Editorial Common Arab Projects Edifice of Common Arab Economic Activity
HE. Mohammad Rabie The Secretary General of Council of Arab Economic Unity,
The present march of the Council of Arab Economic Unity focused on five integral topics, namely common Arab market, coordinating regional development programs, common Arab projects, specialized Arab unions and Arab countries situation vis a vis international economy. Despite of the great importance of the five topics above in serving the common Arab economic integration, the experience resulted in the light of Arab economy circumstances and available information has supported the fact that common projects were practically the most applicable formula, as they were the cornerstone of nearly all the other topics. Therefore, it was not possible to develop common Arab market work without developing the common material production base. Also, the coordination of development programs ended, in the shed of common Arab development plan project and during such a phase, into a broad-based common projects program more than reaching developmental policies and goals. In view of such an importance, Council of Arab Economic Unity efforts focused, since long, on establishing common Arab projects, at the top of which common Arab industrial projects. To elaborate, three out of the four projects brought about by the Council were industrial ones, namely Arab Mining Company (AMC), Arab Company for Drug Industries and Medical Appliances (ACDIMA) and Arab Investment Company. Concerning the fourth project, it was the Arab Company for Livestock Development (ACOLID). In relation to chemical fertilizer industry sector, Arab Potash Company was founded by a resolution from the Council of Arab Economic Unity. Such a Company is the first common Arab company in the contemporary Arab history with a capital estimated by JOD 4.5 million. Common projects enjoy a high level of official and private Arab approval. They are further characterized by an advanced effective way in the achievement of developmental and integration goals. Moreover, they are well-fortified against political turbulences and capable of arranging opportunities and reasons to support or resupport inter-Arab relations. Distinguished by flexibility in taking legal and practical formulas in order to practice their activities together with the potency of networking between public and private capitals and widening the scope of networking geographically and nationally, these projects became one of the most important tools in the common Arab work arena.
Arab Fertilizers Issue Number (59) Jan.- April 2011
Editor-in- Chief
Dr. Shafik Ashkar
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Secretary General
Deputy Editor-in- Chief Mrs. Mushira Moharam
17th AFA Int’l Annual Fertilizers Forum & Exhibition
Members of Editorial Board (General Secretariat) Eng. Mohamed M.Ali Mr.Yasser Khairy Member of Editorial Board (Chairmen of AFA Committees) Eng. Yehya Mashali
AFA Economic Committee Chairman
Eng. Saed Bokisha
With Member Companies Scale Plants > 6,000 mtpd 24 Large a dream or a reality?
AFA Technical Committee Chairman
Eng. AbdulRahman Zuraig
AFA NEW PUBLICATIONS
AFA HSE Committee Chairman
Agricultural Consultant Dr. Mohamed M. El Fouly All correspondences to be addressed to: Arab Fertilizers Association P.O. Box 8109 Nasr City 11371 9 Ramo bdg. Omar ben Khattab St. Nasr Road - Nasr City Cairo, Egypt Tel: +20 2 24172347 Fax:+20 2 24173721 +20 2 24172350 E-mail: info@afa.com.eg www.afa.com.eg
2010 AFA Annual Fertilizer Statistical Yearbook
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BEST PRACTICES An Insight into the Best Manufacturing Practices of AFA AMMONIA AND UREA PLANTS
Colour separation & printed by Tel : 37617863
”Arab Fertilizers” Journal is published by the General Secretariate of Arab Fertilizers Association (AFA).
AFA is a non-profit, non-gov. Arab Int’l. Organization established on 1975. AFA is operating under the umbrella of Council of Arab Economic Unity/ Arab League. AFA comprises all companies are producing fertilizer in Arab world in 14 Arab countries. All rights reserved. Single and multiple photocopies of extracts may be made or republished provided that a full acknowledgment is made of the source. The Journal is providing the chance for publishing adverts for the companies involved in manufacturing and trade of fertilizer and other
Press Release STAMICARBON EXTENDS PORTFOLIO WITH POLYAMIDES AND POLYESTER BY ACQUIRING NOY ENGINEERING
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Chairman
Mr. Mohamed El-Mouzi Board Members
SAFCO Achievement Haldor Topsøe awarded another contract for a coal to SNG plant in China
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AFA Board of Directors
Mr. Mohamed R. Al-Rashid
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UAE
Mr. Mohamed Abdallah Mohamed IRAQ Mr. Hedhili Kefi Tunisia
Haldor Topsøe Group financial statement 2010
Mr. Khalifa Al-Sowaidi Qatar
Agriculture Value Chain of Agricultural Commodities
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Mr. Mohammed S. Badrkhan Jordan
Mr. Abdel Rahman Jawahery Bahrain
Mr. Fahad Saad Al-Sheaibi Saudi Arabia
Studies & researches
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Diaphragm Plates Failure of Synthesis Exchangers in Ammonia Plant
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Mr. Jihad N. Hajji Kuwait
PIC Zero Ammonia Emission Project A Novel Idea
Mr. Khalifa Yahmood
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Nutrient Balance in Arable Lands ... a Global Challenge for the Fertilizer Industry
Libya
Mr. Saleh Yunis Syria
Mr. Mazouz Bendjeddou Algeria Mr. Jamal Eddine Bensari Morocco Eng. Ahmed AL Awfi Oman
agricultural inputs. The arrangements for that should be discussed with the journal’s management. The articles and all material contained herein do not necessarily represent the view of AFA unless the opposite clearly mentioned. The contributions of researchers, students, and experts in the field of fertilizer industry and trade are highly welcomed for free publication provided that they have not been published before. The General Secretariat is not obliged to return the articles which are not published.
17th AFA Int’l Annual
From l. to r. Dr. Ashkar, Mr. Rabie, Dr. Sayyad, Mr. Mouzi & Dr. Butros
17th AFA Int’l Annual Fertilizers Forum & Exhibition The Arab Fertilizers Association (AFA) hosted its largest meeting, the 17th AFA Int’l. Annual Fertilizers Forum and Exhibition, under the theme “Your Road to Business” under the patronage of HE.E. The Egyptian Minister of Industry and Trade Mr. Samir Al-Sayyad. The Forum took place from April 11 to April 13, 2011 at Cairo Marriott Hotel and attended by 637 delegates representing 210 companies and 34 countries making it one the premier events in the annual Middle East fertilizer calendar.
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April 11 – 13, 2011: Cairo Marriott Hotel, Egypt
AFA Board of Directors during the opening session
H.E.Al-Sayyad: Pursuing the free economic open policies
of Egypt, welcoming foreign investments, enabling the national private sector to effectively participate in boosting the country development process H.E. the Egyptian Minister of Industry and Trade Mr. Samir Al-Sayyad inaugurated the opening session with the following speech: At the outset, allow me to welcome the distinguished attendants of today’s Forum, coming from Egypt and other Arab countries, wishing them all a happy stay. I further seize such an opportunity to express all appreciation and gratitude to AFA for the strenuous efforts exerted and effective initiative taken resulting in such an annual superb Forum. Also, I wish the Forum all success in the accomplishment of its stated goals, hence contributing in the enhancement of common Arab economic work. With honor I join such a sublime group gathering in the 17th AFA International Annual Forum. I participate in this great event filled with hope that it would represent a genuine opportunity to reach a better future for our Arab region, making use of the attendance of a distinctive number of Egyptian and Arab companies working in fertilizer industry field. Fulfilling the invitation to participate in such a Forum and following
Dr. Samir Al-Sayyad
up AFA activities emerge from my full belief in the vital role played by the Arab technical associations in presenting a number of initiatives and suggestions, thus reflecting a striking element on which different economic strategies are founded in order to support cooperation between Arab countries. The 17th AFA International Annual Forum takes place in a very crucial time in Egypt history that is to say after the internationally astonishing 25th of January revolution. Despite of the benefits gained by the said grand revolution, we are currently facing chal-
Delegates of Forum showed a keen interest during the sessions
lenges affecting various industrial and commercial country sectors, important of which: • The uncertainty of investors concerning the investment atmosphere in Egypt. • The appearance of some factional protests by workers adversely affecting the production movement in most factories. • The disturbance of work in the banking sector negatively influencing the creditworthiness of producers. Therefore, the government sought diligently, since its very beginning, to combat and overcome the previously stated obstacles. Ministry of Industry and Foreign Trade rapidly dealt with all related sectors and held meetings with representatives from all exporting councils and commercial and industrial chambers with the aim of identifying and solving the arousing problems. The Ministry also convened prolonged and intensified meetings with a number of Arab and foreign ambassadors in Egypt, so as to convey an assuring message, to Egypt commercial partners, with reference to the economic affairs in Egypt. All these meetings highlighted the following issues: 1. Pursuing the free economic open policies of Egypt, welcoming foreign investments, enabling the national private sector to effectively participate in boosting the country development process and having a positive government role assisting in the achievement of social justice. 2. Abiding by all Egypt international agreements and executing all signed commercial treaties. 3. Continuing the fruitful and constructive cooperation with Egypt commercial partners and emphasizing on the importance of fostering relations with partner countries, as a means of overcoming such a critical phase witnessed by Egypt. 4. Building on the achievements
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17th AFA Int’l Annual of the past period together with the government commitment to expand the base of foreign economic relationships with different countries, via a network of commercial agreements assisting in opening new markets for Egyptian exports. 5. Emphasizing the current government keenness on reaching social justice, combating poverty and creating job opportunities for the new generations in a way helping to encourage the domestic demand in the Egyptian market. 6. Working on attracting Arab and foreign investments, especially the ones related to the transfer of technology, assimilation of man power and provision of added value. Convening such a Forum, in the shed of the current challenges facing food sector and agricultural production increase, taking in consideration the looming international food crisis and food prices hike, represent a great challenge before the food importing countries especially Egypt. Nevertheless, the attendance of such a great number of international associations and organizations chairmen in addition to the heads of huge companies working in the field of fertilizer industry reflect the great position of Egypt regionally and internationally. Furthermore, this underscores the special status of fertilizer industry in Egypt partic-
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ularly and Arab region generally. Fertilizer industry in Egypt has witnessed tangible developments, during the last few years, with fertilizer exports representing 26% of the total exports of the Export Council for Chemicals. To elaborate, Egypt fertilizer exports increased to reach 5.7 billion pounds in 2010, representing a rise of 12% compared to 2009, bearing in mind that exports value of 2006 exceeded not 1.2 billion pounds. I am totally confident that the productive and positive collaboration, between all the associations concerned with fertilizer industry in Arab and other countries, will inevitably lead to overcoming some of the current world crises. I would also like to express my ap-
preciation to all the recommendations resulting from the periodical annual conferences organized by AFA. It is noteworthy that during the coming phase the Ministry will study the referred to recommendations in an attempt to set a mechanism effectuating them. This effort will take place in coordination with the Ministry counterparts in Arab countries. At the end, I thank all who participated in the success of such a Forum, being an important event for strengthening communication and entrenching cooperation between governmental bodies and private sector highlighting the developed initiatives in the fields of trade, investment and other related fields of common interest.
HE. Mohammad Rabie: Food issue is the major problem currently defying Arab countries
H.E. Mohammad Rabie
The Secretary General of Council of Arab Economic Unity, HE. Ambassador Mohammad Mohammad Rabie delivered a speech stating: This year AFA International Annual Forum pinpoints one of the most important issues related to the continuity of life, namely the rise in food commodities> prices, at the top of which grains> prices. Such an issue is considered to be a real burden for different countries, after witnessing a tremendous leap in prices, from 3 years ago and until now, in a way making poor and medium-income countries incapable of fulfilling its people food needs. Food issue is the major problem currently defying Arab countries, Mr. Rabie said, the present food situation and the matter of depending on importation to fulfill people food needs threaten the economic, social and political security together with the national stability of countries; bearing in mind that food is a national issue coming at the top of societies> priorities. Therefore, efforts should be concerted, coordinated and mobilized
in a national framework, to reach concrete solutions to the said problem, via different standards and criterions, important of which: - Observing the development level of food production, consumption and trade in Arab countries. - Highlighting the efforts exerted by Arab countries and common Arab work institutions to provide food commodities and raise self-sufficiency rate in this regard. Food crisis is not an issue of international production shortage. To dwell in this point, the international production volume of grains, according to grain market report issued recently by International Grain Council, raised from 1.5 billion tons in 1980 to 1.7 billion tons in 2008 – 2009, an increase equivalent to 13.3%. Also, fruits and vegetables production grew from 630 million tons in 1980 to 1500 million tons in 2007, a rise estimated by 138%. The former rates underscore that food production growth rate shows a huge increase compared to the population growth rate estimated by 45%, during the same food production growth period. Therefore, food crisis is a result of the following:
- The unbalance between production and consumption areas. - The unbalanced crop combination in some countries. - The poor marketing of agricultural production. When focusing on the food production in the Arab region, it becomes clear that the agricultural production pattern is characterized by the domination of grain crops, representing 61.8% from the total crop grown area of 2008. It is also apparent that the Arab countries grain production by hectare is seriously low. Totally, it is considered a food deficit region concerning the main food groups, estimated by USD29.5 billion for 2008, and especially for wheat, which is estimated by USD18.3 billion. The Arab region in general is not suffering from shortage in financial resources. Moreover, the Arab countries already have huge areas of lands and large number of man power; probably the only restriction facing the expansion in agriculture is the water resources. There are some areas in the Arab region distinguished by fertile agricultural lands and ample amounts of water. However, they could lack the required finance or spe-
cialized labor. Consequently, the importance of integration between countries emerges. That is to say to integrate countries possessing finance with ones having specialized labor and those characterized by fertile lands and great amount of water. As a result, finance, labor, lands and water will be integrated to establish huge agricultural and animal related projects, which provide the Arab region needs of agricultural production, especially food needs. It is also worth noticing the new international directions related to the production of bio-fuel from agricultural crops, for instance grains and sugar, which burdens the Arab countries in the form of an increase in such commodities importing prices. The Arab countries paid due attention to the issue of food security projects and formed research groups, through the Arab Organization for Agricultural Development, to deal with such an issue. AOAD was deeply concerned with the previous issue and it set a food security strategy to that end, which was approved by the March 2007 Arab Summit. In a nutshell, the food gap should be controlled by common Arab
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17th AFA Int’l Annual work in the field of agricultural development taking in consideration the big discrepancy in the distribution of land, water, human, financial, scientific and executive resources between the Arab countries. This could be achieved by: - Setting a comprehensive plan representing the current Arab countries> production situation in relation to major food commodities and including the growth rate, during the last decade, together with the rates countries aim at achieving for each commodity, during the coming decade. - Specifying an integrated crop combination that achieves the maximum level of major agricultural commodities production. - Heading to expanding agricultural area and decreasing population growth rate. - Establishing an agricultural research institution on the Arab countries level. - Speeding up the establishment of common Arab market and to start with agricultural commodities. - Studying the international market situation in order to organize the importing process and direct the private and cooperative sector to the best available markets, from which food commodities could be purchased, in addition to the suitable timing for importing. - Observing ports and the outlets of food commodities imported from foreign markets or smuggled from abroad. - Rationalizing consumption patterns and organizing migration for work purpose between Arab countries, aiming at alleviating the burden on food resources, in addition to reaching resources for income and food. - Calling for the establishment of an emergency fund in the frame of an Arab program concerned with facing food shortage crisis, in order to assist the Arab coun-
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tries mostly harmed from the international food crisis. In this regard, I should refer to the great role played by the franchise system in providing good investment opportunities for numerous individuals who want to invest their money in small or medium projects known to be feasible from the economic point of view and bear high aspects of success. In such a case, the investor, lacking the wide experience required to start a new project and wishing not to expose his investments to high risks, can benefit from leasing the trademark and the brand name of an internationally successful project and accordingly
shall abide by policies, procedures and guidelines specified by the franchisor. The investor could also benefit from the support provided by the franchisor in the form of training, promotion and supply of all or part of the project required materials with competitive prices. I would further like to pay tribute to the pioneering role played by AFA, taking fully the initiative to put on table the pressing International and Arab issues to suggest solutions for policy-makers and decision-takers and to encourage people to invest in such an important field. Again thank you all for your patience.
Mr. Mouzi: The Total Capacity Rate in Egypt Reaches 9 Million tons of Different Fertilizer Types, Accomplishing a Revenue Rate Estimated by L.E.15 billion.
H.E. Mohammad Adel Al Mouzi
H.E. Mohammad Adel Al Mouzi, In Charge of Ministry of Investment Public Enterprises AFA Board Chairman - Representative of Egyptian Fertilizer Industry started his speech by welcoming H.E. The Minister of Industry and Trade, Mr. Samir Al Sayyad and all the attendants, in Egypt and the Forum opening ceremony. He further express his privilege by the remarkable attention paid to AFA International Annual Forum, held each year since 1995 in Egypt and under the auspices of the Egyptian government represented today in HE The Minister of Industry and
Trade, Mr. Samir AL Sayyad. He added, the Egyptian government sponsorship to such an International Forum, by opening the 17th AFA International Annual Forum, reflects the sublime status occupied internationally by Arab fertilizer industry and trade, manifested in Arab fertilizer industry and exports considerable share in the international market. Since its establishment in 1975, AFA works and sets its mechanisms and programs according to the latest developments witnessed and challenges faced by fertilizer industry and trade. This method is clarified in AFA annual plans, which take in consideration all the international changes and the required needs in order to promote Arab fertilizer industry. AFA purpose from the previous effort has been to raise the level of efficiency, improve the standard of performance, recognize all new issues related to fertilizer industry, provide related information and data and exchange expertise between its members. Such is being carried out by AFA in the light of a clear mission related to focusing on the best utilization of natural resources available for fertilizer industry: • Phosphate materials, the Arab region share of which exceeds 75% of the international stock. • Natural gas, the Arab region share of which exceeds 30% of the international stock. • Potash extracted from Dead Sea salinity stock, estimated by 7% of the international stock. All of the stated above materials are considered the backbone of different fertilizers> industry. Therefore, the best utilization of such materials, the achievement of its highest added value and the usage of its revenues to contribute in economic and social development parallel to the encouragement of scientific research in the field of fertilizer industry- bearing in mind maintaining the environment and protecting the human be-
ing- have always been AFA policy and strategy and AFA Board main endeavor. By all means, we should include in our Forum the issue of food security and the main challenges facing the Arab region in this regard. Although natural resources, for instance land, water and human resources, are available, the Arab region agriculture achieved not the targeted production increase to encounter the rise in food demand. Hence, the food chasm widened resulting in Arab countries importing of more than half of its food commodities> needs, which is estimated by USD 70 billion annually. • On an equal footing with the scientific preparedness made to face poverty and hunger, strong calls rose to warn against the current and expected attacking dangers and changes threatening mankind, which are embodied in the changes occurring in the international atmosphere, emphasized by number of phenomena, important of which: - The unprecedented rise in temperature degrees and the emergence of global warming phenomenon with its negative aspects and direct impacts on the global and human beings futures, as a result of the accumulating reactions of various activities, at the top of which industrial activity besides other destructive actions committed against our world.
• Hundreds of researches and studies emphasized the fact that the Earth planet temperature has risen to unmatchable levels, as proved by the ice-melting phenomenon, which in return will lead to an increase in the water level in rivers and oceans and an ongoing erosion of shores, thus, exposing many cities, coastal agricultural lands and estuaries> deltas to both erosion and salinity, leading to people movement and geographical migration. The matter that will take place if governments and organizations did not take the highest level protective measures to limit, as much as possible, the expected impacts in this concern. •Also, the irrefutable facts of the soaring financial crisis should be taken in consideration, comprising the widened poverty and hunger gap and the high rates of unemployment. - The decrease in rainfall average, consecutive draught waves, limited agricultural lands and desertification. - The repeated migration waves from rural to urban areas searching for better job opportunities and living standards. • Therefore, we from such a podium call upon the international community to concert efforts to set serious strategies in order to deal with the current unprecedented challenging reality, through the following:
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17th AFA Int’l Annual - Taking agricultural policies con- derground fresh water is estimatcerned with producing more ed by 7734 billion cubic meters, food. while the total water resources - Executing reclamation schemes used in agriculture reaches 169 to lands and fighting desertifica- billion cubic meters. tion. The abovementioned undoubtedly - Applying good governance prac- requires exerting strenuous efforts tices in agriculture and fertiliza- and setting water extension polition. cies capable of maintaining, bene- Launching agricultural extension and awareness programs to raise fitting from and scientifically emagricultural productivity hori- ploying available water amounts in order to increase the area of zontally and vertically. - Rationalizing agricultural exten- agricultural lands, maximize the sionist usage of water resources benefit from available agricultural and developing irrigation meth- lands and use different types of ods to do away with the tra- fertilizers in a way increasing agditional irrigation immersing ricultural return horizontally and method. vertically, thus leading to tangible The following table highlights the economic development. Arab food security situation in When highlighting regional agriaddition to the self-sufficient culture sector capacity to develop, rates concerning the main com- it is worth mentioning that it is modities: still suffering from some determiThe stated above Commodity Self-Sufficient Rate rates necessitate from the region to Grains 49 exert more effort so Red Meat 84 as to develop the ag75 ricultural and animal White Meat sector heading to Poultry 69.8 minimizing the food Edible oils 38 gap and reaching the self-sufficient rate as Sugar 38 much as possible. To Source: Arab Organization for Agricultural Development elaborate, the development of Arab agricultural sector nants: became a necessity, as the present 1. Insufficient legislations in agriculture field: the legislations and future of Arab food security attracting investments, with refare related to the present and future erence to the agricultural field, of agriculture, bearing in mind the are still below the aspirations of fact that the region is considered investors and even require upan integrated economic unit. dating, especially in countries With reference to the region availhaving huge areas and good waable agricultural resources, repter sources, at the top of which resented in agricultural lands and Sudan and Egypt. rain amounts, these resources 2. Limited usage of modern agqualify the region to provide rericultural technologies and spequired food needs. The arable land cialized researches. The matter area is estimated by 198.20 milshown in the poor production lion hectares, 69 million hectares of grains in the Arab region, of which are used. Concerning the estimated by 1.7 ton/hectare in Arab region amount of rainfall, it comparison to around 5.6 ton/ reaches 2282 billion cubic meters hectare in the United States. annually. Besides, the stock of un-
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3. Poor infrastructure level (such as roads, transportation, storage ‌ etc.) and their negative and direct impacts on the agricultural and marketing system. Concerning the fertilizer industry in Egypt, Mr. Mouzi declared that Egypt was the leading country in this field on the Middle East level, since 1936. In Egypt, this industry developed, its production capacity rose and factories increased, comprising 17 fertilizer producing companies, which represent the base of nitrogenous, phosphatic and NPK fertilizers in Egypt. The investments of the previous companies exceed L.E.60 billion, in which 20 thousand workers and engineers work. In addition, there are other underway and in the-establishment-phase projects, with investments reaching L.E.20 billion. Also, they are expected to provide around 4 thousand new job opportunities in such vital and strategic sector. When tackling the production capacities of the said sector, it is worth mentioning that the total capacity rate reaches 9 million tons of different fertilizer types, accomplishing a revenue rate estimated by L.E.15 billion. Production essentially aims at covering the local required needs for agriculture and exporting the surplus. AFA invited a galaxy of regional and international experienced experts and specialized people to tackle the impacts of the international economic and financial crisis, challenges facing fertilizer industry, requirements of agricultural development, issues related to increasing population, effects of atmosphere change on food, questions of mankind future together with efforts exerted internationally to narrow poverty gap and achieving progress in this regard in line with the efforts led by FAO to such an end.
Dr. Ashkar: The International Community and Specialized Organizations Should Adopt Clear Policies and Take well-advised Procedures to Encounter the Serious Shortage in Food Dr. Shafik Ashkar, AFA Secretary General delivered the following speech at the opening session: Our renewable annual gathering is considered the most comprehensive fertilizer industry event in the Arab region in particular and the Middle East in general. The endless keenness on the official sponsorship to the event by fertilizer industry Egyptian companies emphasizes and reflects Egypt>s due concern paid to fertilizer industry, being of great relation to and playing an important role in the development and the best utilization of the available natural resources in Egypt, namely natural gas and phosphate. Thus, it has a tremendous impact on boosting the economic development and enhancing food system via the assistance of agricultural process, provision of fertilizers and effective distribution of fertilizers in order to increase agricultural productivity, supply more food and achieve people welfare. Fertilizer industry is in fact the industry of food and cloth; therefore tackling such an industry status and challenges should be accompanied by highlighting the various threats facing the world, at the top of which the international financial crisis shifting into a severe economic one. Furthermore, there are other threats such as the occurrence of natural disasters, intensity of poverty and unemployment problems, decrease in rainfall average and the consecutive draught waves facing many countries. With the world population reaching more than 7 billion people, a heated competition arise concerning water and its usages, whether for industrial, agricultural or drinking purposes. This
Dr. Shafik Ashkar
competition synchronizes the suffering of most countries from the decline in rainfall rates and scarcity of water, especially in the Arab region, which is considered one of the scarcest water regions and expected to be the driest region in future. In addition to the aforementioned, the world is witnessing deep-rooted economic and social changes; particularly in China and India, where the middle class scope widens, food system changes and diversifies and food consumption generally rises. These cases are direct results of the repeated migration waves from rural areas, originally of people working in agriculture, to urban or quasiurban areas searching for better job opportunities and living standards. All of the previously mentioned went along with cases of natural disasters and dangers faced by some countries late 2010 and early 2011, for instance the consecutive drought waves and destructive hurricanes witnessed by Australia and New Zealand, the loss of more than 30% of Russia 2010 wheat harvest and export preven-
tion hence affecting the strategic agricultural crops (wheat, corn, rice, edible oil), the deterioration in international stock by the end of 2010 and the decrease in the world market products. Food provision is the right for all human beings without exception or distinction, as hunger is not an inescapable destiny. With the concerted regional and international efforts and in cooperation with the poorest countries governments, assumingly food security would become a priority for the economic and social development in the light of the hike in main food products prices, which represent the cornerstone of food system, thus warning from apparent signs of an international food crisis, taking in consideration the expectation of the world population to exceed 9 billion people by 2050. Based on the above threats and challenges defying mankind, the international community and specialized organizations should adopt clear policies and take welladvised procedures to encounter the serious shortage in food. Such an action shall take place through agreeing on and the adopting of agricultural policies and integrated system for the production of strategic food crops together with the rationalization of water usage through applying good governance practices in agriculture and fertilization in order to better agricultural productivity, efficiently utilize and face any trespassing on the currently operative lands, make use of inoperative lands, improve agricultural investment atmosphere, provide the best circumstances to attract and increase investments with reference to the agriculture sector. On the regional level, the achievement of food security, with its broader concept, could be carried out with great courage and direct procedures heading to the stimulation of the current agricultural region potentials and integration of the required financial resources
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17th AFA Int’l Annual for the sake of investing in the agriculture sector, employing the available best technology and promoting fertilizer usage rates in addition to developing the required legislations. Thus, it is inevitable to make the former directions a strategic objective for the decision-makers in the region escorting the declared international efforts in this concern. When speaking about Arab fertilizer industry, it is an industry that developed and its productivity increased during the last decades, as the production reached 80 million tons in 2010 and exports exceeded 40 million tons. Furthermore, an increase in energy is expected through a number of new underway projects in various Arab countries, a huge number of which will start production in the second half of 2011. All of the previously said will undoubtedly enhance fertilizer industry share in international markets. It is worth mentioning that the Arab fertilizer industry currently has an essential share in the international market equivalent to the following: - 40% of urea fertilizer - 18% ammonia - 75% phosphate rocks - 58% phosphoric acid - 34% TSP fertilizer - 25% DAP fertilizer The above information emphasizes Arab fertilizer industry reaction to the international requirements reflected in the provision of more fertilizers to support agricultural production system, thus producing more food. With reference to the proceedings of the 17th AFA International Annual Forum and with the attendance of more than 650 participants representing 210 regional and international companies and organizations from 34 countries, this highly emphasizes the great attention given by the Arab, international and regional companies and organizations to such a
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Forum, its status and convention, on annual bases, to be an essential podium of discussions, deliberations and conducting commercial agreements between producers and importers; bearing in mind the great importance of and the entrenched confidence in Arab fertilizer industry by importers depending on a number of enhancing factors and distinguished by the efficiency and quality of products and the commitment to supply.
In addition to the presentation of the said facts concerning the food and food security situation, the Forum will further give a direct picture through the concerned organizations and associations regarding the agriculture, fertilizer and food triangle in order to cover the international movement and fertilizer status in this concern. This will be carried out by specialists from major markets coming from the five continents.
Dr. Munir Gabra Butrous: The number of hungry and undernourished people in the Near East Region in 2010 is estimated at 37 million
Dr. Munir Gabra Butrous, Senior into hunger and undernourishProfessional Officier of FAO was ment. While food commodity a keynote speaker during the openprices in world markets have deing session. He made the followclined substantially in the wake ing presentation on “World Food of the financial crisis, food prices & Agriculture in Review”. in domestic markets have often This is a period come down more of grave concern slowly. for the fate of the The International world’s hundreds Monetary Fund of millions of poor IMF emphasized and hungry people. the extreme unThe world’s attencertainty of the tion was focused outlook and the on the global food concern that ecocrisis as rapidly nomic policies rising prices of might not be sufstaple foods posed ficient to arrest major threats to the vicious spiral global food secuof deteriorating rity. The leaders of financial condiDr. Munir Gabra Butrous the world’s most tions and weakindustrialized naening economies. tions voiced their deep concern Both the prospects for recovery “that the steep rise in global food from the economic crisis and deprices, coupled with availability velopments in agricultural marproblems in a number of developkets are critical for the world’s ing countries, is threatening global poor and hungry and for the posfood security”. sibility of moving towards rapid The episode of “soaring food and sustained progress in hunger prices” was followed in rapid sucreduction. While the outlook for cession by the most severe global the global economy remains unfinancial crisis and deepest ecocertain, agricultural market uncernomic recession witnessed in the tainties have grown over the past last 70 years. The crisis has hit year, making the agricultural outlarge parts of the world simultanelook particularly unclear. ously, pushing millions of people Real energy prices still remain
above trend levels while resumed income growth in developing countries could put renewed upward pressure on food prices. Biofuel feedstock demand is being sustained, if not by economic fundamentals, then by a surplus of consumption mandates, fuel blending requirements, subsidies and tax incentives in many countries. Many of the various policies implemented by numerous countries to protect domestic consumers from high prices, several of which constituted a disincentive supply response, have been slow to be removed. Policy concerns about how to prevent a future food price crisis also remain. In short, considerable uncertainty persists in agricultural markets across the globe. Beyond the overriding question of the timing and speed of recovery from the severe economic recession, some issues particular to agriculture and agricultural markets appear as critical for the future of global World food and agriculture. There are many open questions: • How efficient are global and domestic food markets in transmitting price signals to producers and consumers? • Will resumed growth of the global economy lead to a renewed phase ofsoaring food prices? • What is the capacity of global agriculture to expand in the face of higher agricultural commodity prices? • How much have policies initiated to protect domestic consumers from the effect of higher food prices distorted international markets, thereby worsening the problem and hampering an efficient supply response? According to FAO’s report The State of Food Insecurity in the World (SOFI) 2010, there are presently 925 million people suffering from hunger and malnutrition in the world. While this repre-
sents a welcome decline of nearly 10 percent from the 2009 level, it remains unacceptably high. Today about 100 countries require emergency assistance to rebuild their agricultural productive capacity and there are 30 in a situation of food crisis. As a consequence, the level of the FAO emergency assistance programme in these countries amounts to 1.1 billion US dollars. The situation in member countries of the Near East Region mirrors the world situation, with more people suffering from hunger and malnutrition. The number of hungry and undernourished people in the Near East Region in 2010 is estimated at 37 million, this corresponds to a reduction of 5 million people from the 2009 level.
a global population expected to reach 9.1 billion in 2050. Almost all of this demographic growth will take place in developing countries, and primarily in urban zones. Strong political and adequate financial resources are needed to rise the challenge of expel hunger from the world. Decision taken must be followed by actions adequate with the goals set. Agricultural production and productivity need to be increased in developing countries, and particularly in lowincome food-deficit countries. Official development assistance to agriculture should reach 44 billion US dollars per year and developing countries must themselves devote a greater portion of their budgets to the sector.
Focusing on Near East Region, severe droughts and unheralded heat stresses, which hit several countries in 2008/09, were the main factors behind the drop in cereal production. A better improvement was recorded in the livestock sector, where meat production increased by 5 percent between 2006/07 and 2008/09. Fishery and aquaculture production is assuming an increasing importance, but its pace of growth remains modest. Total capture fisheries and aquaculture production amounted to five million tones in 2008, with aquaculture accounting for more the 24 percent.
CONCLUSIONS The rapid succession of two major crises – the global food crisis and the subsequent financial crisis and economic recession – has delivered the hardest blow to world food security in decades. The two crises have led to a sharp increase in the number of people suffering from chronic hunger and undernourishment in the world and a reversal of the previously declining trend in the proportion of the world’s population without access to adequate food for a healthy and active life. The impact of the recession requires immediate and effective measures to protect the poor and food-insecure who are the most severely affected victims of the crisis. To lift them out of hunger, the food insecure need control over resources, access to opportunities and improved governance at the local, national and international levels based on right-to-food principles. Finally, it is necessary to strengthen the international trading system in order to prevent measures implemented to protect domestic populations from destabilizing international markets and penalizing other countries.
While the Region is regarded as low forest cover compared to the rest of the world, the forest sector contributes more than 7 billion US dollars to the regional gross domestic product. The effects of climate change on the natural ecosystems are contributing to the degradation of forests and rangelands and to faster desertification in the Region. Agricultural production will need to increase by 70 percent in the world and to double in the developing countries in order to feed
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17th AFA Int’l Annual Keynote speaker:
World Food Security Situation & Challenges
Global Fertilizer Short-term Outlook: Toward a Full Recovery Mr. Michel Prud’homme,
Senior Professional Officer, FAO United Nations
Director, Production & International Trade Services IFA , France
Session II
North American Fertilizer Situation and Outlook
Dr. Munir Gabra Butrous,
- Global Fertilizer Outlook
Chairperson:
Eng. Ahmed El Gayar
Chairman & Managing Director, Abu Qir Fertilizer Co., Egypt Overview of Fertilizer Policy in India: Current Situation and Future prospects Mr. Satish Chander
Director General FAI-India
Nutrient Balance in Arable Lands..a global Challenge for the fertilizer Industry
Mr. Ashley Harris,
Purchasing Manager, Agrium Europe Agrium , Belgium Trends in Nitrogen Fertilizer Industries from a Contractor’s view Mr. Richard Saure,
VP Sales Ammonia and Urea Division Uhde, Germany Session IV
- Fertilizer Development & Freight Market
Dr. Paul Fixen,
Chairperson:
Australian Fertilizers Prospects ad Issues
Head of Dept., Fertilizer Institutes Relations, Market Research & Communications- OCP- Morocco
Senior Vice President IPNI, USA
Mr. Nick Drew,
Executive Manager FIFA, Australia The Phosphate Market - the Rise of China as an International Player Mr. Mike Nash,
Senior Editor Manager ICIS, UK Session III
- Fertilizer Supply/ Demand Situation &Future Prospects Chairperson:
Mr. Michel Prud’homme
Director, Production & International Trade Services, IFA, France Petrochemicals Industry in Egypt Eng. Osama Kamal,
Chairman Egyptian Petrochemicals Holding Co., Egypt
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Mr. Mohammed Benzekri,
Typical Response to Potassium Fertilization of crops in the WANA Region Mr. Michel Marchand,
Coordinator WANA Group IPI Coordinator India IPI, Switzerland Global Developments in Nitrogen Production Costs & Profitability Mr. Oliver Hatfield,
Director- Fertilizers Integer Research, UK Dry Cargo Freight Market Fundamentals Mr. Nicholas Collins,
Chief Operating Officer, Clarksons, Dubai Ammonia Freight Market Miss. Nichola Williams,
Director, Clarksons Gas, UK
Ex
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17th AFA Int’l Annual
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There was an exhibition of stands alongside the conference where fertilizers manufacturers and suppliers showcase their products to a highly focused and professional local and international audience.
Abu Qir Fertilizers Company (AFC)
(Egypt) AFC was established in 1979. It is an Egyptian joint stock company. AFC is the biggest nitrogen fertilizers producer in Egypt (With about 70% local market shares). AFC is a main shareholder of two new Egyptian fertilizer producers namely:• Alexandria Fertilizer co. ( Alexfert ) 33 million American dollar • Helwan fertilizers co. 25.5 million American dollars. AFC diversify its product mix to satisfy customer needs. That’s why AFC launched during the past 3 year two new units within its premises in Abu Qir, Alexandria. The first is for the production of bulk blended fertilizers (NPK). With a yearly capacity of 360 thousands MTS & it started production in Jan .2006. As for the second unit it’s for the production of (UAN) Urea Ammonium Nitrate Solution with a yearly capacity of 360 thousands MTS & it started production in oct. 2006. This addition to production of Urea supplemented with secondary & micro Nutrients. AFC maintains product high quality (ISO 9001) as well as environment standards (ISO 14001) & preparing for the required procedures to maintain (ISO 18001 OHSAS) & (17025 TEC). Tel: +20 3 5603030 (Chairman) 5603042 (Marketing) chairman @abuqir.com Marketing @abuqir .com Website: www. Abuqir. Com
ABU ZAABAL Fertilizers & Chemicals Co.
(Egypt) AZFC is one of the two manufacturers of SSP (Powder & Granulated) fertilizer and the sole manufacturer of TSP (Granulated) & Phosphoric Acid in Egypt. In addition to producing Sulfuric Acid, AZFC is one of the oldest Egyptian Industrial companies. Fax: +20-2 33381875 Email: sherif@elgabaly.com
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AQUA TRUST for Water Treatment Co.
(Egypt) • Solutions of all the problems related to the water industries. • Design and tailor - made water treatment programs
with unlimited possibilities by using a completely new reliable types of chemicals to prevent corrosion/ scaling/ fouling. • Aqua Trust applies a uniquely adaptable on stream cooling water systems cleaning to remove deposit and scales within 48 hours, from the entire systems without the need of shut-down and off-stream boiler cleaning. • Follow-up of the treatment program at the customer - site. • Advanced analysis and measurements carried out in Aqua Trust R and D labs and Science Center for Detection & Remediation of Environmental Hazards (SCDREH) AZHAR University, through the
mutual protocol of cooperation between SCDREH and Aqua Trust. Fax: +20-2 4184910 Email: aqua@aquatrust.net www.aquatrust.netfirms.com Egyptian Financial & Industrial Co. E.F.I.C (Egypt) Egyptian Financial & Industrial Company Egyptian Financial & Industrial Company is the giant phosphate fertilizer producer that dominates 70% of the Egyptian Market and successfully penetrates the export markets in the five continents of the globe. EFIC produces, sells and exports five main products:
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17th AFA Int’l Annual • Concentrated Sulphuric Acid CSA • Single Super Phosphate SSP both Powdered PSSP and granulated GSSP • Compound Nitrogen and phosphate Fertilizer NP • Ammonium Sulphate Fertilizer AS • Di-Calcium Phosphate DCP EFIC FACTORIES • Kafr El-Zayat Factory in Delta Region of Egypt • Assiut Factory in Upper Egypt • Suez Company for Fertilizer Production “SCFP” a subsidiary 99.8% owned by EFIC at Red Sea Port City of AL-Ain ALSukhna. Fax: +20 40 254 2773 +20 2 2393 8578 Email: sfie@sfie.com.eg Web site: www.sfie.com.eg E-mail: info@alexfert.com Website: www.alexfert.com
El-Nasr for Fertilizers & Chemical Industries Co. – SEMADCO
(Egypt) The company activity: Producing and marketing nitrogenous fertilizers and intermediate chemicals, established in 1951 for the production of nitrogenous fertilizers. Products: Solid Fertilizer: I- Granulated Ammonium nitrate NH4NO3 33.5% N 2- Granulated Calcium Nitrate Ca(NO3)2 15.5 %N 3-Ammonium Sulphate (NH4)2 SO4 20.6% N Liquid Fertilizers: 1- Sulpho Ammonium Nitrate Total N (18%) Sulphur (2%) 2- Calcium Nitrate Total N (11%) By products & Intermediate Chemicals: 1- Dilute Nitric Acid HNO3 (55-60% Cone.) 2- Conc. Sulphuric Acid H2SO4 (98.5 + 0.5% WT.) 3- Ammonia NH3 ( 99.8% Conc.) 4- Ammonium Hydroxide NH4 OH (18 25%Conc.) Tel: +20 2 22667324 Fax: + 20 2 22667325 semadco@semadco.com Website: www.semadco.com
El Nasr Co. for Intermediate Chemicals
(Egypt) NCIC founded in 1975, it is a specialized company in manufacturing chemical & Fertilizer industries, Industrial and Medical Gases and household insecticides. The company implements the most advanced technologies which led to the high quality of products while preserving the environment from all types of pollution. The company produces fertilizers of different types: • Granulated Single Super Phosphate Fertilizer (GSSP). • Triple super phosphate fertilizer • Potassium Sulphate Fertilizer
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• Compound Fertilizer (NPK) with the latest production technology • DAP Fertilizer with the latest production technology. This is in addition to: • Phosphoric Acid • Concentrated Sulfuric Acid Tel: +20 2 35391640 (10 lines) Fax: +20 2 35390678 E-mail: ncic@nasrchemicals.com
HELWAN Fertilizers Co. – HFC
(Egypt) • Production & Marketing of Urea fertilizers. • Production started since March 2007 Yearly production capacities: - 650.000MT Granular Urea 46.5%N. - 400.000MT Liquid Ammonia As export oriented company, HFC distributes its urea product all over the world (USA, Canada, Europe, Asia, Australia and Africa). The increase of demand for our product is due to the fact that we are producing a high quality urea product. a) Exportation: is made either as bulk urea or bags of 500 kg or 1000 kg. b) Local sales: in bags 50kg HFC is certified ISO 9001 – 2008, ISO 14001 – 2004 and OHSAS 18001/2007.
Tel: +20 2 250 22308 – 25022313 Fax: +20 2 25026504 hfc01@hfcegypt.com Website: www.hfc-egypt.com
ORASCOM Construction Industries
(Egypt) Orascom Construction Industries is a leading international construction contractor and fertilizer producer based in Cairo, Egypt. We are one of the region’s largest corporations with projects and investments across Europe, the Middle East and North Africa. Our Construction Group ranks among the world’s top global contractors and operates under three distinct and separate business units. Orascom Construction targets large industrial and infrastructure projects principally in North Africa and the Middle East. The BESIX Group undertakes major commercial, industrial and infrastructure projects throughout Europe, the Middle East and northern and Central Africa. Contrack pursues institutional projects in the Middle East and Central Asia. We are one of the most experienced industrial contractors in our region with a proven track record in the construction of fertilizer plants in partnership with global technology leaders. We are therefore able to leverage our construction capabilities with Greenfield fertilizer projects, reducing the time and
cost of development and maintenance. Our Fertilizer Group produces nitrogen-based fertilizers. We are a leading investor, operator and distributor in the global nitrogen- based fertilizer industry. We have investments in facilities in Egypt and Nigeria, with one fertilizer plant under construction in Algeria. These operations alone will rank us among the region’s largest fertilizer producers. We are actively looking for new investment opportunities to grow this business into a global leader. Tel: +20 22 461 1111 Fax: +20 22 461 9400 WWW.ORASCOMCI.COM
Misr Fertilizers Production Company – MOPCO
(Egypt) • MOPCO is specialized in the production of “urea”. • Expansions: The EPC contractor, “Uhde”, and the subcontractor “Petrojet Company” are handling the construction of the lines for both ammonia and urea production designed to produce 2400 tons/day ammonia and 3900 tons/day urea. The investment cost for this substantial establishment is estimated at U$ 1.7 billion. The project>s construction conclusion date is anticipated to occur in 2012 for the annual production capacity around 2 million tons.
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17th AFA Int’l Annual Tel: Head Office : +2 02 26713543 Fax: Head Office : +2 02 26713539 Plant: +2 057 2291315 Plant: +2 057 2292062 www.mopco-eg.com
Misr Phosphate Company - MPCO
(Egypt) With capital of 1,000,000,000 EGP, more than 900 employees, and a unique production complex in the new valley and it owned the only beneficiation plant in Egypt. Over one billion tons of assured reserve in only 10% of the total discovered area. MPCo. shares the global feeding responsibility in providing the row materials for fertilizers production and helps securing more food for the nations with a wide range of rock phosphate and BPL range from 52.4 to67.5. Tel: +20 2 25905886 - 25896292 Fax: +20 2 25917782 Email: Hussein_h@egsma.gov.eg Website: newvalleyphosphateproject
EVERGROW for Specialized Fertilizers
(Egypt) Evergrow for specialized fertilizer is leading company in producing and developing is a wide range of fully soluble or liquid is fertilizer to suit crop and soil needs. Evergrow Company manufactures the following fertilizers: Phosphates fertilizers group:- Mono –Ammonium Phosphate (12/61/0). - Mono Potassium Phosphate (0/52/34). - Powder Urea Phosphate-Magnum (17/44/0). - Liquid Urea Phosphate (11/30/0). Calcium Nitrate fertilizers group:- Powder fully soluble Calcium nitrate (15.5/0/0/26%CaO). - Liquid Calcium Nitrate (11/0/0/+19%CaO) and (13/0/0/23%CaO). Potassic fertilizers group:- Soluble Potassium sulfate powder (0/0/50). - Potassium Sulfo-nitrate (14/0/46). - Liquid Potassium nitrate (3.5/0/11.5). - Soluble powder (9/0/46). - Soluble powder (12/3/43). NPK fertilizers group:- Soluble powder (20/20/20). - Soluble powder (19/19/19). - Avenger (liquid balanced NPK) 7/7/7). - Fantom-1 (liquid high phosphorus formula) 7/14/7). - Vega-1 (liquid high potassium formula) 7/7/14). Magnesium fertilizers group:- Crystal Magnesium Nitrate (11/0/0/16% MgO). - Copper Sulfate CuSo4. 5H2O. - Calcium Chloride (CaCl2.2H2O).
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- Hydrochloric acid (HCl). Tel: +20128699030 – +20120001861/62 Fax: +20128880573 evergrow@evergrow.info Khsh _evergrow@yahoo.com Web Site : www.evergrowegypt.com
Mitchell jr shipping Company
(Egypt) Mitchell jr shipping Co.established & dealing in the shipping industry since 1940, as shipping agent & till now continuously we are the successors of our grand father China Mitchell Group. We facilitate shipping matters, as (covering your vessels passing Suez Canal & all Egyptian ports, chartering vessels, booking cargo and NVOCC, Full assistance to masters during stay in ports, clearing & forwarding parcels to/for vessels) , Our branches cover all Egyptian ports, Libyan, Sudan, Djibouti, Yemen, U.A.E & Turkish ports. Tel: +20 66 3338591 - 2 - 3 Fax: +20 66 3338594 / 3235508 operation@mitchelljr.com.eg financial@mitchelljr.com.eg www.mitchelljr.com.eg USA Brach: P.O. Box: 271062 Flower Mound TX 75027.
Middle East Star
(Egypt) Since 1981, Middle East Star MES has rendered value integrated services to the petrochemicals, gas, and fertilizers industry in Egypt. Today, Middle East Star partners with worldwide market leaders working hand in hand with customers to optimize process in the above industry. In fertilizers sectors, our partners list include TRAGENCY, MANOIR, MP, PALL, ROTORK, VILLA SCAMBIATORI, THERMAL CERAMICS, TRANTER and SEALWELD. Tel: +20 2 2 62 33 110 / 2 62 33 112 Fax: +20 2 2 62 33 272 Address: 5 Ismail El- Mazny Street, Behind Military College, Heliopolis, Cairo, Egypt. P.O. Box 5591 Heliopolis West 11771
M.G.S. Egypt - Moukhtar Group of Shipping
(Egypt) A Shipping Agency - Shipping Agencies - Booking spaces on ships - Tenants ships - Loading and unloading - Consulting shipping - Import and export
37 El Fardous Str. Bank Misr Tower, Semouha, Alexandria – Egypt Tel: +20 3 420 7470 Fax: +20 – 3 424 1433 www.mgs-egypt.com
Union for Agricultural Development. Co.– UAD
(Egypt) Manufacturer and agent of high quality Mineral , Biological fertilizers and Agricultural Chemicals We provide our client with many products as:1) Highly pure compound fertilizers (N-P-K) in solid and liquid forms available for using through fertigation systems [our fertilizers are highly soluable in a low pH and salinity index] 2) We provide highly pure and dissolving Chelated micro-nutrients as Fe, Zn, Mn, Mg, also provide Ca & Mg.(chelated by Amino Acids ) 3) Specialized growth regulators for fruit setting and improving fruit, tubers and roots quality. 4) Amino acids either in instant dissolving powder or liquid forms 5) Vitamins and Algae or seaweed Extracts. 6) Highly pure Humic acid and Fulvic acid (Solid and liquid forms). 7) Special formula for various soil problems as soil salinity, alkalinity, soil pests , fungi, and nematodes.
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17th AFA Int’l Annual 8) Our company provides special products based on natural resources for Bio and organic cultivation and Conforming with Biodynamics and organic culture Requirements (EL-MOWAFFER BIO). - The company has been awarded the excellence shield with an appreciation issue from the Egyptian Ministry of Agriculture 2009 and 2010 - ISO 9001 TÜV Rheinland No : 01 100 083008 - ISO 14001 TÜV Rheinland No: 087224 104 01ر - OHSAS 18001 Swiss Certification No : 4028 Tel: (+202) 268 27 163 – 248 74 352 012 100 83 17 – 010 52 72 571 – 012 240 299 1 info@uad-eg.com www.uad-eg.com
Haldor Topsøe
(Denmark) Haldor Topsøe is one of the main suppliers of catalysts and technology for the ammonia and methanol industries. Due to focus on constant innovation and development, Topsøe has supplied catalysts and process design for approx. 50% of the new ammonia plants constructed within the last decade. This considerable R&D effort, combined with extensive knowledge and insight about actual ammonia plant operation, is utilised when offering new catalysts, improved process layout and equipment design for the fertiliser industry. Haldor Topsøe A/S Catalysing your business Nymøllevej 55, DK-2800 Kgs. Lyngby Phone: +45 4527 2239 www.topsoe.com
Uhde GmbH
(Germany) «Uhde is a company in the Plant Technology business area of the ThyssenKrupp Group. With more than 2,000 plants to its credit, Uhde is one of the world’s leading engineering companies in the design and construction of chemical, refining and other industrial plants. Uhde has local organizations in all four corners of the globe. This intelligent worldwide network with over 4,500 employees is active in a number of different fields: fertilisers, electrolysis, gas technologies, oil, coal and residue gasification, refining technologies, organic intermediates, polymers and synthetic fibres as well as coke plant and high-pressure technologies. We offer our customers not only cost-effective high-tech solutions in industrial plant construction and the entire range of services associated with an EPC contractor but also comprehensive service packages for the entire life cycle of their plants. Uhde is a leading supplier of fertiliser production technologies and complete fertiliser plants and has outstanding experiences in the Middle East and North Africa.» Friedrich-Uhde- Str. 15, 44141 Dortmund, Germany Tel.: +49 (231) 5 47-0 Fax: +49 (231) 5 47-30 32 Website: www.uhde.eu E-Mail: ammonia.uhde@thyssenkrupp.com
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urea.uhde@thyssenkrupp.com nitrates.uhde@thyssenkrupp.com
Neelam Aqua & Speciality Chem (P) Ltd
(India) Neelam Aqua & Speciality Chem started its manufacturing facilities in 1980 . It was the first company in Asia to manufacture Organophosphonates for Cooling water treatment. It manufactures a wide variety of speciality chemicals for Fertilizer Quality Improvement. The specialized products for Fertilizer industry are: (1)Anticaking for –Urea, NPK ,CAN ,DAP , (2) Hardness improver for Urea and other fertilizers (3)Dust Suppressor for Sulphur, granular fertilzers (4) Defoamer for Phosphoric acid and (5)Colouring agents. (6) Micronutrient binder (7) Water treatment chemicals for Cooling towers, boilers & ETP. (8) Antiscalents The Company’s latest product for slow of Nitrogen from Urea is the most unique achievement in the field . The Company has large scale manufacturing facilities in India. Phone: 0091-141-2460539 /2460856/ 2460081 Fax: 0091-141-2460081
European Machine Trading
(The Netherlands) European Machine Trading is a producer of blending and bagging equipment based in the Netherlands. A wide range of bagging and blending equipment and associated inline transportation equipment, such as conveyors, for use within the fertilizer industry. Bulk blending equipment lines: include EMT’s own Weighcont Blender (20tph to 200tph capacity), which works on the principal of Weighing Continuous Blending; the Doyle Equipment product range including the Shamrock Vertical Blender, The Kraus Smithbuilt and Tower Blender Lines; and used, reconditioned machines, both from the Doyle range and from other suppliers. E-mail: emt@e-m-t.nl www. e-m-t.nl
Stamicarbon
(The Netherlands) Stamicarbon, the innovative, experienced and reliable licensor Stamicarbon is the global market leader in the development and licensing of patented urea technology with a market share of more than 50% in synthesis and about 35% in granulation technology. This leading position is maintained by its continuous innovations, like AVANCORE®, Mega Plant, Urea 2000plus™, Granulation Technology and Safurex® material.
Stamicarbon has over 60 years> experience in licensing its urea technology, delivering optimum environmental performance, safety, reliability and productivity at the lowest investment level. It has licensed over 250 urea plants located in over 50 different countries. Furthermore it has completed over 90 revamp projects in Stamicarbon and non-Stamicarbon plants. Mercator 2, 6135 KW Sittard: P.O. Box 53, 6160 AB Geleen - The Netherlands Tel. +31 46 4237000 Fax: +31 46 4237001 info@stamicarbon.com www.stamicarbon.com
COMSPAIN XXI, S.A
(Spain) COMSPAIN is a Spanish engineering company manufacturing of industrial machinery for transformation of solid products. We are a 30 year old business with several hundreds of partial equipments and turnkey systems worldwide, in the chemical, mining, quarries, composting plants, petrochemical, fertilizers, etc, industrial fields, having specialized ourselves specially in the fertilizer market, as you can see in our website page www.comspain.com. We are associated with the Stated Owned EPC Indonesian Company, PT REKAYASA INDUSTRI with more than 1.200 employees. We are also able to do local manufacturing with our owned control and warranties. Bravo Murillo, 23 - 28015, Madrid- Spain Phone: +34 914 489 955 Fax: +34 914 475 477
Lake International Technologies - Biofix Surface Bonding Technology
(UK). Lake International Technologies are part of the AECI Group of companies and are a proudly South African manufacturer of surfactants and emulsifiers. Lake have recently developed a new environmentally friendly fertilier enhancement/additive range called Biofix. Biofix enables a process that we have called <Surface Bonding Technology ( or SBT) which is the attachment of micro-particles or powders onto the surface of fertilizer granules or seeds. This technology provides the perfect low cost ‘green’ solution to attaching trace nutrients, and by attaching powder to each and every granule, we avoid the <pellet lottery’ - greatly increasing the crops ability to find the nutrients via its root network. Further, using Biofix to attach Sulphur to Urea has been proven to reduce volatilisation and so increase crop yield by up to 23% via a combination of fixing the N, whilst providing often much needed S to the soil. Tel: +44 1473 317139 Fax: +44 1473 811734 E-mail: Duncan.andrews@lakeinternational.com www.biofix.co.za
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With Member Companies
Large Scale Plants > 6,000 mtpd a dream or a reality? As world’s population continues to grow, an increasing demand for raw materials is required to deal with its hunger for welfare and thus primary resources. Urea distinguishes itself as crucial build block in the world’s food chain and will remain essential for the world food supply in the coming decades. Today’s largest scale urea plants are built for urea capacities in the range of 3,000 – 4,000 mtpd. However, Stamicarbon technologies do allow for higher urea capacities up to 6,000 mtpd, responding to the trend of establishing single-line ammonia capacities of more than 3,000 mtpd. Stamicarbon has two proprietary designs that allow for higher urea capacities, which can be obtained by either straightforward scaling up, or by application of Stamicarbon MEGA technology. Besides the very successful Urea 2000plusTM technology, comprising the Pool Condenser as a key element in the urea synthesis loop, Stamicarbon now also offers the AVANCORE® technology. This technology allows for minimum urea plant height and takes full advantage of Safurex stainless steel by eliminating the air intake that is commonly needed in urea plants to prevent corrosion. Both technologies can be used for building large scale plants.
Figure 3: Flow diagram of MEGA technology urea synthesis based on Urea 2000plus™
Figure 2: Flow diagram of Avancore® technology synthesis
Figure 1: Economy of scale for urea plants
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For any capacity, MEGA technology allows for the synthesis section to be sized 35% smaller than without MEGA technology. As such, urea capacities up to 6,000 mtpd can be reached without sizing synthesis equipment beyond dimensions that were already proven in existing plants. On top of that, the MEGA concept as a whole has been proven to work very well in four plants that use this technology.
AFA NEW PUBLICATIONS
2010 AFA Annual Fertilizer Statistical Yearbook
The implementation of large scale urea plants based on Urea2000plusâ&#x201E;˘ and MEGA technology allow to exploit advantages of economy of scale by offering a cut in investment cost (CAPEX) together with a reduction in maintenance and operating costs (OPEX). This is especially contributing to the competitiveness of the MEGA technology as the investment cost for a MEGA capacity plant are only 70 to 75% per ton of produced urea compared to a standard 2000 mtpd unit Urea 2000plusTM pool reactor plant.
Stamicarbon
Stamicarbon B.V., the licensing and IP Center of Maire Tecnimont, is the global market leader in licensing of urea technology and services with more than 50% market share in synthesis and 35% market share in urea granulation technology. Stamicarbon has over 60 years> experience in licensing its urea technology, delivering optimum environmental performance, safety, reliability and productivity at the lowest investment level. Around the world, over 250 urea plants are using its technology. Furthermore it has completed over 90 revamp projects in Stamicarbon and non-Stamicarbon plants. More information: www. stamicarbon.com
AFA General Secretariat has the pleasure to announce the issuance of 2010 Annual Fertilizer Statistical Yearbook. The report is focusing on the achievements of Arab fertilizer companies, during the year. These achievements emphasize the great role played by Arab fertilizer industry, internationally, in boosting the agriculture system in general and insuring millions of people access to food, taking in consideration the fact that 50% of Gross Agricultural Product rely on using different kinds of fertilizers. Moreover, the report underscores the situation of Arab fertilizer industry and the development of production capacities: actual production, exports, local consumption and domestic sales, imports. The report further highlights the new projects and production capacities together with Arab fertilizer share and contributions, on the international level, with reference to production and exports. At the end, AFA General Secretariat prepared such a report on the bases of several reports, periodicals and references issued during the last period by concerned international organizations (IFA, FAO â&#x20AC;Ś). Also, the report was founded on data and information provided by AFA and specialized committees members. Thanks to all of the previous efforts, 2010 annual statistical report was issued.
BEST PRACTICES An Insight into the Best Manufacturing Practices of AFA AMMONIA AND UREA PLANTS AFA is proud to issue the booklet on BEST PRACTICES An Insight into the Best Manufacturing Practices of AFA AMMONIA AND UREA PLANTS to all its members and would like to thank the AFA member plants who have participated in the 2077 AFA Ammonia and Urea Plants Benchmarking and Best Practice Study. The booklet is now online at the AFA website: www.afa.com.eg
The projected Manpower Plan / Requirements for FERTIL - 2 (2011-2013) is available on
AFA website www.afa.com.eg For those interested: All the POST requests should be directed to the address indicated here-below: Ruwais Fertilizer Industries (FERTIL) P.O. Box 2288, Abu Dhabi, UNITED Arab Emirates Tel. +9712-6021133; Fax +9712-6021155 E-mail: webmaster@Fertil.com www.fertil.com
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Press Release
STAMICARBON EXTENDS PORTFOLIO WITH POLYAMIDES AND POLYESTER BY ACQUIRING NOY ENGINEERING Sittard, January 6, 2011 – Stamicarbon, the licensing and IP Center of Maire Tecnimont S.p.A., has acquired the Italian engineering company Noy Engineering from Tecnimont. The agreement has become effective on January 1, 2011. With this acquisition the extensive licensing, innovation and customer service experience of Stamicarbon is combined with the polyester and polymerization technologies of Noy Engineering. Noy Engineering:
Noy Engineering, established in 1983, is a leading company operating in the field of process engineering and plant contracting. Currently it is located in Bergamo, but it will be moving to Milan in January. Noy Engineering designs and builds plants worldwide, based on proprietary technologies. It has developed an extensive portfolio of Polymer technologies PA6.6 & PA6, PET and Acrylic. There are more than 100 plants already designed, constructed and in operation with Noy’s technologies, which is equivalent to more than 1 million metric tons per year production installed worldwide. Pejman Djavdan, CEO of Stamicarbon, commented “I am very pleased with the acquisition of Noy Engineering. It is a group of well qualified engineers that have proven to be able to develop stateof-the-art technologies. For Stamicarbon it is an important step in accelerating licensing business by extending our portfolio with these polymer technologies”. Amir Shademan, the new Managing Director of Noy Engineering states: “Now being part of Stamicarbon we will be able to further
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develop innovative solutions and technologies and market them through the licensing business model of Stamicarbon. This means extensive growth opportunities for both Noy and Stamicarbon. Currently we are in the process of rolling out our latest polymer technologies.”. Noy Technologies
Noy Engineering can supply plants with proprietary know-how for raw materials of resins production for industrial and textile application, polymerization and fibers for the following products: Polyamide 6 (PA6 and PA6.6) Polyester (PET) Acrylic
PA6 and PA6.6
Noy Engineering can offer innovative design solutions and effective engineering services for the entire PA6 and PA6.6 chain. With around 60 PA6 and PA6.6 plants built world-wide, it has acquired a solid experience and know-how for the whole polyamide chain. Polymerization plants are available both with the continuous and batch technology. The choice between them depends on the capacity and product mix. PET
Noy Engineering>s PET technology is a proven and reliable technology with important references world-wide for a total production capacity installed of 1,350,000 ton/year with over 70 contracts awarded for polyester fibers and bottle grades. Acylic Fibres
For the Acrylic Fibers production,
Noy Engineering can supply all the relevant processes from polymerization up to the final product with polymerization in solvent. It already has designed and built various plants for a total capacity of more than 200,000 ton/year.
In the latest years, the company has developed new technologies in the field of yarns and polymers particularly for the High Tenacity sector. The new generation of Polymerization continuous lines for industrial and textile application has now achieved high performances in terms of quality and reliability. Stamicarbon
Stamicarbon, the licensing and IP Center of Maire Tecnimont, is the global market leader in licensing of urea technology and services with more than 50% market share in synthesis and 35% market share in urea granulation technology. Stamicarbon has over 60 years> experience in licensing its urea technology, delivering optimum environmental performance, safety, reliability and productivity, which together ensure maximized returns on capital invested. Around the world, over 240 urea plants use Stamicarbon technology, while the Company has completed over 90 plant revamps, including those utilizing other technologies. Stamicarbon operates on an open platform and its technologies are available through licensed contractors. Since 1947, Stamicarbon has been the world’s leading authority and innovator in the field of urea, in close cooperation with research institutes, suppliers and customers. Latest innovative achievements include: AVANCORE® urea process,
Safurex® stainless-steel material, Urea Granulation Technology, Mega Plant Technology and Urea 2000plus™ Technology. Stamicarbon is headquartered in Sittard (The Netherlands), and maintains offices in Beijing (China) and Moscow (Russia). For more information: www.stamicarbon.com Maire Tecnimont SpA
Maire Tecnimont S.p.A. is the parent company of an Engineering & Construction International industrial group which operates in three sectors: Oil, Gas & Petrochemicals, Power, Civil Engineering & Infrastructure. Today, the Group, quoted on the Milan Bourse, is present in approximately 30 Countries, currently controls over 40 operative companies and can rely on a workforce of about 5,100 employees, of which more than half are located abroad. At 31 December 2009, the Group reported Revenues of €2,164 million and Net income, after minorities, of €77 million. For further information: www.mairetecnimont.it.
SAFCO Achievement The Saudi Arabian Fertilizer Company (SAFCO) has been named by the International Fertilizer Association (IFA) as the Second Runner-Up for the IFA 2010 Green Leaf Award for its outstanding performance and continuous improvement in Safety and Environmental issues in 2010. SAFCO won the acclaim from among 29 fertilizer companies spread all over the world. A trophy and certificate were handed over to Mr. Fahad R. AlOtaibi, SAFCO President, at the IFA 2011 SHE Round Table Conference at Bruges, Belgium on 6th April. During the ceremony, the IFA expressed their special appreciation and thanks to SAFCO and SABIC for giving the highest priority to safety and environment issues and for their continuous commitment to our people, the community and neighboring industries. Mr. AlOtaibi expressed his thanks to the IFA and said, “This award has come in support of the initiatives taken by SABIC on safety, health and environment and the SAFCO employees who have contributed to this success.”
Haldor Topsøe awarded another contract for a coal to SNG plant in China Haldor Topsøe has been awarded the contract for the second out of four SNG projects approved by China’s National Development and Reform Commission. The plant will be commissioned by the Hui Neng Group, a major coal mining company in the Inner Mongolia region. The plant will produce SNG (Substitute Natural Gas) based on syngas from coal gasification, and on site the SNG will be converted into LNG (Liquefied Natural Gas).
Topsøe will be the licensor for the methanation section and will supply license, engineering design, catalyst and service. Clean energy The use of coal for LNG production provides an environmentally responsible use of coal resources and efficient transportation of clean energy. The SNG has more stringent product quality requirements than standard pipeline quality with higher purity and higher methane content
as well as strict product limitations on CO2 content. “We are very pleased to initiate this project with the Hui Neng Group, and we look forward to contributing to the sustainable use of China’s coal resources,” says Jens Michael Poulsen, Technology Sales Manager, Haldor Topsøe. Plant capacity The Hui Neng SNG plant has a total planned capacity of 1.6 billion Nm3 per year SNG production to LNG, and the first execution phase is 400 million Nm3 per year SNG. The plant will be brought into operation by end of 2013.
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Press Release 2010 was a satisfactory year with progress within most of our business areas. Our sales to the refinery sector were, however, still influenced by the repercussions of the financial crisis. We reached a revenue of DKK 4.2 billion. This is close to our revenue in 2009 (DKK 4.3 billion). Our gross profit amounted to DKK 1.8 billion, which we consider satisfactory (DKK 1.7 billion in 2009). We have in particular profited from a satisfactory catalyst sale, which, accounted for a revenue of DKK 3.1 billion, the second largest revenue ever (DKK 2.9 billion in 2009). Also our technology revenue was satisfactory with DKK 1.1 billion (DKK 1.4 billion in 2009). Our backlog at the end of the year was DKK 2.8 billion (DKK 3.7 billion in 2009). The year was characterised by a very large international activity within areas of energy, fertilisers and environment and we are experiencing more focus on processes which will ensure a better utilisation of the world’s natural resources. We expect that this trend will continue and in this connection, we have further increased our staff, especially in India and China, and a new company was established in Malaysia. Besides an expansion of our existing business areas, we have focused on how we can produce synthetic natural gas (SNG) based on current or renewable energy raw materials, clean fuels and chemical products. In 2010, we received orders for two large plants for the production of SNG. We expect that the development projects in our pipeline, from fundamental research to industry, will ensure our continued growth in turnover and economic result. We expect that 2011 will also become a satisfactory year and we plan to increase our investments in the coming years. We are, how-
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Haldor Topsøe Group financial statement 2010 ever, prepared to take measures with regard to international events, which may influence our customers’ financial circumstances. In 2010, Topsoe Fuel Cell A/S, subsidiary of Haldor Topsøe A/S, continued their increased effort in developing commercial fuel cells and again made further technological progress. The company will maintain the positive development in the area and expect an increase in revenue and a decreasing deficit in the future. KAFCO, Bangladesh, where we own 15% of the shares, have not been able to maintain full production in 2010 due to an unstable supply of natural gas. This has led to a lower profit in the company and thus a lower dividend to the owners than in the previous years. The natural gas supply is expected
to improve by the end of 2011. In 2010 the Haldor Topsøe group has in average employed 2,015 persons against 2,016 persons in 2009, out of which 39% have a university degree. In addition, we have a significant number of scientists at various institutes in Denmark and other places in the world, who are working on development and research programmes financed by the group. As part of a generational succession, Dr Haldor Topsøe has during 2010 transferred a larger part of his shares in Haldor Topsøe Holding A/S to his four children. In order to ensure a wider competence on the board of Haldor Topsøe A/S, the board now also includes Jeppe Christiansen, Jens Kehlet Nørskov and Jakob Topsøe.
Financial and key figures for Haldor Topsøe A/S (HTAS) and Haldor Topsøe Holding A/S (HTHAS)
Please note that Haldor Topsøe A/S’ (HTAS) accounts have been made in accordance with the Danish Financial Statements Act, whereas Haldor Topsøe Holding A/S’ (HTHAS) accounts have been made in accordance with the International Financial Reporting Standards (IFRS).
Best Available Technology in Fertilizer Industry : Energy / Water Optimization – HSE Operations and Equipment – R&d
Tracks
• New technologies help increase production performance fertilizer plants. • New Development in Fertilizers Industries • Chemicals & Catalysts • Current developments and driving issues in occupational safety, health and environment in fertilizer industry. • Latest management and technology solution for the creation and maintenance of safe and secure production environment.
• Way to improve the energy efficiency in fertilizer production. • Quality assurance methods and programs. • Maintenance troubleshooting and problem solving. • Materials Selection and Upgrading • Improvements in packaging, materials handling, and distribution systems. • Control Systems • Case Studies
Agriculture
Value Chain of Agricultural Commodities I. Introduction The Concept. Value chain encompasses the complete sequence of operations which, starting from the raw material, or an intermediate product, finishes downstream, after several stages of transformations or increases in value, at one or several final products at the level of the consumer. More precisely, it is used to mean the group of agents who contribute directly to the production, then to the transformation and delivery to final market of a single agriculture or livestock product (1). This concept was borrowed from business management and was first described and popularized by Michael Porter in his 1985 best-seller “Competitive Advantage: Creating and Sustaining Superior Performance”. The application of value chain to agricultural commodities is rather recent in the Arab Region. It has been often deliberated and advocated, as it lends itself to the “added –value” which is the prime target of agricultural marketing. An increased attention is being given to the concept of “value chain” in developing countries when discussing the role of agriculture in development. It should be noted that all of the elements of research on the mechanisms and policies for risk mitigation ought to be used within agricultural and food value chain contexts; with a focus on small producers and their income. Welfare Implications. Who benefits from the recent evolution of agro-food markets is a question that has been widely-addressed in the development literature; with the objective of promoting the propoor supply chains in developing countries. Nevertheless, all this literature pays limited attention to questions related to risk and risk management. Distribution of long-term and expected value added along the chain should be analyzed with adequate consideration to the embedded risks. Evidently there should be a limit, because the same average re-
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By: Dr. Ghassan Hamdallah
Former FAO Land &Water Officer turn might be associated with different distributions, and therefore imply different impacts in terms of welfare. II. Why the Value Chain? The introduction of the “Vale Chain” to agriculture came about due the obvious need to bring some “added-value” to the agricultural commodities. It was reported in the US that: “from 1910 to 1990, “farmers’ share of the overall GDP of the food and fiber system fell from 21% to 5%, while the share contributed by the agricultural input and distribution sub-sectors rose from 13% to 30%. By 2002, legislation was passed related to Value-added production (3). “Value-added” is used to characterize food products that are converted from raw product through processes that give the resulting product an “incremental value” in the market place. An “incremental value” is realized from either higher price or expanded market. For example, jams, cheeses, and pre-cooked meats are considered “value-added” products. “Valueadded” is also used to characterize It is expected that through this value-added production, farm households and the whole rural communities will benefit through new and higher-wage employment, new markets and more stimulated rural and regional economies. For promoting this issue, the USDA has started the Value-Added Producer Grants Programme which was first authorized in 2000 and the Farm Bill focused on value-added production, such as organic crops or grass-fed livestock, then it expanded in the 2008 Farm Bill to include locally produced and marketed food products (4).
The programme provides competitive grants to individual independent agricultural producers, groups of independent producers, organizations representing agricultural producers, and farmer or rancher cooperatives to create or develop producer-owned businesses. Agriculture at present is facing the challenge to change from a sector producing bulk commodities sold in spot markets, into some specialized markets driven by new end-user demands. In other words, production shifts away from commodity agriculture to product agriculture. Firms, therefore, are increasingly organizing production into agro-food value chains to synchronize all stages of production” from seed to supermarket”. Typical links in the supply chain are: inputs producer processor distributor wholesaler retailer consumer. Many farmers and ranchers are beginning to consider how they might reorganize their operations to better anticipate these changes and to participate in them, for example, by forming “new generation” value-added cooperatives, and engaging in increased contract relations with value chain integrators. Emerging opportunities, new food processing plants and alternative farming systems (such as: organic, Good Agric. Practices, etc.) could create important new markets for
producers. Small scale producers quite often find new opportunities in regionally-branded products, farmers markets, new specialty crops, or in establishing direct marketing links between farms and regional groceries. III. Agricultural Marketing Agricultural marketing covers the services involved in moving an agricultural product from farm to consumer. Numerous activities are involved in doing this, such as planning production, growing and harvesting, grading, packing, transport, storage, agro- processing, distribution, advertising and sale. Such activities cannot take place without the exchange of information and are often heavily dependent on the availability of adequate credit and finance. Marketing systems are dynamic; they are competitive and involve continuous change and improvement. Businesses that have lower costs, are more efficient, and can deliver quality products, so they prosper. Other who have high costs fail to adapt to changes in market demand and provide poor quality, are often forced out of business. Marketing has to be customeroriented and has to provide the farmer, transporter, trader, processor, etc. with a profit. This requires those involved in marketing chains to understand buyer requirements, both in terms of product and business conditions. Agricultural marketing support to farmers is often provided by Governments in many countries. In the USA, for example, the USDA operates the Agricultural Marketing System. However, in developing countries support to the agricultural marketing services is carried out by various donor organizations and there is a trend for countries to develop their own Marketing or Agribusiness Units, which are often attached to ministries of agriculture. The provided services include: market information development, marketing extension and training in marketing, as well as development of infrastructure. Since the 1990s trends have seen the growing importance of Supermarkets
and a growing interest in Contract Farming, both of which have their significant impact on the way that marketing is operating at present. Agricultural Marketing programmes include providing: testing, standardization, grading and market news services and oversee marketing agreements and orders, administer research and promotion programmes. Support for marketing of some commodities, as well as establishing certain Marketing Boards are common measures during war periods, in order to keep good governmental control on basic food commodities.In recent years several developing countries have established governmentsponsored marketing or agribusiness units. These are primarily research and policy organizations, but other agencies provide facilities for marketing channels, such as the provision of infrastructure, market information and documentation support. Several organizations provide support to developing countries for promoting their agricultural marketing systems, including FAO Marketing and Trade Division and some various donor organizations. A good marketing system needs a strong private sector backed up by appropriate policy and legislative frameworks and effective government support services. Such services can include provision of market infrastructure, supply of market information and agricultural extension and training services to enable farmers in marketing. One of many problems faced in agricultural marketing in developing countries is the latent hostility to the private sector and the lack of understanding of the role of the “middleman”. Therefore, an increasingly important element in strategies to reduce rural poverty is supporting poor smallholder farmers who are moving from subsistence agriculture to market-oriented, high-value commercial agriculture. In 2002, the International Center for Agricultural Research in the Dry Areas (ICARDA) formally included research in horticulture and other high-value crops in its mandate.
The technologies and practices being developed to select and introduce high-value crops and low-cost farming systems for small-scale farmers in dry areas seem promising. For example, Cucumber greenhouse production has resulted in higher outputs than production in open fields (four fold), higher incomes per unit of land (five fold), and higher net returns per unit of water (nine fold).(1) IV. Concluding Remarks The following concluding remarks can be stated: - There is a definite need for deploying technology in the agricultural value chain towards strengthening marketing of agro-food products; - Benefit from conducting the analyzing the current environment for value chain in the country of origin; - Perform market analysis and intelligence gathering to avail this information to small farmers; - Identify and enroll small rural land holders and businesses; - Identify and partner with private sector value chain intermediaries; - Building fully functional value chains, including building capacity of local organizations and assessing value chain finance, role of rural institutions, farmers’ associations; and - Develop agricultural Product Quality standards to meet requirements of international markets. References 1.ICARDA 2009. Horticultural Research at ICARDA: Highvalue Crops for Better Nutrition and Income. ICARDA, Aleppo, Syria. 2.FAO.2007. Agricultural producer risk management in a value chain context: Implications for developing countries’ agriculture. FAO,Rome. 3.USAID. 2000. Value-Added Agricultural Enterprises in Rural Development Strategies, USDA, Washington, D.C. 4.National Sustainable Agriculture Coalition.2002. The Value-Added Producer Grants (VAPG).
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Studies & Researches
PIC Zero Ammonia Emission Project A Novel Idea Petrochemical Industries Company (PIC) Kuwait Author
S. Raghunathan
1. Project Abstract
Petrochemical Industries Company (PIC), Kuwait has implemented an environment friendly project titled “Zero Ammonia Emission Project” to eliminate gaseous ammonia pollution in its Urea Plants caused by both continuous and .discontinuous emission sources The discontinuous ammonia emission sources are ammonia handling emergency relief devices (PSV/Rupture Disc/Emergency Vents). A huge quantity of ammonia is vented within a short span of time during severe plant upset situations. Currently ammonia gases from these relief devices are disposed off directly to atmosphere through a stack venting at high elevation. In the new project, all these emergency relief devices are connected to a Flare System wherein the ammonia containing process gas is flared .with the injection of Natural Gas as support gas The continuous ammonia emission source is Urea Solution Storage Tank. The vent line of this tank is at present discharging to atmosphere. Ammonia emission from this source is a nuisance to plant operating staff due to high ground level concentration. It is eliminated by .installing a absorber The major benefits of the project are • Pollution free working environment in the plants at all times • Eliminating ammonia pollution in neighboring companies • Protection of environment
2. Introduction
Petrochemical Industries Company (PIC), Kuwait is currently operating two Ammonia Plants based on Haldor Topsoe technology and two Urea Plants comprising Plant-A & Plant-B 32
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based on Stamicarbon Stripping/HFT Granulation technology. The total capacities of Ammonia plants and Urea Plants are 1880 MTPD and .3150 MTPD respectively Traditionally, the disposal of ammonia bearing process gases from emergency relief systems in Urea plants has been done by discharging directly to atmosphere. This was the accepted practice for this type of facility and continues to be the accepted practice at many locations around the world till date. Although direct discharge to atmosphere can be done in a safe way, it causes considerable pollution to direct plant environment and companies located in the vicinity of PIC Plants. PIC as a socially responsible corporate citizen decided to eliminate ammonia pollution both inside and outside the PIC plants caused by such a discharge by implementing the “Zero Ammonia Emission Project”. When PIC decided to implement this project, there was no process readily available to adopt. Hence PIC worked very closely with Stamicarbon in developing cost effective solutions from scratch that is most appropriate for PIC plants. Zero Ammonia Emission Project was successfully commissioned in both Urea Plants during the 2nd quarter of year 2009. The process flow scheme employed for both the plants is different due to plant layout/design but conceptually they are same. In this paper, only the solutions applied in PIC Plant-A Zero Ammonia Emission Project is presented.
3. Flaring Process Vapors from Emergency Relief Devices After thoroughly evaluating the merits and demerits of absorption and flare systems for the disposal of
NH3-CO2-H2O mixtures discharged from emergency safety relief devices, the flaring was selected as the viable and appropriate solution. The design included following steps: • Design and implementation of a major
• •
•
•
collecting system for the ammonia handling PSVs in the plant Replace all Rupture Discs with PSVs Review and analysis of the relief devices and sources in the plant to determine the impact of their relieving into a collecting system vis-à-vis discharge to atmosphere Analysis of the possible relief scenarios to determine sizing of the collecting system Analysis of the collecting network for both hydraulic and mechanical considerations
Liquid if any present in synthesis PSV discharge is separated in Blow-Off Separator and fed into the drain tank. The entrainment free ammonia containing gas mixture is sent to the Flare Main Tip after mixing with support gas in order to increase its heating value for nearly complete destruction of ammonia by combustion. The Blow-Off Separator is a cyclone type device with tangential liquid inlet and designed for the tube rupture case of the HP Stripper. The liquid from the Blow-Off Separator is discharged to the drain tank via a 5 meter liquid seal to prevent vapor slip into the drain tank. The flare system and interconnecting piping is designed such that the maximum pressure in the Blow-Off Separator does not exceed 0.3 barg. Because of this overpressure, the liquid from the Blow-Off Separator will flash in the atmospheric drain tank, and the vapor will be directed to a dedicated Utility Tip 2 of flare. The pressure drop of this utility flare is such that the mechanical design pressure of the tank is not exceeded. However in order to protect the tank from possible over pressure, a manhole water seal is provided on the tank roof.
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The volume of the drain tank is designed to accommodate a complete synthesis drain that might occur in case of tube rupture in the high pressure heat exchangers. To avoid blocking of the liquid outlet line from the separator to the drain tank and to maintain the exhaust systems and drain tank free of solid carbamate, a continuous water circulation is maintained.
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Figure 1
In case of a PSV blow-off, the process gas enters the new Blow-off Separator or existing PSV Vent Stack depending on the location of the PSVs. All the PSVs of synthesis section are connected to new Blow-Off Separator while the PSVs of other sections are connected to existing PSV vent stack. No modification to existing PSV Vent Stack was proposed since it was found to be adequate to handle the PSV discharges and supply entrainment free gas to Flare System. The existing PSV Vent Stack that is discharging to atmosphere is modified and connected to Flare System.
In case of contamination of the tank with urea and/or carbamate due to PSVs blow-off or passing, the liquid can be recovered in the process by sending it to either process condensate tank or rectifying column depending on drain tank composition. During recovery, the minimum liquid level in the drain tank should be maintained by supplying fresh steam condensate.
New Purge System for PSVs connected to Flare System Traditionally, the safety valves of the reactor and the synthesis rupture discs are not connected to PSV Vent Stack and provided with short discharge pipe to ensure that these critical safety valve outlets are 33
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Studies & Researches not obstructed by solid carbamate due to passing of safety valves during normal operation. In the new design, all safety valves are connected to a collecting header routed to Blow-Off Separator.
Flaring of liquid/vapor ammonia As might be known, liquid ammonia and water have a strong affinity. A sudden release of liquid ammonia into water produces enormous pressure waves. Hence to protect the drain tank, safety valves discharging pure liquid/ vapor ammonia are treated differently as compared to process safety valves discharging NH3-CO2-H2O mixtures. These safety valves are connected to a separate tip of the flare system dedicated for flaring only ammonia vapors (called Utility Tip-1). The safety valves at the following locations fall under this category: • Safety valves on HP Ammonia
pumps • Safety valves on Ammonia Refrigeration Unit of Granulation Unit • Safety valve on HP Ammonia Heater shell side
Figure 2
Having connected the safety valves outlet to a closed collecting header, it is imperative to ascertain that the exhaust systems are free of solid carbamate. To achieve this each safety valve is provided with a purging system, refer figure 2 above. Blow-off lines sloping upwards are purged with water, while blow-off lines sloping downwards are purged with steam. Each purge is provided with a flow meter and a high priority low flow alarm in the DCS for close monitoring and taking quick corrective action in case flushing flow is interrupted. In order to obviate problems associated with PSVs passing, the flare header temperature (measured close to flare stack entry point) is maintained at 100 oC with injection of auxiliary LP steam. The injection of this auxiliary steam is regulated with a temperature control loop. The flare header is also completely steam traced and insulated to minimize LP steam consumption.
In case of blowing-off of the above safety valves, only part of the ammonia will evaporate downstream the safety valve. The majority of the ammonia will cool down to a temperature of -33°C. The time needed to evaporate all ammonia depends on insulation and the ambient temperature. 吀 漀 猀 愀昀攀 氀漀挀 愀琀椀漀渀
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For safety reasons, the ingress of oxygen (air) into the flare system should be avoided when flare is in operation. This is achieved by installing purge seals in each of the three Flare tips with nitrogen gas being used as purge medium. Figure 3
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一䠀㌀ 瀀甀洀瀀猀 倀 匀 嘀 猀
一㈀
䰀 倀 猀 琀攀愀洀
34
唀琀椀氀椀琀礀 䘀 氀愀爀攀 吀 椀瀀
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In order to avoid carry over of liquid ammonia to Flare Utility Tip 1 and to accelerate the evaporation of liquid ammonia, the blow-off lines from the safety valves are connected to a heated ammonia knock-out drum. The volume of the drum has been optimized taking into consideration the liquid hold-up for each blowing-off case. However in order to preempt overfilling of the knock-out drum and consequently the flare header, an interlock has been incorporated to cut-off ammonia feed to Utility Tip 1 of the flare system, which does not require support gas.
General Arrangement of Flare System The new flare system is installed on the top of the existing Prilling Tower that is no longer in operation. The Flare Main Tip will use natural gas as a support gas for combustion of the vent gases from the blowoff separator. There will be one utility flare tip (Utility Tip-1) for ammonia vapors from Ammonia Knock-Out Drum and one (Utility Tip-2) for the vent gas from the Drain Tank.
Tip and it is not required in both Utility Tip-1 and Utility Tip-2. Natural Gas injection will be normally kept isolated and presence of Natural Gas in Flare Header is monitored with online analyzer installed in the Flare header close to inlet flange of Flare Stack. When PSVs blow-off into collecting header, an online Ammonia Analyzer installed in the BlowOff Separator gas outlet line senses presence of ammonia and initiates a process interlock by which support gas is automatically injected into flare header. not obstructed by solid carbamate due to passing of safety valves during normal operation. In the new design, all safety valves are connected to a collecting header routed to Blow-Off Separator. Having connected the safety valves outlet to a closed collecting header, it is imperative to ascertain that the exhaust systems are free of solid carbamate. To achieve this each safety valve is provided with a purging system, refer figure 2 above.
4. Absorber for Urea Solution Tank Vent
In Urea Plant-A a large Off-line Urea 倀 椀氀漀琀 倀 椀氀漀琀ᤠ猀 Solution Tank is pro唀琀椀氀椀琀礀 吀 椀瀀 ㈀ 唀琀椀氀椀琀礀 吀 椀瀀 vided for intermediate storage of urea solution during routine cleaning or upsets 一㈀ 一㈀ in Granulation Unit. 一䠀 ㌀ ⴀ 一 ㈀ ⴀ 䠀 ㈀ 伀 洀椀砀琀甀爀攀 一䠀 ㌀ 嘀 愀瀀漀爀 昀爀漀洀 While storing urea so昀爀漀洀 搀爀愀椀渀 琀愀渀欀 䬀 伀 搀爀甀洀 lution in tanks, emission of ammonia is 倀 椀氀漀琀 最愀猀 unavoidable due to the breathing of the 䘀 氀愀爀攀 䴀愀椀渀 吀 椀瀀 一䠀 ㌀ ⴀ 一 ㈀ ⴀ 䠀 ㈀ 伀 瘀愀瀀漀爀 tank (continuous rise 昀爀漀洀 戀氀漀眀 漀昀昀 猀 攀瀀愀爀愀琀漀爀 of liquid level) and 匀 甀瀀瀀漀爀琀 最愀猀 urea hydrolysis and Figure 4 biuret formation. The ammonia emission The Main Tip is provided with a Molecular Seal from the tank increases with tank level while the two Utility Tips are provided with Velocity Seals to avoid ingress of ambient air into and it is significant enough to cause seriflare system. The type and design of seals were ous ground pollution. It is a major nuisance chosen taking into consideration both the fixed and to plant operating staff at times of unfavoroperating costs. The seals are continuously purged able wind direction. with nitrogen. Natural Gas is used as support gas only in Main
The following two options were explored to 35
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Studies & Researches eliminate ammonia pollution from tank vents. 1) A dedicated small flare on tank top 2) Low pressure drop Absorber The possibilities for flaring tank vent vapors were rejected for the following reasons: The mechanical design pressure of
the tank is limited to 150 mm H2O which was lower than the required back-pressure from the flare. Since emission of ammonia vapors from the tanks is almost always continuous due to urea solution transfer to the tanks during plant upsets and/or Granulation plant shutdown, installing a flare to destroy ammonia will not be a meaningful proposition The cost of flare system was much higher than that of absorber system Hence it was decided to employ a “low pressure drop” absorber to knock-off ammonia vapors.
Off-line Urea Solution Tank As already stated above, ammonia emission occurs due to hydrolysis and breathing when urea
solution is stored during upsets in back-end section of urea plant and routine cleaning of the granulator. A detailed process calculation was carried out to arrive at the basis of ammonia emission rate for the design of absorber. The design of the absorber system was a challenge because of the maximum allowable pressure in the tank. The tank is foreseen with a water seal that breaks at an over pressure of 100 mm H2O. Ammonia and urea vapors from Urea Solution Tank is fed to the absorber wherein bottom bed is irrigated with circulating solution while the top bed is fed with steam condensate to scrub the residual ammonia before venting to atmosphere. The expected emission of ammonia at design load is 0.0 kg/h. This absorber system will be in operation only when urea solution is stored in the tank.
5. Conclusions The successful design and implementation of PIC Zero Ammonia Emission Project is a good example of how both the continuous and discontinuous ammonia emissions from the urea plant can be captured and disposed off safely employing flares and/ or absorbers for ensuring pollution free environment both within PIC plants and its neighbors at all times
䌀 氀攀愀渀 瀀爀漀挀 攀猀 猀 挀 漀渀搀攀渀猀 愀琀攀
倀 爀漀挀 攀猀 猀 挀 漀渀搀攀渀猀 愀琀攀
䰀倀嘀 倀 甀爀最攀
嘀 攀渀琀 愀戀猀 漀爀戀攀爀 唀爀攀愀 猀 漀氀甀琀椀漀渀
唀爀攀愀 猀 漀氀甀琀椀漀渀 琀愀渀欀
Figure 5
36
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䌀 椀爀挀 甀氀愀琀椀漀渀 氀漀漀瀀
2011 AFA Events June 30 – July 2, 2011, Abu Dhabi - Commissioning, Rehabilitation & Projects Management Experience in Fertilizers Plants Workshop - 90th AFA Board of Directors Meeting
Calendar 2011
- 36th AFA General Assembly Meeting
Sept. 27-29, 2011, Damascus, Syria - Financial Management for Non-Financial Professional Workshop Registration opens in August, 2011. November 21 , 2011, Amman, Jordan - Technical Committee (Restricted) - HSE Committee (Restricted) - Economic Committee (Restricted) November 22 – 24, 2011, Amman, Jordan - 24th AFA Int’l. Technical Fertilizers Conference & Exhibition November 24, 2011, Amman, Jordan - 91 AFA Board of Directors Meeting
2012 February 7 -9 , 2012, Cairo, Egypt -18th AFA Int’l. Annual Fertilizers Forum & Exhibition
Non-AFA events May 23 - 25, 2011, Montreal, Canada - 79th IFA Annual Conference June 20 - 24, 2011, Berlin, Germany - IFA/IFDC Phosphate Fertilizer Production Technology Workshop June 15 - 17, 2011, Shanghai, China - International Sulphur & Sulphuric Acid Conference 2011
CRU Events June 16 - 17, 2011, Geneva, Switzerland - 8th Annual Global Commodities Finance Conference Euromoney Seminars and Trade Finance Magazine
June 22 - 24, 2011, Odessa, Ukraine - 2011 FMB East Europe Fertilizer Conference & Exhibition FMB Consultants Ltd. July 7 - 8, 2011, Beijing China - China International Water-soluble Fertilizer Conference & Exhibition China National Chemical Information Center July 18 - 22, 2011, Chicago, Illinois USA - Shutdowns Master Class New Standard Institute, Inc. September 13 - 14, 2011, Singapore - Fertilizers – an in-depth introduction ICIS October 3 - 5, 2011, Madrid, Spain - IFA Production and International Trade Conference October 3 - 7, 2011, Seville, Spain - IFA/IFDC Nitrogen Fertilizer Production Technology Workshop October 10 - 13, 2011, Hyderabad, India - 3rd International Zinc Symposium - Improving Crop Production and Human Health October 16 - 19, 2011, Abu Dhabi, UAE Middle East Chemical Week World Refining Association October 19 - 21, 2011, Cannes, France - 2011 FMB Europe Fertilizer Conference & Exhibition FMB Consultants Ltd. November 7 - 10, 2011, Houston, USA - Sulphur 2011 Conference and Exhibition CRU Events November 15 - 16, 2011, Odessa - Ammonia handling and shipping safety workshop ICIS November 15 - 17, 2011, St. Petersburg, Florida, USA - Fertilizer Outlook and Technology Conference The Fertilizer Institute (TFI) and the Fertilizer Industry Round Table (FIRT) ARAB FERTILIZERS
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Studies & Researches
Diaphragm Plates Failure of Synthesis Exchangers in Ammonia Plant Introduction:
Leaks in synthesis loop joints in general and specifically in heat exchangers’ channel covers are among the major challenges that ammonia plants face due to their larger cover size, high pressure, thermal expansion and long-term service.
Manufacturers of high pressure heat exchangers generally recommend two main methods of sealing these end covers: either by seal weld of the diaphragm (using plate diaphragms which ensure zero leakage) or by ring joint (which requires less work and preparation when opening and closing the cover compared to the first method). The type of sealing used also depends on the process designer and the plant owner’s preference and experience. Irrespective of the sealing method used, it is not uncommon for these kinds of joints to leak. Ring joint sealing requires less maintenance & down-time as no welding or grinding is involved although machining could be required in some cases. During operation, minor leaks could be rectified if more torque is allowed to apply on the bolts and it is possible to arrest the leak without plant shutdown.
A modified ring joint type that has been used lately in some of the high pressure hydrogen services in plants uses the principle of the pressure-energized seal ring. Its drawback is that it does not have enough user references, especially in the petrochemical industry. Moreover, if machining is required for the ring seat, it has to be done by the vendor as it is a designer’s patent product.
The welded Diaphragm Plate is one of the most common sealing methods that are recommended by many manufacturers, especially for equipment that contains hydrogen at high pressure. It is widely used for channel covers of exchangers in an ammonia synthesis loop. It has zero leaks once it is fitted and welded properly. However, it is time consuming in comparison to the ring joint as it involves grinding, machining and welding. Also the welding procedure differs according to the manufacturer’s standards. Some vendors recommend placing the diaphragm in position and fixing the cover on with bolts tightened with full torque before welding. Other procedures require only holding it firmly in position and fixing it in position with tack weld before starting the root pass welding. Before welding, it is essential to check the straightness of the diaphragm by blue contact check and the channel 38
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Prepared by: Eyad Rafiei (Ammonia Plant Superintendent) Gulf Petrochemicals Industries Co. (GPIC)- Bahrain
surface where the plate diaphragm sits is to be machined to ensure full contact.
Diaphragm welding at GPIC:
Welding procedure followed at GPIC for diaphragm plates welding:
• All bolts are tightened at full torque at 9801000 barg as per the bolts tightening procedure and tag welding is done. • Alternate bolts are removed and welding is performed. Welding procedures developed by the manufacturer propose to weld either with SMAW or GATW. Present GPIC practice is to use SMAW process with 3.25mm dia. electrode due to access restriction.
• Alternate removed bolts are repositioned and tightened. • The balance bolts that were not removed earlier are then removed and the welding of the 1st pass is to be completed.
• The cover is removed and DP check is carried out for the root pass. All indications, if any (i.e. porosity, slug etc.), in the weld seam are removed by grinding. • Welding of the hot pass and filling passes is then completed.
• The total number of filling & capping passes that are carried out are 3-5 to maintain a minimum of 7.0 mm throat thickness.
Diaphragm seat surface machining
was proven after demonstrating in the workshop with the insertion of thicker temporary plate (spacer- 90mm) behind the end cover, which provided sufficient space for welding the root pass. GTAW was performed successfully with a 2.4mm elec-
Diaphragm plate (DP check after route pass welding) in position
Despite the above stringent control parameters and the time consuming procedure, a number of welds failed (leaked due to pin hole / weld cracks) which is something that necessitated unit shutdown and redoing the welding. Two possible disadvantages / drawbacks of the above procedure are:
Modified temporary cover for root pass welding, with additional 90mm gap
â&#x20AC;˘ Using a big diameter welding electrode (3.25 mm) will not allow proper penetration and fusion of the root pass. Smaller electrode diameters are shorter in length and cannot be used with the available working space. 3.25 mm dia longer electrodes are used to reach the welding area.
â&#x20AC;˘ SMAW welding method produces slag that affects the weld quality. It also has less focus penetration and fusion in comparison to GTAW (Gas tungsten inert arc welding) weld. With the channel cover in position, there is no sufficient space to do GTAW (TIG) welding
Any indications of slag or porosity detected during the DP test should be ground out. Excessive grinding could however weaken the root pass and raise the possibility of root weld failure during the hot pass without this being noticed. Moreover, even the DP check will not show defects if they are embedded in the weld.
Modified procedure:
By communicating with the manufacturer and other users, we have modified the welding procedure in order to eliminate welds failures of the plate diaphragms. Basically, the welding method has been changed from SMAW to GTAW to avoid slag formation and for better penetration and fusion. TIG process allows the welder to have more control over the welding parameters than the SMAW.
The viability & practicality of the above procedure
Normal channel covers with 30mm gap only
trode.
Conclusion:
We believe that this improved welding procedure and arrangement will overcome the plate diaphragms leakage issue. However, we need to perform a number of diaphragms weld renewals before declaring the success of this procedure. 39
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Studies & Researches
Nutrient Balance in Arable Lands a Global Challenge for the Fertilizer Industry
1
Paul E. Fixen, Sr. Vice President, International Plant Nutrition Institute
Abstract
Nutrient balance, defined as nutrient removal by crops compared to fertilizer and manure use, is one of many critical performance indicators of the sustainability of cropping systems employing 4R nutrient stewardship. Negative balances lead to declining soil fertility and eventually to reduced productivity once nutrient supplies drop below critical levels. Positive balances are usually associated with increasing soil fertility and may eventually lead to elevated loss of nutrients to the environment. Nutrient balance varies greatly among countries, regions within countries, and farms within regions. It also varies over time as changes occur in both nutrient use and nutrient removal by crop production. A primary challenge for the fertilizer industry is to target its emphasis: use its marketing and delivery strength to increase nutrient balances where they are inappropriately low while also delivering the technology, service and educational programs to reduce balances where they are inappropriately high. Nutrient balance data indicate that nutrient relationships on the farms of the world are changing, and one can infer that they need to continue to change, with the magnitude and direction needed being farm and field dependent. 4R nutrient stewardship offers a useful framework to guide those changes toward more sustainable systems.
Crops and Soils magazine, Bruulsema et al. (2009) wrote “This simple concept can help farmers and the public understand how the right management practices for fertilizer contribute to sustainability for agriculture. Getting practices “right” depends on important roles played by many partners including farmers, crop advisers, scientists, policymakers, consumers, and the general public.” The concept of 4R stewardship not only provides structural stability to management decisions, but also offers a simple and effective means of communicating to those outside agriculture about how management contributes to sustainability. To truly be “right”, practices must be site-specific for the crop, field, and for a particular zone within the field. Yet, the scientific foundation upon which 4R nutrient stewardship is built, and that leads us to BMPs, is universal. Figure 1 is a schematic representation of the 4R nutrient stewardship framework (Bruulsema et al., 2008). At its core are the 4Rs – application of the right nutrient source at the right rate, right time, and right place. BMPs are the in-field manifestation of these 4Rs. The 4Rs are shown within a cropping system circle because they integrate with agronomic BMPs selected to achieve crop management ob-
Nutrient Balance and 4R Nutrient Stewardship
4R nutrient stewardship is an innovative approach to best management practices (BMPs) for fertilizers. It ensures that the right source (or product) is applied at the right rate, in the right place, and at the right time (Roberts, 2007; IFA, 2009). In the lead article of a 5-part series on 4R Nutrient Stewardship in the American Society of Agronomy’s 1 Presented at the 17th AFA Annual Forum and Exhibition, Feb. 2, 2011. Cairo, Egypt.
40
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jectives. Those farm-level crop management objectives contribute toward the larger economic, social and environmental goals of sustainable development. Around the outer circle of the 4R framework are examples of performance indicators. A balanced complement of these indicators can reflect the influence of nutrient BMPs on accomplishment of the goals of sustainable development. Nutrient balance is one of the performance indicators in the framework and is highly relevant in assessing the “rate” component of the 4Rs. In this context, nutrient balance refers to nutrient removal by crop harvest compared to nutrient inputs. Negative balances, where removal exceeds use, lead to declining soil fertility and eventually to reduced productivity once nutrient supplies drop below critical levels. Positive balances are usually associated with increasing soil fertility and may eventually lead to an elevated risk of nutrient loss to the environment. A primary function of nutrient management is to facilitate the balancing of nutrient removals and nutrient inputs at levels supporting optimum crop growth and minimal nutrient losses to the environment. Though assessment of whether nutrient use rates are “right” must clearly be done at a field or farm level, aggregate data at the regional or country scale can reflect general tendencies and trends useful in targeting educational programs, marketing efforts, and policy.
Nutrient Balance Countries
for
Average P balances are shown similarly in Figure 3. As with N, the range is extreme, from highs of over 100 kg P2O5/ha for Japan and Korea to a low of a -2 for Hungary with an OECD average of 23. Of the 30 countries reported, four had higher balances than in 1990-1992, four showed no change, and 22 had lower balances. The OECD average P balance declined 14 kg P2O5/ha from 1990-1992. If similar declines occur in each country over the next decade, 13 would have zero or negative balances.
OECD
The Organization for Economic Co-operation and Development (OECD) has published gross nutrient balances for OECD countries calculated as “the difference between the total quantity of nutrient inputs entering an agricultural system, and the quantity of nutrient outputs leaving the system” (OECD, 2008). The resulting surplus or deficit was expressed as kg of nutrient per ha of agricultural land per year.
Average N balances for 2002-2004 are shown in Figure 2, sorted from highest to lowest balance. The red and green numbers on each bar indicate the change from the 19901992 period. The range varies from over 200 kg N/ha to less than 10, with the OECD average estimated at 74. Important to note is that for the 16 countries having the largest surpluses, all but two (Korea and Ireland) showed reductions from the 1990-1992 period and the OECD balance as a whole declined 14 kg N/ha.
Nutrient Balance for China, India, Brazil and Russia
OECD average balances for N and P are compared to those for China, India, Brazil, Russia and the US in Table 1 along with K balances. Balances are reported as published by the original sources, so esti41
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Studies & Researches mation methods and assumptions may not be consistent across all countries. Also, the time periods for the estimations vary among countries.
Nitrogen and P balances for these countries fall within the range of the OECD countries, with the exception of Russia which has negative balances for N, P and K. India, China and the US also have negative K balances.
China has a high P balance of 79 kg P2O5/ha. However, the results of P analyses performed by the CAAS-IPNI Soil Testing Laboratory on samples collected from 1995-2000 and from 2001-2006 show that 45% and 44%, respectively, of soils tested were deficient in P, testing very low or low (Liu, 2008). Such soil levels suggest that P balances should be positive for the fields they represent to improve soil P fertility. But since 55 to 56% of the samples were not deficient, it is likely that the national P balance is higher than would be optimum. Tremendous within-country variability among geographic areas and cropping systems makes interpretation of national averages for China difficult.
tiple sources to create a nutrient use GIS for the U.S. (IPNI, 2010a). NuGIS currently covers a 20-year period but because Agriculture Census data are used in some balance determinations, most results are at 5-year intervals. NuGIS is currently only being used in the U.S., but IPNI plans to apply the approach in other countries in the future. The second project is the 2010 North American soil test summary, one in a series of summaries that IPNI periodically conducts with the cooperation of private and public soil testing laboratories (IPNI, 2010b).
The NuGIS maps in Figure 4 show nutrient removal to use ratios by hydrologic region. The ratio of nutrients removed by harvested crops to nutrients applied or biologically fixed (in the case of legume N) is another means of expressing nutrient balance. A ratio of 1.0 occurs when crop harvest removal and nutrient use are equal. Ratios less than one indicate that use exceeds removal (nutrient balance is positive) while ratios greater than one indicate that crop harvest removal exceeds use (nutrient balance is negative). The maps show major regional differences for all three nutrients.
N and P: The highest ratios are found in the Midwest Corn Belt and Northern Great Plains with lower ratios occurring in California, the Southeast and the Northeast. The lower ratios are usually associated with production of high cash value vegetable or fruit crops or high livestock populations per unit of arable land. Phosphorus ratios greater than one for the Corn Belt show that crop â&#x20AC;&#x153;miningâ&#x20AC;? of soil P is prevalent in this region. K: Ratios are very high in the West and lowest in the Southeast. The high ratios of the West are related to very high indigenous soil K levels. Even after many decades of cropping, most of these soils continue to supply ample K to crops. However, soil
Nutrient Balance Variability within a Country â&#x20AC;&#x201C; U.S. Example
Appropriate use of country nutrient balance data requires an appreciation for the variability in nutrient balance that can occur within a country. Some of this variability is farm-specific but some is region-specific and associated with regional soil properties, cropping systems or livestock density. Two projects by IPNI in the U.S. can serve to illustrate these regional differences and their implications for soil fertility. One project, named NuGIS, uses a partial nutrient balance model that is still being refined. It utilizes data from mul42
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test summaries do show soil K reductions and suggest that with time, K use in the region will need to continue to increase. In contrast, the soils of the Southeast have low cation exchange capacities and do not effectively store applied K. This area also grows high cash value crops with high K needs.
Much of our interest in nutrient balance is due to its connection with soil fertility impacts as discussed earlier in this paper. For example, are the greater than one P ratios of the U.S. Corn Belt resulting in declining soil P levels? The intensity of soil sampling and relatively uncomplicated nutrient budgets of the U.S. Corn Belt provide an opportunity to answer that question with actual data. Figure 5 shows the 2010 median soil P levels and the change from the 2005 for states of the Corn Belt and province of Ontario. Two states showed no change while all others show reductions in soil
university research indicates are critical levels for crop response, these reductions are agronomically very meaningful.
The Challenge for the Fertilizer Industry
Nutrient balance is a critical performance indicator of the sustainability of cropping systems because it indicates the future direction of soil fertility levels under existing practices and can provide an indication of nutrient use efficiency. Nutrient balance varies greatly among countries, regions within countries, and farms within regions. It also varies over time as changes occur in both nutrient use and nutrient removal by crop production. Growth in the need for agricultureâ&#x20AC;&#x2122;s products, and in the expectation or expanding requirements that those needs will be met without negatively impacting the environment, increases the importance of appropriate industry response to nutrient balance indicators. Defining an appropriate response to existing nutrient balance requires consideration of other performance indicators in the 4R framework (Figure 1) such as soil productivity. If soil nutrient levels are below those considered critical for optimum crop growth, positive balances are usually appropriate until critical levels are achieved. If soil nutrient levels are above the range considered optimum, negative balances may be appropriate until the optimum range is approached. Additional factors that can influence response to nutrient balance levels include access to technology enabling adjustments in source, timing, or placement of nutrients, the needs of livestock enterprises, health and economic risks associated with nutrient insufficiency, labor supply, and site-specific environmental impacts.
P levels across this 5-year period. Regression of nutrient balance on change in soil test levels shows that 62% of the variation in change in state median soil test P level is explained by state P balance (Figure 6). The resulting regression line essentially passes through the origin indicating that when P use is equal to P removal by crops, over the last 5 years no change in soil test P level occurred. Since most current levels are near or below what
A primary challenge for the fertilizer industry is to target its emphasis by using its marketing and delivery strength to increase nutrient balances where they are inappropriately low while also delivering the technology, service and educational programs to reduce balances where they are inappropriately high. Part of the challenge is to identify which is which; a process that can be facilitated by sciencebased evaluation of nutrient use. That is the objective of the NuGIS project discussed earlier.
Improper (sub-optimal and supra-optimal) nutrient balances can impair optimal crop nutrient recovery efficiency and effectiveness. For example, 43
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Studies & Researches inadequate P, K, sulfur (S) and micronutrients can reduce crop N recovery and may potentially raise the risk of N discharge to freshwater resources and to coastal oceans, a growing environmental concern (Seitzinger et al., 2010, 2005; Galloway et al., 2008). In the practical world, sustainable agriculture is less of a condition than it is a direction. None of us can see far enough into the future to know what is sustainable. What we can do is strive to create systems that are more sustainable than
References
those of the past. Continuous improvement is an essential ingredient for sustainability and 4R nutrient stewardship can serve as the foundation for the continuous improvement of nutrient management. The nutrient balance data discussed here indicate that nutrient relationships on the farms of the world are changing, and one can infer that they need to continue to change with the direction needed being farm and field dependent. 4R nutrient stewardship offers a useful framework to guide those changes towards more sustainable systems.
Bruulsema, Tom, Jerry Lemunyon, and Bill Herz. 2009. Know your fertilizer rights. Crops and Soils 42(2):13-18. Bruulsema, TW, Witt, C, García, Fernando, Li, Shutian, Rao, T Nagendra, Chen, Fang, and Ivanova, S. 2008. A global framework for fertilizer BMPs. Better Crops 92(2):13-15. Da Cunha, J. F., V. Casarin, and L.I. Prochnow. 2010. Nutrient balance in Brazilian Agriculture. In Boas Practicas Para Uso Eficiente de Fertilizantes. Vol. 2. IPNI, Piricicaba, Brasil. Galloway, J. N. , A. R. Townsend, J.W. Erisman, M. Bekunda, Z.Cai, J.R. Freney, L.A. Martinelli, S.P. Seitzinger, and M.A. Sutton. 2008. Transformation of the nitrogen Cycle: recent trends, questions, and potential solutions. Science 320, 889-892. IFA. 2009. The Global “4R” Nutrient Stewardship Framework for Developing and Delivering Fertilizer Best Management Practices. IFA, Paris. IPNI. 2010a. A Preliminary Nutrient Use Information System (NuGIS) for the U.S. IPNI Publication No. 30-3270. Norcross, GA. Available on line >www.ipni.net/nugis<. IPNI. 2010b. Soil Test Levels in North America: Summary Update. IPNI Publication No. 30-3110. Norcross, GA. Available on line >http://info.ipni.net/soiltestsummary <. Jin, J. 2010. Personal communication. > jyjin@ipni.net<. Liu Xiaoyan, 2008. Soil fertility status and nutrient balance in farmland in China. Post Doctoral Study Report. Graduate School, Chinese Academy of Agricultural Sciences, Beijing, China. OECD, 2008. Environmental performance of agriculture in OECD countries since 1990. Paris, France. Available on line >www.oecd.org/tad/env/indicators<. Roberts, Terry L. 2007. Right product, right rate, right time, right place. The foundation of BMPs for fertilizer. IFA Workshop on Fertilizer Best Management Practices (FBMPs), 7-9 March 2007, Brussels, Belgium. Satyanarayana, T. 2010. Personal communication. > tsatya@ipni.net<. Seitzinger, S.P, E. Mayorga, A. F. Bouwman, C. Kroeze, A. H. W. Beusen, G. Billen, G. Van Drecht, E. Dumont, B. M. Fekete, J. Garnier,and J. A. Harrison. 2010. Global river nutrient export: A scenario analysis of past and future trends. Global river nutrient export: A scenario analysis of past and future trends, Global Biogeochem. Cycles, 24, GB0A08, doi:10.1029/2009GB003587. Seitzinger, S. P., J. A. Harrison, E. Dumont, A. H. W. Beusen, and A. F. Bouwman. 2005. Sources and delivery of carbon, nitrogen, and phosphorus to the coastal zone: An overview of Global Nutrient Export from Watersheds (NEWS) models and their application, Global Biogeochem. Cycles, 19, GB4S01, doi:10.1029/2005GB002606. Sichev, V.G., E.N. Efremov, and V.A. Romanenkov. 2010. Methodological support of fertility monitoring for agricultural soils in Russia. All Russian Agrochemistry Research Institute. 44
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