fertilizer industry’s views · fertilizer industry’s views: enhancing agricultural productivity...

Fertilizer Industry’s Views: Enhancing AgriculturalProductivity Sustainably

Luc M. Maene, Director General, IFA

2010 Fluid Fertilizer Foundation Forum, Scottsdale, AZ, USA, 14-16 February 2010

Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably

The challenge… to increase productivityfrom a limited area

Arable area

m2 per person

World population

in billion

| Source: Lammel (2007),

citing FAO: Towards 2015/30 (2002)

5.5

6

6.5

7

7.5

8

8.5

9

9.5

2000

2200

2400

2600

2800

3000

1996 2015 2030


World cereal production and utilization

| Source: FAO

UtilizationProduction

1840 Mt

2190 Mt

1834 Mt

1890 Mt

2194 Mt

2065 Mt

1996 1998 2000 2002 2004 2006 2009

28% 25% 23%

Stocks-to-

use ratio


World cereal production by region, 2009

Million tonnes

| Source: FAO

C. & S. America

157 Mt

Africa

156 Mt Oceania

36 Mt

N. America 461

Europe

456

970

Asia


Total fertilizer use by cropat the global level in 2006/07 (%)

Other crops, 13

Oil palm, 2

Sugar crops, 4

Cotton, 4

Soybean, 4

Other OS, 5

Other CG, 5

Fruits & veg.

Maize

Wheat

Rice

17

16

15

15

| Source: IFA Agriculture Committee


Global fertilizer consumption


2007/08 2008/09

(e) Change

2009/10

(f) Change

2010/11

(f)Change

N 100.6 99.0 -1.5% 100.6 +1.6% 103.3 +2.6%

P2O5 38.3 34.3 -10.5% 35.4 +3.0% 37.6 +6.2%

K2O 28.7 23.1 -19.8% 22.0 -4.5% 25.0 +13.5%

Total 167.7 156.4 -6.7% 158.0 +1.0% 165.8 +4.9%

Million tonnes nutrients

Short-term forecasts


Fertilizer demand by region



-5 -4 -3 -2 -1 0 1 2 3 4 5

Variation in 2008/09



East Asia

South Asia

N. America

W. & C. Europe

L. America & Carib.

EECA

West Asia

Africa

Oceania


Global nutrients supply/demand trends

198

191

200

170

180

190

200

210

220

2002 2003 2004 2005 2006 2007 2008 2009

Global production

Global sales

Global demand

| Source: IFA PIT Committee



Global production trends, 2005-2009

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009


Ammonia +1%

Urea +4%

Phosphate rock -9%

Phosphoric acid -1%

Potash -36%



Global nutrient supply/demand balances

128133

137

125 123129

2008 2009 2010

152159

165

146 149

157

2008 2009 2010

36 38 39

28 25 28

2008 2009 2010

38 39 41

33 33 35

2008 2009 2010

Mt ureaMt N

Mt K2OMt P2O5

Supply Demand



Prospects for 2010

• A recovery in demand and stronger sales prospects

• Current S/D balances: potentially, high surpluses prevailing

in 2009 and through 2010

• Limited new capacity outside China and on-going structural

changes

• Rising volatility of agri-commodity and energy prices

• Improving market conditions in 2010

• Increases in production and operating rates

• Higher domestic sales and exports- A rebound in import demand in Latin America, North America,

and South-East Asia

- Sustained imports in South Asia

- Potential improvement in Europe and Oceania

- Uncertainties as regards China

IFA’s initiatives…in enhancing agricultural productivity sustainably


Product Stewardship…

A shared business perspective across

the value chain

Begins with product design and ends

with application in the field

Requires effective communication

among supply chain partners

IFA’s programme : the producers will

be driving the process

…improving the efficiency of production, storage,transport and use of plant nutrients sustainably.

“Responsible care across the value chain”

Establishing and Maintaining

Positive Safety Management Practices in the Work Place


Technical innovation

• New breakthroughs

• Best available techniques

• Best management practices

• Fertilizer sampling and analysis

- Laboratory Quality Assurance Guidelines

- Recommended Best Practices for the

Analysis of Potassium Content in KCl

Fertilizers

- Recommended Best Practices for the

Sampling of Dry Bulk Fertilizer Shipments


2. Effectively use

existing nutrients

1. Establish a yield

target – the crop’s

total needs

3. Fill deficit

between total

needs and

indigenous

supply

Site-Specific Nutrient Management (SSNM)HOW do we determine

right rate, right place and right time ?

Improving the efficiency of fertilizer use

• Balanced fertilization

• Site-specific fertilizer

application

• Fertigation

• Microbial inoculation

• Products with built-in enhanced

efficiency:

slow- and controlled-release

fertilizers, urease

and nitrification inhibitors


Fertilizer Best Management Practices (FBMPs) Global Framework


Water Management Initiative

... to develop and promote strategies and best

management practices for water and

fertilizer/nutrient use efficiency that will

improve soil fertility, increase agricultural

productivity, and ultimately, improve human

nutrition and health.

• 1,000 litres of water are needed to

produce a kg of maize

• 1,500 litres to produce a kg

of wheat

• 2,500 litres for a kg of rice

• 4,000 litres for a kg of poultry

• 15,000 litres for a kg of beef

• 3,000 litres per person to produce

our daily food intake

ON AVERAGE


Striving for an African continent free

from hunger and malnutrition…

thanks to fertile soils and adequate

agricultural production.

AFRICA FORUM


Fertilizer use and human health

Boron deficiency

Zn deficiency

| Source: Alloway and Nielsen

… crops are vehicles for nutrients…

Supplementation

Human health

Food fortification

Human health

Agricultural strategies

Crop nutrition and human health

o Breeding (genetics)

o Application of micronutrient enriched

fertilizers (agronomic biofortification)

Solutions to micronutrient deficiencies


“Zinc in Soils and Crop Nutrition” by B.J. Alloway

“Micronutrients for Sustainable Food, Feed,

Fibre and Bioenergy Production”

by R.W. Bell and B. Dell

Discussion paper on the “Nutrition Security

Challenge through Micronutrient Applications”

IFA – IPNI publication on “Fertilizer Use and

Human Health” (2011)

IFA’s initiatives on the issue of fertilizer useand human health


Effective last-mile delivery

The industry’s strategy to enhance technology and knowledge transfer and adoption by farmers…..

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