opportunities for the chemical industry in indian agriculture
TRANSCRIPT
Opportunities For The Chemical Industry In Indian AgricultureRaman Ramachandran, Ph.DHead South Asia, Chairman and Managing Director, BASF India Limited
March 17, 2016
Challenge of the 21st century
… The beginning of the 21st century is marked not just by multimedia
technology and data highways, but also by the elementary question of how we
can feed nine billion people …
Lester R. BrownFounder of Worldwatch InstitutePresident Earth Policy Institute
By 2050 global food production has to double, to feed 9 billion people
The India challenge: Demand for quality and quantity of food
UN 2015 estimates; FAO 2015 estimates; World Bank 2015 report
Shrinking agricultural land due to urbanization
Effects of climate change
Changing dietary
needs driven by higher household
income
Gap in demand and
supply. Wastage a major factor
Nutritional challenge:
194.6 million malnourished
people
World's most populous nation by
2022
Yield/ha in many crops lower than the world
average and stagnant
Immense pressure on Indian agri sector
What is the solution to these growing challenges?Technology and Innovation
Without agricultural chemicals < > With agricultural chemicals(decitons raw grain yield / ha)
No herbicideNo insecticideNo fungicideNo fertilizer
38
With herbicideWith insecticideWith fungicide No fertilizer
69
No herbicideWith insecticideWith fungicideWith fertilizer
82
With herbicideWith insecticideNo fungicideWith fertilizer
92
With herbicideWith insecticideWith fungicideWith fertilizer
99
Fertilization: 120 kg of N/ha as NPK 20+8+8
Demo-test Agricultural Center Limburgerhof, photo 20.07.2010
Benefits of fertilization and crop protection technology
Chemistry as an enabler: From fertilizers to crop protection and beyond
Ammonia synthesis Fertilizers
Seed treatment
Nutrient management
Water management
Crop protectionU 46 herbicide
Mulching Food processing Aerial appln. Farm equipment
What are the opportunities today for the chemical industry, to help meet the country’s food challenge?
Growth and opportunities in crop protection
Agropages, FICCI & Tata Strategic Management Group reports, 2015
India is a key player in generic space; however, greater focus and invesment in R&D is needed
The Indian agchem industry is estimated to reach € 6.7 billion by FY19 from € 3.82 billion in FY14, with an expected CAGR of 12 percent
Export demand is expected to grow at 5-16% p.a and domestic demand is expected to grow at 5-6% p.a
~ € 8.1 billion worth of patents for more than 50 agrochemical products are expected to be taken off the patent list by 2020
R&D process: A lengthy effort
140,000
Costs per active
ingredient
225million euros
Years 1 2 3 4 5 6 7 8 9 10
Active Ingredient
Chemistry
Formulation
Research
Biology
Development
Degradation& residues
Toxicology
Ecotoxicology
Small-plot trials
Registration
Kilo lab scale
Process development
Synthesis
Production
Process development
Development
Field trials (worldwide)
Plant, animal, soil, water, air
Algae, daphnia, fish, birds,microorganisms, bees, beneficials
Acute and chronic toxicity, carcinogenicity, mutagenicity, teratogenicity, reproduction
Screeninglaboratory/greenhouse
140,000 molecules tested per year, resulting in 1 productIndustrieverband Agrar, 2008
Lessons from China on investments in technology and innovation
Foreign Policy Journal, Choices magazine
3 fold increase in agri productivity from 1961 till date
China’s guiding annual policy blueprint, the “No. 1 Central Document,” put agricultural innovation at the top of the nation’s wish list, for the 13th year, straight
The President has advocated overseas agricultural investment as a national food security and diplomatic strategy
Focus on R&D and M&A activities with industry consolidation
Opportunity in fertilizer technology and biologicals India fertilizer import in FY 2015-16: 83.09
Mio T
Industry is expected to grow to 69.2 Mio T in FY 2016-17
The annual consumption of fertilizers, in nutrient terms (N, P & K ), has increased from 0.07 Mio MT in 1951‐52 to more than 28 Mio MT in 2010‐11
Urease inhibitors (UI), micronutrients and biofertilizers key for yield enhancement and cost saving (for the farmer)
Central Government is also promoting the production and use of bio-fertilizer through “National Project on Development and Use of Bio fertilizers”
GOI: Department of Fertilizers
Smarter fertilizer use yields environmental benefits
Agriculture Research Station:
Focusing on local and global agricultural challenges
Areas of research include herbicides, fungicides, insecticides and solutions beyond crop protection
To employ directly and indirectly 30 new employees to support research efforts, in Pune
Mulching with ecovio® :
Biodegradable mulch film
No removal and disposal at the end of the crop cycle: films will be ploughed under the soil
Reduction of the environmental impact on the soil when traditional plastic is not properly disposed of
Bio-fertilizers:
Contribution from Becker Underwood portfolio is expanding the scope of our biological solutions
Innovation campus: Investment of
approximately €50 million
25% of global R&D employees in Asia Pacific by 2020
300 scientists will collaborate in Mumbai on global and regional R&D projects
Mumbai Campus to start up in 2017
Limus UI:
Nitrogen management: Products
that improve the availability
of nitrogen to the crop and reduce nitrogen losses
BASF’s commitment to R&D and innovation in India: Some examples
Now, let’s look beyond the conventional approaches into the opportunities that lie in the food value chain
Packers /Shippers
Produce processors
Distribution centers
Foodservice distributors
Food / Bev.Producers
RetailersClub stores
Supermarkets
Foodservice providers
Growers
Grain elevators
Feed processors
Feed distributors
Animal producer
Meat /Dairy / Egg processors
Seed producers
Grain processors
Oil seed processors
Additives Suppliers / Premixers / Dist.
Distributors
FOOD DISTRIBUTIONFRUIT / VEGETABLE / STARCH / LEGUMES
Biotech traits
Germplasm
FOOD / BEVERAGEMANUFACTURING
Ag chem suppliers
Raw material/
Inerts suppliers
* According to IFG, USA / separate value chain for aquaculture
Not in scope: floriculture, palm oil / fuel
Food industry value chain*Definition of scope
Agriculture Meat, dairy, eggsGrain processing
Major opportunity areas: Our view
Cold storage Transportation & logistics Food packaging
Drip irrigation Food processing NutraceuticalsPest management
Inadequate storage infrastructure, insufficient supply chain, poor packaging and nutritional security are key areas to focus on
Crop protection (AP)
Pest control (AP)
Vitamins, carotenoids, Omega 3-s, polymers for
beverage processing, caffeine (EN)
Post-harvest coatings (AP)
ITG Packaging
Waste treatment
Superabsorbers for soil (EM)
Ecobras, Ecovio for plantation (KT)
Seed treatment (AP)
Flooring (EB)
Warehouses/Cold storage (EB) & (PM)
Crop Protection / Seed
SupplierManufacturer
Super-market
Distributor
Consumer
Food Service
Food Ingredient
supplier
Additives for agricultural mulch (EV)
Additives against soil erosion (EM)
Reactants: amines, specialties, polyalcohols Solvents: NOP, NMP, propylene carbonat (CZ)
GrowerFarmer
Pest Control (AP)
Micronutrients for fertilizer, inerts, adjuvants (EM)
Food emulsifiers, chelates (EM)
Organic Acids for feed (sales by
EN / production CZ)
Value chain food and agricultureBASF‘s current offering
Continuing our legacy of innovations in the value chain
Chemistry can successfully help meet the demand for more (+70% by 2050) and better production of food, feed and fuel and contribute to sustainability
BASF pigment Sicotan® Yellow coated special
tarpaulins = reduction in temperature by 3-4
degrees Celsius, leading to lesser
wastage
Our Polyurethane (PU) insulation
solutions for cold storage, especially for
Potato = energy savings of over 15%
Newtrition™ products and solutions =
human health and well being. e.g.
vitamin A, B2, B5, B12, D3, E, K1,
phytosterols (Vegapure®) and
omega-3 (Pronova Pure®)
Biodegradable and compostable
packaging solutions with BASF
ecoflex® = effective and efficient
preservation of fruits and vegetables
Carifend®, one of our innovations in the
public health space, can be effectually used in the grain
storage space as an insecticidal net = protection against invasion or attack
of pests
And all this through sustainable agriculture – with the help of technology
Balance Social
Economic
Ecological
19
Custody/Transport
Retailer
Off the farm production of
operating funds
Preparation Input
Cultivation HarvestingProcessing
Disposal
Investigate sustainability performance of different Soybean practices, by quantifying key environmental, social and economic performance characteristics (indicators)
Demonstrate the impacts of Samruddhi farming practice on the sustainability compared to non-Samruddhi practice Biodiversity potential - 10%
Soil health
Yield* + 22%
Ecotoxicity potential - 22%
Land use
Professional training
Water use
Costs - 16%
Profit + 31%
* kg/ha, all other factors per 1 MT
- 4%
+ 16%
- 22%
- 2%
50 on-farm interviews were carried out by TÜV India Ltd on behalf of BASF
The life cycle steps in grey are not considered, since they are equal for all alternatives
Samruddhi addresses various key sustainability drivers, if not all
AgBalance™ study on Samruddhi
In summary India will have to double its food
production by 2022
Technology and innovation will be key tools to address India’s food and nutritional needs
Chemistry and the chemical industry will play crucial roles in mitigating the challenges of agriculture
We need to focus on opportunities not just in the crop protection and fertilizer space, but look beyond, at the entire food value chain