Fertilizers & Agriculture February 2015 by International Fertilizer Industry Association

February 2015

fertilizers www.fertilizer.org

agriculture 2nd International Conference on Nutrition

Policy and trade seasonability: their effects on markets

2015–a pivotal year for the fertilizer industry and the agri-food sector 2015 will be an important year for the international policy agenda in regard to agricultural and food issues. It will include: • a range of events related to the International Year of Soils (IYS); • final negotiations on the Sustainable Development Goals, which will build upon the Millennium Development Goals (designed to have been achieved by 2015) and converge with the post 2015 development agenda; • the international exposition, Expo 2015, in Milan whose theme is “Feeding the Planet – Energy for Life”; • the climate change negotiations in Paris in December, which could see the adoption of an international agreement and may feature climate-smart agriculture. Most of the important events of this nature planned for 2015 will be led by United Nations bodies. They are expected to result in international decisions, declarations and agreements, as well as overall publicity, that will impact all economic sectors and – it is to be hoped – prominently feature agriculture, food and nutrition security. 2015 will also be particularly important for the fertilizer industry since a growing number of UN bodies are working towards establishing indicators to measure productivity and sustainability performance in the agricultural sector.

by Chuck Magro In January IFA formally launched its new Communication and Public Affairs Committee, which I have the honour and pleasure to chair. The launching of this new committee comes at a most opportune time. The Communication and Public Affairs Committee will play a key role in supporting IFA and its members as they step up their engagement to represent the industry in the multilateral arena. cont’d on page 2

Managing water and fertilizer for sustainable agricultural intensification by Frank Rijsberman

sk anyone outside agriculture to describe the most important technological advance of the 20th century, and the likely suggestion will be something pertaining to computer technology or the internet. But ask an agricultural researcher, and you’ll likely receive a very different answer. The most important advance of the 20th century was the Haber-Bosch process that enables the artificial manufacturing of nitrogen fertilizer to produce the food we need. It is fitting that both Fritz Haber and Carl Bosch were awarded Nobel Prizes in 1918 and 1931, respectively, for their work in chemistry and engineering. cont’d on page 4

2 fertilizers & agriculture

IFA news IFA signs Memorandum of Understanding with AFAP During the Strategic Forum in November in Marrakech, IFA and the African Fertilizer and Agribusiness Partnership (AFAP) signed an MoU pledging to commit their efforts to improve Africa’s agricultural development and bridge the continent’s productivity gap. Through this MoU, AFAP and IFA will collaborate on a number of joint activities to engage and support private and public sector initiatives to identify, enable and deliver improvements in the fertilizer value chain that will strengthen availability and the value-cost ratio of fertilizer for farmers. IFA and AFAP already partnered in 2014 on the Smallholder’s Access to Fertilizers campaign, a call to African leaders to unlock fertilizer markets; and on the newly launched African Fertilizer Volunteers’ Program, an initiative aimed at mobilizing global expertise in support of increasing smallholder fertilizer users and usage.

Argus FMB Africa Fertilizer conference IFA will be participating and hosting a sideevent on smallholders’ access to fertilizer at the Argus FMB conference in February in Addis Ababa, Ethiopia. Speakers from One Acre Fund, Ethiopian Agricultural Transformation Agency, AGRA, IITA and others will participate. View the campaign material and previous side-events at www. fertilizer.org/SmallholdersAccessFertilizers

2015 Global Forum for Innovation in Agriculture (GFIA)

GFIA 2015 will host over 6,000 of the world’s brightest minds to show the world how game-changing technologies can feed the world. IFA is an official partner of the GFIA event. IFA members who wish to participate in the forum get a special delegate's package at a special rate. Contact: ifa@fertilizer.org www.InnovationsInAgriculture.com

cont’d from page 1

2015-A pivotal year for the fertilizer industry and the agri-food sector Its mission is to raise the profile and solidify the reputation of the fertilizer industry in the media and among strategic international policymakers, influencers, NGOs and other organizations, by communicating and promoting IFA members’ continuous actions and solutions aimed at addressing global societal concerns related to agriculture, food security, and fertilizer production and use. Upon becoming chairman of the Communications and Public Affairs Committee, I would like to pursue three goals: • I believe the committee will play an important role in mobilizing the industry to promote sustainable fertilizer use, particularly through developing strategic partnerships and designing best fertilizer management practices (based on the 4R principles) and disseminating these practices to farmers of all sizes around the world. • The committee will also help IFA strengthen its relationship with agribusiness companies so as to create a forum for discussing issues of common interest along the food value chain, including the role of fertilizers in food and nutrition security and nutrient stewardship. • The global stakeholder engagement strategy on which IFA is embarking re-

quires the industry to speak with one voice. To achieve this level of coordination it is essential that companies, and national and regional associations, work in unison. I will encourage greater sharing of information, tools and common positions among the associations at all geographic levels. 2015 will be an exciting and challenging year for the fertilizer industry. I look forward to working with IFA members and stakeholders to promote the role of fertilizers in food and nutrition security, as well as the importance of producing and using fertilizers sustainably around the world. Chuck Magro is CEO of Agrium Inc, USA and Chairman of the new IFA Communication and Public Affairs Committee.

More information  Sustainable Development Knowledge Platform http://sustainabledevelopment. un.org/?menu=1300  Milan 2015 www.expo2015.org/en/  EU http://ec.europa.eu/clima/policies/international/negotiations/future/index_en.htm

IFA in social media 2014 was an exciting and rewarding year for social media with activity on IFA channels bustling and culminating with 6000 followers on Twitter, 2500 followers on LinkedIn and 75 followers on Pinterest. Through social media, IFA has been able to reach over 5 million people and convey important messages about human health, access to fertilizer by smallholders and also projects and initiatives of individual members. 2015 will be a year of ambitious targets and the IFA social media team welcomes your contributions. Please follow us on the following channels:

@FertilizerNews

https://www.linkedin.com/company/ international-fertilizer-industry-association-ifa

https://www.pinterest.com/ fertiliser/

February 2015

Farmer outreach This article is the sixth in the series of “innovative ideas on effective last-mile delivery” undertaken by IFA members.

Partnerships for improved nutrient management by Raymund Ilustre

artnerships between the private sector and research institutes are imperative in order to feed a growing population, while safeguarding biodiversity and mitigating the environmental effects of production intensification. To help eradicate poverty globally, it is important to share success stories and best practices that can be scaled up or transplanted to other regions. Sharing these success stories also highlights that information and communication technology (ICT) together with a continuous innovative spirit are key catalysts for best practice dissemination. I would like to share such a success story concerning long-term co-operation between two entities with totally different orientations, which have a common dream about how to contribute to poverty reduction by increasing the productivity and profitability of the ordinary rice farmer in the Philippines. One of these entities is IRRI (International Rice Research Institute), CGIAR institute based in Los Banos, Laguna, in the Philippines. IRRI was created with the primary goal of reducing poverty and hunger all over the world by ensuring a steady supply of rice through sharing its scientific rice research with willing partners. The other is the Atlas Fertilizer Corporation (AFC), one of the leading NPK fertilizer manufacturing and distribution companies in the Philippines, which is known for its advocacy of soil-specific and crop-specific farming in that country. I know about this first hand, having worked with the company for many years now. For the past 57 years of its corporate existence AFC has consistently worked with Filipino rice farmers, delivering rice technologies that will alleviate their economic plight through higher produc-

tivity and profitability of their rice fields. AFC is committed to make a significant contribution to the development of agriculture in the Philippines. Therefore, it has not hesitated to work side by side with IRRI to help improve the lives of our farmers. 2014 marks the tenth anniversary of the IRRI-AFC working relationship to develop the Nutrient Manager for Rice software tool. Collaboration between IRRI and AFC began in 2004, when IRRI started developing Site-Specific Nutrient Management software tools and AFC became actively involved in the field delivery of these tools. The Nutrient Manager for Rice tool is a computer-based decision tool that provides rice farmers in the Philippines with customized guidelines for nutrient management, so they can apply fertilizers more efficiently and maximize their yields – while conserving biodiversity and reducing runoff, leaching and other adverse effects associated with fertilizer application. This tool, thought to be a worldwide first, was developed by IRRI scientists over 18 years to advise farmers on optimal fertilization. With the ICT revolu-

tion, it has evolved and is now available as a mobile platform accessible via cell phones. Given that more than 90 percent of all Filipino farmers own a mobile phone, even those in remote areas can now receive fertilizer advice in the form of text messages. The merits of this tool lie in its simplicity. Users dial a toll-free number on their mobile phone, answer ten to 15 multiple-choice questions about their fields, and receive a text message indicating the quantity, sources and proper timing of fertilizer applications for their fields. The service is automated and delivered in four languages/dialects used in the Philippines, including English. The Nutrient Manager for Rice is tailored to the rice-growing conditions of every region. It is user-friendly for extension workers, crop advisors and farmers, without any need for soil and plant analyses. The most innovative aspect is increased accessibility. Partnering with local governments and the private sector has meant that this tool is translated into local dialects, and thus more farmers can use it. With all the above advantages and very useful software technology for our Filicont’d on page 5

cont’d from page 1

Managing water and fertilizer for sustainable agricultural intensification

food production needed. Affordable improvements in nutrient and water management will be especially crucial for the millions of smallholder households that struggle to produce sufficient food and income to sustain their precarious livelihoods in both rain-fed and irrigated settings. Sound agricultural development will remain the backbone for the achievement of many of the proposed Sustainable Development Goals from poverty alleviation to food security. This book is a timely contribution as it cuts across the water and fertilizer sectors and summarizes the state-of-theart knowledge on plant nutrition and water management and the challenges we face in achieving the food security component of the Sustainable Development Goals. The authors describe our current understanding of plant nutrient and water interactions, while looking ahead to the best management practices and innovations that will propel crop production to higher levels. The authors also address the issue of sustainability, as only those options that achieve food security and livelihood goals, while also

Yet, crops cannot thrive with nitrogen alone. Long ago (in the 19th century) Carl Sprengel and Justus von Liebig put forth the Law of the Minimum, in which they described how plant growth is limited by the nutrient that is available in shortest supply. Thus, the crop response to additional increments of nitrogen might be nil if potassium or phosphorus or some other essential nutrient is limiting. The same can be said for soil moisture. Plant nutrients, alone, are not sufficient to grow or sustain plant growth without water, and vice versa. And in this day and age of increasing economic and physical water scarcity and an increasing portion of farm expenses attributed to mineral fertilizer, farmers must manage both inputs very closely to ensure they achieve high yields and obtain good returns on their investments, while reducing the possible negative impacts of water and nutrient use on the environment and ecosystem services. Those of us working in academia, research institutes, and donor organizations must continue to enhance our understanding of agronomy, soil fertility and crop nutrition, and water management to feed the 9 billion people we are expecting by 2050. We need to increase adoption of existing techniques and develop new technologies and crop varieties, if we are to achieve the gains in

4 fertilizers & agriculture

Farmer cultivating lettuce, while another farmer digs a small chanal (marrwa) with a donkey, Egypt.

Woman watering plants, India. protecting ecosystem services, will be acceptable in the 21st century. We have come a long way since the remarkable insights and innovation provided by research pioneers in the 19th and 20th centuries. The fundamental principles of agronomy, plant science, and hydrology are well established and timeless. Yet, with increases in population and advances in economic growth, we face new challenges in each century, with regard to food security, livelihoods, and the environment. We can meet the challenges ahead, provided we continue to innovate and integrate our research programmes and transfer new knowledge effectively to farmers and other agriculturists seeking to optimize the interactions between plant nutrients, water, and other agricultural inputs in a sustainable manner. The same integration of efforts is required for those working on sustainable agricultural development at different scales. This book will inform and inspire those engaged in this pursuit.

Managing Water and Fertilizer for Sustainable Agricultural Intensification. First edition, IFA, IWMI, IPNI, IPI, January 2015. 257 pp. www.fertilizer.org/Library

February 2015

cont’d from page 3

IFA news

Partnerships for improved nutrient management

Africa’s agricultural potential

Farming First and IFAD launched a new infographic Africa’s agricultural potential. The creative product focuses on the many ways in which Africa can realize its potential to address hunger and malnutrition while boosting livelihoods and promoting inclusive growth sustainably. Fertilizers are nicely featured. The infographic has already received significant attention from the media and relevant stakeholders. We encourage you to use the statistical data in your work and to share it widely among your networks. www.farmingfirst.org/africanag/

Phosphate supply: What you need to know to understand current trends

Raymund Ilustre is AFC Vice-Chairman and Board Member of Atlas Fertilizer Corporation, Philippines

pino farmers, it is no surprise that the collaboration between IRRI and AFC was formally sealed when the two entities entered into a Memorandum of Agreement on 22 October 2013, signed by AFC’s President and CEO, Takashi Sumi, and IRRI’s Director General, Robert S. Ziegler, relative to funding the full development and utility of the Nutrient Manager for Rice Software for all its target end users. As this partnership celebrates its tenyear collaboration, it is only fitting that finally, starting in December 2014, farmers can make use of this technology through information technology tools like cellular phones, tablets, laptops and other devices made available to them. This will also increase the number of farmers reached by Atlas, traditionally achieved through farmers meetings and technical seminars conducted by Atlas Fertilizer’s technical experts and agronomists, who share site- and soil-specific nutrient management techniques with them. Through this strategic and innovative partnership, we have contributed to enabling farmers to increase rice yields and profits, increase fertilizer use efficiency and reduce losses of nutrients to the environment. This has resulted in advancing the economic empowerment of Filipino rice farmers. In an interview with Voice of America, IRRI Senior Scientist Roland Buresh said that if the technology is used correctly, farmers could experience yields bringing US$100 in additional income per

hectare. The income increase trickles down to every sector of the local economy and definitely improves the lives of entire farming communities. The expansion of nutrient management tools and nutrient stewardship initiatives such as 4R – using the right nutrient source, at the right rate, at the right time, in the right place – presents an important opportunity for the private sector everywhere to get involved in the development, formulation and dissemination of new innovative tools and practices. The IRRI-AFC partnership is a prime example of how the fertilizer industry is cooperating with partners to improve nutrient stewardship around the world, especially in the areas of technology transfer and outreach to farmers. Following this path, I encourage corporate leaders everywhere to consider the economic and social benefits of innovative partnerships with research institutes and to disseminate such information through innovative and evolving ICT. Only by working together can we achieve radical agricultural transformation and sustainably ensure the feeding of 9 billion people all over the world.

IFA Fertilizer Facts, January 2015 www.fertilizer.org//en/Knowledge_ Resources/Library/Selection_Fertilizer_ Facts.aspx

6 fertilizers & agriculture

World Soil Day and launch of the International Year of Soils, FAO, December 2014 On 4 December, IFA attended the launch of Agriculture for Impact’s Soils Report “No Ordinary Matter: Conserving, Restoring and Enhancing Africa's Soils” hosted at IFAD in Rome.

IFA donation to International Year of Soils by Charlotte Hebebrand, IFA Director General

Reaffirming our commitment to the global fight against hunger and poverty, the International Fertilizer Industry Association is pleased to announce US$ 62,500 (€ 50,000) of funding to the Food and Agriculture Organization of the United Nations (FAO) in support of the 2015 International Year of Soils. Soils are the foundation for food, animal feed, a source of clean water, nutrients and the home to many species. More attention to soils will be needed to meet the challenge Charlotte Hebebrand with Graziano Da Silva, of feeding a growing world popuFAO Director General lation while coping with climate change and increased losses of natural resources. According to UNCCD, drought and desertification cause the loss of 23 hectares of arable land per minute, leading in turn to the loss of 20 million tons of grain. Land degradation affects 1.5 billion people globally, moreover 74% of the poor are directly affected by land degradation globally. People who not only live in poverty, but most likely also in hunger. The International Year of Soils in 2015 is a key moment to raise awareness about the profound importance of soil for human life, especially about "Sustainable food the crucial role that soil plays in food security with Expo2015 systems start with and the SDGS, climate change adaptation and mitigation with soils, the founda- COP21 in Paris. It is a perfect opportunity to encourage investtion of agriculture" ment, cooperation and education awareness, so we can achieve Graziano Da Silva and maintain healthy soils throughout the world. Given that the role of fertilizer is to improve soil fertility, we aim to contribute more than just funding by bringing our knowledge and expertise to soil stewardship. In December 2013, the UN General Assembly declared 2015 the International Year of Soils (IYS), which aims to increase awareness and understanding of the importance of soil for food security and essential ecosystem functions. FAO has been nominated to implement the IYS 2015, within the framework of the Global Soil Partnership (GSP) and in collaboration with Governments and the secretariat of the United Nations Convention to Combat Desertification (UNCCD). The IFA contribution will be used to prepare communications materials in various languages with local and regional examples of successful sustainable soil management practices.

This report from the Montpellier Panel argues that if left unaddressed, the cycle of poor land management will result in higher barriers to food security, agricultural development for smallholder farmers and wider economic growth for Africa. http:// ag4impact.org/news/no-ordinarymatter-conserving-restoring-andenhancing-africas-soils-2014/ On 5 December, IFA attended Soils celebrations at the FAO in Rome and the UN Headquarters in New York. On this occasion, IFA Director of Communication and Public Affairs, Morgane Danielou spoke in a panel including FAO Director General Graziano da Silva, highlighting the importance of soils for hunger eradication and poverty alleviation. www.nutrients4soils. info//Nutrients4Soils/Stories/FAO_ World_Food_Day.aspx As part of its contribution to the International Year of Soils, IFA is collecting and curating a series of video interviews on soils comprising views of governments, policymakers, soils scientists, farmers and others. The Interview Wall will be launched on April 19 in Berlin at the Global Soil Week.

February 2015

Launch of IFA's Nutrients4Soils website IFA is celebrating the International Year of Soils through a year-long series of events and creative products. The Nutrients4Soils platform will aggregate resources on soils. Join the conversation, use and share this content and become a soil steward.

www.Nutrients4Soils.info

Soil health and the fertilizer gap IFA’s President Esin Mete participated in a panel discussion on ‘Soil Health and the Fertilizer Gap’ at the World Food Prize in October 2014. The World Food Prize Dialogue is a preeminent forum for discussing global food security. For the first time, fertilizers were prominently featured in a panel discussion. Esin Mete was joined by Amit Roy (IFDC) "We should not just be and other leading experts to discuss the role of fer- focusing on feeding the 9 billion, but also on tilizer in achieving food and nutritional security. nourishing them." You can read more about Esin Mete’s participation Esin Mete in the following articles: • World Food Prize -Q&A: If Norman Borlaug posed the following questions to you... what would you tell him? www.worldfoodprize.org/index.cfm?NodeID=79612&AudienceID=1&preview=1 • Reuters AlertNet - Is fertiliser the key to more food and better health? www.trust.org/item/20141013140127-lwmxb/?source=search • MU Earth - Call for fertilizers https://muearth.wordpress.com/2014/10/17/call-for-fertilizers/ • Agriculture.com - 7 Numbers You Should Know About Global Fertility www.agriculture.com/news/crops/7-numbers-you-should-know-about-global_2-ar45653

Soil & Fertilizer: Expert Views To coincide with World Soil Day IFA released a new document that collates expert views from around the world on the relationship between soil and fertilizer, featuring soil scientists such as Ronald Vargas of FAO, Bernard Vanlauwe of IITA, Prem Bindabran of VFRC and Terry Roberts of IPNI. www.fertilizer.org//En/Knowledge_ Resources/Library/IFA_Selection_Fertilizer_Use.aspx

8 fertilizers & agriculture

SECOND INTERNATIONAL CONFERENCE ON NUTRITION (ICN2)

Large private sector delegation takes part in major global nutrition conference by Harmen Tjalling Holwerda, Koen Van Keer and Katja Hora he Second International Conference on Nutrition (ICN2) was held in Rome on 19-21 November. This high-level intergovernmental meeting was organized jointly by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO). More than 2000 people participated. Especially noteworthy was the presence of a private sector delegation, co-organized by a steering committee consisting of the Scaling Up Nutrition Business Network (SUN), representatives of the livestock sector (led by the International Dairy Federation) and the Private Sector Mechanism (PSM) of the UN Committee on Food Security. The committee was co-ordinated by the International Agri-Food Network (IAFN). The presence of this delegation reflects policy makers’ increasing receptiveness to participation by the private sector in discussions on global nutrition challenges. The delegation included 90 private sector representatives from 24 countries – a diverse cross section of the companies involved in the agri-food value chain. IFA was represented by Koen van Keer (Yara) and Harmen Tjalling Holwerda and Katja Hora (both from SQM). The purpose of the Rome conference was to address the multiple challenges of malnutrition in all its forms. The presentations and discussions reviewed the steady progress that has been made in reducing hunger and achieving global nutrition targets, as well as the work that remains to be done. To alleviate the “triple burden” of undernutrition (hunger), overnutrition (obesity) and imbalanced nutrition (micronutrient deficiencies), strategies are shifting from a single-focus approach to a coherent, multi-disciplinary, multi-stakeholder one. The solutions proposed for reducing micronutrient deficiencies emphasized food supplements, rather than agronomic biofortification through micro-

nutrient-rich fertilizers. The importance of the international fertilizer industry in improving nutritional quality in primary food production appears not to be adequately recognized. In the corridors and in bilateral meetings with government and civil society representatives, private sector representatives had the opportunity to convey their key messages: • sustainable and diversified agriculture is the source of all food and nutritional security – a key driver of economic growth; • private sector engagement is essential to achieve global nutrition goals; • the private sector is willing and able to assist in providing solutions to help scale up nutrition. Awareness needs to be created among nutrition and health policy makers of the international fertilizer industry’s vital role with respect to providing science-based, sustainable, well-balanced fertilization programmes, involving both macro- and micronutrients, which leads to: • nutritous food and feed, contributing to healthier diets; • better yields and increased harvest security, which raise farmers’ incomes

and enable investments that improve the health and quality of life of farmers, their families and local communities. Our common objectives provide a basis for following up on the ICN2 and strengthening the involvement of the fertilizer sector in providing solutions to help ensure the WHO global targets are met by 2025. A starting point could be to invite policy makers and politicians to participate in a follow-up meeting organized by the private sector. Such a meeting would showcase how successful private sector initiatives can enhance the nutritional quality of food.

Contact Harmen Tjalling Holwerda Global Market and Product Development Director SQM, Antwerp, Belgium www.sqm.com Harmen.Tjalling.Holwerda@sqm.com

More information  ICN2 conference www.fao.org/about/meetings/icn2/ en/ and www.who.int/nutrition/topics/WHO_FAO_announce_ICN2/en/  WHO's six global targets for improving maternal, infant and young child nutrition by 2025 www.who.int/nutrition/topics/nutrition_globaltargets2025/en/  Rome declaration on nutrition www.fao.org/resources/infographics/infographics-details/en/c/266118/  FAO food-based dietary guidelines www.fao.org/nutrition/education/ food-dietary-guidelines/home/en/

February 2015

Policy and trade seasonality: their effects on fertilizer markets by Michel Prud'homme, IFA

trogen sector necessary. More stringent legislation and implementation with respect to tailings management will impact phosphate operations and encourage the recycling of phosphogypsum in the construction and chemical sectors. Energy and environmental policies have exerted strong influences on the prospective development of shale gas in various countries, notably in the European Union. Legislation and fiscal terms need to be developed in balance with stakeholders’ expectations. The general public needs to become confident of the safety of shale gas extraction. Shale gas development has led to a renaissance of the nitrogen industry in the United States, but public perceptions and political will are the most important enabling factors to expand exploration and development in the shale gas sector. Compliance with strict environmental regulations will spur demand for customized fertilizer products, fit for farmers’ needs and soil-crop conditions. Asia-Pacific will be the fastest growth region for water soluble fertilizers over the next decade, with demand driven by increasing adoption of fertigation practices and requirements for enriched and fortified fertilizers. Environmental and industrial development policy Farmer selling vegetables off bicycle drawn cart, China.

peakers at the 35th IFA Production and International Trade Conference, which took place on 29-30 September 2014 in Beijing, put a strong emphasis on policies, trade prospects and emerging markets. Fertilizer markets in South Asia (Pakistan, India) remain heavily influenced by the scope of their respective fertilizer subsidy regimes. The main effects of these regimes have been increasing use of nitrogen fertilizers, to the detriment of phosphorus and potassium use, and a certain degree of volatility associated with constraining budget allocations, changing subsidy and tax policies, and challenging financial constraints. In China policy development has been a major catalyst in shifting production, consumption and sales patterns. National food security remains the driving force behind capacity development and reduced import reliance. Fertilizers will continue to play a decisive role in agricultural production, but their environmental impacts call for higher nutrient use efficiency and improved fertilization balance. The Chinese government is committed to address these converging issues and aims at zero growth fertilizer consumption by 2020. Environmental policy has a growing influence on the viability of fertilizer operations. In a large country such as China plant atmospheric emissions, energy efficiency and water consumption standards make rationalization in the ni-

decisions impact investments in the extractive and downstream sectors, but generate collateral effects on global trade. Ammonia capacity In the United States is seen as doubling between 2010 and 2020, with new domestic tonnage displacing current nitrogen import demand in the near term. In several countries, such as the US, China and Indonesia, domestic capacity development for sulphur, ammonia, urea and ammonium sulphate will result in import substitution, impacting trade volume growth and adding incremental export potential. Trade policy, essentially export measures, has added a high degree of seasonality in global trade, supporting flows of raw materials in fertilizer exporting countries in anticipation of seasonal trade availability and consequential import demand. A case in point is the growing trade in urea and DAP between China and India. Among the few countries with export trade measures, only China has exerted significant impacts on global trade, adding market volatility and seasonality of supply. Markets are influenced by policies, but are reactive in order to adjust to new realities and tap new opportunities. The same applies to the fertilizer industry. The 2015 IFA Productions and International Trade Conference will be held in mid-September 2015 in Florida.

10 fertilizers & agriculture

Charting the way to optimal performance in the global fertilizer industry by Volker Andresen, IFA

rowing environmental awareness has drawn considerable attention to industrial emissions worldwide, including various air and water pollutants, as well as powerful greenhouse gases such as carbon dioxide (CO2) and nitrous oxide (N2O). And, within this changing context, environmental and product stewardship issues have greatly increased in importance in the fertilizer sector, and in many respects, have become central to the industry’s overall strategic development. One of the key means that IFA has developed to assist members to reach their respective environmental performance objectives is through the Technical & SHE Committee’s Environmental Performance Benchmark. For over a decade now, this biennial report has monitored performance for roughly fifty emission parameters across the major fertilizer product areas. These industrial emissions are collected in a confidential manner, and the ensuing analysis generates anonymous industry benchmarks and compares the industry’s performance relative to Best Available Techniques (BAT) standards in each of the areas.

Survey participation In 2014, IFA member companies submitted more emissions data for more

Member company participation in IFA's 2014 environmental survey

production units than ever before. The number of participants jumped a full ten percent relative to 2012. Most notably, this exercise saw the addition of several of the world’s largest global producers, with production facilities located in a broad array of countries. Overall, it could be considered that the participation rate confirms that there is indeed a growing commitment among IFA members, as well as its biggest producers, to monitoring environmental emissions in their operations worldwide.

The fertilizer industry is showing steady progress across the board The survey results show significant improvement in reducing harmful greenhouse gases, including CO2 and N2O emissions, as well as NOx and dust emissions and various effluents to water. Across all product sectors, emissions of greenhouse gases, namely CO2 and N2O emissions, were reduced on average by 4 to 16 percent depending on the product. The best-in-class figures generated by the survey data illustrate that certain producers are operating at well below the global averages. These results set the bar quite high for IFA producers in terms of their own environmental performance potential – and further indicate that great improvements in emissions performance are being achieved globally. Moreover, it can be concluded that these results indicate a broad adoption of environmental mitigation strategies and best available technologies (BAT’s) across the global sector. Global key performance metrics resulting from these surveys assist fertilizer producers to: • Establish yearly emissions reduction targets; • Measure improvements over time; • Gauge performance relative to generally-accepted best-available techniques (BAT) standards;

• And, communicate current emissions reductions achievements to key stakeholders locally.

OF PRODUCT TYPE EMISSION

CONFORMANCE (%)

Ammonia

nitrogen oxide (NOx)

Nitric acid

nitrogen oxide (NOx)

Nitric acid

nitrous oxide (N2O)

ammonia (NH3)

Source: IFC Environmental, Health, and Safety Guidelines for Nitrogenous and Phosphate Fertilizer Production, 30 April 2007, World Bank Group. For more information on the various IFA benchmarking activities, please visit www.fertilizer.org or contact the Secretariat.

Environmental Performance Benchmarking for the Fertilizer Industry, November 2014, www.fertilizer.org// en/Knowledge_Resources/Library/Selection_Fertilizer_Facts.aspx.

February 2015

Safety, Health and Environment management throughout the product life cycle 2015 IFA Global Safety Summit Vancouver, Canada, 23-26 March 2015 The IFA Technical & SHE Committee organizes the 2015 Global Safety Summit in Vancouver. Supported by the Canadian Fertilizer Institute (CFI), this unique event will showcase the industry’s achievements and innovations in safety management, and will highlight best practices leading to SHE excellence in operations. Some reasons to participate include the opportunity: • To share your experiences and best practices in SHE management and to network with over 100 industry peers from around the world. • To help build commitment on behalf of the fertilizer industry and its stakeholders towards excellence in safety, health and environment.

• To demonstrate to local communities and the public that the fertilizer industry is continually improving safety in production. • To observe safety measures and systems in person during the visit to the Vancouver port facilities. The seminar will address relevant topics such as: • The enhancement of process/design safety features; • Motivational management techniques; • Innovative behavior-based safety methods. Environmental topics will be an integral part of the discussions in order to showcase the industry’s performance in this respect. Moreover, participants will have

first access to the findings of the independent assessment on global Phosphogypsum, a study commissioned by the IFA Technical & SHE Committee. The timing of the event will also correspond with the awarding of the 2015 Green Leaf Award, IFA’s global recognition for SHE excellence in production.

www.ifa-vancouver2015.org

IFA events 83rd Annual Conference*

Crossroads Asia-Pacific

25-27 May, Istanbul, Turkey

20-22 October, Kuala Lumpur, Malaysia

Held on the occasion of the IFA Annual General Meeting during which the Association’s officers convene, IFA’s main event attracts on average 1400 participants representing 400 member companies from 75 countries. It has become a major meeting platform for the global fertilizer industry and is on the agenda of its chief executives and senior management representatives.

2015 IFA

Production and International Trade Conference*

21-23 September, Florida, USA Production & International (Venue to be confirmed) Trade Conference

This event offers an excellent opportunity to interact with senior executives from major international fertilizer producers and trading companies. A special emphasis will be placed on supply-related issues.

Focusing on the pivotal Asian region and Pacific basin, IFA's Crossroads Asia-Pacific is an extremely popular event, with some 400 participants in attendance. This event is organized under the guidance of the Regional Vice Presidents for all members with an interest in Asia and the Pacific as well as newcomers acquainting themselves with the Association in view of potential membership.

Strategic Forum* 18-19 November, Paris, France

IFA’s Strategic Forum is the second General Meeting of the Association of the year, dedicated to strategic discussions on the main opportunities and challenges facing the global fertilizer industry. IFA members also convene to review the association’s strategic plan, work programme and budget.

More information on upcoming events: www.fertilizer.org/ifaevents *

Restricted to IFA member companies

12  fertilizers && agriculture agriculture 12 fertilizers

Companies that collaborate accomplish more by Margaret Flaherty

hen is it wise for companies to band together to achieve something greater—even if they compete in the same industry? What business and social issues are effectively tackled collectively? Which combination of organizations is capable of achieving the most impactful outcome? In an upcoming article researched in collaboration with Tufts University, the Shared Value Initiative will look at these questions by focusing on the role of industry trade associations. These are organizations founded and funded by multiple businesses that operate in a specific industry. For example, Americans may be familiar with National Cattlemen's Beef Association and their well-known generic advertising campaign: "Beef. It's what's for dinner." This project aims to better understand how trade associations can best address business and society issues in partnership with each other. Could this kind of partnership be the best way for companies to create shared value and advance sustainability? Not so long ago trade associations were widely regarded as the lowest common denominators, a gathering point or shield for industry laggards. Although there is likely still some truth to this assertion, the Initiative’s early reconnaissance shows that the tide is turning. A new set of leaders are emerging and, alongside these folks, a new set of programs, initiatives, and activities that represent the cutting-edge of business thinking. Trade associations can have tremendous influence on some of society’s biggest challenges, particularly those dealing with social and environmental impacts. Industry coalitions can provide important channels for positive outcomes around the transfer of technology, data and information sharing, as well as demonstrating best practices. This means they can magnify and accelerate both the best of what business has to offer— concrete social outcomes that deliver business value—as well as, of course, the contrary; the same attributes can also heighten outcomes with a less desirable

impact on society and the environment. In light of these observations, our research will look at five prominent associations across different business sectors but connected along the nutrition/ heath value and supply chains:

European Chemical Industry Council (CEFIC) A flagship initiative of CEFIC, Water Matters!, illustrates business at its best. This effort includes a ground-breaking set of KPIs for water use metrics, is geared towards improving performance in waterstressed regions.

International Fertilizer Industry Association (IFA) The fertilizer and plant nutrient companies working with IFA have a variety of on-the-ground farmer stewardship activities aimed to improve livelihoods of small, marginal farmers. A core operating principle of IFA includes the "4R's"— promoting a strategy of "right-sizing" crop nutrient application, e.g., target the right source with the right product at the right rate in the right time.

CropLife International Croplife captures the voice of the plant science industry, advancing agricultural innovations. Research, case studies, technical workshops and policy thoughtleadership form an important part of the CropLife "toolkit" for their member companies. Overall, our research will examine the processes and decision-making that drive the association strategy while also looking at specific initiatives that capture and exemplify leadership in shared value and sustainability. We aim to identify, highlight and magnify their best practices, and by doing so, discover the potential to further advance business’ changing role in society.

Contact Margaret Flaherty, FSG Senior Advisor at Shared Value Initiative margaret.flaherty@fsg.org society Reprint from http://sharedvalue.org/groups/newresearch-companies-collaborate-accomplish-more

Consumer Goods Forum (CGF) The CGF provides a key platform for the consumer goods manufacturers and retailers. The group has taken some bold steps to help the industry face the growing health challenges associated with obesity. A main thrust of this work involves understanding how to better empower consumers to make good (nutrition-wise) decisions.

International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) An important set of initiatives of the IFPMA’s member companies involves research collaboration around neglected diseases. One person in seven suffers from neglected diseases which disproportionately impact the poor regions of the world. The IFPMA’s members are currently working on 162 R&D projects focused on developing new or improved medicines and vaccines for 11 neglected conditions.

International Fertilizer Industry Association 28, rue Marbeuf, 75008 Paris, France Tel: +33 1 53 93 05 00 Fax: +33 1 53 93 05 45/47 ifa@fertilizer.org www.fertilizer.org @FertilizerNews! Fertilizers & Agriculture is a quarterly newsletter published by IFA covering issues in relation to fertilizers and sustainable agriculture. Mailing list Subscription to Fertilizers & Agriculture is free of charge. To receive a hard copy, send full address details to be added to the mailing list. Additional copies may be supplied to organizations to circulate on behalf of IFA. To consult current and past issues of Fertilizers & Agriculture: www.fertilizer.org/newsletters Contributions We invite your contributions of letters, documents, articles, photographs, etc. Director General of IFA: Charlotte Hebebrand Editor-in-Chief: Claudine Aholou-Pütz Material in F&A may be reproduced only after prior consent by IFA. Reference to individuals, publications, research, products, companies or organizations does not indicate endorsement by IFA. For information on IFA’s activities:www.fertilizer.org © International Fertilizer Industry Association 2015 Printed with vegetable-based ink by Point44 on paper from sustainably managed forests.