ANNUAL REPORT 2017 - fertilizer.org Annual... · IFA’s statistical coverage, the PIT Service launched the very first IFA survey of production data for NPK Compounds, aimed at the

ANNUALREPORT 2017

90 Years

02 ANNUAL REPORT 2017 ANNUAL REPORT 2017 03


In 2017 IFA embarked on “IFA2030,” a strategic review exercise intended

to ensure IFA’s ongoing relevance to our members and our stakeholders

on all things related to plant nutrition around the world. While the review

will not be finalized until the end of 2018, a wide-ranging survey carried

out in 2017 to feed into this review resulted in some key findings about

likely future challenges and opportunities for the fertilizer industry. Given

our close ties with the world’s farmers, particular attention was placed

on challenges that farmers may experience in the run up to 2030 and

beyond: foremost among them water scarcity, but also impacts of a

changing climate and obstacles faced by smallholders trying to access

input and output markets.

From

Charlotte Hebebrand

An ongoing focus on reducing the environmental footprint of both fertilizer

production and application combined with possibly far reaching innovation

and digitalization at the factory level and in the fields, on the other hand,

were seen to offer tremendous opportunities for the development of

advanced plant nutrition solutions and services.

Director-General

the Director-General

2017 marked the 90th anniversary of the International Fertilizer

Association. Looking back on its history, I am impressed by the capacity of

this Association to evolve and adjust to different realities and demands.

At its inception in 1927, IFA was very much a transatlantic club, whereas

today, more than half of our members are from developing and emerging

economies, reflecting the growth of the last decades of both fertilizer

production and consumption in these countries. Today, advancements in

agriculture technology and its digitalization require innovative strategies

across agri-ecosystem to deliver appropriate solutions to farmers for

meeting the global food demand. IFA is actively involved in enabling its

members to address such challenges in the most sustainable manner.

the Chairman

Rakesh Kapur

The Association has successfully adapted its work program over the

years, with the launch of new thematic Committees and working groups,

a widening scope of the important market intelligence program and an

ever wider set of agencies and groups with whom we interact. As the 34th

Chairman of this Association, I also feel indebted to my 33 predecessors

and the leadership they provided to guide IFA so aptly through changing

times and priorities, and ensure its longevity and relevance.

Chairman

From


Board of IFA

AFRICA

Saad Abou El MaatyAbu-Qir Fertilizers &Chemical Ind. Co., Egypt

Ashish LakhotiaETG Inputs, Tanzania

EAST ASIA

Mulyono PrawiroP.T. Pupuk Sriwidjaja, Indonesia

Akbar Md ThayoobCEO, Petronas Chemicals Marketing Sdn Bhd, Malaysia

Zhai JidongKingenta Ecological Engineering Group, China P.R.

Liao HuiKailin Group, China P.R.

EASTERN EUROPE & CENTRAL ASIA

Andrey GuryevOJSC PhosAgro, Russia

Dmitry KonyaevUralChem OJSC, RussiaChairman Communicationsand Public Affairs Committee

LATIN AMERICA

Roger DowneyVale Fertilizantes, S.A, BrazilResigned in July 2017

Daniel PettarinProfertil, Argentina

Patricio De SolminihacSQM, ChileChairman Agriculture Committee

May 2017 - May 2018

May 2017 - May 2018

Executive Board

CHAIRMAN

Rakesh KapurIFFCO - Indian Farmers Fertiliser Cooperative Ltd, India

IMMEDIATE PAST CHAIRMAN

Dr. Abdulrahman JawaheryGPIC - Gulf Petrochemical Industries Co., Bahrain

VICE CHAIRMAN

Dr. Mostafa TerrabOCP, Morocco

EXECUTIVE BOARD MEMBER

Svein Tore HolsetherYara International ASA, Norway

EXECUTIVE BOARD MEMBER

Zhai JidongYara International ASA, Norway

DIRECTOR GENERAL

Charlotte Hebebrand

EXECUTIVE BOARD MEMBER & CHAIRMAN OF THE FINANCE COMMITTEE

Chuck MagroAgrium Inc., Canada


Committees

NORTH AMERICA

Jochen TilkNutrien, CanadaResigned in November 2017

Anthony WillCF Industries, Inc., United StatesChairman PIT Committee

Chuck MagroNutrien, CanadaChairman Finance Committee

OCEANIA

Ian HansenWesfarmers, Australia

James FazzinoIncitec Pivot, AustraliaResigned in November 2017

SOUTH ASIA

Rakesh KapurIFFCO - Indian Farmers Fertiliser Cooperative Ltd, IndiaIFA Chairman

Manoj MishraNational Fertilizers Limited,India

Shafqaat AhmedFauji Fertilizer Company Ltd, PakistanResigned in March 2018

Kapil MehanAdventz Group, IndiaResigned in June 2017

WESTERN & CENTRAL EUROPE

Javier Goni del CachoFertiberia, Spain

Yves CapraraPrayon S.A., Belgium

Brent HeimannAPC, JordanChairman Technical & SHE Committee

Svein Tore HolsetherYara International ASA, Norway

WEST ASIA

Jamal Al SarayahArab Potash Company, JordanResigned in February 2018

Khalid Al MudaiferMa’aden, Saudi Arabia


Agriculture

The global assessment of Fertilizer Use by Crop (FUBC) was updated

for 2014/15, in partnership with IPNI and, for the first time, this analysis

included grasslands in its crop breakdown.

The Agriculture Service also added an update of

2015/16 figures on IFADATA, its statistical database

on fertilizer consumption for crop nutrition uses.

Following a year-long analysis of fertilizer consumption

in China, undertaken in collaboration with the PIT

Service and the China National Chemical Information

Center (CNCIC), the 2005-2015 time series for China

was updated on IFADATA.

The first two Fertilizer-use related policies country briefs

on India and the European Union were published during

the year, with more scheduled for a 2018 release.

In 2017 IFA extensively promoted the Nutrient Management Handbook,

which had been released at the end of 2016 by IFA and its partners:

the World Farmers’ Organization (WFO) and the Global Alliance for

Climate-Smart Agriculture (GACSA). A media campaign and webinar

were organized in April to launch the Handbook and were followed by

a translation in Chinese. More translations in Arabic, French, Portuguese,

Russian and Spanish are planned for 2018 to increase outreach.

The Service co-organized a seminar on nutrient stewardship in Moscow

with the International Plant Nutrition Institute (IPNI) and the Russian

fertilizer industry represented by RAPU (the Russian Fertilizer Producers’

Association) in October. The event gathered over 200 Russian delegates

from governmental and scientific institutions, business and industry, agro-

holdings and farmer organizations. The IFA book on micronutrients, translated

into Russian by IPNI, was also officially released during the seminar.

In 2017 IFA published its first-ever assessment of global Sulphur-nutrient

consumption, which will be updated on a biannual basis. In addition, it also

released its first global and regional estimates for the slow and controlled-

release, stabilized and water-soluble fertilizer markets.

The Agriculture and PIT Services also worked closely together to prepare

the launch of IFASTAT, IFA’s new statistical portal, scheduled for mid-2018.

Communications and Public Affairs

In 2017 the Communication and Public Affairs Committee scaled up

its outreach to international organizations and intensified its digital

communications, with a newly revamped and modernized Fertilizers

& Agriculture newsletter, the Global Fertilizer Day Quiz and IFA’s 90th

Anniversary generating new followers and strenghtening IFA’s outreach to

external stakeholders.As part of its advocacy strategy, IFA successfully changed the language of

the UN Environment Program (UNEP)’s Clean Planet Pledge a call “not to

use chemical fertilizers” to “use fertilizers efficiently and increase the use of

non-chemical alternatives where possible”. IFA also pursued its advocacy

work on the SDG Indicators: for Goal 2’s Indicator 2.4.1. (Percentage of

Agriculture area under productive and sustainable agriculture); succeeding

in removing the FAO proposal to use a proxy of fertilizer/hectare as a

measure of water pollution.

To increase business visibility and recognition at UN Environment, IFA joined

the Governing Consortium of the Science-Policy-Business Forum, a high-

level advisory group to empower policy decisions, and became a founding

member of the “Global Business Alliance for Environment” (GBA4E).

GBA4E held its first ever “Business Forum” at the UN Environment Assembly

(UNEA3) in December.

Other noteworthy events that contributed to illustrating the industry’s

commitment to the Sustainable Development Goal Agenda 2030 were the

High Level Political Forum, where IFA co-organized the Agriculture Day,

the High-Level lunch with ambassadors and the HLPF Business Forum. Close

cooperation with the World Farmers Organization led to a successful side

event on the role of farmers as environmental stewards at the Committee

of World Food Security (CFS) in October and a well-attended event at the

UN Conference on Climate Change (COP23) in Bonn on ways to increase

farmers’ effectiveness and resilience in a changing climate.

Three international media campaigns were organized, and education and

awareness raising on nutrient stewardship related topics and the critical

role of fertilizers in climate change mitigation and adaptation, were

covered through 2 webinars, 16 expert blogs, 9 nutrient management

stories, 8 press releases and social media postings on LinkedIn and Twitter

(reaching 12K followers).

As part of its awareness and outreach campaign on industry efforts to

reduce “land-based pollution” in Oceans, IFA attended the UN World

Ocean Health Conference on the implementation of Goal 14 in June. Shortly

before the Conference, the Communications and Public Affairs Service

published an IFA Backgrounder: “Plant Nutrients and Ocean Health”.


In 2017 the PIT Service published close to 45 statistical

reports on mainstream fertilizer products, exclusively

distributed to IFA Members, under the scope its Statistical

Programme. In line with its 2017-18 Priorities to expand

IFA’s statistical coverage, the PIT Service launched the very

first IFA survey of production data for NPK Compounds,

aimed at the top 15 countries and regions; results were

presented at the 2017 IFA Strategic Forum. The PIT

Service also updated its global capacity reports on NPK

Compounds and Potassium Sulphate.

The PIT Service worked in close collaboration with the Agriculture Service

during the year, first on the revamp of historical statistics on Chinese

fertilizer consumption (with the assistance of the China National Chemical

Information Center); and on the release of two-pager Country Statistic

Profiles for five countries (Morocco, Brazil, India, Russia and USA) with

trends on fertilizer supply and historical nutrient demand. The PIT Service

also released the first Product Statistical Profile (Urea).

Preparatory work for IFA’s new statistical portal IFASTAT began in

September 2017, with a launch scheduled for mid-2018.

The PIT Task Force on a Voluntary IFA Trade Contract

made significant progress in drafting a voluntary FOB

trade contract during the year, with plans to complete

its work in 2018 with the provision of a series of trade

Contracts reflecting current seaborne trade practices in

the fertilizer sector. The PIT Service also organized two

Anti-trust awareness sessions with IFA’s legal Counsel: to

the Board of Directors at the Strategic Forum in Zurich,

and to the IFA Staff in Paris in December.

The 2017 IFA Production & International Trade Conference was successfully

held in Paris, attracting close to 110 attendees from 21 countries, and

highlighted current shifts in fertilizer trade, production feedstock and

distribution systems.

Production and International Trade Technical and SHE

The number of “Protect & Sustain” certifications

continued to grow steadily in 2017, encompassing

45 certified companies in 52 countries at the end of

the year. The first non-producer member also became

certified during the year. With continuous engagement

since its launch in 2011, Protect & Sustain is the de

facto global standard for fertilizer companies.

In 2017, we witnessed the second-best level of participation of the

annual Employee Safety Survey. During the year, IFA also translated all

benchmarks into Chinese and Russian, to allow all Members to participate

in IFA’s Super Benchmarking Year in 2018.

For the first time ever, all four IFA Benchmarks (Environmental Performance,

Energy Efficiency and CO2 emissions, Employee Safety Perceptions and

Employee Safety) will be available to all IFA Members. They are all 100%

voluntary, 100% confidential and 100% accessible.

In November, the Technical & SHE Committee debuted a pilot version of

an Incident Reporting Portal for members to voluntarily and confidentially

share safety incident information. The final version will be released in 2018.

In addition, the Product Security Task Force partnered

with the African Fertilizer and Agribusiness Partnership

(AFAP) to translate the “Product Security Questions for

Companies Dealing with Nitrogen Fertilizers” posters

into Spanish, Portuguese, French and Swahili.

IFA and the International Fertilizer Development Center (IFDC) partnered

to deliver a Production Technology Training for young and new engineers

on Phosphate in Marrakesh, which attracted the highest number of

participants in IFA’s product training history.


In February IFA partnered with AFAP and IFDC for the organization of a

roundtable on establishing and strengthening national and sub-national

fertilizer trade and agribusiness associations in sub-Saharan Africa,

which attracted a high number of participants. Patrick Heffer, Senior

Director of the Agriculture Service, presented IFA’s updated outlook of the

African fertilizer market during a regional conference, and a webinar for

IFA Members. IFA also co-organized a side-event at the African Green

Revolution Forum (AGRF) in September with IPNI, IFDC, IPI, AFAP and IITA on

“science-based balanced fertilizer recommendations for smallholder farms

in Africa”. In November 2017, following a 6-month consultative process,

IFA adopted its Africa strategy for 2018-2020. At the Borlaug Dialogue

in October in Des Moines, IFA led a panel session calling for a follow-

up to the 2006 Abuja Summit, in which former President of Nigeria H.E.

Olusegun Obesanjo and the African Union Rural Agriculture Commissioner

Josefa Sacko participated.

IFA coordinated the annual meeting of the IFA China Consultative Group

(CCG) in Shanghai in October, under the convenorship of Kingenta. Key items

included an overview of supply-side reforms, the newly announced “Green

Development Policy”, IFA2030, and the overview of activities in 2018.

The IFA China Initiative

Africa Forum

Regional Initiatives

IFA coordinated two workshops in Russia in 2017: in February in Cherepovets

on Product Stewardship, upon the official invitation from RAPU (the Russian

Fertilizer Producers’ Association), and in October in Moscow on Nutrient

Stewardship, also with RAPU and IPNI.

In January, IFA participated in the Fertilizer Latino Americano Conference

held in Buenos Aires, where it organized an IFA breakfast for Members

in the region. A meeting on Latin America Fertilizer Consumption Statistics

was also organized during the Annual Conference in Marrakesh in May.

Latin America

Eastern Europe and Central Asia Outreach


Events2017 was a very successful year for the Conference Service, which noted

a 7% increase in participation at IFA events from 2016, with 2,210

delegates and 142 Young Professionals (compared to 2,053 and 129

the previous year). A growing number of delegates also started using

the IFA Conferences App, where programs, speakers’ biographies and

accompanying documents are accessible for all conference participants.

The IFA Annual Conference remains the largest international conference

of the fertilizer industry, gathering more than 1,300 participants from 70

countries in 2017 in Marrakech, Morocco. The 2017 Annual Conference was

opened by the Moroccan Secretary of State to the Minister of Agriculture,

Mr. Hammou Ouhelli, with an emphasis on the important role of nutrients

for sustainable agricultural development.

Another highlight of IFA’s Annual Conference was the election of its new

Chairman: Rakesh Kapur, Joint Managing Director of the Indian Farmers

Fertilizer Cooperative (IFFCO), one of the largest fertilizer cooperatives in

the world, which celebrated its 50-year anniversary of continuous support

to Indian farmers in 2017.

The high attendance of IFA’s five other conferences was another testament

to their popularity and relevance for the fertilizer industry. Through its

events, IFA continuously provides its Members with open fora for networking

and the exchange of knowledge and expertise.

Awards

The 2017 Green Leaf Award’s Gold Medal was awarded to Rashtriya Chemicals, followed by Fauji Fertilizers for silver, and the bronze went to DCM Shiram. The Green Leaf Best Progression Award was won by Engro. It was also decided that the 2019 edition of the Green Leaf Award would give two Gold Medals: one for nitrogen producers, and another for potash and phosphate producers.

IFA’s 2017 Norman Borlaug Award was awarded to Dr. Heitor Cantarella on Global Fertilizer Day (13 October). He was chosen as recipient for his cutting-edge work to reduce greenhouse gas emissions associated with fertilizer use in the tropics. Dr. Cantarella’s work has focused on minimizing nitrous oxide emissions during the cultivation of key Brazilian crops such as citrus fruits and sugarcane for ethanol production.

Green Lead Award

The Norman Borlaug Award

Every two years, IFA recognizes SHE excellence in the membership with its prestigious Green Leaf Award.

ParticipantsEvent

2017 Joint Communications-Agriculture Meeting23-24 January, Rome, Italy

2017 Ifa Strategıc Forum14-15 November, Zurich, Switzerland

2017 Ifa Crossroads Asia-Pacific Conference24-26 October, Shanghai, China

2017 Production and International Trade Conference22-24 February, Paris, France

2017 Global Safety Summit27-30 March, Amman, Jordan

85th Ifa Annual Conference22-24 May, Marrakech, Morocco

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Director General’s Office

Agriculture Service

I.T. Service

09 0810

01 Charlotte Hebebrand

02 Claire Boutaric

Director General

Member Services Coordinator and Executive Assistant to the Director General

03 David François

04 Aline Bortot

I.T Director

I.T Assistant

05 Patrick Heffer

07 Samy Beltaief

06 Armelle Gruère

08 Sophie Palmié

Senior Director

Policy Analyst, Agriculture Service

Fertilizer Demand Market Analyst

Project Coordinator, Technical & SHE and Agriculture Services

In 2017, total operating income amounted to €8.71 million, representing

an increase of 4.6 percent compared to 2016. This positive outcome

mostly resulted from higher than anticipated revenue from conferences

and meetings, given a high attendance at the last two events organized in

2017 in Shanghai and Zürich. In addition, revenue from sponsorship was

also higher than in 2016 and accounted for about 12.7 percent of the

total income from conferences and meetings.

The higher operating income also results from supplementary sponsorship

from certain IFA members for IFA’s strategic review “IFA 2030” which is

being carried out in 2017-18.

Operating expenditures were reduced by 1.8 percent compared to the

year before and reached some €8.42 million (€8.58 million in 2016).

Referring to financial activity, the year ended with a small deficit of some

€9,000, against about €37,000 in 2016. This situation was essentially due

to the fact that the reorganization of IFA’s financial reserves approved at

the November 2016 Strategic Forum in Dubai took longer to implement.

Furthermore, the change in fair value of investments remained negative

and the return on the short-term instruments in euros was extremely low.

In summary, the year 2017 ended with a surplus after taxation of

about €215,000, making up for a deficit of some €206,000 which was

registered in the accounts for 2016. While this is the surplus listed under

the UK accounts, we recall that IFA’s actual tax paid in France, where all its

operations take place, was €9,306.

Details of the Association’s financial situation in 2017 are provided in the

“Audited Accounts at 31 December 2017” attached to the Annual Report.


Production andInternational Trade Service

Technical And She Service

Communications and Public Affairs Service

Conference Service

Administrative Service

15 Yvonne Harz-Pitre

17 Sam Joll

16 Margot Clifford

18 Sophie Babeix

Director

External Communications Specialist

Communications Specialist

Assistant

14 Volker Andresen Director

08 Sophie Palmié Project Coordinator, Technical & SHE and Agriculture Services

09 Michel Prud’homme

11 Virginie Couturier

10 José de Sousa

12 Oliver Rousseau

13 Sylvie Marcel

Senior Director

Phosphate Products Market Analyst

Nitrogen Products Market Analyst

Potash & Sulfur Products Market Analyst

Assistant

19 Stéphane Leleu

21 Sandie Bouttemy

20 Valérie Corfmat

22 Jessica de Lafargue

23 Hélène Ginet

Director

Conference Planner

Communications Specialist

Conference Planner

Conference Planner

24 Florence Lambert

26 Sylvain Rivière

25 Aurélien Palaric

Director

Senior Accountant

Accountant

MembershipAt the end of 2017, the number of members of the Association reached

474 covering 68 countries. The various categories of membership were

represented as follows:

179 Ordinary members

192 Associate members

43 Correspondent members

60 Affiliate members

During 2017, 31 new members were elected as follows:

Associate Members

Ordinary MembersYueyang Juyuan Petrochemical Co. Ltd (China P.R.)

Agrimin Limited (Australia)

P.T. Parna Raya (Indonesia)

Minbos Resources Limited (Australia)

Yancoal Canada Resources Ltd (Canada)

SEPHOS (Senegal)

Dupont OCP Operations Consulting (Morocco)

Jacobs Engineering SA- JESA (Morocco)

Eti Bakir A.S. Mazidagi Facilities (Turkey)

INTL FCStone Financial Inc. (United States)

Tiger-Sul Products LLC (United States)

Pacific Exim (Pvt) Ltd (Pakistan)

Archer Daniels Midland Company (United States)

Tricon Energy (United States)

Cosmo Trade & Service Co. Ltd (Japan)

Felcra Niaga Sdn Bhd (Malaysia)

China Petroleum Technology and Development Corporation (China P.R.)

Terragro Fertilizer Co. Ltd (Thailand)

Plaman Resources Limited (New Zealand)

Diamond Sphere Trading LLP (United Kingdom)

Kincannon & REED (United States)

Evergrow Specialty Fertilizers (Egypt)

Danakali Ltd (Australia)

ANWIL (Poland)

RAMS & Co (France)

Affiliate Members

Correspondent Members

Camara de la Industria Argentina de Fertilizantes y Agroquimicos (Argentina)

Sunil Gupta (India)

Fertilizer Manufacturers of Pakistan Advisory Council (FMPAC) (Pakistan)

International Enterprise Singapore

Asociacion Nacional de Comercializadores de Fertilizantes A.C. (Mexico)

Raymond Hoyum (United States)


There were 15 resignations during the year:

Affiliate Members

Ordinary Members

Correspondent Members David Ford (Australia)

Mixfertil Industria e Comercio de Produtos Quimica Ltda (Brazil)

Mendeleevskazot (Russian Federation)

BNP Paribas-Etudes Industrielles et Sectorielles (France)

Mammoet Holding BV (The Netherlands)

VEGA-NITRO S.A. (Switzerland)

J.J. Consultants (India)

SAP CIS LLC (Russian Federation)

Western Potash Corp. (Canada)

European Energy Exchange AG (Germany)

Odfjell Tankers (Norway)

Agrifos Partners LLC (United States)

J. Felker (Germany)

Nuova Solmine (Italy)

ISKY Chemicals Co. Ltd (China P.R.)

Ordinary Members

Other Changes

JIFCO (Jordan India Fertiliser Company) (Jordan), a subsidiary of IFFCO (India) has been included under the membership of IFFCO.

Fatima companies (Pakistan) have decided to form a group membership under the name of Fatima Group including Fatima Fertilizer company, Pakarab and Fatimafert Ltd.

Pemex (Mexico) has joined IFA and form a group membership with Grupo Fertinal.

The membership of Tervalis Group (Spain) has been transferred to Fertinagro Biotech S.L. (Spain)

Honeywell International Inc (United States) announced the spin-off of its resins and chemicals business into a new company named AdvanSix Inc.

Name Changes

Ordinary Members

Affiliate Members

Associate Members

Sasol Nitro (South Africa) has becomeSasol Chemicals, a division of Sasol South Africa (Pty) Ltd

DAFF-ABARES (Australia Department of Agriculture, Fisheries and Forestry) has become DAWR-ABARES (Australia Department of Agriculture and Water Resources)

Rum Jungle Resources Ltd (Australia) has become Verdant Minerals Ltd

Ruwais Fertilizer Industries (FERTIL) (U.A.E.) has become ADNOC Fertilizers

Sanmit International FZE (U.A.E.) has become Tradient International FZE

A.J. Sackett & Sons Co (United States) has become Sackett Waconia

IHS (United States) has become IHS Markit

Correspondent Members

Associate Members

We have been informed of Mr Livio Lederer’s (United States) passing.

The membership of DSSI-Dynamic Sales Service (India) has been transferred to M/S Oilex Exploration Supplies Private Ltd

Bery Maritme (Norway) resigned at the end of 2016 but reconsidered his decision and remained a member in 2017.

H.J. Baker & Bro., Inc. (United States) sold its Crop Performance Group (including Tiger-Sul). Based on its sulphur processing and export activities it now qualifies for Ordinary membership.

Membership Termination

Ordinary Members

Associate Members

Jiaocheng Knlan Chemical Co. Ltd (China P.R.)

Fertinvest Pty Ltd (Australia)

Ordos Yi Ding Ecological Agriculture Development Co. Ltd (China P.R.)

Agri-Environmental Solutions (Canada)

FPM Sdn Bhd (Malaysia)

PK Fertilizers Sdn Bhd (Malaysia)

Intrepid Potash, Inc. (United States)

Tis-Mindobryva Ltd (Ukraine)

Qingdao Jufeng Agricultural Science and Technology Co.,Ltd. (China P.R.)

Extreme Shipping and Trading (Egypt)

Dniprovskiy Plant of Chemical Fertilizer – DZMU (Ukraine)

Muscat Fertilizer Company LLC (Oman)

OLLIANCE (Sichuan Olliance Chemical Co., Ltd) (China P.R.)

Campo Rico Fertilizantes (Brazil)

KazAzot LLC (Kazakhstan)

Hagrpota for Import and Export (Egypt)


Elections in 2017

Board meeting on14 November 2017

Member, Executive BoardMr Zhai Jidong, Kingenta, China P.R.

Board meeting on23 May 2017

Chairman, Finance CommitteeMr. Chuck Magro, Nutrien, Canada

Chairman, Agriculture CommitteeMr. Patricio de Solminihac, SQM, Chile

General meeting on24 May 2017

The term of the following Boardmember was renewed for a second termLatin AmericaMr Patricio de Solminihac, SQM, Chile

Board member, Latin AmericaMr Daniel Pettarin, Profertil, Argentina

Board member, South AsiaMr Manoj Mishra, National Fertilizers Limited, India

General meeting on24 May 2017

IFA ChairmanMr. Rakesh Kapur, IFFCO, India

The term of the following Boardmember was renewed for a second termSouth AsiaMr Shafqaat Ahmed, Fauji Fertilizer Company, Pakistan

Board member, East AsiaMrs. Liao Hui, Kailin Group, China P.R.

IFA Vice ChairmanDr. Mostafa Terrab, OCP, Morocco

Immediate Past ChairmanDr. Abdulrahman Jawahery, Bahrain

Executive Board:

Board:

Past Annual Conferences

2010: Paris 1954: Lisbon1982: Palma de Mallorca

1947: Eastbourne 1975: San Francisco2003: Philadelphia

2001: Sydney 1973: Rome

1948: Brussels1976: London2004: Marrakech

2002: Lisbon 1974: Tenerife

2009: Shanghaï 1953: Stockholm 1981: Singapore

2007: Istanbul 1951: Lucerne1979: Rio de Janeiro

2005: Kuala Lumpur 1977: Copenhagen 1949: Copenhagen

2008: Vienna 1952: Cannes1980: Monte Carlo

2006: Cape Town 1978: Cannes 1950: Madrid

2015: Istanbul 1959: Biarritz 1987: Orlando

2013: Chicago 1957: Scheveningen1986: Bangkok

2011: Montreal 1983: Vienna 1955: Hamburg

2014: Sydney 1958: Copenhagen1985: Munich

2012: Doha 1984: Mexico City 1956: London

1971: Amsterdam 1999: Manila

1969: Burgenstock/Lucerne1997: Beijing

1970: Athens1998: Toronto

1965: Lisbon 1993: New Orleans

1963: Lausanne1991: London

1964: m/v Cabo San Roque1992: Seoul

1972: Deauville2000: Oslo

1990: Vancouver 1962: Vienna

2016: Moscow 1960: Venice1988: Monte Carlo

2017: Marrakech 1989: Budapest 1961: Casablanca

1996: Berlin 1968: Berlin

1966: Miami Beach1994: Istanbul

1995: Singapore 1967: Monte Carlo

1940 - 1945: No conferences

1946: Paris

1938: Rome

1936: Budapest

1937: Paris

1932: Copenhagen

1930: Interlaken

1931: Baden-Baden

1939: The Hague

1929: Vienna

1927: Hamburg

1928: Stockholm

1935: Gleneagles

1933: Paris

1934: Lisbon


INTERNATIONAL FERTILIZER ASSOCIATION LIMITED REGISTERED N°00718812

Past Presidents

A. Jawahery2015-17

E. Mete 2013-15

B. Doyle 2011-13

T. Enger 2007 -09

A.S. Shriram 2009-11

S. Wu2005 - 07

J.M. Van Brunt2003-05

E. Tirkkonen1999-01

W. Puggina2001-03

C.E. Childers1995-97

U.S. Awasthi1997-99

E. Öner1993-95

G. Artaud1979-81

W.J. Turbeville, Jr.1975-77

P. Latteur1977-79

G.M. Mason1965-69

H. Stevenius-Nielsen1959-62

J. Capelo Portabella1962-65

G.P. Giusti1987-89

B.B. Turner1991-93

W. Klaassen1989-91

K.H. Tillmann1983-85

A.B. Al-Nouri1985-87

J. Miro Chavarria1981-83

R. Mathieu1971-73

J.D. Waller1969-71

A. Robinson1973-75

D.J. Bird1953-56

R. Standaert1949-53

R. Grandgeorge1956-59

A. Waller1946-49

E.G. Martens1927-37

E. Berr1937-39

Report and Accounts

For the Year Ended 31 December 2017Registered No. 00718812


INTERNATIONAL FERTILIZER ASSOCIATION LIMITED REGISTERED N°00718812 INTERNATIONAL FERTILIZER ASSOCIATION LIMITED REGISTERED N°00718812

Directors

SecretaryCharlotte Hebebrand

Registered Office AuditorsConfederation House,

East of England Showground,

Peterborough, Cambridgeshire

PE2 6XE, United Kingdom

Constantin

A Deloitte network entity

25 Hosier Lane, London

EC1A 9LQ

Hongjun Wang Board Member, East Asia (resigned January 1st, 2017)

Saad Abou El Maaty Board Member, Africa

Hui Liao Board Member, East Asia (appointed May 24th, 2017)

Roger Downey Board Member, Latin America (resigned July 20th, 2017)

Mulyono Prawiro Board Member, East Asia

Daniel Pettarin Board Member, Latin America (appointed Nov.15th, 2017)

Chuck Magro Executive Board Member

Rakesh Kapur President (appointed May 24th, 2017)

Patricio De Solminihac Board Member, Latin America

Shafqaat Ahmed Board Member, South Asia

Ashish Lakhotia Board Member, Africa

Mostafa Terrab Vice President (appointed May 24th, 2017)

Ian Hansen Board Member, Oceania

James Fazzino Board Member, Oceania (resigned November 14th, 2017)

Javier Goñi Del Cacho Board Member, West and Central Europe

Andrey Guryev Board Member, East Europe and Central Asia

Manoj Mishra Board Member, South Asia (appointed Nov.15th, 2017)

Svein Tore Holsether Executive Board Member

Abdulrahman Jawahery Immed. Past President (appointed May 24th, 2017)

Anthony Will Board Member, North America

Jamal Al Sarayrah Board Member, West Asia

Kapil Mehan Board Member, South Asia (resigned June 6th, 2017)

Khalid S. Al Mudaifer Board Member, West Asia

Akbar Thayoob Board Member, East Asia

Jidong Zhai Executive Board Member (appointed Nov.15th, 2017)

Jochen Tilk Board Member, North America (resigned November 15th, 2017)

Yves Caprara Board Member, West and Central Europe

Dmitry Konyaev Board Member, East Europe and Central Asia

Company Information Strategic Report

PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS

The principal activity of the company is to provide its members with a forum

where they can discuss matters relating to the manufacture, trade and use

of fertilizers, their raw materials and intermediates throughout the world.

Services to the members include the organization of an annual conference

and periodic meetings, provision of market intelligence and statistics,

technical and Safety/Health/Environment benchmarking, and public

affairs communication. At the end of 2017, the number of members of the

company reached 473 compared to 474 in 2016, covering 68 countries.

Total operating income in 2017 amounted to €8.71 million, resulting from

income from subscriptions and conferences and meetings for € 5.63 million and

€3.08 million, respectively. Compared to 2016, revenue from subscriptions

was slightly lower, by about 1.5%. However, income from conferences and

meetings was higher than last year, mainly on account of the additional

number of participants at the Asia-Pacific Crossroads Conference and at

the Strategic Forum, respectively held in Shanghai and Zürich. Furthermore,

revenue from sponsorship accounted for about 12.7% of the income from

conferences and meetings, representing €389,000. Finally, the 2017

operating income also included a contribution settled by eleven member

companies which agreed to co-sponsor a project untitled “IFA2030” to

identify and plan key opportunities/challenges for the fertilizer industry

into 2030. The financing of this project was split between 2017 and 2018,

to cover the duration of the study and to contribute to the costs involved.

Operating expenditure for the year amounted to €8.42 million, compared

to €8.58 million in 2016, representing a decrease of 1.8%. The overall

expenditures for 2017 were roughly stable compared to the previous year.

The company’s key financial and other performance indicators during

the year were as follows:

Euros

Operating income

2017

8,706,354

8,423,354

(9,286)

214,589

8,328,734

2016

8,327,117

8,580,225

37,403

(205,591)

8,060,801

Operating expenditure

Financial (deficit)/surplus

Surplus/(Deficit) for the year

Reserves

Change

4.6%

(1.8%)

(75.2%)

204.4%

3.3%



These new investment guidelines allow IFA to invest its reserves in cash

equivalents and secured fixed income investments; bonds, and equities up to

certain predetermined limits per the guidelines. Consequently, IFA invested

€1,5 million in funds managed by the Rothschild Bank and made a second

investment of €1million in funds managed by The Alpen capital Group.

Referring to the income from investments, the amount registered at the end

of the year remained very low due to the weak performance on two short-

term instruments in Euros and on two investments with a guaranteed capital

at maturity date. In 2017, capital gains resulting from these instruments

amounted to €17,661 compared to €106,024 in 2016.

With respect to the events to be organized in 2018, attendance at the

Annual Conference in Berlin is anticipated to be higher as in Marrakech

in 2017.

Overall, revenue from conferences and meetings would represent about

39 per cent of the total operating income, the remaining balance resulting

from income from subscriptions; from sponsorship of the IFA2030 initiative

and from the benchmarking survey. Therefore, total operating income

would continue to finance steadily the activities of the company.

Total operating expenditure is anticipated to be higher than in 2017.

Several budget items have been revised upward, including the expenditure

for conferences and meetings, for external consultancies as well as for travel,

accommodation, and hospitality. Referring to the budget for conferences

and meetings, the estimated extra expenditure mostly concerns the Annual

Conference in Berlin and the organization of the gala dinner. However,

50 per cent the cost of the reception will be covered by the sponsorship

of the hosting member company, included in income from conferences and

meetings. As regards the increase in external consultancy fees, it partly

relates to the cost of the benchmarking survey which will be offset by the

expected revenue planned in operating income.

In contrast, some decreases are also projected, mainly in expenditures for

staff costs and computer services and software.

As regards the financial activity, the final result of the year 2018 is

expected to be higher than in 2017, on account of the reorganisation

of the IFA financial portfolio and the return expected on the instruments

managed by the financial institutions.

Therefore, thanks to its financial reserves, the company has the capacity to

finance all these activities and does not need external financial assistance.

Consequently, the directors have a reasonable expectation that the

company has adequate resources to continue in operational existence for

the foreseeable future.

The Corporate tax charge for the year is comprised of the French corporate

income tax charge of €9,306 and the impact of the movement in deferred

tax required in accordance with UK GAAP amounting to €49,819 This

results in a total tax charge of €59,125, compared to a tax income of

€10,144 in 2016. The movement for the year is described in more detail

in note 15 of the 2017 accounts.

Overall, the year ended with a surplus of €214,589, whereas a deficit of

€205,591 was registered in 2016.

Therefore, at 31 December 2017 the overall financial reserves were

invested in two managed funds, two instruments with a guaranteed capital

at redemption date and other two in short-term monetary investments.

As regards the financial activity, the year ended with a small deficit of

€9,286, against a surplus of €37,403 in 2016. This situation was mostly due

to the fact that the change in investment strategy approved at the Strategic

Forum in Dubai, in November 2016, took longer to implement than expected.

Following the decision taken at that time, new financial investment guidelines

were developed and approved in Marrakech in May 2017 by the Board.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risks on investments

On account of the reorganization of the IFA financial reserves approved

in November 2016, a small part of the financial portfolio was invested in

equity stocks in 2017. Nonetheless, the exposure to this type of investment

was limited thanks to the new financial guidelines endorsed in Marrakech,

in May 2017, which stated that the allocation of invested funds equities

could not exceed 25 per cent of the overall financial investment portfolio. It

was also decided to share the remaining balance of the financial reserves

in bonds, fixed income and cash equivalents to protect them against market

fluctuations. This change of policy was put into place in order to improve

the return on the overall financial portfolio with a limited risk.

FUTURE DEVELOPMENTS

By order of the Board

Total operating income in 2018 is expected to be higher than in 2017,

mainly on account of an estimated increase in income from conferences

and meetings. In addition, the remaining balance of the sponsorship for

the IFA2030 project will be taken into account, as well as the anticipated

revenue from a benchmarking survey that will be carried out in 2018.


Charlotte Hebebrand

Secretary

Date: 23 May 2018



Director’s Report

All the above Directors are involved in companies that are members of IFA.

Any related parties are disclosed in note 18 of the accounts.

Board Members (cont.) Oceania

2017

M. Mishra (7)

S.T. Holsether

S. Ahmed

J. Goñi Del Cacho

Y. Caprara

I. Hansen

J. Al Sarayrah

R. Kapur

K. Al-Mudaifer

2016

J. Goñi Del Cacho

S. Ahmed

J. Al Sarayrah

K. Al-Mudaifer

R. Kapur

J. Fazzino (5)

I. Hansen

K. Mehan (3)

S.T. Holsether

Y. Caprara

South Asia

West Asia

West & Central Europe

(1) Resigned Jan. 1st, 2017(2) Appointed May 24th, 2017

(3) Resigned June 9th, 2017(4) Resigned July 20th, 2017

(5) Resigned Nov. 14th, 2017(6) Resigned Nov. 15th, 2017

(7) Appointed Nov. 15th, 2017

The directors present their report and accounts for the year ended

December 31st, 2017.

RESULTS

The surplus after taxation for the year amounts to 214,589 euros.

EVENTS SINCE THE BALANCE SHEET DATE

No significant events have occurred since 31 December 2017.

DIRECTORS

The directors that served during the year, together with details of the

appointments and resignations which have taken place since December

31st, 2016 are as follows:

Executive Board Members

Board Members

President

Africa

2017

R. Kapur (2)

A. Jawahery (2)

M. Terrab (2)

C. Magro

S.T. Holsether

Jidong Zhai (7)

2017

C. Magro

Hui Liao (2)

D. Pettarin (7)

M. Prawiro

P. De Solminihac

T. Will

Jidong Zhai

A. Lakhotia

S. Abul Maaty

A. Guryev

A. Tayoob

D. Konyaev

2016

C. Magro

T. Will

P. De Solminihac

M. Prawiro

Jidong Zhai

A. Guryev

D. Konyaev

A. Tayoob

S. Abul Maaty

A. Lakhotia

Hongyun Wang (1)

R. Downey (4)

J. Tilk (6)

2016

A. Jawahery

R. Kapur

M. Terrab

C. Magro

S.T. Holsether

Immediate Past President

Vice President

East Asia

East Europe & Central Asia

Latin America

North America

Executive Board Member



(1) Resigned Jan. 1st, 2017(2) Appointed May 24th, 2017

(3) Resigned June 9th, 2017(4) Resigned July 20th, 2017

(5) Resigned Nov. 14th, 2017(6) Resigned Nov. 15th, 2017

(7) Appointed Nov. 15th, 2017

DISCLOSURE OF INFORMATION TO THE AUDITORS

To the best of their knowledge each director present at the date of

approving this report were not aware, of any relevant audit information,

being information needed by the auditor in connection with preparing this

report, of which the auditor is unaware. Having made enquiries of fellow

directors and the company’s auditor, each director has taken all the steps

he/she is obliged to take as a director in order to make himself/herself

aware of any relevant audit information and to establish that the auditor

is aware of such information.

FUTURE DEVELOPMENTS

The company has chosen in accordance with Section 414C (11) of the

Companies Act 2006 to set out information related to Future Developments

in its Strategic Report.


Charlotte Hebebrand

Secretary

Date: 23 May 2018



The directors are responsible for preparing the Strategic Report and

the Directors’ Report and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for

each financial year. Under that law, the directors have elected to prepare

the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and

applicable law). Under company law, the directors must not approve the

financial statements unless they give a true and fair view of the state of

affairs of the company and of the surplus or deficit of the company for that

period. In preparing those financial statements, the directors are required to:

The directors are responsible for keeping proper accounting records

that are sufficient to show and explain the company’s transactions and

disclose with reasonable accuracy at any time the financial position of

the company and to enable then it to ensure that the financial statements

comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• select whether applicable UK Accounting Standards have been followed,

subject to any material departures disclosed and explained in the financial

statements; and

• prepare the financial statements on the going concern basis unless it is

inappropriate to presume that the company will continue in business.

Statement of Directors’ Responsibilitiesfor the Year Ended 31 December 2017

Independent Auditor’s Report to the Members of International Fertilizer Association Limited

Opinion

In our opinion the financial statements:

• give a true and fair view of the state of the company’s affairs as at 31

December 2017 and of its surplus for the year then ended;

• have been properly prepared in accordance with United Kingdom

Generally Accepted Accounting Practice including Financial Reporting

Standard 102 “The Financial Reporting Standard applicable in the

UK and Republic of Ireland”; and

• have been prepared in accordance with the requirements of the

Companies Act 2006.

The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards,

including Financial Reporting Standard 102 “The Financial Reporting

Standard applicable in the UK and Republic of Ireland” (United Kingdom

Generally Accepted Accounting Practice).

We have audited the financial statements of International Fertilizer

Association Limited (the ‘company’) which comprise:

• the balance sheet;

• the income and expenditure account;

• the statement of comprehensive income;

• the statement of changes in equity;

• the statement of cash flows;

• the related notes 1 to 18.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS



Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the

financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance but is not

a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or

in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

Use of our report

This report is made solely to the company’s members, as a body, in

accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our

audit work has been undertaken so that we might state to the company’s

members those matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we

do not accept or assume responsibility to anyone other than the company

and the company’s members as a body, for our audit work, for this report,

or for the opinions we have formed.

A further description of our responsibilities for the audit of the financial

statements is located on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our

auditor’s report.

Conclusions relating to going concern

We are required by ISAs (UK) to report in respect of the following matters

where:

• the directors’ use of the going concern basis of accounting in

preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any

identified material uncertainties that may cast significant doubt about

the company’s ability to continue to adopt the going concern basis of

accounting for a period of at least twelve months from the date when

the financial statements are authorised for issue.

Other information

The directors are responsible for the other information; the other information

comprises the other information included in the strategic report and the

directors’ report, other than the financial statements and our auditor’s

report thereon. Our opinion on the financial statements does not cover the

other information and, except to the extent otherwise explicitly stated in

our report, we do not express any form of assurance conclusion thereon.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the

directors are responsible for the preparation of the financial statements and

for being satisfied that they give a true and fair view, and for such internal

control as the directors determine is necessary to enable the preparation

of financial statements that are free from material misstatement, whether

due to fraud or error.

In connection with our audit of the financial statements, our responsibility is

to read the other information and, in doing so, consider whether the other

information is materially inconsistent with the financial statements or our

knowledge obtained in the audit or otherwise appears to be materially

misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material

misstatement in the financial statements or a material misstatement of the

other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are

required to report that fact.

In preparing the financial statements, the directors are responsible for

assessing the company’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate

the company or to cease operations, or have no realistic alternative but

to do so.

We have nothing to report in respect of these matters.


Basis for opinion

We conducted our audit in accordance with International Standards on

Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under

those standards are further described in the auditor’s responsibilities for

the audit of the financial statements section of our report.

We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in

the UK, including the FRC’s Ethical Standard, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We believe

that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our opinion.



Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the directors’ report

for the financial year for which the financial statements are prepared

is consistent with the financial statements; and

• the strategic report and the directors’ report have been prepared in

accordance with applicable legal requirements.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the

following matters if, in our opinion:

• adequate accounting records have not been kept, or returns adequate

for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting

records and returns; or

• certain disclosures of directors’ remuneration specified by law are not

made; or

• we have not received all the information and explanations we require

for our audit.

In the light of the knowledge and understanding of the company and its

environment obtained in the course of the audit, we have not identified

any material misstatements in [the strategic report or] the directors’ report.


The accompanying notes 1 to 18 form part of these accounts.

The financial statements were approved and authorised for issue by the

board and were signed on its behalf on 23 May 2018.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Alex Legon FCA (Senior statutory auditor)

For and on behalf of Constantin, Chartered Accountants and Statutory Auditors

A Deloitte network entity

25 Hosier Lane

London

EC1A 9LQ

Date: 23 May 2018

R. Kapur

President of International Fertilizer

Association Limited

Balance Sheetat 31 December 2017

Euros

FIXED ASSETS

CURRENT ASSETS

CURRENT LIABILITIES

ORGANISATION FUNDS

Tangible assets

Debtors

Trade creditors and accruals

Retained earnings

Total assets less current liabilities

2017

362,190

192,713

(585,041)

8,328,734

8,679,405

5,798,597

288,943

(1,371,817)

8,328,734

(2,816)

87,132

4,078,798

(199,665)

(347,855)

6,247,918

27,556

(2,156,523)

8,328,734

4,588,010

2,431,487

2016

569,227

297,375

(626,783)

8,060,801

8,445,337

4,319,016

213,460

(1,101,312)

8,060,801

(10,459)

85,522

3,267,087

(116,604)

(374,077)

4,973,765

1,538,349

(1,844,699)

8,060,801

5,316,271

3,471,572

Long-term investments

Prepaid expenses

Social and fiscal debts and other accruals

Balance at 31 December

Deferred tax liabilities

Rent deposit

Time deposits and short-term investments

Deferred revenues

Reserves for pensions

Net current assets

Total assets less liabilities

Cash at bank and in hand

Notes

3

5

6

8

11

4

4

7



Income and Expenditure Accountfor the year ended 31 December 2017

Statement of Comprehensive Incomefor the year ended 31 December 2017

Euros

OPERATING

Operating income

Operating expenditure

Conferences and meetings

Temporary staff and recruitment fees

External consultancies

2017

2,566,196

2,631

505,135

47,000

73,255

8,423,354

283,000

28,329

112,348

19,172

262,636

5,630,344

430,290

404,765

35,609

8,860

3,076,010

3,121,167

17,587

52,736

110,379

8,706,354

46,874

67,372

204,247

48,435

258,331

2016

2,460,206

4,649

502,246

44,800

63,045

8,580,255

(253,138)

34,410

96,937

20,327

208,011

5,714,552

449,008

476,891

25,128

7,448

2,612,565

3,234,492

27,191

32,718

267,683

8,327,117

50,908

68,107

199,620

52,915

253,515

Subscriptions

Sustainable fertilizer partnership programme

Rent, utilities and insurance

Regional initiatives

Bank charges

Conferences and meetings

Staff costs

Postage, telephone and fax

Printing, subscriptions and stationery

Travel, accommodation and hospitality

Study tours and International Award

Computer services and software(depreciation of software included)

General expenses

Unpaid subscriptions written off or provided

Office maintenance and repairs

Depreciation of fixed assets (software excluded)

Audit fees

Territorial tax

Operating Surplus/(Deficit)

Provision for retirement

Supplementary pension scheme (defined contribution)

Company savings plan

Notes

9

3

3

10

11

12

13

14

Euros

FINANCIAL

2017

214,589

152

17,509

(27)

(15,319)

(11,601)

(59,125)

(9,286)

273,714

2016

(205,591)

949

105,075

263

(61,064)

(7,820)

10,144

37,403

(215,735)

Net gain/(loss) on disposal of investments

Income from investments

Exchange (loss)/gain

Change in fair value of investments

Other finance income/(costs)

Taxation

Financial (Deficit)/Surplus

Overall Surplus (Deficit) / On OrdinaryActivities Before Taxation

Operating Surplus/(Deficit)

Notes

4

4

11

15

8

All amounts relate to continuing activities. The accompanying notes 1 to 18 form part of these accounts.

Euros 2017

267,933

71,125

(17,781)

53,344

214,589

2016

(236,896)

(46,957)

15,652

(31,305)

(205,591)

Total comprehensive income/(loss) for the year

Actuarial gain/(loss) recognised on defined benefit pension scheme

Movement on deferred tax relating to pension liability of defined benefit pension scheme

Surplus/(Deficit) for the year

Total other comprehensive income/(loss) for the year



Statement of Changes in Equity for the year ended 31 December 2017

Statement of Cash Flowsfor the year ended 31 December 2017

Notes To The Accounts at 31 December 2017

EurosRetained Earnings

8,328,734

(205,591)

(31,305)

53,344

214,589

(236,896)

267,933

8,060,801

8,297,697

Total Organisation

Funds

8,328,734

(205,591)

(31,305)

53,344

214,589

(236,896)

267,933

8,060,801

8,297,697

At 31 December 2017

Deficit for the year

Other comprehensive income

Other comprehensive income

Surplus for the year

Total comprehensive income for the year

Total comprehensive income for the year

At 31 January 2016

At 31 December 2016

Euros Notes 2017

27,556

596

11,988,496

(2,430,361)

17,509

(14,295,236)

(27)

(27)

1,538,349

(1,510,793)

919,595

(57,086)

(84,640)

17 (a)

2016

1,538,349

2,770

11,691,337

825,704

105,075

(10,484,317)

263

263

47,140

1,491,209

665,242

(489,161)

-

Cash and cash equivalents at 31 December

Net cash inflow from operating activities

Interest received

Payments to acquire fixed asset investments

Payments to acquire tangible fixed assets

Payments to acquire pension plan assets

Exchange differences

Receipts from sale of tangible fixed assets

Receipts from sales of fixed asset investments

Net cash inflow from investing activities

Net cash inflow from financing activities

Cash and cash equivalents at 1 January

Increase / (Decrease) in cash

Investing activities

Financing activities

NOTE 1 – LEGAL STATUS AND ACCOUNTING CONVENTION

NOTE 2 – ACCOUNTING POLICIES

The company is incorporated in England as a private company limited by guarantee and not

having a share capital. The liability of the members is restricted to £ 1.05 each. The company

is registered in France as a foreign not-for-profit organisation subject to taxation governed by

the law of 12 April 1939. The company is controlled by its members.

Basis of preparation and change in accounting policy

The financial statements are prepared under the historical cost convention,

except for long-term and short-term investments which are measured at

fair value, in accordance with applicable accounting standards and on a

going concern basis. All operations are continuing

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make

judgements, estimates and assumptions that affect the amounts reported

for assets and liabilities as at the balance sheet date and the amounts

reported for revenues and expenses during the year. However, the nature

of estimation means that actual outcomes could differ from those estimates.

There were no judgments (apart from those involving estimates) which have

had a most significant effect on amounts recognised in the financial statements.

The company’s key sources of estimation uncertainty are as follows:

• Pension benefits

The cost of the defined benefit pension plan is determined using an

actuarial valuation. The actuarial valuation involves making assumptions

about discount rates, future salary increases, and inflation. In determining

the appropriate discount rate, management considers the interest rates of

corporate bonds in the respective currency with at least AA rating, with

extrapolated maturities corresponding to the expected duration of the

defined benefit obligation. Future salary increases are based on expected

future inflation rates. Further details are given in note 11.

• Taxation

Management estimation is required to determine the amount of deferred

tax assets that can be recognised, based upon likely timing and level of

future taxable profits together with an assessment of the effect of future

tax planning strategies. Further details are contained in note 15.

The Company’s financial statements have been prepared in accordance with FRS 102 as it

applies to the financial statements of the Company for the year ended 31 December 2017.

The accompanying notes 1 to 18 form part of these accounts.

The company’s accounting records are presented in Euros, as the company’s

revenues and expenditure are incurred in Euros. The exchange rate as at

31 December 2017 was 1€ for £0.89.



Pension schemes

The company operates pension schemes as follows:

• Defined contribution scheme

The company operates a defined contribution plan for the company’s

staff members and makes contributions to a separately administered fund

(see note 12). Contributions are recognised in the income statement in the

period in which they become payable.

• Defined benefit schemes

The company operates a defined benefit scheme under statutory obligation

to make specific payments to employees when they retire. The liability in

the balance sheet is the present value of the defined benefit obligation

which is derived using actuarial assumptions (see note 11).

The cost of providing benefits under the defined benefit plan is determined

separately for each plan using the projected unit method. This method

attributes entitlement to benefits to the current period (to determine current

service cost) and to the current and prior periods (to determine the present

value of defined benefit obligations) and is based on actuarial advice. Past

service costs are recognised in income and expenditure on a straight-line

basis over the vesting period or immediately if the benefits have vested.

When a settlement or a curtailment occurs, the change in the present value

of the scheme liabilities and of the fair value of the plan assets reflects

the gain or loss which is recognised in income and expenditure. Losses are

measured at the date that the employer becomes demonstrably committed

to the transaction and gains when all parties whose consent is required are

irrevocably committed to the transaction.

The interest element of the defined benefit cost represents the change in

present value of scheme obligations relating from the passage of time

and is determined by applying the discount rate to the opening present

value of the benefit obligation, taking into account material changes in the

obligation during the year. The expected return on plan assets is based on

an assessment (made at the beginning of the year) of long-term market

returns on scheme assets, adjusted for the effect on the fair value of plan

assets, of contributions received and of benefits paid during the year. The

difference between the expected return on plan assets and the interest

cost is recognised in the income statement as other finance income or

expense. Actuarial gains and losses are recognised in full in the Statement

of Comprehensive Income in the period in which they occur.

The defined benefit pension asset or liability in the balance sheet comprises

the total for each plan of the present value of the defined benefit obligation

(using a discount rate based on high quality corporate bonds that have

been rated at AA or equivalent status), less any past service cost not yet

recognised and less the fair value of plan assets out of which the obligations

are to be settled directly. Fair value is based on market price information

and, in the case of quoted securities, is the published bid price. The value of

a net pension benefit asset is limited to the amount that may be recovered

either through reduced contributions or agreed refunds from the scheme.

Income statement

Income from subscriptions and conferences and meetings allows to finance

the activities of the company. From one year to another, income from

subscriptions represents more than 60 per cent of total operating income

and the remainder comes from conferences and meetings. In 2017, the

number of company members reached 473 divided up as follows:

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation

and accumulated impairment losses. The latter includes costs directly

attributable to making the asset capable of operating as intended.

Long-term investments

Long-term investments are valued at fair value at the closing date in

accordance with FRS 102. Any change in value is recorded under ‘change

in fair value of investments’ in income and expenditure account. The

company considers as long-term investments, investments it has decided

to keep more than one year. This concerns the two investments managed

by financial institutions which have a guaranteed capital at maturity date.

The carrying values of tangible fixed assets are reviewed for impairment

periodically if events or changes in circumstances indicate the carrying

value may not be recoverable.

Depreciation

Depreciation is provided on all tangible fixed assets at rates calculated to

write off the cost or valuation, less estimated residual value, of each asset

evenly over its expected useful life, as follows:

• Furniture and leasehold improvements: 5 or 10 years

• Fixtures, fittings and office equipment: 3 years

• Computer software: 1 or 5 years

Region % of income

21%

8%

10%

8%

21%

14%

10%

6%

3%

% of membership

21%

10%

8%

4%

25%

16%

8%

6%

4%

Number of companies

98

45

36

18

117

76

38

27

18

East Asia

South Asia

North America

Latin America and the Caribbean

Africa

Eastern Europe and Central Asia

Oceania

Western and Central Europe

West Asia



Short-term investments

Short-term investments are valued at fair value at the closing date. Any

change in value is recorded under ‘change in fair value of investments’ in

income and expenditure account.

Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date

of the transaction or at the contracted rate if the transaction is covered

by a forward foreign currency contract. Monetary assets and liabilities

denominated in foreign currencies are translated at the rate of exchange

ruling at the balance sheet date. All differences are taken in income and

expenditure account.

Leases

Rentals payable under operating leases are charged in the income and

expenditure account on a straight line basis over the lease term. Lease

incentives are recognised over lease term.

Operating income recognition

Subscription income is recognised for a calendar year (the membership

year runs from 1 January to 31 December), and conferences and meetings

income is recognised upon the event. Revenue from interest is recognised

as interest accrues using the effective interest method.

Deferred taxation

Deferred taxation is recognized in respect of all timing differences which

are differences between taxable profits and total comprehensive income

that arise from the inclusion of income and expenses in tax assessments in

periods different from those in which they are recognized in the financial

statements, except that:

• Deferred tax assets are recognized only to the extent that the directors

consider that it is more likely than not that there will be suitable

taxable profits from which the future reversal of the underlying timing

differences can be deducted.

• Deferred tax is measured on an undiscounted basis at the tax rates

that are expected to apply in the periods in which timing differences

reverse, based on tax rates and laws enacted or substantively enacted

at the balance sheet date.

TAXATION

Current taxation

Current tax assets and liabilities are measured at the amount expected to

be recovered from or paid to the taxation authorities, based on tax rates

and tax laws that are enacted or substantively enacted by the balance

sheet date.

Income tax is charged or credited directly to other comprehensive income if it

relates to items that are credited or charges to other comprehensive income.

Otherwise, income tax is recognized in income and expenditure account.

NOTE 3 – TANGIBLE ASSETS

NOTE 4 – INVESTMENTS

Euros

COST

DEPRECIATION

Net book value

At 31 December 2016

At 31 December 2016

At 31 December 2016

At 31 December 2017

At 31 December 2017

At 31 December 2017

Additions

Charge for the year

Disposals

Disposals

652,251

483,483

168,768

38,508

90,261

405,125

343,744

285,634

230,000

55,634

Computer software

321,737

53,939

267,798

800

56,644

322,537

110,583

211,954

Leasehold improvements

106,006

27,851

78,155

27,752

106,006

55,603

50,403

Furniture

120,695

66,189

54,506

17,778

27,952

10,474

10,341

127,999

83,800

44,199

Fixtures, fittings

and office equipment

1,200,689

631,462

569,227

57,086

202,609

415,599

354,085

842,176

479,987

362,190

Total

(1) The company is holding securities (short-term and long-term). Underlying

capital losses on investments amounted to €15,319 as at 31 December 2017.

(2) Income from unlisted investments in 2016: €105,075

Income from investments:

Unlisted 17,509 (2)

Euros

LONG-TERM INVESTMENTS

Funds managed by institutions

Short-term mutual funds in Euros

Total long-term investments

Total short-term investments

Total investments

Sub-total

Non-current: compulsory state housing scheme deposit

4,215,976

3,267,087

3,267,087

7,586,103

11,795,239

11,795,239

14,295,236

(10,983,416)

(10,983,416)

11,988,496

4,078,782

4,078,782

9,892,715

4,078,798

4,078,798

9,877,396

4,215,976

103,040 (5,080)-

4,319,016

31 December 2016

market value

2,499,997

2,499,997

2,499,997

Additions

(1,000,000)

(1,000,000)

(1,005,080)

Disposals

5,715,973

5,715,973

97,960

5,813,933

31 December 2017

Net value

5,700,637

5,700,637

97,960

5,798,597

31 December 2017

Market value (1)



Fair value of financial assets

Set out below is a comparison by category of carrying amounts and fair

values of all the company’s financial instruments that are carried in the

financial statements.

The fair value of the investments is estimated using the valuation provided

by the LCF Rothschild Bank, the LCL “Le Crédit Lyonnais”, the Crédit Suisse,

as well as by BNP Paribas as at 31 December 2017.

There are no cash flows, interest rates or fair value hedges. Interest rates

on cash balances are at floating rates.

At the end of 2017, financial institutions manage two portfolios which have

a guarantee on the capital invested and two others under mandate of

management.

Short-term mutual funds in euros correspond to two investments based on

a monetary instrument. The annual return on these investments remained

slightly positive in 2017, despite the weak performance linked to this type

of investment.

Euros

FINANCIAL ASSETS

Funds managed by institutions

Cash

Short-term mutual funds in Euros

Total

Compulsory state housing scheme deposit

5,715,973

4,078,782

97,960

27,556

9,920,271

2017Net value Fair value P&L (income)/expense

2016 2017 2016 2017 2016

4,276,110

3,267,713

103,040

1,538,149

9,185,012

5,700,637

4,078,798

97,960

27,556

9,904,952

4,215,976

3,267,087

103,040

1,538,149

9,124,252

(15,336)

17

-

-

(15,319)

60,310

754

-

-

61,064

Euros 2017 2016

(35,731)

172,436

143,625

17,044

297,374

(36,476)

103,878

112,466

12,845

192,713

Provision for bad debts

Deferred tax asset

Other debtors and accrued income

Members’ subscriptions due

NOTE 5 – DEBTORS

NOTE 6 – TRADE CREDITORS AND ACCRUALS

Euros 2017 2016

19,247

562,676

31,600

13,260

626,783

39,298

502,043

27,000

16,700

585,041

External consultancies

Research costs

Costs relating to meetings andother accruals

Audit fees

TRADE CREDITORS

NOTE 7 – SOCIAL AND FISCAL DEBTS AND OTHER ACCRUALS

Euros 2017 2016

724,800

-

318,150

58,362

1,101,312

967,000

9,306

336,334

59,178

1,371,818

Annual leave and personnel charges

Other accruals

Tax payable

Social charges

SOCIAL

FISCAL

The company is limited by guarantee and has no share capital.

NOTE 8 – MOVEMENTS IN ORGANISATION FUNDS

Euros Reserves

214,589

(17,781)

8,060,801

71,125

8,328,734

Surplus for the year

Actuarial gain recognised in defined benefit pension scheme

Movement on deferred tax related to pension liability

At 31 December 2016

At 31 December 2017

Expenditure includes:

Euros 2017 2016

1,207,117

1,253,089

2,460,206

1,262,064

1,304,132

2,566,196

Other direct charges

Direct personnel charges

NOTE 9 – CONFERENCES AND MEETINGS



Salaries and related charges are as follows, none of the directors being

remunerated:

2017 2016

2626Number of employees

Euros 2017 2016

1,437,094

3,234,491

3,537,933

3,050,486

(1,253,089)

303,442

1,652,334

3,121,167

3,420,723

2,772,965

(1,304,132)

299,556

Social charges

Staff costs as reported in the income and expenditure account

Total staff costs

Salaries

Staff costs allocated to conferences and meetings (see note 9)

Pension costs

NOTE 10 – STAFF COSTS

Certain senior employees who have authority and responsibility for

planning, directing and controlling the activities of the company are

considered to be key management personnel. Total remuneration in

respect of these individuals is €2,265,408 (2016: €2,245,567)

The directors do not receive any remuneration for their services provided

to the association.

NOTE 11 – PROVISION FOR RETIREMENT

The provision for retirement is considered to be a defined benefit pension

scheme. The company has an obligation under French law to make specific

payments to employees when they retire. The future payment is calculated by

an actuary and is based on length of service, age of retirement and salary.

The valuation used has been based on the most recent actuarial valuation

at 31 December 2017 and was updated by Karente to take account of

the requirement of FRS 102 in order to assess the liabilities of the scheme

at 31 December 2017.

On 21st of December 2017, the company paid €84,660 into an insurance

contract with a third party whereby the funds can only be used to reimburse

the company when retirement indemnities arising from the benefit pension

scheme fall due. The funds that have been invested cannot be used for any

other purpose and have been treated as qualifying scheme assets.

The fair value of the qualifying scheme assets as at 31 December 2017

is €262,737.

The cost for the year amounts to €46,874 (2016: €50,908).

The major assumptions used by the actuary were:

Changes in the present value of the defined benefit obligations are

analysed as follows:

2017 2016

0.2%

1%

2.7%

1%

1.5%

2%

Inflation rate

Average rate of salary increases

Rate used to discount schemes’ liabilities

Euros 2017 2016

170,000

187,039

(374,077)

(731,116)

262,737

115,952

(347,855)

(726,544)

Less present value of qualifying scheme assets

Present value of scheme liabilities

Deferred tax asset - non-current

Net liability in the balance sheet

50,908

50,908

7,820

7,820

-

58,728

46,874

46,874

11,601

11,601

-

58,475

Current service cost

Total recognised in arriving at operating surplus

Interest on obligation

Other finance cost

Expected return on scheme assets

Year ended 31 December 2017

Total recognised in the income and expenditure account

Euros 2017 2016

50,908

7,820

46,957

-

731,116

625,431

46,874

11,601

(63,047)

-

726,544

731,116

Current cost

Balance as at 1 January

Interest cost

Actuarial (gains)/losses

Payments out of scheme (leavers)

As at 31 December 2017

2017Euros 2016

(46,957)

-

(46,957)

71,125

-

71,125

Other gains/(losses) arising in scheme liabilities

Actuarial gains and (losses) recognised in the Comprehensive income statement

Actual return on scheme assets less expected return on scheme assets

Taken to the Comprehensive income statement



In 2017, taxation amounted to a charge of €59,125 (2016: credit of

€(10,144)).

Tax note:

(b) Tax included in Other Comprehensive Income

The tax is made up as follows:

(c) Factors affecting the current tax charge

The tax assessed on the surplus on ordinary activities for the year is lower

than the standard rate of French corporation tax of 33.33 per cent:

The differences are reconciled below:

(a) Tax on surplus on ordinary activities

The tax charge is made up as follows:

(d) Factors that may affect future tax charges

The 2018 Finance Act provides for a decrease in the income tax rate to

25% reserved for SMEs as defined by EU law, gradually over a period of

5 years, so that in 2020, the corporate tax rate will be 25%.

The company operates a defined contribution pension scheme for the

company’s staff members. The assets of the scheme are held separately

from those of the company in an independently administered fund. The

pension charge for 2017 amounted to €204,247 (2016: €199,620).

NOTE 12 – DEFINED CONTRIBUTION

A company savings plan was established for all staff members in 2001

under which the company partially matches employee contributions. The

company contributes 50 per cent of current employees’ contributions,

limited by a ceiling that is set according to their length of service, and

adjusted annually in accordance with the official social security index. The

amount of €48,435 (2016: €52,915) represents the company’s contribution

to the plan in 2017.

NOTE 13 – COMPANY SAVINGS PLAN

This item includes the office rent and charges (2017: €374,498; 2016:

€411,853), the expenditure on electricity, heat and insurance (2017:

€30,267; 2016: €31,302).

In 2017, the company paid a “territorial tax” which amounted to €73,243

(2016: €63,045).

NOTE 14 – RENT, UTILITIES AND INSURANCE

Euros 2017 2016

-

10,144

-

- -

10,144

(9,306)

(59,125) 10,144

(9,306)

(49,819)

(49,819)

Foreign tax

Total deferred tax (note 15 (e))

Taxable losses

Current tax:

Total current tax (note 15 (c))

Tax credit (charge) on ordinary activities

Origination and reversal of timing differences

Deferred tax:

Euros 2017 2016

(215,735)

99,710

71,904

56,900 -

(156,944)

273,714

26,113

(59,125)

(4,526)

10,144

(91,228)

(23,795)

(27,115)

Surplus/(Deficit) on ordinary activities before tax

Surplus/(Deficit) on ordinary activities multiplied by standard rate of French corporation tax of 33.33%

Other

Other - timing differences

Expenses not deductible for tax purposes

Total tax (note 15 (a))

Use of available tax losses

Euros 2017 2016

(17,781) 15,652

(17,781) 15,652Total tax

Actuarial loss/(gain) on defined benefit pension scheme

Deferred tax:

Euros 2016

(10,501)

17,044

11,910

187,039

193,582

(5,367)

187,039

193,582

2017

(184)

(2,816)

12,845

125,981

115,952

125,981

115,952

10,213

Included in debtors (note 5)

Investments

Pension costs

Included in deferred tax liabilities

Other timing differences

Deferred tax asset

Included in defined benefit pension liability (note 11)

(e) Deferred tax

NOTE 15 – TAXATION


INTERNATIONAL FERTILIZER ASSOCIATION LIMITED REGISTERED N°00718812

NOTE 18 – RELATED PARTIES

NOTE 16 – OPERATING LEASES

NOTE 17 – STATEMENT OF CASH FLOWS

Future minimum rentals payable under non-cancellable leases are as

follows:

(a) Reconciliation of surplus to net cash inflow from operating activities

Among the Directors, Mr Mostafa Terrab, CEO from OCP Group; Mr

Chuck Magro, President and CEO from Nutrien; Mr Svein Tore Holsether,

CEO from Yara International, as well as Mr Jidong Zhai, Executive Vice

President from Kingenta Ecological Engeneering Group Co., Ltd serve on

the board of Directors of the International Plant Nutrition Institute (IPNI),

affiliate member of IFA. The company made a contribution of €85,500 in

2017 to support one of IPNI’s projects in Ethiopia.

IFA Annual Report 2017

Report of the Board of the 89th year to be presented to the Annual

General Meeting on 20 June 2018

Registered in England No 718 812

Registered office: Confederation House, East of England Showground,

Peterborough, Cambridgeshire PE 2 6XE, United Kingdom.

EurosLands and buildings Others

16,581

2016

53,887

-

70,468

37,307

16,581

-

53,887

20172016

1,203,648

300,912

877,661

2,382,221

2017

1,229,401

307,350

589,089

2,125,840

Within one year

In two to five years

Total

In over five years

Euros 2017 2016

(8,097) -

11,601 7,820

60,918 5,031

202,609 205,154

(17,482) (105,338)

(152) (949)

15,319 61,064

(28,956) 470,774

302,519 237,976

(1,610) -

52,325 (52,325)

919,595 665,242

56,887 51,770

273,714 (215,735)

Adjustments to reconcile surplus for the year to net cash flow from operating activities:

Change in fair value of investments

Surplus/ (Deficit) for the year before taxation

Loss /(Gain) on disposal of fixed assets

Change in fair value of pension scheme assets

Difference between pension charge and cash contribution

Working capital movements:

Taxation

Decrease/(increase) in debtors

Overseas taxation received/(paid)

Increase/(decrease) in creditors

Net cash inflow / (outflow) from operating activities

Depreciation

Other finance costs

Increase in rent deposit

Net investment income

Gain on disposal of investments

49 Avenue d’Iéna,

75116 Paris, France [email protected]

www.fertilizer.org

T: +33 1 53 93 05 00

F: +33 1 53 93 05 45

INTERNATIONAL FERTILIZER ASSOCIATION

IFAfertilizers@fertilizernews international-fertilizer-

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