’ capacity to use the best cropping prac-tices for sustainable yield improvement, thereby improving their livelihood. Farmers in Karnataka are being trained in various components of production technology, including soil health testing, use of better seeds, balanced fertilizer use, Integrated Pest Management (IPM) and Integrated Nutrient Management (INM), together with post-harvest man-agement and market linkages (Figure1).

Salient features include: selection of va-rieties according to agro-climatic condi-tions; maintenance of nurseries for seed production; appropriate crop spacing and intercropping; agri-infrastructure systems such as fertigation, pulse mills and water harvesting structures; and use of low-cost farm mechanisation centres.The success of this project (Table 1) has opened the way for another Indian-Mo-roccan initiative – launched in 2012 – to boost production of food legumes and improved variety seeds through dissemi-nation and adoption of improved tech-nologies and good agricultural practices. The purpose of the new five-year initia-tive is to increase food security and nutri-tion, soil health, income growth, employ-ment opportunities and support for farmers’ organizations and their empowerment using an on-farm participatory approach. The Indian-Moroccan Food Legumes Intiative will target 15,000 In-dian farmers across seven states: Tamil Nadu, Odisha, Tripura, Madhya Pradesh, West Bengal, Andhra Pradesh and Karnataka. In Morocco 10,000 farmers in five regions (Sais-Taounate, Zem-mour-Zaers, Chaouia-Ouardigha,

OCP Foundation’s Karnataka project in India leads to another Indian-Moroccan initiativeby Hassina Moukhariq

Figure 1. Approach used in the Karnataka project

Abda-Doukkala and Tadla-Azilal) will be involved in the project.The interna-tional consortium of partners imple-menting this initiative is made up of OCP Foundation, M.S. Swaminathan Research Foundation, two Moroccan research institutes (INRA and IAV Has-san II) and two international CGIAR centres: ICARDA (International Center for Agricultural Research in the Dry Ar-eas) and ICRISAT (International Crops Research Institute for the Semi-Arid Tropics).

ContactOCP Foundation [email protected]

2009 2011 Impact

Average area under red gram (one of India’s most important legume crops)

3.25 acres 4.2 acres

Average productivity 300 kg/acre 670 kg/

acre

Annual average income from farming

Indian rupee (INR) 30,589.

INR 55,391.

Additional assets acquired by farms

16% 78.6%

Farmers with storage facilities for produce

19% 54.8%

Farmers producing vermi-compost

4% 28.8%

Farmers using liquid fertil-izer/micronutrients

15.5% 97.8%

Farmers using soil health card

3% 100%

Money contributed to farmers’ groups/Farmer Producer Organizations (FPOs)

0 80.2%

Farmers taking out short-term private loans

88.5% 46%

Farmers with insurance coverage

8% 60.2%

Farmers with Kisan credit 21.5% 50%

Farmers whose milk production has increased

4.5% 19.8%

Farmers who feel their standard of living has improved

4.5% 98%

Table 1. Some results of the Karnataka project 2009-2011

farmer outreachThis article is the first in the series of “innovative ideas on effective last-mile delivery” undertaken by IFA members.

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November 2013 7

Research conducted by the Inter-national Plant Nutrition Institute

(IPNI) continues to show a great need for potassium (K) fertilizers in both ma-ture and emerging markets. In North America the trend in K balance is clear. Potassium fertilizer consump-tion peaked at around 5.5 million metric tonnes (Mt) in the early 1980s and has slowly trended downward to its cur-rent level of less than 4.5 Mt. But while K consumption has declined, average maize yields in the United States have increased from 6.3 t/ha in 1980 to about 10 t/ha today. The 60 percent increase in maize yields since 1980 equates to an in-crease of nearly 60 percent in K removal from the soil in harvested crop. With no increase in K input, the partial bal-ance (input minus removal) has clearly declined.Potassium balances for the 12 US Corn Belt states in 2010 showed that crop removal of K2O exceeded input from fertilizer and manure by about 1.1 Mt, equivalent to a decline of 13 kg K2O for every hectare of cropland across the en-tire region. Consistent with the negative K balances, there has also been a decline in soil test data. Several Corn Belt states have both negative K balances and a

high percentage of soils testing below the critical levels.In China, many people believe that soil K levels have reached an optimum. Data from 50,000 soil samples collected from IPNI projects over the past 22 years show that soil K levels are trending upward on average. If soil samples from cereal crops do not include samples from cash crops, however, there has been little change. In other words, the average increase in soil test level is coming from fruits, veg-etables, and oilseed crops. Farmers pay more attention to cash crops than to cereals. This has been verified recently with K response in farm fields across China.

The world’s need for potassium fertilizers remains strongby Terry L. Roberts, Paul E. Fixen, and Adrian M. Johnston

Potassium deficiency in corn, Midwest, US

Percent of samples testing below critical levels for K for major crops in 2010 (Source: IPNI, 2010. Soil Test Levels in North America)

In 2010-12 IPNI conducted 386 on-farm maize trials with their cooperators in seven provinces across China. They found that the average response to K fertiliza-tion ranged from 556 to kg/ha. During the same period 302 on-farm trials were conducted with wheat in four provinc-es. The average response to applied K in these wheat trials ranged from 557 to 847 kg/ha. It is therefore clear from on-farm data that cereal crops in China respond strongly to K fertilization.The soils of the Southern Cone coun-tries in Latin America have long been considered to have high K levels with no need for K fertilization, but that view has been changing in the case of Uruguay. Potassium deficiencies were detected in several areas of that coun-try, and field trials were initiated in 2004-06 with impressive results. For ex-ample, unfertilized soils in a maize trial averaged about 300 kg/ha and did not significantly improve when fertilized with nitrogen. Adding adequate levels of K fertilizer produced yields of 4000+ kg/ha. Soybeans have also shown a strong response to K fertilization.

Many other examples of a positive re-sponse to K fertilization can also be giv-en, as the right levels of potassium are vital to global food security.

ContactTerry L. Roberts, President [email protected]

Potassium deficiency in soybean, Uruguay

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Shenggen Fan, IFPRI Director General, comments on “The Report of the High-Level Panel of Eminent Persons on the Post-2015 Development Agenda.”The post-2015 agenda currently being discussed is a principal outcome of the Rio+20 Conference and represents a framework for the upcoming Sustainable Development Goals (SDGs). The UN High-Level Panel on the Post-2015 Agenda recently released a report, which provides potential new goals and targets.Unlike the Millennium Development Goals, the post-2015 de-velopment agenda in the report gives greater attention to food and nutrition security while pursuing sustainable environmen-tal goals, but much is left to be done before we arrive at a new development framework.The food and nutrition security goal must cover all important dimensions of hunger and malnutrition. For example, the mea-surement of hunger should go beyond access to adequate calories and be redefined to include dietary quality and nutri-tion. Today, more than 2 billion people worldwide suffer from deficiencies in essential micronutrients such as iron, vitamin A, and zinc. The prevalence of obesity, which is rising in emerging countries and among children, is another di-mension that deserves more attention.As I proposed during the Post-2015 Global The-matic Consultation on Hunger, Food Security and Nutrition, zero hunger and malnutrition can be achieved by 2025, instead of the 2030 target date proposed by the High-Level Pan-el—see my previous blog post. I am pleased that this time frame is already being adopted by leaders in Africa. Many emerging and de-veloping countries like Brazil, China, Ghana, and Vietnam have made tremendous progress over the past 20 years. If all developing coun-tries follow a similar trend, ending hunger and malnutrition by 2025 can be achieved.The role of agriculture, particularly smallhold-er agriculture, should also be emphasized in achieving zero targets of these multi-dimen-sions of malnutrition. The development of more nutritious crop varieties through biofor-tification and reduction of post-harvest losses and waste are essential to promote nutritious foods along the entire agricultural supply chain.Sustainable and healthy diets will also be criti-cal to achieving these targets. Subsidies on nutrient-rich and taxes on unhealthy foods can be used to promote healthier diets. These fis-cal policy measures should be complemented by public awareness campaigns to raise the de-mand for and acceptability of nutritious foods

Sustainable Development Goals (SDGs) should target ending hunger sustainably by 2025by Shenggen Fan

while discouraging unhealthy consumption. Targeted social protection programs linked to nutrition and long-term human capital improvements will help the poorest of the poor access nutritious foods during crises and move out of poverty traps in the long run.Good quality, timely, and consistent data is essential to moni-tor progress towards the SDGs when fully developed. Anthro-pometric measurements in developing countries, which cap-ture important dimensions of food security, should be scaled up, for example.The United Nations General Assembly will hold numerous events related to the SDGs later this year. The debates and deliberations during these events must be people-focused. The goals must be bold and pragmatic with clear targets and must be facilitated by a global and inclusive partnership, which will put us on a pathway to end hunger and malnutrition. Let’s all work together “to end hunger sustainably by 2025.”

This is a reprint: http://dgcorner.ifpri.info/2013/07/03/sdgs-should-target-ending-hunger-sustainably-by-2025/

To view the position paper developped by IFA on post-2015: www.fertilizer.org/ifa/HomePage/SUSTAINABILITY/Post-2015

The fer� lizer industry contributes to mee� ng the goals of the Zero Hunger Challenge

stunted children

less than two years

access to adequate

food all year round

food systems

are sustainable

increase in smallholder produc vity and income

loss or

waste of food

The fer lizer industry contributes to be� er nutri on for all, improving the nutrient quality of food through micronutrient fer liza on. This benefi ts children under the age of two, as well as women from the beginning of pregnancy.1

The products supplied by the fer lizer industry help increase food produc on and provide nutrients essen al for human health.

The fer lizer industry promotes agricultural best prac ces and nutrient use effi ciency. Using extension services, it helps provide products and knowledge to farmers around the world to reduce their environmental impact. Through effi cient use of fer lizers and the mi ga on of nutrient losses, the carbon footprint of agriculture is reduced and the quality of water, oceans, soil and air is protected.

The fer lizer industry puts the needs of smallholder farmers at the centre of its ac vi es. Through public-private partnerships, and extension and rural advisory services, the industry helps smallholder farmers increase their produc vity and incomes.

The fer lizer industry develops products and systems to extend the life cycle of food, par cularly through the use of calcium-based and boron-supplemented fer lizers to improve the post-harvest integrity and nutri onal quality of most crops.

1 Fer� lizing Crops to Improve Human Health: A Scien� fi c Review, IFA,IPNI, 2012.

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November 2013 9

This updated assessment relates to the 2010-2010/11 campaign. Since

the previous assessment, which covered the 2007-2007/08 campaign, four coun-tries have been added to the analysis (Be-larus, Japan, Ukraine and Uzbekistan). The crop breakdown has also been ex-panded, with the addition of the roots and tubers category and the splitting of fruits and vegetables into two distinct groups. In total, the update analyses 27 countries (the EU-27 is treated as a single country) and 13 crop groups. Cov-ering 94 percent of world fertilizer con-sumption, it provides a good overview of the contribution of different crops to world fertilizer demand, keeping in mind that data published in the report are estimates based on the best infor-mation available at IFA.Total world fertilizer consumption reached 172.2 million metric tonnes (Mt) of nutrients in 2010-2010/111, of which 104.3 Mt N, 40.5 Mt P2O5 and 27.4 Mt K2O. 87.5 Mt is estimated to have been applied to cereals, i.e. slightly over half (50.8 percent) of world fertilizer uses. Fertilizer applications to the three main cereals were of similar magnitude: 16.1 percent for maize, the main fertilizer-

consuming crop, fol-lowed by wheat (15.8 percent) and rice (14.3 percent). Fertilizer use on the other cereals represented 4.6 per-cent of the world total. Global applications to oil crops are estimat-ed at 19.0 Mt, or 11.0 percent of world con-sumption, with market shares of 3.9 percent for soybean, 2.0 per-cent for oil palm and 5.2 percent for the oth-er oilseeds. Fibre crops and sugar crops each accounted for slightly over 4 percent of world applications, and roots and tubers for 3.0 percent. Fruits and vegetables together represented slight-ly over 15 percent of the world market, with fruits consuming 5.8 percent of the total and vegetables 9.3 percent. Other crops, including grassland and a wide range of miscellaneous crops, received the remaining 11.7 percent (Figure 1).These crop groups have different nutri-

ent requirements, but all of them are grown more or less intensively. Certain groups therefore have a much higher impact on the consumption of some nutrients than on that of others. The contribution of each of the 13 groups to global N, P and K fertilizer consump-tion is illustrated in Figure 2.

For more information, download the full report at www.fertilizer.org/ifa/HomeP-age/LIBRARY/Publication-database.html/Assessment-of-Fertilizer-Use-by-Crop-at-the-Global-Level-2010-2010-11.html

IFA releases an updated assessment of fertilizer use by crop at the global levelby Patrick Heffer, IFA

Figure 1: Contribution of different crops to global fertilizer consumption

Other crops

Vegetables

Fruits

Roots/Tubers

Sugar crops

Fibre crops

Other oilseedsOil palm

SoybeanOther cereals

Maize

Rice

Wheat

11.7

9.3

5.8

3.0

4.2

4.15.2

2 3.9 4.6

16.1

14.3

15.8

Figure 2: World N, P and K Fertilizer Use by Crop

2520151050 30Million tonnes nutrients

Vegetables

Fruits

Roots/Tubers

Sugar crops

Fibre crops

Other oilseeds

Oil palm

Soybean

Other cereals

Maize

Rice

Other crops

Wheat

Nitrogen PotashPhosphate

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10 fertilizers & agriculture

IFA news IFA/CPCIF/CBC China seminar on sustainable fertilizer managementby Patrick Heffer, IFA

A seminar on sustainable fertilizer man-agement in China was held on 16-17 September in Beijing, co-organized by IFA, the China Petroleum and Chemical Industry Federation (CPCIF) and China BlueChemical Ltd (CBC). It was attended by some 180 delegates.The seminar discussions took stock of the tremendous improvements in Chi-na’s food security brought about in part by fertilizers. They also addressed the environmental impacts that improper fertilizer application has had in cer-tain regions of China. The discussions brought together renowned nutrient management experts with high-level government officials and fertilizer in-dustry representatives.In his opening remarks Mr. Su Bo, Vice Minister of Industry and Information Technology, emphasized that “China must reduce the environmental foot-print of nitrogen and phosphorus use and strengthen international coopera-tion in this field.” Enhancing nutrient use efficiency without undermining food security, addressing secondary and micronutrient deficiencies, improving transfer of knowledge to farmers, and increasing productivity per unit of land, water, energy and labour were common messages shared by all the stakeholders present at the seminar. It was noted with satisfaction that ni-trogen use efficiency has significantly improved in recent years in China, re-versing the long-term declining trend. It was also recommended to encourage further progress. The key messages aris-

ing from the seminar are summarized on the IFA website at www.fertilizer.org/ifa/HomePage/LIBRARY/Conference-pa-pers/Agriculture-Conferences/2013-IFA-China-Seminar“IFA places great importance on im-proving nutrient stewardship around the world with a view towards greater environmental, economic and social sustainability,” commented Charlotte Hebebrand, Director General of IFA, “and we are very pleased to have had such an excellent gathering of experts to analyze the situation in China, which is both the world’s leading fertilizer pro-ducer and consumer.” Mr. Yang Yexin, CEO and President of CBC and IFA Vice President for China, said in his concluding remarks that “the Chinese fertilizer industry will contrib-ute to scientific fertilization in order to support the country’s transition to mod-ern agriculture.”During the seminar, a memorandum of understanding (MoU) was signed be-tween IFA and the Chinese fertilizer in-dustry associations. This MoU is the cul-mination of a long-standing relationship between the Chinese associations and IFA. Michel Prud’homme, who leads the China Initiative at the IFA Secretariat, noted that “For the past decade, there have been regular exchanges of infor-mation, several meetings and frequent participation in our conferences; we be-lieve it is the right time to formally ac-knowledge these exchanges and to bet-ter structure our future cooperation.”

IFA United Nation ToursA delegation of 11 IFA members attend-ed the Global Compact Leaders’ Sum-mit from 18 to 20 September, and had a series of side-meetings with key United Nations officials. The Global Compact sessions and side-events, together with these bilateral meetings proved to be a highly valuable tool to: • demonstrate IFA’s leadership on food

security issues in the context of Post-2015 and the Sustainable Develop-ment Goals;

• to benchmark our industry vis-à-visother business sectors;

• andtolearnaboutkeyissuesrelatingto sustainability in a business context and corporate social responsibility.

A second UN Tour is organized by IFA from 25 to 27 November.For more information: www.fertilizer.org/ifa/HomePage/SUSTAINABILITY/IFA-UN-Tour-and-Leaders-Summit

IFA side-event " Fertilizing Crops to Improve Human Health” at the Committee on World Food Security

IFA organized a successful side-event during the Committee on World Food Security (CFS) on 8 October in Rome, Italy. The objective of the side-event was to raise awareness of policymakers on the human health benefits associated with agronomic biofortification and other rel-evant crop nutrition practices; as well as demonstrate how effective partnerships are already taking place worldwide and breaking ground in the eradication of nutrient deficiencies. To view the presentations and pictures: www.fertilizer.org/ifa/HomePage/SUS-TAINABILITY/Nutrition/2013-Side-Event-hosted-at-CFS-FAO

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IFA events

More information on upcoming events:To access general and registration information about IFA events click on “Events” at: www.fertilizer.org/ifa/Home-Page/EVENT

*Restricted to IFA member companies

November 2013 11

IFA Crossroads Asia-Pacific Conference6 – 8 November 2013Bali, IndonesiaSee article above

The situation and outlook for the fertilizer industry are examined in this meeting, during which members of the IFA Council and chief executives of its member companies convene to adopt the following year’s budget.For this year's meeting a commemorative lecture for the100th anniversary of the Haber-Bosch process is present-ed by Thomas Hager. In addition to the popular market outlook session, a roundtable on stewardship, a topic of great importance for the industry, is held.

39th IFA EnlargedCouncil Meeting

IFA Enlarged Council Meeting*

4 – 5 December 2013Paris, France

"Bridging Thoughts" - Joint Communications / Agriculture / Innovation & Research Meeting*28 – 30 January 2014 Paris, FranceFor the first time ever, the IFA

Communicators Network, the IFA Agriculture Committee and the IFA Working Group on Innovation & Research will meet simultaneously in Paris in January 2014. Combining these meetings is expected to enhance participation and to create synergies among the three IFA bodies.

IFA Technical Symposium*1 – 3 April 2014 Amsterdam, NetherlandsTechnology leaders from around

the world will meet to discuss the topic of innovation in fertilizers. Best practices will be shared on new production processes, more efficient utilization, etc. Side events will in-clude an open meeting of IFA’s Working Group on NORM in phosphogypsum.

The 2013 IFA Crossroads Asia-Pacific Conference will be held from 6 to 8 November in Bali, In-donesia. The format of the conference has been slightly changed compared to previous years. The traditional golf tournament on the first day of the conference has been replaced by a panel session on fertilizer subsidies. It will bring to-gether panelists from the main Asian countries that implement fertilizer subsidy schemes. Fol-lowing this interactive session, delegates should have a better understanding of the diversity of the subsidy regimes in place in the region. They will also be given the opportunity to discuss ways to improve the performance of existing schemes.At the Opening Session, Dr. Abdul Rashid will officially receive the 2013 IFA Norman Borlaug Award. He will make a presentation on Paki-stan’s successful experience with micronutrients R&D for bal-anced crop nutrition.The plenary sessions on 7 and 8 November will address a wide range of issues including policy developments, and the out-

look for agriculture and for fertilizer demand and supply, in the Asia-Pacific region.The theme of this year’s agronomic workshop on 7 November is one of IFA’s priorities for the years to come: nutrient stewardship. Participants from different parts of the region will be invited to present successful initia-tives implemented in their countries.The IFA Crossroads Asia-Pacific Confer-ence is a unique venue for networking with partners in the largest fertilizer consuming and producing region. This event is regularly attended by more than 300 participants. It is open to both members and non-members.

Information about the conference, including registration, hotel accommodation, the programme and the list of partici-pants, is regularly updated on the IFA website. We invite you to visit it often.

New format for the IFA Crossroads Asia-Pacific conference

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Printed with vegetable-based ink by Point44 on paper from sustainably managed forests.

International Fertilizer Industry Association28, rue Marbeuf, 75008 Paris, FranceTel: +33 1 53 93 05 00 Fax: +33 1 53 93 05 45/[email protected] www.fertilizer.org @FertilizerNews!

Fertilizers & Agriculture is a quarterly newsletter published by IFA covering issues in relation to fertilizers and sustainable agriculture.

Mailing listSubscription to Fertilizers & Agriculture is free of charge. To receive a hard copy, send full address details to be added to the mailing list. Additional copies may be supplied to organizations to circulate on behalf of IFA. To consult current and past issues of Fertilizers & Agriculture: www.fertilizer.org/ifa/HomePage/LIBRARY/Our-selection2/Fertilizers-Agriculture

ContributionsWe invite your contributions of letters, documents, articles, photographs, etc.

Director General of IFA: Charlotte HebebrandEditor-in-Chief: Claudine Aholou

Material in F&A may be reproduced only after prior consent by IFA.

Reference to individuals, publications, research, products, companies or organizations does not indicate endorsement by IFA.

For information on IFA’s activities:www.fertilizer.org

© International Fertilizer Industry Association 2013

Infographics

IFA and its partners (IPNI and IZA) produced a series of infographics demonstrat-ing the significant role that fertilizers can have as part of worldwide strategies to fight malnutrition through the role of micronutrient fertilization. All the Infographics are available in French, Spanish and soon in Arabic.

Fertilizing Crops to improve Human Health: A Scientific Review

In 2008, IFA and IPNI commissioned an extensive scientific literature review of the state of knowledge in the com-plex domain of fertilizer use and human health. Leading scientists were identified to prepare the chapters of the publication “Fertilizing Crops to Improve Human Health”. All the chapters have been peer-reviewed by academic scientists in order to ensure the publication presents a thor-ough and balanced analysis. It aims at disseminating some of the most recent research around the role of macro and micronutrients fertilization as part of strategies to fight malnutrition and improve human health.

To download the infographics, the summaries and the book: www.fertilizer.org/ifa/HomePage/SUSTAINABILITY/Nutrition

Executive summary The 8-page executive summary is avail-

able in English, Spanish, French, Russian, and Chinese and soon also in Arabic.

12 fertilizers & agriculture

Page 13: Fertilizers & Agriculture, November 2013

INVITATION FOR APPLICATION

IFA recognize individuals whose contribution to effective last-mile delivery has been outstanding as they play a crucial role in transferring knowledge from researchers to the farmers.

For 2014, IFA is inviting individuals from developing countries and countries with economies in transition involved in crop nutrition knowledge transfer whose work resulted in long-term impacts on the adoption of nutrient management/stewardship practices by farmers to apply for the award. His/her work must show significant improvements in productivity, profitability, fertilizer use efficiency, environmental sustainability, food quality and human health, and rural life in general.

The recipient of the IFA Norman Borlaug Award will receive € 10,000 (ten thousand Euros) and will be invited as a guest to the IFA Annual Conference to be held in May 2014 in Sydney, Australia.

IFA Norman Borlaug Award2014

for excellence in crop nutrition knowledge transfer

Charlotte HebebrandDirector General, IFA

Page 14: Fertilizers & Agriculture, November 2013

ELIGIBILITYThe award is offered to individuals (not to organizations or companies) for their agricultural extension work with farmers in developing countries and countries with economies in transition. Qualifying work should reflect the level of senior extension officers from member companies, public, private or civil society organizations involved in agricultural knowledge transfer.

Research work that has no obvious impact on knowledge transfer is not ta-ken into account in the evaluation of the candidates.

Individuals with international organizations or institutions are not eligible.

NOMINATION PROCEDUREApplications must be submitted in English and in electronic format (by e-mail or cd-rom). The form can be downloaded from IFA’s web site at: www.fertilizer.org/ifa/HomePage/INITIATIVES/IFA-Norman-Borlaug-Award.

Qualified individuals must be nominated by an IFA member. Applications must be submitted to an IFA member by 15 January 2014, to enable the members meet the deadline for nomination/submission to the IFA Secretariat on 31 January 2014. (If applicants need assistance to identify an appropriate IFA member, please contact: Angela Olegario, Tel: +33 1 53 93 05 32, Fax: +33 1 53 93 05 47, [email protected]).

The IFA Secretariat will only accept applications following the required for-mat. The completed application form should not exceed more than 2,500 words for the qualification statements. Applicants must provide examples of relevant documents (brochures, leaflets, papers, etc.) and photos of tools quoted in their application form. Only ten supporting documents attached to the application form will be considered. Additional documents and nomi-nation letters from other organizations, lists of publications and any other material will not be considered by the selection panel.

Entries that are incomplete, exceed the maximum number of words, and are not accompanied by a nomination letter from an IFA member in good standing will be automatically disqualified.

JUDGINGAn independent panel will select the laureate on the basis of the long-term impact and quality of his/her work, and wide adoption by farmers.

Preference is given to extension work leading to widespread adoption of nutrient management/stewardship practices resulting in significant impro-vements in productivity, profitability, fertilizer use efficiency, environmen-tal sustainability, food quality and human health, and rural life in general. Concrete evidence should demonstrate the impact of the candidate’s exten-sion work.

The award recipient will be known during the second half of March 2014.

2014 IFA Norman Borlaug Awardc/o International Fertilizer Industry Association

28, rue Marbeuf,

75008 Paris, France

Tel: +33 1 53 93 05 00

Fax: +33 1 53 93 05 47

[email protected]

www.fertilizer.org

REGIONS ELIGIBLE FOR THE 2014 IFA AWARDAfrica;

Asia (except Israel, Japan, the Republic of Korea and the Taiwan Province of China);

Eastern Europe and Central Asia;

Latin America and the Caribbean;

Oceania (except Australia and New Zealand).

More details on IFA’s classification of countries, can be found at: www.ferti lizer.org/ifa/Home-Page/INITIATIVES/IFA-Norman-Borlaug-Award

Cover photos © Rikin Ghandi (left), iStockphoto (right)