review of africa fertilizer summit progress
TRANSCRIPT
Review of Africa Fertilizer Summit Progress
presentedby
Amit Royat
The 29th African Regional Conference of the Food and Agriculture Organization of the UNApril 4-8, 2016
Abidjan, Cote d’Ivoire
Guiding Principles of the Summit
• Inorganic fertilizers are essential for agricultural growth to achieve African Green Revolution – but they are not enough.
• Holistic approach needed to improve: • Access: Increase volume, range and quality of inputs using
commercial channels • Affordability: Make inputs affordable, particularly for
smallholder farmers • Incentives: Improve productivity and functioning of the output
markets through public-private partnerships
Abuja Declaration
12 Resolutions
Fertilizer is crucial to achieving an African Green Revolution
Fertilizer is a strategic commodity without borders
Strong demand growth since 2008, driven by SSA Boosted by GDP growth,
policy support, private investments
… but what impact of economic slowdown and of El Niño in 2015-16?
Baseline scenario: +70% between 2008 and
2019 for Africa +130% for SSA without
South Africa Regional demand seen
reaching 7 Mt by 2019 In 2019, SSA would
account for 2.2% of world demand
Anticipated Market Share in 2019
Source: IFA Agriculture
Evolution of Africa’s fertilizer demand (Mt nutrients)
Fertilizer Summit
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
0
2
4
6
8
10
12
14
16
18
Application rates increase steadily but remain well below the Abuja target (50 kg/ha) Close to 15 kg/ha in
2013 Expected to reach 17
kg/ha by 2019 At that pace,
50 kg/ha will be reached in… 50 years from now!
How to speed up the trend?
Source: IFA Agriculture
Evolution of SSA’s average fertilizer application rate (kg nutrients/ha)
Fertilizer Summit
More Production Facilities Exploiting Africa’s Resources
In West Africa:
11 major production facilities in operation and 7 more planned/under construction
22 bulk blending facilities in operation and 2 more planned/under construction
In North Africa:
New dedicated production facility for Africa in Morocco
N & K
P
Farmers travelling less distance for inputs:More agro dealers
Country Average Distance, Baseline (km) Average Distance, Now (km)
Burkina Faso 27 20
Rwanda 15 9
Mali 60 10
Ghana 15 10
Niger 41 15
Tanzania 50 10
Source: AGRA
But Lack of Credit is an impediment for fertilizer business development
• (1) Traditional lenders consider loans to importers dealers carries higher risks than other lending opportunities.
• (2) African Fertilizer and Agribusiness Partnership piloting credit risk guarantee scheme
Fertilizer Price FormationUnaffordable for many African farmers
X
X+50%
X+80%
Transport Cost
Low Road Density Contributes to High Transport Cost:
Kilometer Paved Roads/million capita
But ‘Smart Subsidy’ Making Fertilizers Affordable for Farmers:
two models
• Growth Enhancement Support Scheme (GES) --- Nigeria
• National Fertilizer Subsidy Program (PNSEB) --- Burundi
Growth Enhancement Support SchemeNigeria
1. Remove the government from purchase and distribution of fertilizer
2. Create competition amongst value chain actors3. Allow supply & demand market forces to drive efficiencies in
the value chain4. Create a value proposition for every player5. Empower farmers to choose where & when to exercise their
subsidy
Results
18
1 over 14.5million farmers registered since 2012
90% of inputs reached ~ 6 million farmers in 2014 who accessed inputs using their e-wallets
Over USD 1billion worth of inputs have been accessed through the scheme since its inception
2
3
income per farmer jumped from $700 to $1,8004
created $600 million in lending & deposit opportunities for the banking sector - $4m microfinance loans issued to date
5
Source: Cellulant
National Fertilizer Subsidy ProgramBurundi
1. Increase smallholder farmers’ income through fertilizer use2. Strengthen private sector capacity in delivering fertilizers
ResultsHalf million beneficiaries (30% of total households) 100% increase in Fertilizer
availability and use in the first year 30,000 tons of fertilizer sold in
2015 (4 times more than in 2013) by
Type and amount of fertilizer freely chosen by each beneficiary
2 financial institutions, 10 fertilizer traders, 380 private retailers involved in the program
18%-30% increase in average income
IncentivesImprove productivity and functioning of the
output markets through public-private partnerships
Improve productivity: solutions for
farmers to high fertilizer cost
Improve soil fertility and produce more with same amount of fertilizer
Benefits Fertilizer use more profitable Increase farmer’s income Reduce losses of nutrients to
air and water Save on energy
Traditional application for wet land rice
22 of 3 bags lost in wet land rice production
Urea Deep Placement (UDP)
More Efficient Use of NitrogenHigher Yields
• Briquettes placed 7-10 cm below the surface
• Briquette size 1.8 or 2.7 gm• Placement centered between 4
plants (20 x 20 cm spacing)• Placement 7 days after
transplanting by hand or with an applicator
Urea
Briquette Machine
Briquettes
N EmissionsAmmonium N in Floodwater and Ammonia Volatilization
0
5
10
15
20
BA 1 2 3 4 5 6 7
NH
4-N
(ppm
)
Day after fertilizer application
Bangladesh Agricultural University
Control UDP-N78UDP-N104 BU-N156UDP-156 BU-N104
Ammonium Nitrogen in Floodwater Prone to volatilization and runoff
losses
Ammonia volatilization (BRRI, Aus 2014
Impacts of UDP Technology in BangladeshFarmers produce 15% more rice using 35% less urea with UDP
technology; ~ 40%reduction in carbon footprint
Impact Indicator ResultsUDP Area and Number of Farmers 1.2 million ha; 2.2 million
Gross Margin $788/ha under UDP$611/ha under broadcast
Small Businesses Producing Briquettes 1,000
Incremental Rice Production and Value 2.1 million mt; $744 million
Urea Savings and Value 310,000 mt; $154 million
Savings in Government Subsidy on Urea $90 million
Twenty Countries in Africa Evaluating UDP Technology
• Farmers now earn an average of USD 1,070 (UGX 3,750,000) per acre from an average of USD 340 (UGX 1,200,000) before adoption of UDP technology.
• Robert Bazibu is growing rice for commercial purposes on 4 acres. He now earns USD 4,200 (UGX 15 million) from USD 1,400 (UGX 4.8million) per season.
• His annual income has increased from USD 2,800 (UGX9.6million) to USD 8,400 (UGX 30 million)
• Robert is now building a permanent residential home for the family.
• He bought a car for family transport from last season (2015) sales.
Roberts house before and below is his new permanent house
and in Uganda…..
Source: IFDC
Fertile Soil is Essential to Increasing Fertilizer Efficiency
Integrated Soil Fertility Management
Cereal yields in Sahel versus rainfall and fertilizer use
200 300 400 500 600 700 800 900 1000 11000
0.5
1
1.5
2
2.5
3
Rainfall (mm/year)
Cere
al y
ield
(t/h
a)
No Fertilizer
Fertilized
ISFM Field With ISFM Practice
Field Without ISFM Practice
Source: Henk Breman
Plant Nutrition Is More Than NPKAfrican Soils are low in Secondary and Micro Nutrients
0
1
2
3
4
5
6
7
0.41.0
2.83.72.7
2.0
1.70.82.2
1.2
1.2 1.6
Secondary/micronutrient yield incrementNPK yield increment Control
Yiel
d, M
t ha-
1
Extra 1.2-2.2 Mt/ha due to SMN addition
Balanced Fertilization*
Newly commissioned blending unit
Kigali, Rwanda
Ethiopia, Rwanda, Burundi have made commitments to move to multi-nutrient blends based on soil analyses and crops
In Burundi, large scale demonstrations underway to create farmer demand, blended by MEA (Kenya)
Subsidy policies in these countries now support balanced fertilizers
Collaboration with Toyota Tsusho (Kenya) to develop blends for facility in Eldoret, Kenya
Government of Kenya has given verbal support to balanced fertilizer subsidies
*4 R—Right type, Right amount, Right time and Right place
Needed Actions to reach Abuja target for doubling agricultural
productivity by 2025*
Accelerate Implementation of Sustainable Soil Fertility Management Practices
Capitalize and Operationalize Africa Fertilizer Financing Mechanism
Policies To nurture development of private businesses For regional harmonization to assure quality To reduce risk of farming for smallholder farmers To facilitate innovation for improving small farmers
productivity
Credit Improve access to commercial credits for input
sector businesses and farmers
Capacity Building To accelerate agro dealer training For bankers for provide loans to fertilizer importers,
traders and retailers To strengthen extension services
Information Strengthen input and output market information
network
2000
2003
2006
2009
2012
2015
2018
02468
1012141618
Application rates increase steadily but remain well below the Abuja target (50 kg/ha)
Close to 15 kg/ha in 2013
Expected to reach 17 kg/ha by 2019
At that pace, 50 kg/ha will be reached in… 50 years from now!
How to speed up the trend?
*Malabo Declaration
Conclusions
Africa Fertilizer Summit was a landmark event that is contributing to improving agricultural productivity in Africa
A country-by-country assessment of the implementation of resolutions is urgently needed to accelerate the implementation of the set targets
A meeting to review and adjust the Summit resolutions in the context of the Sustainable Development Goals and the Malabo Declaration is recommended
