Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably Luc M. Maene, Director General, IFA 2010 Fluid Fertilizer Foundation Forum, Scottsdale, AZ, USA, 14-16 February 2010
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
Global fertilizer consumption
| Source: IFA Agriculture Committee
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 Industry’s Views: Enhancing Agricultural Productivity Sustainably
Fertilizer demand by region
Million tonnes nutrients
| Source: IFA Agriculture Committee
-5 -4 -3 -2 -1 0 1 2 3 4 5
Variation in 2008/09
Variation in 2009/10
Variation in 2010/11
East Asia
South Asia
N. America
W. & C. Europe
L. America & Carib.
EECA
West Asia
Africa
Oceania
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Million tonnes nutrients
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
Global production trends, 2005-2009
0
20
40
60
80
100
120
140
2005 2006 2007 2008 2009
Million tonnes nutrients
Ammonia +1%
Urea +4%
Phosphate rock -9%
Phosphoric acid -1%
Potash -36%
| Source: IFA PIT Committee
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
| Source: IFA PIT Committee
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: 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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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 Industry’s Views: Enhancing Agricultural Productivity Sustainably
Fertilizer Best Management Practices (FBMPs) Global Framework
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
Striving for an African continent free
from hunger and malnutrition…
thanks to fertile soils and adequate
agricultural production.
AFRICA FORUM
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
“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
Fertilizer Industry’s Views: Enhancing Agricultural Productivity Sustainably
Effective last-mile delivery
The industry’s strategy to enhance technology and knowledge transfer and adoption by farmers…..