cfo & svp global business excellence€¦ · 05/12/2018 · pivot 59,1 8373 464 723 1187 7186...
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Water use in agriculture
– Yara’s approach
Bent Axelsen
CFO & SVP Global Business Excellence
6.2
3.3 2.7 2.7 2.2
Yara C. mandel Gresik Iffco Acron
7.7
4.2 3.0 2.9
2.3
Yara Eurochem Ostchem Uraichem Borealis
Yara’s leading global position and differentiated product portfolio
represent key sources of competitive edge Global #1 in Nitrates1
1) Including TAN and CN – Including companies’ share of JVs 2016YE
2) Compound NPK, excluding blends
3) 2016/2017 season volume
4) Ammonia trade not included in chart above
Global #1 in NPK2
0.3
1.3
Africa 4.8%
1.1
3.0
North America12.0%
0.2 2.2
Asia 7.1%
0.3
2.4
LatAm ex. Brazil7.9%
0.5
9.0
Brazil 27.9%
Industrial products & solutions Fertilizers 2017 sales figures in mill. tonnes, % = total 2017 Yara sales4
Fertilizer product portfolio3
Standard
products (Urea,
UAN, Ammonia)
34%
Differentiated
Products
(CAN, AN)
21%
Specialty
(CN,
Compound
NPK,
Fertigation)
26%
NPK blends
19%
4.7
9.2
Europe 40.4%
2
Intro and Yara strategy
3
Responsibly feed the world
and protect the planet
Our Mission A collaborative society;
a world without hunger;
a planet respected
Our Vision
Responding to global challenges is an integral part of our
business model and strategy
4
Our business is uniquely positioned to provide shared value for shareholders and society
Resources Resource Efficiency
Food Sustainable Agriculture
Environment Reduced Emissions
The challenge with water and agriculture
5
0 2000 4000 6000 8000 10000 12000 14000
Target Scenario
"Business as usual"
Today
Cubic kilometers
2050
2050
Existing
sustainable
supply of water
Global annual Water use - today and projection into 2050
“Business as usual” is not an option
Source: International Water Management Institute 6
70% of all water that is used today
is used for agriculture
7
~2% remains
in the crop
= ~100 g
Dry Matter
~900g
Water ~44 litres
are transpired
+
1 kg lettuce
Most of the water taken up by crops is lost through transpiration
Example - lettuce
+
~98%
Transpiration
8
Yara’s approach improved crop nutrition
9
Good crop nutrition enables the crop to use water more efficiently
Example Maize, Tanzania
10
0
200
400
600
800
1000
Farmer Practice Yara Treatment
Waterfootprint in m3 per ton of corn
Good crop nutrition enables the crop to use water more efficiently
Example Coffee, Vietnam
11
Waterfootprint in m3 per ton of green beans
0
100
200
300
400
500
600
700
Farmer Practice Yara Treatment
Yara fertigation solutions: profitable crops, satisfied growers.
13
Yara fertigation
solutions
Knowledge Portfolio
Tools &
Services
Yara offers a wide range of fertigation
products for growers – both for
greenhouses and open fields.
More than 100 years of experience
since first fertigation product
development: calcium nitrate; now
expanded to support grower’s needs.
Trainings Demos Literature Experts
Comprehensive
set of tools and
services to offer
Software Telemetry Crop Analysis YaraTera EASYFEED Sensors
Yara solutions helps to increase the water efficiency via better
usage of resources in open field irrigation systems
14
Flooding
30 - 40% Furrow
55 - 70%
Pivots / Sprinkler
70 - 85%
Drip
90 - 95%
Water
efficiency:
Increased accuracy of irrigation application and reduced water per ton of crop
Moving to fertigation creates value both for the farmer and for the
environment: Example Potatoes
Ref: Collaborative trial partners: Yara, Netafim, Regaber, Pepsico
Potato price = €142/t 15
Treatment Yield
(t/ha) Yield
(€/ha)
Fertilizer cost
(€/ha) Water cost
(€/ha) Total costs
(€/ha) Profit
(€/ha)
Pivot 59,1 8373 464 723 1187 7186
Fertigation (drip) 71,1 10073 732 595 1327 8746
Differences 12 1700 268 -128 140 1560
Fertigation benefits
31% less water use / ton crop
36% less CO2 eq. / ton crop
10.5% more profit (after drip investment costs)
The significant growth potential of fertigation products & strong profitability
above alternatives makes this segment highly interesting for Yara
16
Th
e s
olu
tion
Growth potential of fertigation products
2022 2018 2023 2015
0,7
2016 2017 2020 2019 2021 2024 2025 2026 2027
1,0
1,4
+6%
Fertigation products are above the competition
YaraRega Other Fertigation YaraTera/Calcinit
Water soluble NPKs vs field grade
NPKs
compared to commodity values
Yara Tera Calcinit (soluable calcium
nitrate) and nitrate
premium above urea
100
419
2018
Nitrates Calcinit
100
129
162
2018
Fully-soluable NPK (YaraTera)
NPK (YaraMila and YaraBasa)
Semi-soluble NPK (YaraRega)
6% CAGR from 2015 to 2017
Index: NPK=100% Index: Nitrates=100%
17
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