Fertilizers & Agriculture September 2015 by International Fertilizer Industry Association

September 2015

fertilizers www.fertilizer.org

Dispelling myths with five fertilizer facts

agriculture 2016 IFA Norman Borlaug Award application is open 8

Managing water and fertilizers infographic

Fertilizers and the Sustainable Development Goals by Abdulrahman Jawahery, IFA Chairman This concentrated advocacy and information campaign has focused on the fertilizer industry’s direct and indirect contributions to meeting as many as 12 of the 17 SDGs. Most notably, fertilizers will directly contribute to meeting goals 1-3, which focus on poverty eradication; the promotion of food security and sustainable agriculture; and healthy lives and well-being for all. cont’d on page 2

A. Jawahery, GPIC and T. O'Neill, IRM

the african fertilizer financing mechanism

Increasing fertilizer use to obtain greater yields and incomes by Richard Mkandawire

n 2006 African leaders gathered in Abuja, Nigeria, for the Africa Fertilizer Summit, signed the historic Abuja Declaration on Fertilizers for an African Green Revolution. A major outcome of the Summit was endorsement of the establishment of an African Fertilizer Financing Mechanism (AFFM) to increase fertilizer use in Africa, in order to boost agricultural productivity for increased yields and incomes. The AFFM is a financing vehicle for activities that address soil fertility issues and increase agricultural productivity through available inputs.

ollowing three years of thorough discussions and intense negotiations, the 17 Post-2015 Sustainable Development Goals (SDGs) and 169 targets were adopted by United Nations Member States on 2 August. They will be formally ratified on 25-27 September at the SDG Summit in New York, during the 70th UN General Assembly. IFA will have an outreach mission to the Summit. The SDGs, which are both inspirational and aspirational, will be in effect from 2016 to 2030. They are positive with respect to encouraging improved productivity for smallholder farmers (including access to inputs, promotion of agricultural research and extension services, and support for investment in rural infrastructure). However, they also address highly complex issues such as natural resource depletion and environmental degradation, including drought and climate change. Outreach concerning the SDG agenda has been much more inclusive than in the case of the Millennium Development Goals (MDGs) 15 years ago. Emphasis has been placed on the need for multistakeholder innovative partnerships to achieve universal transformation and yield results across geographies. To this end, over the past three years I have participated – along with dozens of IFA member companies – in numerous outreach missions to the UN agencies in Rome, Nairobi and New York. During these missions IFA has met with over 50 country missions and UN staff.

It works with partners to develop and scale financing mechanisms that support fertilizer production and distribution. cont’d on page 6

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Fertilizers and the Sustainable Development Goals Fertilizers produce yield increases through sustainable intensification. Moreover, they alleviate micronutrient deficiencies by addressing these deficiencies from the soil up. Fertilizers also play an important role in closing the gender gap, thus contributing to meeting goal 5 (gender equality and the empowerment of women and girls). As reported by FAO, women’s use of fertilizer is significantly lower than men’s, mainly due to lack of access to credit. This is a major factor that contributes to their yields being around 20-30 percent lower than men’s. In addition, our industry makes a significant contribution to better water management (goal 6). By developing and disseminating the 4R nutrient stewardship framework – which conveys how fertilizer applications can be managed to help meet economic, social and environmental goals by applying the right fertilizer product(s) at the right rate, right time and right place – the industry contributes to improving water uptake by plants, thus improving overall water use efficiency. Another important contribution by our industry concerns combating climate change and its impacts (goal 13). Specifically, by enabling yield increases on existing arable land the fertilizer industry contributes to the preservation of forests. Goal 14 (“Conserve and sustainably use the oceans, seas and marine resources for sustainable development”) is potentially the most sensitive for the fertilizer industry. For target 14.1 (“By 2025,

(from right to left) Abdulrahman Jawahery, GPIC, Tip O'Neill, IRM and Adel Abdulmalik, GPIC representing the fertilizer industry at the United Nations in June 2015.

crop nutrients sustainably, and ensuring prevent and significantly reduce marine that products are distributed in a manpollution of all kinds, in particular from land-based activities, including marine ner that is mindful of the environment, debris and nutrient pollution”) there is a should be at the core of the fertilizer proposal to adopt fertilizer use per hectbusiness and shape the societal role that industry leaders enviare as a measure of nutrient pollution. IFA, along sion for their compaBecause our memwith FAO, the World Bank nies. and UNEP, recognize this bership is so diverse Because our memberindicator as inappropriate and is spread globally, ship is so diverse and because there are numer- individual members can is spread globally, inous sources of nutrient contribute their cadividual members can pollution in addition to contribute their capacpacities and expertise fertilizer run-off, such ities and expertise at as discharges of sewage at regional and national regional and national (even treated sewage), levels. levels. This is particulardischarges from aqualy relevant in the area of research and innovation, but also culture, and animal manures. IFA will with respect to public-private partnercontinue to work with all stakeholders to ensure that the indicator process is ships. I cannot help but draw a parallel sound and scientific and reflects realities between the acronym for these partnerpertaining to the industry. ships (which is PPPs) and “people, planet The global fertilizer industry must reand prosperity”. I am extremely grateful for members’ main committed to sustainable developextraordinary engagement and their ment throughout its members’ activities. support for United Nations outreach Sourcing raw materials and producing and advocacy. So many of you have stepped up to the plate and become ambassadors for the industry, I am reassured that together we can create the conditions for sustainable, inclusive and sustained economic growth. Abdulrahman Jawahery is President of Gulf Petrochemical Industries Co. (GPIC), Bahrain. He was elected IFA President during the IFA annual conference in May 2015. More information: https://sustainabledevelopment.un.org www.sustainabledevelopment2015.org www.globalgoals.org/ The Global Goals for Sustainable Development

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September 2015

Dispelling myths with five fertilizer facts by Pedro Sanchez

oil has seen its place in the sun this year, with the United Nations having declared 2015 the International Year of Soils and continued scientific research showing the importance of healthy soils as a key component of our food system. Looking forward, the world is faced with a colossal challenge: to produce more food in the next four decades than we have done in the last 10,000 years combined. This cannot happen without healthy soils to nourish the crops we grow. While fertilizers are a vitally important way to maintain healthy soils, the topic has remained a polemical issue. Are mineral or organic fertilizers better for the environment? What is even the difference between the two? Many myths have circulated on this topic – but science can set the record straight:

1. Mineral fertilizers can be “natural” too It is important to distinguish here what we mean by organic and mineral, natural and synthetic (man-made). Organic fertilizers contain carbon. Some are natural such as manure, and others are synthetic, such as compost. Mineral fertilizers are all inorganic, can be synthetic, such as manmade fertilizers like urea, but they can also occur naturally in the environment, such as phosphate rock and potassium chloride.

2. Mineral fertilizers do not poison the soil Neither mineral nor organic fertilizers poison the soil when applied at agronomically correct rates, timing, and

placement and with the right source (the 4Rs). The important distinction to make is that excessive rates of either mineral or organic fertilizer can cause serious environmental damage. Excessive application rates of either organic or mineral fertilizers can cause increased greenhouse gas (N2O, nitrous oxide) emissions (which is 310 times as powerful as CO2) and methane (which is 20 times as powerful as CO2), nitrate leaching to groundwaters and runoff entering waterways.

3. We do not lose as much of the nitrogen fertilizer applied to crops as commonly thought Crops retain between 30 and 70 percent of fertilizers applied and it has been assumed that the remainder has been entirely lost to leaching, denitrification, N2O gas emissions, runoff and erosion. But science has a different answer. Microbes in the soil take up much of the nitrate from fertilizers before the roots can. They convert it to soil organic matter that later is mineralized and taken up by plants. Far from being a total “loss” this in fact makes the soil richer.

4. Fertilizers do not deplete soil organic matter As a continuation of the point above, science also tells us that mineral fertilizers actually increase crop biomass, if crop residues are incorporated in the soil. You will have more crop residue and roots to decompose if mineral fertilizer has boosted your yield. This in turn increases soil organic matter. Using a combination of mineral and organic fertilizers increases soil organic matter further.

5. Organic fertilizers are not the only route to plant nutrition The plant does not care whether the nutrients it takes up comes from fertilizer dissolution, soil organic matter mineralization, or the decomposition of manures, roots or crop residues. But the soil does. We need to recognize that organic and mineral fertilizers offer different benefits to the soils. Organic inputs provide carbon, the energy source for soil micro-organisms. Mineral fertilizers do not contain carbon. However, organic fertilizers have much lower nutrient content – only about 1-3 percent nitrogen. Once again, science indicates that combining organic and mineral fertilizers is the best approach. These five facts dispel the notion that organic farming is somehow superior to conventional methods. Using only organic fertilizers can work in some areas where the soil is already very nutrient rich. But it is important to remember that this is mainly a product of decades of mineral fertilization. However, it is simply not possible to rely on organic farming in areas where land is depleted of nutrients, such as in much of sub-Saharan Africa. Even cattle manure cannot work efficiently in these areas, as the cattle themselves are often undernourished and therefore their manure absorbs rather than releases vital nutrients. It is our duty to ensure that farmers all over the world have access to this science, in order to grow the food they need, and make sure the environment is left intact for future generations. Pedro Sanchez is Director Agriculture and Food Security Center, The Earth Institute, Columbia University, New York.

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September 2015

Infographic on water and fertilizer management In August, IFA released an infographic on water and fertilizer management, which highlights the key challenges and opportunities for improving the use efficiency of these two key resources for increasing agricultural productivity (opposite page). Previously IFA also published a 4-page executive summary brochure in addition to the 257-page book.

On the same subject, the latest IFA blog focuses on World Water Week – A Time to Reflect on the Role of Water in Food and Nutrition Security at: www.fertilizer.org/Blog

IFA news IFFCO joins Protect & Sustain Hall of Fame

IFA past President Esin Mete, Rakesh Kapur, Joint Managing Director of IFFCO and Jim Prokopanko, Chairman IFA Technical & SHE Committee

Managing Fertilizers to Enhance Soil Health As a contribution to the International Year of Soils, IFA recently released a booklet on ´Managing Fertilizers to Enhance Soil Health' co-authored by Bijay Singh and John Ryan, two well-respected soil and crop nutrition scientists. This paper updates scientific knowledge on the links between fertilizer use and soil health, and shows that, when properly managed, fertilizers can improve soil quality, contrary to what is claimed by fertilizer opponents and what is often believed by the general public.

Adubação Foliar - Fundamentos Científicos e Técnicas de Campo Victoria Fernández, Thomas Sotiropoulos and Patrick Brown, June 2015. The foliar publication provides readers with up-to date information and clarification on the scientific basis of foliar fertilization and plant responses to it. It describes the ‘state-of- knowledge’ on the mechanisms of uptake by plant leaves of foliar-applied nutrient solutions. Some paper copies are available in Portuguese from IFA. A Spanish version will also be released in October 2015.

More on www.fertilizer.org/Library

Protect & Sustain is the de facto global product stewardship standard for fertilizers. It was developed by IFA members for IFA members and is externally audited by SGS and DNV. Our Hall of Fame proudly presents its latest addition: the Indian Farmers Fertiliser Cooperative Ltd. IFFCO reached the certification’s excellence-level for their head offices and units at Phulpur, Aonla and Kalol, as well as at Kandla and Paradeep. Congratulations! More information about Protect & Sustain at www.protectandsustain.org and for related questions contact Volker Andresen at vandresen@fertilizer.org

Committee on World Food Security (CFS) An IFA delegation led by President Abdulrahman Jawahery and Director General Charlotte Hebebrand will attend the CFS on 12-15 October in Rome. The event will comprise bilateral meetings with member countries including the Africa Group, Brazil, Canada, US, Australia; as well as a bilateral with FAO Director General José Graziano da Silva. A high-level dinner sponsored by GPIC will bring together business actors and UN diplomats and Ambassadors.

IFA presentations at international conferences View the latest IFA presentations and videos at international conferences at: www.fertilizer.org//En/Knowledge_ Resources/Library/IFA_Secretariat_ Presentations.aspx

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The African Fertilizer Financing Mecanism

The creation of the AFFM has been good news for African agriculture. Heads of State and Government have been identifying challenges which have kept fertilizer use at a dismal average rate that still does not surpass 12 kg per hectare in sub-Saharan Africa. Among other problems, limited access to finance, especially by small and medium-sized agribusinesses throughout the fertilizer value chain, limits the amount of productivity-enhancing fertilizer being distributed and used. The AFFM, housed at the African Development Bank (AfDB) in Côte d’Ivoire, is putting measures in place to catalyse increased investments that will enhance fertilizer production as well as consumption at affordable prices (especially by smallholder farmers). The AFFM focuses on two types of activities: facilitating investments; and encouraging the private sector to invest in fertilizer value chain development, including the growth

of small and medium-sized enterprises (SMEs). There is an urgent need for targeted efforts to strengthen emerging African SMEs involved in importing, distributing, blending and retailing fertilizers. This is an area where the AFFM can provide financing and thus help bring about rural wealth creation in Africa. The AFFM was initiated at an opportune time. African leaders have embraced agriculture as a top development priority. Moreover, they are beginning to recognize the role of the private sector in catalyzing agricultural productivity and growth. Within the private sector there is increasing recognition of the importance of nurturing SMEs in the agricultural space, including those operating along the fertilizer value chain. SMEs face considerable challenges in growing their businesses, such as limited access to financing and knowledge. The AFFM focuses on both types of challenges, in regard to which efforts must go hand in hand. While increasing the currently low fertilizer rates per hectare will help close unacceptably high yield gaps, it is also important to ensure efficient and effective fertilization, which should incorporate the use of the right nutrient sources applied at the right rate, time and place. For this to happen, however, innovative financing interventions are needed to support SMEs. Greater access to credit facilities has often been identified as one way to increase investment in African agriculture. The African Fertilizer and Agribusiness Partnership (AFAP), among other organizations and national governments, has worked closely with the AfDB to catalyze the operation of the AFFM. AFAP is playing a key role in the AFFM’s implementation. It continues to act as a conduit between activities by the public sector and the private sector aimed at

Did you know Financial contributions towards the operationalization of the AFFM include: Nigeria (US$ 6.3 million), Tanzania (US$ 2 million), Chad (US$ 1 million) and AFAP through AGRA (US$ 1 million). strengthening the fertilizer industry. Since 2012 AFAP has united the dedication and expertise of the public and private sectors to strengthen the marketplace and encourage more consistent and responsible fertilizer use among smallholder farmers. Through the Agribusiness Partnership Contract, AFAP has worked with various small and mediumsized agribusinesses, providing supply payment guarantees and Matching Investment Support for the expansion of fertilizer warehouses in Ghana, Mozambique and Tanzania. Since the signing of the Abuja Declaration in 2006, average fertilizer use in Sub-Saharan Africa has increased from 8 to 12 kg per hectare, a sign that willingness and subsequent action by African leaders will eventually bring about a Green Revolution in Africa that will result in sustainable poverty alleviation. Richard Mkandawire is Vice President, African Fertilizer and Agribusiness Partnership (AFAP) info@afap-partnership.org http://afap-partnership.org More information: www.fertilizer.org//En//Media/Press_Releases_Detailed/15_July_2015.aspx www.afdb.org/en/topics-and-sectors/ initiatives-partnerships/african-fertilizer-financing-mechanism/

September 2015

Successful Future Fertilizer Leaders event

FA has recently reached out to companies around the world to better understand how to engage their Future Fertilizer Leaders. The member feedback suggested making IFA's main conferences more accessible, to allow younger participants to pick the brains of the most successful executives of this industry, and to offer them the opportu-

nity to network with each other. On the occasion of the Annual Conference in Istanbul, IFA lowered the entrance fees in the “35 years and under” category by 50 percent (resulting in a record number of over a 100 registrations). It organized a very interactive session with Keytrade President & CEO Melih Keyman and past IFA President Bill Doyle, including the

new IFA President Abdulrahman Jawahery, followed by a dedicated networking reception. The feedback from the younger participants was very positive. More of this to come at the IFA’s next Strategic Forum in Paris on 18-19 November 2015.

IFA events Joint Agriculture & Communication Meeting*

Crossroads Asia-Pacific 20-22 October, Kuala Lumpur, Malaysia 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 Board Members 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.

26-28 January, Rome, Italy If you are interested in discussing the industry’s role in coordinating actions on agriculture and communications activities, make sure you register to IFA’s Joint Agriculture & Communications Meeting 2015

In collaboration with IFDC 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.

Phosphate Fertilizer Production Technology Workshop 5-9 October 2015, Berlin, Germany The workshop is designed for engineers working in the fertilizer industry, particularly those who have recently assumed new responsibilities, to renew and/or increase their technical knowledge in phosphate fertilizer production and for engineers to become better acquainted with the best available production processes in the industry. ifdc.org/phosphate-fertilizer-production-technology-with-ifa/ *

Restricted to IFA member companies

More information on upcoming events:

www.fertilizer.org/ifaevents

fertilizers && agriculture agriculture 88  fertilizers

IFDC featured on The Visionaries Together with the International Zinc Association (IZA) and HarvestPlus, IFA will coorganize the 4th International Zinc Symposium on 15-17 October in Sao Paulo. If you are interested in zinc fertilization and its beneficial impacts on crop production and human health, this is the place to be. Delegates will enjoy learning the latest scientific developments in these fields from first-class keynote speakers, and networking with potential scientific and industry partners. Should you want to raise the profile of your company, you may also want to benefit from the sponsorship opportunities. Regularly updated information on the symposium is available online at

http://zinccrops2015.org/

The Visionaries documentary on IFDC is available online. The program showcases IFDC’s work empowering smallholder farmers and building markets. Conversations with government officials, fertilizer industry professionals, IFDC staff and farmers underscore agriculture’s critical role in boosting global economic growth. Hosted by actor Sam Waterston, The Visionaries is a US public television series that features non-profit organizations catalyzing positive change around the world.

2016 IFA Norman Borlaug Award for excellence in crop nutrition knowledge transfer

Invitation for application

http://ifdc.org/2015/07/20/ifdc-featuredon-the-visionaries/

IFA recognizes individuals whose contribution to effective last-mile delivery has been outstanding as they play a crucial role in transferring knowledge from researchers to the farmers. For 2016, IFA is inviting individuals from developing countries and countries with economies in transition involved in crop nutrition knowledge transfer whose work resulted in long-term impacts on the adoption of nutrient best management practices by farmers to apply for the award. His/her work must show significant improvements in productivity, profitability, fertilizer use efficiency, environmental sustainability, food quality and human health, and rural life in general. The recipient of the IFA Norman Borlaug Award will receive 10,000 euros and will be invited as a guest to the IFA Annual Conference to be held in May 2016 in Moscow, Russia.

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.

For information on the procedure and to download a nomination form:

www.fertilizer.org/AwardBorlaug

• Africa; • Asia (except Israel, Japan, the Republic of Korea and the Taiwan Province of China); • Eastern Europe and Central Asia; • Latin America and the Caribbean; • Oceania (except Australia and New Zealand).

Regions eligible for the 2016 IFA NB Award

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.