Your SlideShare is downloading. ×
14/12/2010Identifying and examining thecurrent challenges and opportunitiesfaced by the fertilizer industryLuc M. Maene, D...
14/12/2010                    Growing demands on agriculture                                           Food and nutrition ...
14/12/2010World population growth               (billion people)                                                          ...
14/12/2010       Yield gaps and relative land availability                in different countries         Identifying and e...
14/12/2010                                      Population trends and nitrogen use                                        ...
14/12/2010           Renewable energy development                              World biofuel production    Billion litres ...
14/12/2010           The opportunities         and industry initiativesOpportunities for the fertilizer industry      and ...
14/12/2010                                           IFA initiatives                                                   Af...
14/12/2010      Fertilizer demand situation               and outlook         Global fertilizer consumption trendsConsumpt...
14/12/2010         Total fertilizer use by crop     at the global level in 2006/07 (%)                                    ...
14/12/2010  Insights: evolution of fertilizer products Share of products by nutrient application80%                       ...
14/12/2010                             Global P demand                             Medium-term outlook                    ...
14/12/2010                                                             Mt N                                               ...
14/12/2010A BETTER, MORE SECURE FUTURE…                                                                         …a new, ef...
Upcoming SlideShare
Loading in...5
×

Identifying and examining the current challenges and opportunities faced by the fertilizer industry

1,903

Published on

Identifying and examining the current challenges and opportunities faced by the fertilizer industry by Luc M. Maene

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,903
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
76
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Identifying and examining the current challenges and opportunities faced by the fertilizer industry"

  1. 1. 14/12/2010Identifying and examining thecurrent challenges and opportunitiesfaced by the fertilizer industryLuc M. Maene, Director General, IFA The challenges 1
  2. 2. 14/12/2010 Growing demands on agriculture Food and nutrition security Food Feed  Feeding a growing population  More people require more  Ensuring minimal caloric intake livestock Conserving biodiversity  Growing preferences for meat  Meat consumption per person is  Diversifying diets to ensure rising Environment balanced nutrition Fibre and Other Components Bioenergy  Clothing a growing population  Concerns over the longevity of  Fibres for construction, medicine fossil fuel reserves and other non-clothing purposes  Security and dependence issues  Production of chemicals and  Increasing energy demands per other industrial inputs person  Crop-grown pharmaceuticals  Reducing pollution from current fuels Climate change Identifying and examining the current challenges and opportunities faced by the fertilizer industry A moving target MULTIPLYING CHANGING LAND USE WATER DEMANDS ON CONDITIONS FOR AGRICULTURE AGRICULTURE• Urbanization • Growing scarcity, • New cropping • Changing (often on fertile changing patterns, declining weather patterns land), distribution, soil pools of (climate change), deforestation, contamination, nutrients, new soil degradation, reforestation, salinization… recycling loops in rural wetlands nutrient cycles… depopulation… disappearing… Identifying and examining the current challenges and opportunities faced by the fertilizer industry 2
  3. 3. 14/12/2010World population growth (billion people) Undernourishment in the Developed countries Developing countries world (million people)60504030100 Source: UN Identifying and examining the current challenges and opportunities Source: FAO faced by the fertilizer industry Limited immediate availability of additional arable land Arable area World population m2 per person in billion 3000 9,5 9 2800 8,5 2600 8 7,5 2400 7 6,5 2200 6 2000 5,5 1996 2015 2030 Identifying and examining the current challenges and opportunities | Source: Lammel (2007), faced by the fertilizer industry citing FAO: Towards 2015/30 (2002) 3
  4. 4. 14/12/2010 Yield gaps and relative land availability in different countries Identifying and examining the current challenges and opportunities | Source: World Bank Report, 2010 faced by the fertilizer industry Changes in food consumption patterns due to income growth OECD production non-OECD production OECD consumption non-OECD consumption World production % change 60 2018compared to 50 2006-2008 40 average 30 20 10 0 -10 Wheat Coarse Rice Oilseeds Oilmeals Vegetable Sugar grains oils Identifying and examining the current challenges and opportunities faced by the fertilizer industry | Adapted from OECD-FAO (2009) 4
  5. 5. 14/12/2010 Population trends and nitrogen use during the 20th century World population % world population no Haber-Bosch nitrogen fed by Haber-Bosch nitrogen Average fertilizer input Meat production 50 Average fertilizer input (kg N ha-1 yr-1) 6000 Meat production (kg person-1 yr-1) World population (millions) 5000 40 % World population 4000 30 3000 World population 20 2000 1000 10 0 0 1900 1950 2000 Identifying and examining the current challenges and opportunities | Adapted from Erisman, et al. 2008 faced by the fertilizer industry Nitrogen use efficiency Nitrogen Partial Factor Productivity (PFPN) for maize in the U.S.Fertilizer consumption by region, 2007/08 (Kg/ha) East Asia 243 West Europe 178 North America 151 Latin America 130 South Asia 125 Central Europe 125 CHINA - N use efficiency (PFP: kg grain/kg N applied) WORLD 118 North Africa 78 South Africa 41 Africa 17Sub-Saharan Afr 6 Identifying and examining the current challenges and opportunities faced by the fertilizer industry | Source: IFDC, Africa Fertilizer 5
  6. 6. 14/12/2010 Renewable energy development World biofuel production Billion litres 160 Ethanol production Biodiesel production 140 120 100 80 60 40 20 0 Identifying and examining the current challenges and opportunities faced by the fertilizer industry | Source: OECD-FAOAreas of physical and economic water scarcity ON AVERAGE • 1,000 litres of water are needed to produce a kg of maize • 1,500 litres to produce a kg of wheat • 2,500 litres for a kg of rice Little or no water scarcity • 4,000 litres for a kg of poultry Physical water scarcity • 15,000 litres for a kg of beef Approaching physical water scarcity • 3,000 litres per person to Economic water scarcity produce our daily food intake Not estimated Identifying and examining the current challenges and opportunities faced by the fertilizer industry | Source: IWMI 6
  7. 7. 14/12/2010 The opportunities and industry initiativesOpportunities for the fertilizer industry and the farming sector  Improve the efficiency of fertilizer manufacturing plants  Develop new products of high performance  Increase irrigated conditions and water use efficiency  Increase cropping intensity and crop diversification  Improve the availability and affordability of fertilizers in Africa Investment in agriculture must increase so it can play its role as an engine of growth and poverty reduction and act as a longer-term pillar to fight hunger!Identifying and examining the current challenges and opportunitiesfaced by the fertilizer industry 7
  8. 8. 14/12/2010 IFA initiatives  Africa forum  Farming First  Fertilizer use and human health  Effective last-mile delivery  Protect&sustain The global fertilizer industry’s product stewardship initiative  Task force on climate change  Water management initiativeIdentifying and examining the current challenges and opportunitiesfaced by the fertilizer industry 8
  9. 9. 14/12/2010 Fertilizer demand situation and outlook Global fertilizer consumption trendsConsumption (Mt nutrients)180 N P2O5 K2O Year to year variation (%)160 20 N P2O5 K2O140 15120 10100 580 060 -540 -1020 -15 0 -20 2000/01 to 2010/11 2000/01 to 2010/11 Identifying and examining the current challenges and opportunities | Source: IFA Agriculture faced by the fertilizer industry 9
  10. 10. 14/12/2010 Total fertilizer use by crop at the global level in 2006/07 (%) Fruits & veg. 17 Other crops, 15 Maize 16 Oil palm, 1 Soybean, 3 Sugar crops, 4 Wheat 15 Cotton, 4 15 Other OS, 5 Other CG, 5 RiceIdentifying and examining the current challenges and opportunities | Source: IFA Agriculturefaced by the fertilizer industry Total fertilizer use by crop for the main countries in 2007/08Identifying and examining the current challenges and opportunities | Source: IFA Agriculturefaced by the fertilizer industry 10
  11. 11. 14/12/2010 Insights: evolution of fertilizer products Share of products by nutrient application80% • Trend toward high- analysis products70% MOP • Safety and security60% concerns Urea • Displacement of ABC, AN,50% AP FMP40% • Growth for UAN, AS30% • Demand recovery for SSP • Further growth for NPKs20% NPK on account of balanced10% ABC fertilization and NBS- AN scheme in India, among0% Dir Am others 1987 to 2007 Identifying and examining the current challenges and opportunities | Source: IFA Agriculture faced by the fertilizer industryAnticipated impact of the driving forces on world fertilizer demand N P2O5 K2 O Population growth    Food security    Food diversification    New land cultivation    Biofuels     Nutrient use efficiency  Nutrient recycling   Strongly influenced by technological developments and regulations Identifying and examining the current challenges and opportunities faced by the fertilizer industry 11
  12. 12. 14/12/2010 Global P demand Medium-term outlook Avg. Change 2007/08 to 2014/15 (f) (p.a.) 2009/10 N 101.0 112.1 1.8% P2O5 36.6 44.0 3.1% K2O 25.0 32.2 4.3% Total 162.7 188.3 2.5%Identifying and examining the current challenges and opportunities | Source: IFAfaced by the fertilizer industry Regional fertilizer consumption Medium-term outlook East Asia South Asia North America Lat. Am. & Carib. W. & C. Europe E. Eur. & C. Asia Av. 2007/08 to 2009/10 West Asia Variation in 2014/15 Africa Oceania 0 10 20 30 40 50 60 70 Million tonnes nutrientsIdentifying and examining the current challenges and opportunities | Source: IFA Agriculturefaced by the fertilizer industry 12
  13. 13. 14/12/2010 Mt N 144 150 158 135 140Global nutrient 130 134 136 138 142supply/demand balances Mt P2O5 43 45 47 Supply Demand 40 42 41 42 44 38 39 | Source: IFA PIT Committee Mt K2O 48 39 41 43 38 32 34 35 36 30 2010 2011 2012 2013 2014 Identifying and examining the current challenges and opportunities faced by the fertilizer industry Beyond the factory gate…  Greater investment in agriculture  More effective development aid  Reform in trade and domestic policies Identifying and examining the current challenges and opportunities faced by the fertilizer industry 13
  14. 14. 14/12/2010A BETTER, MORE SECURE FUTURE… …a new, efficient, dynamic and competitive agricultural sector will unlock hope for millions of children! Identifying and examining the current challenges and opportunities | Source: Bationo,2009 faced by the fertilizer industry 14

×