The International Economic Forum of the AmericasMontreal, Canada

June 9-12, 2014

1

Agricultural and Fertilizer Innovation Ensuring Global Food and Nutrition

Security

Patricio Contesse G.Chief Executive Officer

SQM S.A.

Sources: IWMI, Foresight, WRI, CIA, World Bank, FAO, ILO

Agriculture

Converging challenges to global agriculture

Food security and meeting a growing demand

60%increase in total

agricultural production (latest

FAO projection)

Increase yields and cropping

intensity: 90% of the anticipated

gain

Greater (and more efficient) use of fertilizers (and other

nutrient sources)

Industry responds through heavy investments in

additional capacity

Feed 2 billion more people by 2050

Still 850 million hungry

Increasing demand for livestock products

Competing demand for feedstock for biofuels / bioenergy

“Fertilizer is the world’s most important humanitarian product”…. Andrew Youn, One Acre Fund

Fertilizers represent an essential ingredient in the drive towards world food security

Innovation in agriculture

1. Improved crop varieties

2. Manufactured fertilizers

3. Irrigation and other technologies

’Green Revolution’…agricultural innovation

Closing the ‘yield gap’ is an imperative

Adoption of existing technologies• Access to inputs• Access to knowledge

Innovations in nutrient management: 4R Nutrient Stewardship

Soil testingYield goal analysisCrop removal balanceNutrient management planningPlant tissue analysisApplicator calibrationCrop scoutingRecord keepingVariable rate technologySite-specific management

Right RateApplication timingControlled-release technologiesInhibitorsFertilizer product choice

Right Time

Application methodIncorporation of fertilizerBuffer stripsConservation tillageCover cropping

Right PlaceSoil testingN, P, K, secondary and micronutrientsEnhanced-efficiency fertilizersNutrient management plans

Right Product

Knowledge transfer to farmers

· Developing countries account for 2/3 of world consumption

· Inefficient ‘conventional’ governmental extension services

· Hundreds of million smallholder farmers are not satisfactorily advised on fertilizer management

poor use efficiency

· Develop solutions to supplement extension workers Develop common knowledge platform

to ensure consistent messages Train agri-input dealers to provide

agronomic advice

Innovation: new products with added value

Slow- and controlled release

fertilizers

Stabilized fertilizers

Fertilizers supplemented

with micronutrients

Soluble / liquid fertilizers

(fertigation, foliar sprays)

Mostly used on specialty crops Constrained by price differential

New products could alleviate the price constraint

Virtual Fertilizer Research Center (launched in 2010 by IFDC): Creating

the next generation of fertilizers

Fertilizing crops to improve human health

• Turkey Zinc-enriched fertilizers for wheat crops

• Finland Selenium-enriched fertilizers fighting cardio-vascular disease

• China Iodine-enriched fertigation

SeZn

Enriching fertilizers with micro-nutrients = macro effect

Micronutrient-enriched fertilizers (agronomic biofortification) to fight malnutrition

Bio-Fortification Process

Iodine, Zn, Se, Fe ENRICHED FERTILIZER SOLUTION

Iodine, Zn, Se, Fe UPTAKE

Iodine, Zn, Se, Fe BIOFORTIFIED FOOD

READILY BIOAVAILABLE AND ASSIMILATED Iodine, Zn, Se, Fe

Through leaves(foliar applied)

Through roots

Farmers need our collective efforts

INNOVATION: Research and develop new products and best management practices

PARTNERSHIPS: Develop new business models for emerging markets

FARMERS: Cooperate in innovative extension services – effective outreach and last-mile delivery