http://www.fertilizerseurope.com/documents/FMB

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2010 FMB Europe Fertilizer Conference & Exhibition InterContinental Vienna, Austria - 27 to 29 October

“Challenges Facing the European Fertilizer Sector” Esa Härmälä, Director General

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Key Issues

 Fertilizers

& Food

 ETS  Gas  CAP,

Biodiversity

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A higher global demand for food calls for greater agricultural productivity and improved crop nutrition. Mineral fertilizers can help increase the productivity of land already under cultivation.

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Fertilizers and Food

Today, European agriculture produces more crops with less nitrogen fertilizer than 20 years ago and its nitrogen use efficiency is the highest in the world. Europe must maximise Good Agricultural Practice to continue its support for global food needs.

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Fertilizers and the Environment

Reducing GHG emissions is an important driver of the EU’s environmental, industrial and energy policies. Emissions of N2O, both from soil-applied nitrogen and fertilizer production, are diminishing. 12% of global greenhouse gas emissions come from changes in land use. With more efficient use of existing land and greater crop yields, agriculture can minimize its effect on the environment.

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Emissions Trading Scheme

The impact of the proposed emissions trading scheme will inevitably drive fertilizer production out of Europe and threaten its food security. It has been shown to be the most exposed of all european industries and highly vulnerable to carbon leakage. Without suitable benchmarks‌ ETS III will actually increase carbon emissions.

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The effects on profit of a carbon cost

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NATURAL GAS: AN ESSENTIAL RAW MATERIAL Europe can not endanger its own food production by being dependent on an uncertain supply of natural gas. Inter-connection, storage and transparency across the whole panEuropean gas market is essential and will benefit consumers across Europe. Inter-connection, storage and transparency across the whole panEuropean gas market is essential and will benefit consumers across Europe.

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Fertilizer Consumption

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Forecast consumption 2010/2020: Final trends (reference 2010)

Evolution in 2020, as foreseen in:

June

+ 4.4%

August

+ 3.6%

+ 17%

-16.2%

+ 12%

+ 11.1%

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Forecast consumption 2010/2020: Final trends (reference 2007)

Evolution in 2020, as foreseen in:

June

+ 1.3%

August

+ 0.8%

- 12.6%

-10.6%

- 14%

- 14%

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