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Fertilizer FOCUS | MARCH/APRIL 2018

Agrium and Potashcorp complete mergerNutrien outlines plans for the futureThe Australian industry | China policy update | Specialty supplement

FertilizerFOCUS MARCH/APRIL 2018

32 Fertilizer FOCUS | MARCH/APRIL 2018 Fertilizer FOCUS | MARCH/APRIL 2018

CONTENTS

Fertilizer FocusArgus Lacon House, 84 Theobald's Road, London, WC1X 8NL, UKTel: +44 (0)20 7780 4340Email: [email protected]/fertilizer

FertilizerFOCUS

Front cover image: Nutrien operates the largest global direct-to-grower agricultural retail distribution operation.

4 Agrium and Potashcorp merger – meet Nutrien

8 China’s green agricultural transition

11 Conference preview: Argus Added Value Fertilizer US 2018

12 Fertilizers Europe: REACH programme for safer fertilizers

14 News in brief

19 New ammonia hub in Eastern China

20 Price watch

24 The Australian fertilizer industry

28 Methods for zero waste from urea production

31 SPECIALTY FOCUS

32 Bio fertilizers: new approaches to plant interaction

35 Specialty fertilizers for Californian horticulture

38 Fertilizer management in containerized crops

42 Spanish plant biotech sector

46 The marriage of fertilizers and microbials

50 Shipping & freight news

54 People & events

56 Nutrient requirements in sub-Saharan Africa

60 Copper sulphate: a critical micronutrient


Nutrien was born out of the USD36-bn merger of two great Canadian crop inputs companies: Saskatoon-based PotashCorp and Calgary-based Agrium. Nutrien launched on 1 January 2018.

With over 20,000 employees, and operations and investments in 14 countries, Nutrien is the world’s pre-eminent integrated crop input company, with reach into every major growing region on the planet.

Playing an instrumental role in helping farmers produce the food the world relies on, Nutrien is involved right from initial manufacturing of crop nutrients, to delivery of products, services and solutions to the farm gate – providing growers what they need to maximize crop production in a sustainable way.

Nutrien uses the tagline ‘Feeding the Future’ to describe what it does. With the merger finally complete after 18 months of planning and preparation, that future is now.

Nutrien produces and distributes over 25 mn t of potash, nitrogen and phosphate products for agricultural,

NitrogenNutrien is the third-largest nitrogen producer in the world, with close to 11 mn t of nitrogen products sold annually around the world. This output is produced from 16 nitrogen facilities in five countries, including their equity accounted investees and joint-venture assets.

Among Nutrien’s nitrogen assets, there is a near-equal three-way split in ammonia capacity between the United States (2.5 mn t), Canada (2.4 mn t) and Trinidad (2.2 mn t), each with its own specific advantages.

Because natural gas is an essential ingredient in the production of ammonia, Nutrien’s extensive North American nitrogen facilities benefit from access to long-term, low-cost non-conventional (shale) natural gas. This has positioned North America – and Alberta in particular – among the lowest cost gas- and nitrogen-producing regions in the world. Our Trinidad assets also benefit from a highly competitive gas contract.

Local distribution opportunities are another advantage for Nutrien in North America. In Western Canada, the ability for the company to sell much of the nitrogen it produces to its own Retail business is a significant benefit.

industrial and feed customers world-wide each year. Its leading agriculture retail network services more than 500,000 growers and helps position them to produce the food needed by the world’s booming population.

But more important than what Nutrien does is how it gets it done – safely.

At Nutrien, safety is paramount. “It’s part of the company’s DNA, part of our core and the single most important thing we do,” explains CEO and President Chuck Magro.

Nutrien’s business is structured into four business units: potash, nitrogen, phosphate and retail.

PotashNutrien is the world’s largest potash producer, with more than 22 mn t of capacity. The company accounts for

One of Nutrien’s leading specialty nitrogen products is Environmentally Smart Nitrogen. It is the only company in the world that produces ESN, with annual sales of about 400,000 t. ESN is a controlled-release nitrogen fertilizer product that provides growers with significant economic and environmental benefits.

This patented coated fertilizer product allows for more efficient and gradual delivery of nitrogen to crops, based on soil moisture and temperature characteristics. By delivering nitrogen when the plant needs it most, this advanced product can significantly reduce the risk of nitrogen loss to air and water.

PhosphateNutrien has four integrated phosphate mining and processing facilities in North America – three in the US (major operations in Aurora, North Carolina; White Springs, Florida; and a smaller facility in Geismar, Louisiana) and one in Canada (Redwater, Alberta). Additionally, there are four smaller upgrading plants in the US.

Combined, these make Nutrien the second-largest phosphate producer in North America, selling over 3 mn t of product annually.

over 20% of global potash production and over 63% of North American potash production.

All that potash comes from the western Canadian prairies, with Nutrien’s six active potash mines located in Saskatchewan. The Rocanville facility is the world’s largest potash mine, with a total nameplate capacity of 6.5 mn t per year. From biggest to smallest in terms of production capacity, the other mines are: Allan (4 mn), Lanigan (3.8 mn), Vanscoy (3 mn), Cory (3 mn) and Patience Lake (300,000). The company also owns a potash mine in New Brunswick that is in care-and-maintenance mode.

With decades of high-quality reserves and multi-year expansions now complete, Nutrien is well positioned to meet the world’s long-term potash needs.

RetailIn terms of people employed and total revenue, the biggest part of Nutrien’s business is retail distribution. Retail annual sales are over USD12 bn from more than 1,500 farm centers that service growers across seven countries in North America, South America and Australia.

Nutrien’s size and scale, combined with its commitment to innovation and technology, allow it to provide growers with the best crop input products, advice and solutions to help maximize growers’ yields and their bottom lines.

There are three primary categories of crop inputs offered:

Crop nutrientsMuch of retail's fertilizers are supplied by Nutrien's wholesale operations, as well as other key fertilizer suppliers.

Retail also acquired a portfolio of proprietary liquid micronutrients that support optimal soil fertility and yield enhancement opportunities.

Crop protection productsRetail’s crop protection products, along with advisory services from thousands of crop consultants, provide growers

by Darren Haynes, Communications Specialist, Corporate Relations, Nutrien, Canada

Nutrien is the world’s largest potash producer

featureNUTRIEN

Feeding the future…

...meet Nutrien

Figure 1.

(Left) With operations and investment in 14 countries, Nutrien’s crop inputs and services reach every major growing region of the world. (Above) Nutrien’s agronomists work directly with growers, helping them maximize the productivity of their farms.


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Nutrien is the world’s largest potash producer, all of it coming from six active potash mines in Saskatchewan.

with an integrated plant protection program that draws on the company’s extensive agronomic expertise and a broad spectrum of third-party suppliers and proprietary products.

These are designed to maintain crop quality and manage diseases, weeds and pests that can damage crops and lower yields. Nutrien is the largest independent distributor of crop protection products in North America.

Proprietary products make up a significant part of Nutrien’s crop protection offerings. Sold under the trusted label of Loveland Products, these products incorporate the latest in chemistry and adjuvant technology.

In addition to having numerous blending and formulation facilities, Loveland also owns significant interests in several agricultural biotechnology companies. These investments allow Nutrien to be at the forefront of the latest developments in crop protection.

Financing is another service now offered. Nutrien Financial Services is an innovative lending program that provides credit to North American customers for their crop input purchases.

The path ahead for NutrienThough it’s already a big presence in the agriculture industry, expect more growth and innovation from Nutrien.

The recent acquisition of Agrichem, a leading specialty plant nutrition and plant health product company in Brazil, is just the start.

“Brazil will be a strategic focus for further expansion due to its large and growing agriculture retail and crop input market,” says Chuck Magro, Nutrien’s President and CEO.

SeedNutrien sells an array of seed brands, from top global suppliers as well as its own proprietary seed product lines – Dyna-Gro in the US and Proven in Canada. Its Dyna-Gro seed specialists license leading seed traits from major suppliers, match seed characteristics to local soil and growing conditions and research and test these choices to ensure the best results for each grower’s area. Nutrien also has significant investments in canola and rice plant breeding programmes to supply industry-leading seed products for these crops.

Precision agriculture and moreDepending on the region, Nutrien’s retail business also provides other product and service offerings, such as grain bins, fencing, feed supplements, animal health products for livestock, and irrigation equipment.

Agrichem is expected to bolster the Loveland Products portfolio. Magro has spoken to a desire to see continued innovation in proprietary products, grower services and distribution.

Further growing the retail business in North America is another focus. Nutrien has made acquisitions in the crop protection and seed businesses, so it will be looking for opportunities there as well. It will also continue to investigate alternate technologies to help expand its precision agriculture portfolio.

Nutrien sees a lot of opportunities to grow and bring its products, services

Precision agriculture is one of the largest areas of growth, and Nutrien has its own platform called Echelon. As use of mobile and digital technology skyrockets and connectivity increases in our everyday lives, these same technological advancements are helping growers.

From a tablet or smartphone, customers can now get multi-spectral imagery of their fields. Farm equipment can collect data and send it to the cloud in real-time during harvesting, planting, or product application. Growers can leverage that data to make smarter decisions for their fields in future.

At their disposal are variable-rate options that are part of the 4R Nutrient Stewardship programme – right place, right rate, right source and right time. It’s about optimizing the efficiency of fertilizer use for the health of both the crop and the land, which can have economic benefits for the farmer also.

and agricultural solutions to growers around the planet. This is important as we are driven to help ensure the world’s farmers have the crop inputs and services they need to increase food production to feed a growing planet.

By the year 2050, the world’s population is expected to grow by more than two bn. That’s a lot more mouths to feed, yet the amount of arable land available is limited. Nutrien is committed to helping growers increase yields, through science, technology and agronomic knowledge.

Precision agriculture is one of the largest areas of growth

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China’s green agricultural transitionand fertilizer use

China is determined to green its agriculture and boost rural prosperity. Improving chemical fertilizer use efficiency and encouraging efficient use of organic fertilizers are key components of this green agricultural development strategy.

This article is an update of the article published in Fertilizer Focus March/April 2017, and gives an overview of the comprehensive actions that China is undertaking to reduce its reliance on chemical fertilizers, to promote organic fertilizer use, and to enhance the long-term sustainability of its food production.

• More efficient use and saving of land and water resources. Total arable land area should be no less than 124 mn hectares and farmland quality should be improved by 0.5 grade on average by 2020 (China grades its cultivated land quality on a scale of one to ten. This compares with the five grades in the UK covering both arable and permanent pastures)

• A cleaner environment associated with agricultural production – zero growth in the amount of chemical fertilizers and pesticides used in major crops by 2020; straw, animal waste and agricultural plastic film should be fully utilized

• By 2020 forest cover should increase to over 23%, and the wetland area should not fall below 53 mn ha

• The comprehensive production capacity of grains should be stabilized at or above 550 mn t by 2020, with the quality of farm produce markedly improved

Increased fertilizer use efficiency and reduced input in 2016/2017Early signs suggest that China is on track to achieve the goal of zero growth in chemical fertilizer use.

According to the National Bureau of Statistics (NBS), China’s grain output stood at 617.9 mn t in 2017, up by 1.66 mn t, or 0.3%, compared with 2016. This was the second highest output on record.

NBS data show that the grain planting area in 2017 shrank by 815,000 hectares, while grain yield was up by 54 kilograms per hectare, or 1% compared with 2016. This was despite a reduction in the input of fertilizer and pesticides.

According to MoA, the fertilizer use efficiency for three major crops (rice, wheat and maize) was 37.8% in 2017, an increase of 2.6% compared with 2015; the pesticide use efficiency for the three major crops in 2017 was 38.8%, an increase of 2.2% compared with 2015. So, it appears that the goal of zero growth in fertilizers and pesticides use by 2020 set by the 13th Five Year Plan (FYP) may have been realised three years ahead of schedule.

China’s green agricultural development strategyChina’s agriculture faces great challenges in managing the input of chemicals (both fertilizers and pesticides), and recycling agricultural wastes (which contain valuable nutrients) such as livestock manures and cereal straws. These challenges are being intensified by (i) a history of overuse and mismanagement of chemical fertilizers, causing soil degradation, water system pollution, and high agricultural greenhouse gas (GHG) emissions. This degraded agro-

Zero growth policy frameworkThis reduction in fertilizer and pesticide use is a result of the comprehensive action that China has taken to address the problem. This includes improved fertilizer recommendations, providing viable alternatives to chemical fertilizers, and introducing regulations on fertilizer use and production (see figure 1).

The national soil testing and fertilizer recommendation programme Introduced in 2005, the programme is a major effort to promote balanced fertilizer application according to crop need. The programme started with grain crops and has now been extended to horticulture crops. The programme also stimulated the development of local fertilizer blending enterprises which produce the recommended compound fertilizers, based on soil test results.

Action plan for prevention and control of soil pollution The plan advises that recipients of rural land transfers should take responsibility for protecting their soils and for avoiding soil quality decline caused

ecosystem now poses a threat to China’s long-term food security; (ii) manure from fast growing livestock production, driven by human dietary change, are now a major agricultural polluter; (iii) horticulture crops (fruit, vegetables) are the major driver of increased chemical fertilizer consumption.

In response to these challenges, the Chinese Ministry of Agriculture (MoA) launched the green agricultural development initiative which includes five actions: (i) livestock and poultry manure recycling and utilization; (ii) substituting chemical fertilizers with organic fertilizers in fruit, vegetable and tea plantations; (iii) increasing cereal straw treatment in the North East provinces (Heilongjiang, Jilin, Liaoning, Inner Mongolia); (iv) greater plastic film collection and recycling; and (v) protection of aquatic biota, particularly in the Yangtze River.

The Chinese central government also outlined the goals and milestones for green agricultural development:

by overuse of chemical fertilizers and misuse of pesticides. It is creating standards on the maximum contents of toxic and hazardous substances in fertilizers, animal feed, irrigation water, and standards on pollution control in biosolids use. It also promotes activities such as returning cereal straw to the field, applying organic fertilizers, reducing tillage, rotating cereals and legumes, and reducing and reusing agricultural plastic films. Finally, the action plan states that it is strictly prohibited to use polluted or untreated urban household waste, biosolids, and industrial waste, as fertilizers.

Combat non-point pollution from agriculture In 2015, the MoA launched the ‘Campaign on Agricultural Non-Point Pollution Control and Prevention’. This aims to reduce non-point pollution through controlling total water use (by promoting water-saving in agriculture), reducing fertilizer/pesticide use, and greater recycling of livestock and poultry wastes.

Actions from fertilizer industry During the 13th FYP period (2016-2020), China will develop new types

by YuelaiLu,Senior Research Fellow, School of International Development, University of East Anglia

David McBey, Project Co-ordinator for N-Circle, Institute of Biological and Environmental Sciences, University of Aberdeen

Rachel Thorman, Research Scientist, soils and nutrients, ADAS Roger-Sylvester Bradley, Head of Crop Performance, ADAS

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Zero growthin chemical

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Figure 1. The key national programmes and initiatives which are contributing to the zero growth goals.

Key messages• Chinese green agricultural development is a national strategy• Fertilizer management is the central component of the strategy• China is on the right track to achieve its zero-growth (fertilizer use) goal• There are many policies and actions targeting the zero-growth goal• UK and China are sharing experience in nitrogen and manure management


of fertilizers as a measure to enhance fertilizer use efficiency. These new products include value-added urea, UAN, and calcium ammonium nitrate. China is also introducing new, or revising the existing, production and testing standards and improving labelling.

From 1 March 2017, China’s first national standard on antibiotic concentration in organic fertilizer became effective. The standard, ‘Determination of oxytetracyline, tetracyline, chlortetracycline and doxycycline content for organic fertilizers—HPLC method’, set the limits for Oxytetracyline at 0.75 mg/kg, tetracycline at 0.75 mg/kg, chlortetracycline at 1.0 mg/kg and doxycycline at 0.75 mg/kg.

The recently revised standard for ‘Single Superphosphate’ (effective from 1 July 2018) set requirements for concentration limits and methods for testing for arsenic, cadmium, lead, chromium, mercury, volatile organic compounds, and chloral.

Biogas for rural energy China has huge potential feedstock resources which can be used to generate biogas and valuable organic fertilizers.

During the 13th FYP, China will develop large, small and household size biogas projects, with a view to increasing biogas production capacity from 15.8 bn m3 in 2015 to 20.7 bn m3 in 2020, and biogas fertilizer production capacity from 71 mn tons in 2015 to 97 mn tons in 2020.

China will promote the circular agricultural model of ‘plantations (fruits, tea, vegetables) + biogas production + livestock farming’ to process the manures and fertilize the plantations; this will greatly reduce the application of the chemical fertilizers.

To achieve the above targets, Chinese government will spend CNY50 bn (about USD7.3 bn) on building the various biogas projects, during the 13th FYP.

Land quality improvementChina is trying to improve the quality of arable land for long-term food security.

The ‘Action Plan for Arable Land Quality Protection and Upgrading’ issued by the MoA includes actions for increasing soil organic matter (OM) content, recycling and utilizing manures and cereal straws and reducing chemical fertilizer application.

As of 2016, China has also piloted a crop rotation and land fallow scheme, for instance using cereal-legume rotations, cover cropping and fallowing to restore soil structure as well as nutrients status. In 2017, 12 mn mu (0.8 mn ha) of arable land were included in the scheme, and this will be expanded to 24 mn mu (1.6 mn ha) in 2018.

Substitute chemical fertilizers with organic fertilizerIn February 2017, the MOA published the ‘Action Plan for Replacing Chemical Fertilizers by Organic Fertilizers in Fruit, Vegetables and Tea Plantations’.

In 2017, 100 major fruit, vegetable and tea planting counties were selected to demonstrate the replacement of chemical fertilizers by organic fertilizers. In 2018, this will be extended to a further 200 counties. The aim is to significantly reduce chemical fertilizer application and improve soil quality. By 2020, this is expected to reduce chemical fertilizer application in major fruit, vegetable and tea production regions by 20%. Key production regions and branded-products should see reductions of 50%. Furthermore, soil organic matter (OM) content in the major fruit production regions will reach 1.2% (+0.3%); soil OM content in major tea planting regions will reach 1.2% (+0.2%); and soil OM in vegetable fields will be maintained at roughly 2%.

Recycling and utilization of livestock wastesIn July 2017, the MoA published the ‘Action Plan for Recycling and Utilization of Livestock Wastes (2017-2020)’.

This action will optimise the location of livestock farms, based on land carrying capacity to determine farm locations and sizes. It will also develop sustainable and profitable business models which integrate crop-livestock systems.

UK-China cooperation on improving nitrogen and manure use efficiencyUK and Chinese researchers and advisers have been co-operating on measures to improve China’s fertilizer use, particularly by sharing the policy and technological expertise which the UK has successfully implemented.

Through the UK China Sustainable Agriculture Innovation Network (SAIN), researchers in the two countries have explored ways of communicating with farmers on nitrogen fertilizer management and hence of improving the rural livelihood in Guanzhong Plain in Shaanxi Province; they have identified the options for reducing China’s agricultural GHG emissions through assessing the whole nitrogen fertilizer supply chain (from production, through transportation, to application); they have explored the major barriers to utilising the nutrients in organic resources (livestock manure, composted manure and anaerobic digestate) in an integrated way with inorganic fertilizers; and they have recommended future investment to reduce barriers and maximise use of nutrients in these organic resources, thus reducing reliance on inorganic fertilizer use.

Since 2016, UK scientists from ADAS, NIAB, Universities of Aberdeen, Cambridge, East Anglia, Edinburgh and SRUC, plus nine institutions in China have been working on a BBSRC/Newton Fund Virtual Joint Centre called ‘N-Circle’, with a focus on recycling nitrogen resources and closing the nitrogen cycle (see: Fertilizer Focus, March/April 2017).

UK Scientists from ADAS, Rothamsted Research and the Universities of Bangor and East Anglia are working with researchers from the Chinese Academy of Sciences and China Agricultural University to assess the potential of developing frameworks to improve the nutrient use efficiency (NUE) of organic manures at both regional and farm levels in China. The suitability of two UK decision support tools will be evaluated; the GIS-based ALOWANCE (Nicholson et al., 2012) for spatial optimisation of intensive livestock farms, centralised composting and anaerobic digestion plants etc. and MANNER-NPK (Nicholson et al., 2013) for optimising manure NUE at the field and farm level.

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Conference preview:

Argus Added Value Fertilizer US 2018 4-6 June, Tampa

The Argus Added Value Fertilizer US 2018 will take place for the second time in Florida – this time in the agricultural hub of Tampa – on 4-6 June. The inaugural event that took place in Miami, drew over 160 delegates from 91 companies involved in the added value fertilizer supply chain

The event will bring together producers, ingredients manufacturers and distributors who are focussed on the growing segment of enhanced efficiency and specialty fertilizers.

The agenda will focus on the agronomic benefits of a whole range of added value fertilizer products, and the wider commercial advantages which these bring to everyone in the fertilizer supply chain, from the producer to the grower. Sessions will look at the positive impact which higher efficiency fertilizer can have on farm yields and profits, whilst minimizing negative environmental impacts associated with nutrients volatilizing into the atmosphere or leaching into groundwater.

Adrian Stubbs, Principal, Potash & Fertilizers - Argus Media will open the conference with an assessment of the market for added value fertilizers and define the specific product categories as well as address the market and commercial drivers behind the growth in use of new products.

Stabilized nitrogen, coated fertilizers for slow and controlled release, enhanced efficiency phosphates, the role of secondary

and micronutrients, foliar fertilizer and biostimulants will all come under the spotlight, with the emphasis on real world case studies and on identifying the solutions, which are most appropriate for specific soils and crops.

Speakers will look at different crops including fruit and vegetables, turf, horticultural and ornamental crops as well as arable crops and identify how specialty fertilizers can improve the quality and yield and add value for growers.

Networking with stakeholders across the supply chain

In addition to hearing valuable content on the main agenda, delegates will benefit from participating in a series of roundtables on topics such as urease inhibitors, specialty liquid fertilizers, biostimulants and micronutrients, providing a great opportunity to discuss markets developments for new products. We will also be facilitating a speed networking session to help you get to know the other participants. Just bring your business cards and speak to a new person every time the bell rings!

This conference is part of the Added Value Fertilizer series of events organized by Argus. Supporters of the conference include TFI, IFDC and the Agricultural Retailers Association.

A round table discussion Networking drinks reception

To view the programme and for information on how you can participate, visit www.argusmedia.com/AVF-US

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REACHING for safer fertilizers

REACH chemical safety assessment for fertilizers and the communication of their safe use up and down the supply chain was one of the main projects developed by an ad-hoc task force internal to Fertilizers Europe in 2016-2017 and it’s still ongoing. This request was also advanced by the Scientific Committee of Health and Environmental Risks (SCHER). In 2014, the European Commission noted that there was no specific risk assessment methodology developed for fertilizers in the European Union that could be applied.

Furthermore, to comply with the requirements of the European Regulation (EC) No. 19702/2006 (REACH), a chemical safety assessment has to be performed for substance manufactured or imported above 10 tonnes/year and extended safety data sheets (e-SDS) need to be created. Although fertilizers are considered to be formulations and therefore no chemical safety assessment is required, the use of individual constituents needs to be covered in the Chemical Safety Report (CSR) of the substance.

Currently, the existing local scale environmental exposure tools (ECETOC TRA, Chesar, EUSES) are not suited to cover the environmental exposure assessment of fertilizer use for two reasons:

• They do not take into account direct emissions into the soil compartment and direct and indirect releases from treated agricultural fields to surface water

• They do not consider that important output entries for fertilizers via crop uptake and harvest are in these tools

harmonisation in the environmental exposure and risk assessment and, consequently, a more effectively communication on the conditions of fertilizers’ safe use within the supply chain.

Therefore, Fertilizers Europe members decided to join forces to create an ad-hoc task force dedicating part of its resource to the development of a specific tool; the Fertilizers Environmental Exposure tool (FEE tool). This tool aims to calculate the local exposure of metallic micronutrients for soil, sediment and surface waters. At the moment, it has been developed for Cu, Mn and Zn micronutrients but it will be further developed and adapted to a broader number of micronutrients. The FEE tool aims to comply with REACH Regulation requirements. However, it has been based partially on the existing exposure modelling and adapted to fertilizers uses, as well as good agricultural practices. It looks at the utilization of fertilizers according to crop needs and only in soils with a low availability of micronutrients.

The FEE tool is used to calculate the predicted environmental concentration (PEC) for fertilizer constituents in different environmental compartments (soil, sediments and surface water) and compares it with the predicted no effect concentration (PNEC) from the REACH dossier in order to predict the safe condition of use of micronutrient compounds. The FEE tool is therefore recommended for use in quantitative environmental exposure assessment of fertilizer compounds instead of the standard REACH models. The starting point for the emission estimation under REACH is to select

A webinar to present and discuss the new FEE tool used for calculating the environmental exposure associated with fertilizer products containing Cu, Zn and Mn was hosted by Fertilizers

the most appropriate Environmental Release Category (ERC) for each use, resulting in the development and use of specific ERCs (SPERCs). To improve the harmonization and communication within the supply chain, Generic Exposure scenarios (GES) have been developed for a number of micronutrients (copper, zinc and manganese) with corresponding spERC combinations. Generic exposure scenarios facilitate the implementation of spERCs in the sector and the environmental assessment by registrants.

For the fertilizers sector the 4 spERCs selected are shown in figure 1.

In parallel and in the framework of the ‘use map package’ developed under the CSR/ES Roadmap by the European Chemical Agency (ECHA), to which Fertilizers Europe has actively participated, more discussions and tasks have been developed in order to create supportive documents for downstream users. All information and documents internally developed have been consolidated on the REACH for fertilizers website (http://www.reachfertilizers.com/). The website has been created with the purpose of being supportive to users, members and also non-members for compliancy with REACH Regulation requirements and also to address a request from the EU Commission.

All supportive documents, including the FEE tool and the Generic Exposure Scenarios, allow users to pursue the

Europe on the 27th February. The presentations and a recording can be found on the REACH for fertilizers website in the ‘Webinar’ section at http://www.reachfertilizers.com/webinar/

byLeondinaDellaPietra,Senior Scientific Officer, Fertilizers Europe

Current tools are not suited to cover environmental exposure

Outdoor use - direct application of solid fertilizers to soil; surface spreading

Outdoor use - direct application of solid or liquid fertilizers to soil; incorporation, placement, mixing, seed treatment, drip irrigation

Outdoor use - application of fertilizers by helicopter

Outdoor use - spray application of liquid fertilizers; soil surface spreading, sprinkler, pivot, foliar spray, slurry

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Figure 1.

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news in brief

news in brief

EUROPEAN UNION

Stamicarbon signs licensing and equipment supply contracts with Jiujiang Xinlianxin fertilizer for a new ultra-low energy urea plantStamicarbon and Jiujiang Xinlianxin Fertilizer Co have signed contracts for the licensing of technology and for the delivery of proprietary equipment for a new ultra-low energy urea plant to be built in Jiujiang, Jiangxi, Peoples Republic of China. This grass root project follows a smaller revamp project between the parties in 2016.

The scope of the project comprises the license, the process design package (PDP), the delivery of proprietary high-pressure equipment in Safurex and associated services for both the urea melt plant and the finishing by prilling. The urea plant is based on Stamicarbon's LAUNCH MELT Ultra-Low Energy Design with a Pool Reactor. Plant start-up is planned for the end of 2020.

This new technology is an important innovation in energy efficiency. Not only does it lead to a very significant reduction in energy cost of a urea plant and therefore in OPEX, it also reduces the carbon footprint substantially in comparison with other types of urea plants. Most urea processes until now are based on a so-called ‘N=2’ heat integration design, in which the heat supplied to the plant is used twice. In the Ultra-Low Energy Design Stamicarbon has gone one step further with the ‘N=3’ design, in which the heat is used three times. This results in about 40% reduction on steam consumption. The Ultra-Low Energy Design is not only suitable for new plants, it can also be used as a powerful revamp tool for both CO2 stripping and conventional urea plants.

"Energy efficiency will become more and more important in many countries. This project is a major step in implementing innovative energy efficient technologies and it will pave the way for many other projects. We look forward to the successful cooperation with this main fertilizer producer in China", says Pejman Djavdan, CEO of Stamicarbon.

Successful start-up of world’s largest wet gas sulphuric acid (WSA) plantBestgrand Chemical Group has announced the successful start-up of its wet gas sulphuric acid (WSA) plant – the world’s largest with a production capacity of 300,000 t of sulphuric acid per year. The plant will treat 131,000 t of acid gas over-the-fence per year from the neighbouring world-scale refinery plant operated by a joint venture between CNOOC (China National Offshore Oil Corporation) and Shell in Huizhou City, China.

Bestgrand Chemical Group has focused on the environmental benefits from using WSA to capture gaseous sulphur and convert it into commercial grade sulphuric acid. It has also been a deciding factor that both the energy efficiency and the heat recovery of the process are very high. The company predicts to reduce carbon dioxide emissions by 220,000 t every year and to reduce sulphur (SO2) emissions to a level 50% lower than what is required of the sulphuric acid industry.

“Haldor Topsoe is proud to be awarded the license, engineering design, tech service, and hardware and catalyst contract for the world’s largest WSA plant by Bestgrand Chemical Group. The successful start-up is a milestone for the WSA technology both in China and globally, and it proves that this technology has an important role to play in reducing harmful sulphur emissions in a commercially sound way,” says Frank Lei, Senior Sales Director, Topsoe in China.

Since 2000, Topsoe has sold 68 WSA plants in China, 54 are already on stream, and 14 plants are being constructed.

WSA is a patented Topsoe technology, including proprietary equipment and performance catalysts, that removes sulphur from off-gas streams in the refining industry, chemical production from coal, and steel production. WSA converts the sulphurous gases into concentrated sulphuric acid which is re-used in production or sold as a commercial product.

Sirius Minerals picks new contractor to sink shafts in North York MoorsSirius Minerals Plc have announced that it has entered into a design and build contract with DMC Mining Services UK Ltd and DMC Mining Services Ltd, both subsidiaries of KGHM Polska Miedz SA (KGHM), for the construction of the four shafts required for its polyhalite project in North Yorkshire. DMC Mining Services (DMC) is one of the world’s leading shaft sinking and mining contractors.

Sirius has been in extended discussions with AMC UK Ltd (AMC) in respect of finalising the shaft sinking contract following the ‘notice of award’ in July 2017 which anticipated execution of a finalised contract shortly afterwards. Due to protracted discussions with AMC regarding commercial arrangements Sirius engaged with DMC and other shaft sinking companies in parallel to consider alternatives.

Through this process, it has become clear that DMC, with their extensive and proven shaft sinking experience, are a strong construction partner for Sirius and will bring technical opportunities and a commercial partnership that can unlock potential savings in the construction schedule. Sirius has therefore entered into a design and build contract with DMC and has terminated ongoing arrangements it had for the shafts with AMC.

Chris Fraser, Managing Director and CEO of Sirius, comments:

“Sirius continually seeks opportunities to use innovations and a commercial approach to accelerate development and unlock value. DMC has proven, world leading experience using Herrenknecht SBR technology on deep shafts and represents a strong partner, commercially aligned to our success. We are confident that they can deliver the North Yorkshire polyhalite project shafts significantly earlier than all previous expectations and we look forward to working with the team.”

Graham Buttenshaw, Managing Director of DMC, comments:

“We are excited to be partnering with Sirius on this world-class project and are confident of leveraging our leading technology and experience to accelerate development of the mine and enable Sirius to bring its sustainable multi-nutrient fertilizers to the market earlier than previously planned.”

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Stamicarbon signs contract to license a urea plant in BruneiStamicarbon has signed a license agreement for the construction of a greenfield urea melt plant owned by Brunei Fertilizer Industries SDN BHD, which will be located at Sungai Liang Industrial Park, Brunei Darussalam.

Brunei is one of the world’s largest producers and exporters of natural gas. The new plant project will support the government’s long-term development strategy to diversify the country’s economy by the development of downstream activities in the petrochemical industry.

Although Stamicarbon has urea plants in operation at higher capacities, this is the highest name plate capacity for a urea melt plant that has been licensed by Stamicarbon. Moreover, this project will reinforce their market position and growth in the Asia Pacific region.

Fertilizer Association of Ireland launches 50th year celebrationsHaving been formed in 1968, the Fertilizer Association of Ireland (FAI) launched its 50th year celebrations. The focus of the celebrations in 2018 was on promoting the efficient use of fertilizers for sustainable and profitable production on Irish farms.

The Minister for Agriculture, Food and the Marine, Michael Creed, attended the launch in Buswells Hotel, Dublin.

Minister Creed was joined by department officials as well as representatives from farm organisations, The Agricultural and Food Development Authority (Teagasc) and the fertilizer industry to hear about the busy programme of events the association has planned for the year ahead.

Speaking at the launch, president of the FAI PJ Browne said: “Since its inauguration in 1968, the Fertilizer Association of Ireland has been committed to promoting the efficient use of fertilizers to produce quality food in an economical and environmentally sustainable manner.

“The publication of the first code of good practice for fertilizer management, in 1990, is one example of FAI’s long history of leadership within the agricultural industry.”

Launching the celebration’s, Minister Creed said: “I welcome particularly the association’s theme for 2018, ‘Sustainability through efficient use of fertilizer’.

Meanwhile, poor soil fertility is a serious limitation to the production potential of our soils, the incoming FAI president for 2018, Peter Ging, explained.

Poor soil fertility “limits our ability to maximise our most competitive advantage in the market place – our ability to grow high yields of quality grass”, he said.

Ging outlined a comprehensive programme of events that the FAI will host for 2018.

“In our 50th year, we will provide training for merchants and agricultural contractors on the correct application of fertilizers

– in addition to the continuous professional development training for advisory and technical sales reps [that] we provide in conjunction with Teagasc.”

OTHER EUROPE

Completion of Yara's acquisition of Tata Chemicals urea business in IndiaYara International ASA has completed its acquisition of Tata Chemicals urea business in India, marking a significant step forward for its growth ambitions in India.

"I am pleased to announce the completion of the acquisition of Tata Chemicals urea business, which is a major step forward for Yara as we broaden our footprint in the world's second-largest fertilizer market. The inclusion of these assets in our global business will enable us to accelerate our growth in India," said Svein Tore Holsether, President and Chief Executive Officer of Yara.

The acquired plant has an annual production of 0.7 mn t ammonia and 1.2 mn t urea, and generated revenues and profit before tax of respectively USD296 mn and USD29 mn in the financial year ended 31 March 2017. The plant was commissioned in 1994, and is the most energy-efficient urea plant in India, comparable with Yara's best plants.

The transaction is valued at USD421 mn on a debt and cash free basis and comprises a net operating capital value of USD130 mn and other assets valued at USD291 mn, with the operating capital value subject to post-closing adjustment.

Syngenta and NRGene expand collaboration as Syngenta signs long-term licensing of GenoMAGICTMSyngenta and NRGene have continued to advance their cooperation in breeding and trait discovery in key crops.

Syngenta has licensed NRGene’s GenoMAGICTM, a cloud-based big data analytics platform, to evaluate, predict, compare and select the best genetic makeup for crop molecular breeding and genomic selection. The agreement is on a non-exclusive, multi-year basis.

The GenoMAGIC system will be implemented in Syngenta’s advanced R&D pipeline and will influence key decision making for hardier, more productive crops. GenoMAGICTM was developed by a unique mix of highly experienced algorithm designers, software engineers, plant breeders, and plant geneticists and is used by seed companies like Syngenta and major academic and research institutions worldwide to actively battle world hunger and increase profitability for growers.

GenoMAGICTM reveals the broad genetic diversity of crop plants and optimizes the use of genetic diversity throughout the breeding pipeline. Syngenta was an early adopter of GenoMAGIC and has demonstrated the significant advantages of using NRGene’s pangenome approach to haplotyping.


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“NRGene’s GenoMAGIC system is an enabler for us to unlock the full potential of the genetic diversity available within our breeding programs,” said Dr. Michiel van Lookeren Campagne, Head Seeds Research at Syngenta. “This next phase in our collaboration should greatly improve our ability to predict performance and accelerate our ability to bring innovation into the hands of growers around the globe.”

“The fact that leading international companies like Syngenta have chosen to adopt GenoMAGIC reinforces the fact that we're on the right track, developing the big data tools to facilitate cutting- edge, highly sophisticated breeding, adding our modest contribution toward global food security,” said Dr. Gil Ronen, chief executive officer of NRGene. “We look forward to broadening the use of our tools to support the genetic research of plants and animals, as well as humans.”

Uralchem’s total output grew by 4% in 2017The output of commercial products by Uralchem’s plants in 2017 amounted to 6.3 mn t, which is a 4% (258 000 t) increase year-on-year.

The production of ammonium nitrate and its derivatives, and ammonia in general, remained at the high level achieved in 2016. Urea output increased by 6% due to quick repairs of urea units at the Azot and PMF Branches. The production of complex fertilizers grew by 16% because of higher daily output at JSC Voskresensk Mineral Fertilizers. The output of phosphate fertilizers decreased by 10% subsequent to refocusing on the production of the more marketable NPK 10-26-26. The increase in the output of other chemical products is explained by more calcium nitrate produced at the KCCW Branch owing to the commissioning of new capacity in Q3 2016.

Yara reports improved results reflecting higher marginsYara International ASA delivered improved fourth-quarter 2017 results compared with a year earlier. Net income after non-controlling interests was NOK846 mn (NOK3.10 per share), compared with a net loss of NOK333 mn (NOK1.22 per share) a year earlier. Excluding net foreign exchange gain and special items, the result was NOK3.88 per share compared with a net loss of NOK1.58 per share in fourth quarter 2016.

Fourth-quarter EBITDA excluding special items was NOK2,845 mn, up 15% compared with a year earlier, primarily reflecting higher margins.

"Yara reports improved results with higher production, and the ‘Yara Improvement Program’ ahead of schedule," said Svein Tore Holsether, President and Chief Executive Officer of Yara.

"Our financial results are better, mainly due to higher market prices. However, fertilizer markets remain fundamentally supply-driven, and we remain focused on strengthening our own operations," said Holsether.

Total fertilizer deliveries were 3% lower compared to a year earlier, driven by lower deliveries in North America, Brazil and Europe. Industrial deliveries were 3% higher than a year ago, reflecting

retail centres. With nearly 20,000 employees – and operations and investments in 14 countries – the company is committed to providing products and services that help growers optimize crop yields and their returns.

"We are proud to launch Nutrien, a company that will forge a unique position within the agriculture industry," said Chuck Magro, President and Chief Executive Officer of Nutrien. "Our company will have an unmatched capability to respond to customer and market opportunities, focusing on innovation and growth across our retail and crop nutrient businesses. Importantly, we intend to draw upon the depth of our combined talent and best practices to build a new company that is stronger and better equipped to create value for all our stakeholders."

Trammo acquisition of Agrium’s North Bend nitric acid facilityTrammo announces that its wholly owned subsidiary Trammo Nitrogen Products, Inc. has acquired Agrium’s North Bend, Ohio nitric acid production and distribution facility (North Bend) from Agrium US Inc.

North Bend is a specialized manufacturing and distribution facility for nitrogen based industrial and agricultural products

continued growth for AdBlue. Yara's production increased, with ammonia and finished fertilizer production respectively 5% and 1% higher than a year earlier. Yara's average realized nitrate prices increased 20% while realized NPK and urea prices were respectively 6% and 13% higher than a year ago.

The global farm margin outlook and incentives for fertilizer application remains supportive overall, and the price trend for cereals and meat has been positive for the past year. In Europe, season-to-date nitrogen industry deliveries are in line with a year earlier, while producer stocks are below the 5-year average. So far in the first quarter Yara's European nitrate deliveries are slightly behind the same period a year earlier.Based on current forward markets for oil products and natural gas, Yara's spot energy costs for the next two quarters are expected to be approximately NOK525 mn higher than a year earlier.

The Yara Improvement Program is on track to reach at least USD500 mn of annual EBITDA improvement by 2020, of which USD240 mn has been realized as of fourth quarter 2017.

Record high production in KirovskPhosAgro’s 2017 output shows an increase in production of phosphate-based fertilizers by more than 10% year-on-year and achieved a record of 6.6 mn t, the company informs.

The mining division based in Kirovsk on the Kola Peninsula produced more than 9.5 mn t of phosphate rock, which is the highest level in the early 1990s.

Increased production follows a growth in demand for fertilizer in the world-wide agricultural sector. More people on planet earth means more food production and fertilizer helps boosting farmers output.

“Looking ahead to market conditions in 2018, we remain optimistic on price dynamics on the back of several factors,” the company writes and points to a likely closure of other fertilizer plants in other parts of the world combined with increased prices.

PhosAgro’s mining branch in Kirovsk and production plant outside Apatity is the world’s largest producer of high-grade phosphate ore and Russia’s only producer of nepheline concentrate. Currently, the company runs two open-pit mines and two underground mines in the Khibiny mountains outside Kirovsk.

The company boosted sales of fertilizer products in Russia by 20%, in Europe by 30% and by 16% to Latin America the year-on-year figures show.

NORTH AMERICA

Agrium and Potashcorp merger completeAgrium Inc. and PotashCorp of Saskatchewan have announced the completion of the merger of equals between their respective companies, creating the world's premier provider of crop inputs and services. Nutrien has the largest crop nutrient production portfolio combined with an unparalleled global retail distribution network that includes more than 1,500 farm

located on 88 acres in an industrial complex on the bank of the Ohio River, 20 miles northwest of Cincinnati. The facility has an annual capacity of 75,000 metric t of nitric acid production along with significant transportation and storage infrastructure for other nitrogen based products.

“We are pleased to announce this exciting acquisition which complements Trammo’s strategic core businesses,” commented Trammo’s CEO Brent Hart. “We look forward to continuing to serve the existing Nitric Acid customers at the facility and expanding the business.” Trammo President Jeffrey Minnis said: “This acquisition will strengthen our nitrogen supply capability and provide us with significant ammonia and UAN storage capacity and the possibility for future expansion to better service our customers and suppliers in the region.”

Cornell researchers win funding for solution to reduce fertilizer runoffA Cornell research team, in the US has won USD1 mn for their solution to the runoff of nitrogen into bodies of water. The system uses information such as weather, soil type and crop management data to inform farmers of the correct amount of fertilizer needed.

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New ammonia hub in Eastern ChinaTrammo breaks 200 KT throughput in seven monthsbyFeliceLoFaso,President, European Organic-Based Fertilizer Industry Consortium (ECOFI)

Trammo and Oiltanking (OTN) have announced their achievement of breaking the symbolic 200,000 t of ammonia put through the newly constructed cryogenic ammonia storage tank in the Nanjing Chemical Industry Park (NCIP) in Nanjing, China, seven months since the beginning of its operation. This was achieved ahead of Trammo’s business plan which envisaged reaching this volume after a full year of operation, before ramping up progressively its activity in subsequent years. This achievement is a significant milestone not only for both companies but also for the entire Chinese chemical industry.

This state of the art tank, with a total refrigerated storage capacity of around 50,000 cbm, the largest in China, is located on the Yangtze River near Nanjing, in the middle of the NCIP where many of the major petrochemical companies are located. Its proximity to the domestic ammonia producers and consumers makes it an important point for the local industry and business development, supporting at the same time China’s efforts to implement more comprehensive and stricter environmental and safety policies.

Trammo currently employs a fleet of eleven LPG/ammonia carriers and plans to gradually increase its footprint in China as it is developing its operations and distribution business in Nanjing.

OTN, a major global manager of liquid terminals, began the construction of this art tank in Nanjing in October 2015. In June 2017, the tank was commissioned and successfully handed over to Trammo. Just a few days later, Trammo delivered and OTN successfully discharged the first ammonia cargo (23,000 t) into the tank, notably demonstrating the highest standards of safety and professionalism during the operations.

This Nanjing venture between these two private companies is an important step towards further strengthening of their collaboration and partnership. OTN and Trammo are both fully committed in supporting a sustainable and diversified development of the chemical industry in Nanjing. They are now looking forward to further expansion, particularly in China where they intend to develop more logistical and customer oriented solutions to serve their clients and the industry for years to come.

About Trammo:Trammo, founded in 1965, is a leading international merchandising and trading firm that markets, trades, distributes and transports a wide variety of commodities, including ammonia, fertilizers, sulphuric acid, sulphur and petroleum coke. Trammo’s ammonia trading volume reaches 4 mn t worldwide annually and is serviced by one of the largest LPG/ammonia carrier fleets in the world.

About Oiltanking:Oiltanking, founded in 1972, is one of the world’s leading independent storage partners for oils, chemicals and gases, owning and operating 81 terminals in 25 countries with a total storage capacity of 21 mn cbm. Oiltanking provides the highest-level terminal managing services to state oil companies, refineries, petrochemical companies and merchandising and trading companies in petroleum and petrochemical products.

Ammonica vessel - Trammo Cornell Cryogenic ammonia tank

Cornell researchers competed against 77 teams in the Tulane University Nitrogen Reduction Challenge, according to Prof. Harold Van Es, soil and water management, the head of the research team. Van Es said he began the development of the solution, Adapt-N, 15 years ago alongside fellow Cornell professors, in order to improve the efficiency of nitrogen usage.

“We found a way to use simulation models and weather data to better predict the nitrogen needs of crops, most notably corn. Of course, corn is the big problem too because there’s so much of it being grown,” Van Es said.

According to Van Es, the purpose of this competition was to encourage and evaluate solutions to a problem in the Gulf of Mexico called hypoxia — when excess nitrogen in a body of water leads to oxygen depletion. Hypoxia is responsible for a dead zone near the mouth of the Mississippi River that last year covered a record 8,776 square miles, according to The Times-Picayune.

An advisory board narrowed the submissions down to four finalists, who then participated in a field demonstration of their tools.

“We had to demonstrate our technology on a farm in Louisiana,” Van Es said. “We were working with the farmers, and we made our recommendations and monitored the nitrogen status of the field. So we were being evaluated on basically what is the potential for adoption and how well we did on this farm.”

MIDDLE-EAST

Yara and Arab Potash Company enter into MoU on potassium nitrateYara and Arab Potash Company, the Jordan-based potash producer have recently signed an MoU for mutual cooperation in the field of potassium nitrate production and sales. The parties will explore and evaluate the possibility of doubling the production capacity of KEMAPCO, the potassium nitrate producing subsidiary of APC, and accordingly Yara is targeting a minority position (30%) in Kemapco with a 100 % distribution and marketing agreement for Yara. Potassium nitrate is a key product in solutions for fertigation, a fast-growing segment that Yara and Kemapco aim to develop further through this collaboration.

"With this MoU we are pleased to establish a collaboration of strategic value. Our farmer centric approach means that we offer a full range of nutrients and solutions to meet farmers needs in all climates and for all soils. Fertigation is the combined application of water and nutrients to a crop, a mix of fertilizer and irrigation in the same application. The collaboration with Kemapco will facilitate exchange of technology and know-how, and secure access to potassium nitrate that will strengthen our fertigation offering," said Terje Knutsen, EVP Crop Nutrition, Yara.

Kemapco is a subsidiary of the Arab Potash Company, and operates a single potassium nitrate plant in Aqaba, Jordan. Production in 2017 amounted to 130 kt potassium nitrate, with sales amounting to about USD105 mn.

"The signing represents an important step in the plan to grow our business, we believe that our high quality product will be a great fit for the growing potassium nitrate demand. We are pleased to have the opportunity to grow our business with Yara's extensive sales network." said Jamal Al-Sarayrah, Chairman of the Board of Directors, Arab Potash Company.

SOUTH AMERICA

Nutrien acquires AgrichemNutrien has reached an agreement to acquire Agrichem, a leading specialty plant nutrition and plant health product company in Brazil.

Agrichem is one of Brazil’s largest nitrogen, phosphorous and potassium fertilizer companies, as well as a producer and marketer of plant health products, including bio stimulants and health inductors.

The company has 35 product registrations and a strong platform for future growth. The main production facility is close to key agricultural markets in Brazil, with annual production capacity of 12 mn litres.

Nutrien president Chuck Magro says Brazil will be a strategic focus for further expansion due to its large and growing agriculture retail and crop input market.

Agrichem net sales surpass 55 mn dollars on an annual basis.

Nutrien is buying 80% of Agrichem in the coming months and the remaining 20% next year.

Nutrien expects to capture efficiencies through distribution of Nutrien’s existing crop products and services in Brazil.

AFRICA

Uralchem and Uralkali to boost business in Zambia and ZimbabweRussia’s main fertilizer producers Uralchem and Uralkali, plan to increase their sales volumes in Zambia and Zimbabwe.

The information was disclosed by Dmitri Mazepin, Russian billionaire, Uralchem’s owner and shareholder in Uralkali, while meeting the respective presidents of the two African nations, Edgar Lungu and Emmerson Mnangagwa.

To achieve their goal, the Russian firms plan to establish hubs in the two countries, to supply them directly with mineral fertilizers.

It could allow local farmers to get a ton of fertilizer at USD250-300 rather than USD450-500, the price at which they usually acquire it from intermediaries.

More globally, the companies could in the short term increase their export to the region to 400,000-500, 000 t from 100,000 t currently, according to M. Mazepin.

Uralkali is one of the world’s leading producers of potash, while Uralchem is Russia’s ammonium nitrate leading producer.


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NITROGEN

Halt to Chinese exports strengthens the urea marketPrices for urea were stable for most of January before firming at the end of the month as the pull from Asian markets finally began to exert an influence. Traders have bought most of the granular urea available from North Africa and the Arabian Gulf for February and prices were expected to continue firming for March shipment, but the outlook is mixed for the different suppliers.

The main market driver in Q1 is the virtual halt to Chinese urea exports on account of much-reduced production levels in the country. Natural-gas based plants have been forced to close due to gas being diverted to household use, while stricter pollution control measures are limiting output from coal-based plants.

On current trends, the Chinese market may be short of urea for the spring season. There is also much debate about the extent to which China will resume exports in Q2.

China exported 4.7mn t of urea in 2017, down from 8.9mn t in 2016. Exports could halve again in 2018.

Asian and Middle East producers are set to benefit most from the halt to Chinese urea exports in Q1 2018, as Asian buyers seek alternatives for the urea the previously bought from China.

The only exception to this is Iran, where the refusal of many banks to handle dollar transactions involving Iranian products seriously limits the number of buyers. Iran needs Indian business to maintain its export volumes and this has been lacking since December.

West of Suez, the impact of increased Asian demand diminishes.

Egyptian suppliers, for example, were hit by competition from Iran in the key Turkish market for February-March. Iranian urea was sold at USD248-250/t cfr duty paid against offers from Egypt at USD280-285/t cfr.

Russian urea suppliers sold two three urea cargoes for February shipment to southeast Asia, which helped maintain fob levels above USD220/t fob, but fob levels were restrained by high freight rates are from Baltic ports.

The urea market is forecast to be in deficit through to April, but uncertainty over Chinese export supply from April onwards will increase buyer caution in March could presage a downturn in price from April onwards.

The end of the spring season in the northern hemisphere cuts 350-400,000t/month from demand between April and May-June, putting pressure on prices.

Urea stocks in India have fallen to a low level and suggest that the country should start to buy early for the 2018-19 fiscal year. In the absence of Chinese supply, India is heavily dependent on Iranian urea to meet its annual needs of around 5mn t, net of supply from Oman.

The other main market driver in March-April is the US. Prices have fluctuated since the New Year, mainly ranging between USD250 and USD270/t cfr Nola, but are on a firming trend due to the relatively limited supply of import cargoes. February imports are little more than half the 1mn t that arrived from offshore in February 2017.

Tighter supply may lead to a price spike in April. But many suppliers made the same assumption last year and had their hopes dashed by a late spring, so they are more cautious about loading up the US supply system this year.

PHOSPHATES

Phosphates firm on supply constraintsLower supply and high production costs kept all phosphate prices firm since December. In the US, the closure of Mosaic’s 1.5mn t/yr Plant City facility in Florida in December not only reduced supply west of Suez, but supported greater imports into the US during 1Q 2018. US MAP barges firmed accordingly from the low-USD370s/st fob Nola to above USD380/st fob Nola. This was equivalent to the USD420s/t cfr and pulled in Moroccan and Russian material as well as Saudi MAP.

Secondly, the lack of supply from China due to the pull from the domestic sector and high production costs saw very little liquidity in the export market. DAP prices on an fob basis out of China rose marginally from around USD405/t fob to USD410/t fob mainly on account of a lack of liquidity in India, where cfr prices rose from the low/mid-USD380s/t cfr to the low-USD400s/t cfr, too low for Chinese material. In India, the maximum retail price (MRP) was raised to Rs 24,000/t but this still did not support import prices above USD400/t cfr. Some Saudi material filled the gap left by China but DAP prices accordingly only rose marginally from USD399/t fob to USD409/t fob. The high end of the Saudi price was affirmed by sales into Africa and Iraq.

West of Suez, MAP prices in Brazil eventually reacted to the lack of MAP from the US and from China. MAP cfr levels rose from the low-USD400s/t cfr to USD420/t cfr but liquidity was limited. Partly this was a lack of availability but also Brazilian importers argued that soybean prices and barter rates did not support higher prices. MAP 10-50 Chinese prices rose from USD380/t fob to USD405/t fob but this product was moved to the Australian market which presented a major premium over Brazil. DAP Tampa rose from USD385/t fob to USD400/t fob again on limited availability.

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In Europe, OCP garnered a major rise in DAP prices from around USD410/t fob to USD427/t fob on limited sales to France. FCA prices in the Benelux region rose marginally from the USD420s/t fca to USD430/t fca. Supply was limited overall with further production issues in Tunisia and the majority of Jordanian DAP moving to India and Iraq.

In the phosphoric acid market, the Indian cfr price rose USD111/t P2O5 to USD678/t P2O5 cfr for the first quarter on high production costs, particularly sulphur.

Looking forward, all phosphate prices look firm for 1Q basis the lack of supply from the US, the slower-than-anticipated ramp up of the 3mn t/yr Wa’ad Al Shamal project in Saudi Arabia and the likelihood that OCP will not produce meaningful volumes from its new 1mn t/yr granulation facility at Jorf until the second half of 2018. Balanced against this is the fact that multiple markets slip into off-season at the end of 1Q – China, the US and Europe. With the Indian budget not particularly generous to phosphate consumers, 2Q prices may stabilise before demand emerges in India and Brazil later in 2Q and 3Q.

AMMONIA

Ammonia market stabilisesThe rally in ammonia prices finally ended in January as production bottlenecks eased in several key supply regions and demand grinded to a halt as buyers waited out of the market in the hope of squeezing producer offers lower. Production outages in Algeria, Egypt, Russia and Ukraine, which persisted through the last few months of 2017, have all now eased and there are now a handful of spot cargoes on offer in most regions for the first time in nearly six months.

The market turned following the announcement of the February Tampa settlement at USD340/t cfr, a USD15/t decrease on the January level. Price levels for spot cargoes from the Caribbean are now being reported below where Tampa settled, which is having a further knock-on effect on delivered markets in Asia, Europe and North Africa.

There are still a few tight points in the market – most notably in Trinidad and Yuzhny – keeping the trade balance in a narrow deficit for February. In Trinidad, leading producer CNC was forced to shut its 650,000 t/yr ammonia plant in Point Lisas in late-January, following the termination of its gas supply. At least 50,000t/month of Caribbean ammonia is expected to be lost from production until a gas agreement can be reached between CNC and the Trinidad gas board (NGCTT).

In the Ukraine, the Yuzhny shipping line up has been facing significant delays from a combination of inclement weather and legislative issues which have prevented several ships from leaving the port.

But overall the ammonia market is long for the months ahead, and the first of several new plants scheduled for launch this year – the 2,000t/day Panca Amara Utama (PAU) plant in Indonesia - is expected to come online by the end of the first quarter. In the near term, supply levels are forecast to increase and prices will come under increasing pressure for late-February and March.

In the Black Sea, the Ukraine’s OPZ plant is finally back online and forecast to add 15,000t to the supply chain from the end of February. Following several tight months in the Middle East, Qafco’s offline unit will be operating again from 15 February and increased availability from Saudi Arabia is expected to ramp up availability from the region in the second half of February and into March.

In the US, monthly imports are forecast to reduce by 25,000t to 225,000t/month following the closure of Plant City unit in January.

The global balance is in surplus for March and April by between 70-90,000t, a level which still leaves the market exposed to price volatility if any of the larger production units face unforeseen issues. A significant amount of fresh capacity is due to hit the market towards the end of March.

With the outlook looking increasingly bearish, the one talking point remains the ongoing shutdown in the Caribbean. Participants are monitoring the progress in the region closely and assessing the impact of any potential further shutdowns on the market.

The 650,000t/year CNC plant remains offline and talks between the two sides do not appear to be progressing, leaving trading company Koch active in the spot market to cover its contractual commitments.

But looking forward, prices are likely to come under further pressure. Increased supply is weighing on prices in February and into March while demand for the first quarter has been slow to emerge.

POTASH

Suppliers bank on strong demand and tight supply to lift potash pricesThe December 2017-January 2018 period was characterised by firming MOP cfr prices in the key markets Brazil and northwest Europe, and mostly steady prices in southeast Asia.

The supply-demand balance broadly favoured producers in the period. Demand in 2017 has been stronger than anticipated in Brazil, the US and Europe for granular MOP, and suppliers have kept a tight order book, with many reporting being fully committed — generally meaning that sales volumes


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and expected orders have been allocated, and no MOP is available to buy without order cancellations or a reallocation of resources from elsewhere — for months at a time.

Most suppliers are fully committed until at least the end of the first quarter, and with rising demand, buyers endured price hikes in December and January, except in southeast Asia, where demand growth was less dramatic. Competition between suppliers was also stronger in parts of southeast Asia, particularly in Vietnam, which has led to a surprisingly steady price for standard MOP and granular MOP, while the rest of the world endured USD5-15/t increases in the period.

Standard MOP Prices began December in southeast Asia at USD255-265/t cfr, before dropping by USD5/t on the low end to USD250-265/t cfr by the end of January, as a result of the strengthening Malaysian ringgit relative to the US dollar. The price fall is unlikely to last long though, and other suppliers may distribute limited quantities nearby, where netbacks are stronger, unless southeast Asia accepts higher prices.

In Thailand and Vietnam, granular MOP ranged around USD280-290/t cfr in early December, before jumping to USD290-300/t cfr as demand for the product continued to be strong, and supply tight. BPC reported new sales to Thailand for January loading: 25,000t of granular MOP at USD300/t cfr to Sak Siam, and 20,000t of granular MOP at USD300/t cfr to TerrAgro, plus 5,000t to another buyer.

In Brazil, prices started December at USD280-285/t cfr, after enjoying a steady period that started in October. But rates jumped to USD290-295/t cfr on 4 January as price momentum seen in the second half of 2017 continued into January, and buyers looked to lock in quantities in a rising price environment. Price were unchanged throughout January.

And in the US, at New Orleans, the fob price for granular MOP started December at USD224-233/st before rapidly narrowing to USD234-235/st ahead of festive holidays. Buying activity was slow after the break, but finally kicked in around 11 January, after increased availability led to some bargain buying at USD230-235/st. Buying rose on 18 January too, ahead of Nutrien's winter-fill programme deadline. Nutrien locked in prices until 18 January at USD265-270/st fob Midwest terminal for deliveries through to 31 March. Thereafter, Nutrien would raise prices by USD20/st. Prices ended January at USD232-237/st, after quiet returned to the US, where it is expected to stay until March or early April.

In northwest Europe, granular MOP prices had been steady since October to 21 December, at EUR260-265/t cfr. But by early January, prices had risen on reported sales by Uralkali, and other suppliers, to EUR262-270/t cfr. Suppliers have targeted EUR5-10/t increases every month, and expect strong demand from 2017 to roll into 2018 in Europe. But the price momentum waned, and on 25 January, the market reported that prices were back to December levels. The market is typically quiet until frost hits the ground, and expectations are for a general uptick in prices, with the occasional downward correction here and there.

SOP prices in Europe were steady in December-January. Increased MOP prices, used as a feedstock to create SOP using the Mannheim process, could have sent SOP prices up as well.

on the previous quarter price. North Africa 1Q contracts settled USD22-31/t up on 4Q, to span USD120-156/t cfr North Africa. Middle East tonnes were priced at the top end of this range, and Polish origin tonnes priced at the bottom end. Morocco’s OCP secured a further supply arrangement with producer Adnoc, for volumes until 2025, which is expected to reduce the company’s spot requirements going forward. Middle East contracts were settled in the range USD126-150/t fob, with the top-end reflecting trader contracts, as well as volumes to Brazil, and the bottom end reflecting volumes to North Africa. For molten contracts, both of Europe’s cfr Benelux and cpt NW Europe contracts settled at a price USD10-14/t above 4Q, and Tampa contracts settled up by USD6/lt on 4Q, to USD116/t delivered Tampa. The quarterly price increases were driven by fundamentally higher international sulphur prices during 1Q, than when 4Q contracts were settled.

Brazilian contracts, nonetheless, settled at a USD5/t drop on 4Q, to range USD120-170/t cfr Brazil. The settlement marked the first time average Brazil contract prices had fallen since the second quarter of 2016, despite some unconfirmed price settlements above this range. The price fall was partly linked to increased buying power in the region, following Mosaic’s purchase of Brazilian fertilizer producer Vale. This purchase is expected to continue to put downward pressure on Brazilian spot and contract prices going forward.

But the demand/supply balance is much closer to being at parity, and SOP prices tend not to change as quickly as the MOP spot market, so the price for now is unchanged, although some potential for an increase in levels is likely.

SULPHUR

Prices soften as the market correctsFollowing a period of sustained price firming in the months preceding, which was driven by sustained supply disruptions in key sulphur producing regions, as well as heightened speculative trading, December saw the sulphur market begin to correct itself, and prices start to soften. This price trend remained through to January, with around USD60-70/t dropping off cfr granular prices in China and India by the end of the month, and fob sulphur markets responding in turn.

Buyers in China sparked the price correction, opting out of purchasing international cargoes from mid-November, which were being offered near USD200/t cfr, in preference of purchasing smaller volumes from the domestic market to cover any immediate requirements. The fall in demand for international orders saw granular prices tumble by USD45/t during December, and a further USD15/t during January, to settle at USD140/t cfr China at the end of the period. Molten prices fell by USD25/t over the period, settling at USD125/t cfr by the end of January against limited buying interest largely linked to environmental constraints. Chinese port inventories remained healthy, despite some shocks, spanning 1.2mn t and 1.4mn t throughout December and January, with buyers insisting these stocks where sufficient to keep them out of the international cfr market until prices became more favourable.

In the fob markets, Middle East prices followed suit. Despite December Official Selling Prices (OSPs) being announced at an increase of around USD10-11/t on November, to range USD185-195/t fob, Middle East producers failed to secure business at these price levels on a spot basis. End-users, including Foskor and Mosaic, resorted to idling their fertilizer production plants during this period in response to record high supply-side price ideas. Qatar’s Muntajat’s monthly December sales tender, struggled to find an off-taker at the company’s target level, and was awarded at a price around USD140/t fob Ras Laffan/Mesaieed, down by USD60/t on the company’s November sale.

By the end of December, Middle East spot prices had softened further, to range USD140-150/t fob. In response, January OSPs were revised accordingly, to range USD140-155/t fob, a drop of USD40-52/t on December. But, spot sales proved still unachievable in this range, and Muntajat’s January tender was awarded at around USD120/t fob Ras Laffan/Mesaieed, a further USD20/t below the company’s December sale.

Iranian fob markets were similarly captured by the changing price sentiments. Despite IGCC setting price targets of around USD190/t fob Assaluyeh near the start of December for granular sulphur, the company achieved prices ranging USD145-159/t fob, on spot sales for crushed lump and granular sulphur, respectively at the start of January. Prices tumbled to USD125-

128/t fob by the December seasonal holidays, and settled in the range USD100-110/t by the end of January, against limited demand and sustained price softening within China.

In India, where sulphur is typically priced at a premium to China, buyers also resisted entering the sulphur spot market in December, where offers were tabled at prices as high as USD200/t cfr India. Granular prices softened, but on a notional basis until late January, along with movements in China and the global fob markets against no confirmed business. Prices settled at USD170-175/t cfr India just before the Christmas period against a purchase of 25,000t by PPL and of 35,000t by IFFCO through traders. Prices softened a further USD15-20/t, with Tata Chemical securing a 20,000t cargo in the mid-USD150s/t in mid-January, keeping granular sulphur prices at USD150-155/t cfr for the remainder of the month against limited demand and no confirmed, concluded business.

In the smaller Mediterranean market, prices were flat throughout December at USD160-169/t cfr and USD140-149/t fob on limited buying interest and no confirmed trades. Prices dropped USD40/t on both a cfr and fob basis throughout January, to reflect similar price movements in the wider market, as well as confirmed spot trades within this range.

First quarter contract prices were settled during January and early February. But, counter to the price trend in the global spot market, the majority of first quarter contracts settled firm

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The Australian fertilizer industryAustralia is a small player in the global fertilizer market. The International Fertilizer Association estimates global fertilizer consumption (nutrient elements) at 100 million tonnes of nitrogen (Australia 1 million tonnes), 17 million tonnes of phosphorus (Australia 0.4 million tonnes) and 31 million tonnes of potassium (Australia

highly competitive domestic market where barriers to entry are low. Major fertilizer products are traded in significant volume on the world market and the only requirement for entry into Australia are strict quarantine regulations. Regulation of fertilizer sales includes requirements for accurate labelling and that maximum permissible concentrations (MPC’s) for certain impurities are not exceeded.

The Australian industry is made up of manufacturers (who also import) importers, agents of overseas suppliers and distributors who sell to the end user. At times, some companies may be involved in each of these activities. There are various models employed by different manufacturers and importers including selling direct to farmers, selling through agents and wholesaling to dealers who then sell to farmer customers.

The sale transaction can involve a simple purchase either for cash or on normal industry terms, a forward order with either fixed or variable pricing, promotional offers involving delayed payment on early deliveries, discounts for early collection and a range of other offers designed to achieve sales and to manage the uneven pattern of demand. This means that inventory held by either manufacturers, importers or distributors may be committed to firm orders and not available to new sales.

Fertilizer Australia members are responsible for more than 95% of the fertilizer imported and manufactured in Australia and a full list of members, including contact details is available on the Fertilizer Australia web site along with links to most member company web sites. (www.fertilizer.org.au)

Demand for fertilizers is seasonal and reflects the times when crops and pastures are fertilized. To manage this uneven demand, fertilizer companies, distributors and farmers use a mixture of storage capacity and careful planning of purchases. Typically, importers have storage close to the arrival port capable of holding more than a ship load of fertilizer (18,000 tonnes to 45,000 tonnes) although smaller importers may have storage

0.2 million tonnes). Australian consumption on a total nutrient (NPK) basis is therefore just over 1% of global consumption.

World trade in fertilizer products (tonnes of product) is around 200 million tonnes per annum meaning Australia’s imports are less than 2% of the total and exports less than 0.5%.

for one or two ships holds of fertilizer (5,000 tonnes to 10,000 tonnes).

More than 85% of solid fertilizer is transported and sold as bulk product with less than 15% in bags of between 20kg and one tonne. Storage in regional and local depots can range from several thousand tonnes to under one hundred tonnes. The majority of liquid fertilizer is sold in bulk with some sold in containers ranging up to 1000 litres.

The key traded products to Australia and their points of origin are listed in figure 1. The list is not exhaustive and suppliers change over time due to a range of commercial and political pressures.

The marketBetween 2002 and 2016 average annual sales in Australia were 5.3 million tonnes of fertilizer products. This provides around 1 million tonnes of nitrogen, 400,000 tonnes of phosphorus and 200,000 tonnes of potassium. About half of this is manufactured in Australia, including superphosphate, which is manufactured from imported phosphate rock.

In addition to domestic use, Australia exports between 200 000-400 000 tonnes of fertilizer each year, primarily from Incitec Pivot’s ammonium phosphate plant in North Queensland.

As agricultural production in Australia has increased over time, so has the use of fertilizer, most notably nitrogen. This is illustrated in the following graph which also shows the effect of the prolonged dry period in the first decade of the 21st Century.

The member companies of Fertilizer Australia operate in a

There is significant lead time involved in shipping fertilizers from overseas suppliers to Australia. This can cause problems of oversupply or undersupply if actual demand varies from forecasts made by the importers. Typically, orders are placed at least three months ahead, and in busy times it may be difficult to obtain product or charter a vessel on shorter notice. Loading a ship takes from three to five days and then there is travel time as summarized in figure 5.

by Nick Drew, Executive Manager, Fertilizer Australia

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Figure 1. Australia: Key traded fertilizer products

Product Origin

Phosphate Rock Australia (Christmas Island)* Nauru* Morocco Vietnam *small quantities.

Superphosphate Australia** China Israel **based on imported phosphate rock.

Ammonium phosphate (MAP and DAP)

Australia China Mexico Morocco Saudi Arabia USA

Urea Australia Bahrain Bangladesh China Kuwait Malaysia Qatar Saudi Arabia

Muriate of Potash Canada Germany Israel Jordan USA

Figure 2. The graph shows average fertilizer sales in Australia for the calendar years 2002 to 2014. *Domestic single super is manufactured from imported phosphate rock.

Figure 3. Australia’s historical nutrient trend.


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As with all major traded commodities, domestic prices are determined by the international price, the cost of shipping, storing and handling and the exchange rate. Due to the lead times from origin to Australia, combined with the effect of inventory and the seasonal demand pattern, the rate at which international price changes are reflected in the Australian market varies considerably and is primarily driven by competition between the various manufacturers and importers.

As domestic production competes with imported product, or could be sold on the world market at international traded prices, the international market largely determines the Australian domestic price for both imported and locally manufactured fertilizers.

Economic value of fertilizers to Australia Without fertilizers, the Australian agricultural sector would bear a direct economic cost from reduced production of AUD12.7 billion. The flow on effects would cost the Australian economy AUD40 billion.

The cost to agricultural exports would be more than AUD9 billion which is over 3% of Australia’s total exports of goods and services.

The productivity improvement due to fertilizer use supports 107,000 workers

in the agricultural industries and

300,000 workers across the economy.

These figures are drawn from an

economic analysis of the Australian

Fertilizer Industry by Meta Economics

Consulting Group. The full paper

is available in the proceedings of

the Australian Fertilizer Industry

Conference 2010 on the Fertilizer

Australia web site.

Addressing environmental issuesThe greatest risk fertilizers present to the environment typically occur once they are applied to agricultural land. To ensure that fertilizer users receive good advice on managing these risks the industry has developed a national product stewardship programme, Fertcare.

Fertcare also covers management of food safety risks related to impurities in fertilizers.

Fertcare is a training, certification and accreditation programme delivered by independent third parties on behalf of the fertilizer industry. Fertcare focuses on providing high quality advice to users of fertilizers. This advice assists users to optimise productivity and minimise environmental and food safety risks.

Fertilizer Australia encourages members and agronomists to adopt the international 4R Nutrient Stewardship concept for fertilizer best management practices. The core of this simple concept is applying the right source of plant nutrients (or product), at the right rate at the right time and in the right place. This approach considers economic, social and environmental dimensions of nutrient management and is essential to the sustainability of agricultural systems. The Fertcare programme is consistent with the 4R principles.

Note: Fertcare is a registered trade mark

The role of Fertilizer Australia Fertilizer Australia is an industry association primarily involved in public policy development and implementation on behalf of its member companies. Fertilizer Australia works with all levels of Government in Australia on issues where fertilizers can have an impact, such as food safety, environment, quarantine and security. As such Fertilizer Australia does not have any direct involvement in commercial issues.

Our member companies are responsible for more than 95% of the fertilizer manufactured, imported and sold in Australia. Members include importers, manufacturers and distributors representing the supply chain from origin to the farm gate.

Figure 5. Shipping to Australia

Region Main Products Typical Travel Time (Days)

North America West Coast Potash 23

US Gulf MAP DAP 45

Arab Gulf Urea 24

North Africa MAP DAP Phosphate Rock 34

China MAP DAP Phosphate Rock 20

Malaysia Urea 18

Figure 4. The percentage of total annual demand for fertilizers by month.

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Zero waste urea productionIn most industrial production processes and thus also in fertilizer production processes in general there are side products which cannot be further processed. Examples of such side streams are products that are out of specification, intermediates and by-products, all of which normally end up as waste. These waste streams are either dumped in landfills, incinerated, or otherwise wasted, putting a burden on the environment and resulting in a negative economic impact for fertilizer producers.

Stamicarbon’s sustainable solutionOver the past 70 years, Maire Tecnimont Group’s innovation and license company, Stamicarbon, has been developing its own proprietary urea technology. The set-up it has today guarantees that nearly all emissions from the individual process steps can be converted to valuable feedstocks. They are all returned to the production process to avoid waste streams and/or by-products and therefore this urea technology can be considered a zero waste production technology. In addition, the technology has the capability to upgrade possible return streams into premium end-products.

the remaining small emissions can be further treated with incineration or flaring to zero emission levels, such that we even can speak of zero emission production.

Obviously, this is at the cost of increased NOx and CO2 emissions. In the framework of this article, the specific details of such a layout will not be further elaborated, because this has already been addressed in a separate article by Stamicarbon.

The emissions of the urea melt and granulation plant are converted to feedstocks which can be reprocessed in the urea melt or granulation plant, in order to obtain zero waste production. Each individual unit below is needed to obtain a zero-waste production layout.

MicroMist Venturi scrubberThe MicroMist Venturi (MMV) scrubber is a multi-stage process for the effective and efficient scrubbing of urea particulate matter and ammonia gaseous residues from the urea melt and the granulation plant to meet the more stringent particulate matter emission regulations. During the granulation process, submicron dust is generated which is mainly responsible for the higher emission values. While older technology scrubbers easily scrub larger particles, the presence

The urea production technology layout (figure 1) basically consists of the following essential elements:

• Urea melt plant,• Urea granulation (or prilling) plant,• MicroMist Venturi scrubber,

which removes both the gaseous (ammonia) emissions from the urea melt plant, as well as the particulate matter emissions (urea dust) from

of a high degree of submicron dust requires a new capture approach, and to efficiently remove ammonia, an acid solution needs to be injected. This newly introduced scrubber technology is successfully implemented and proven in other industrial applications, but is completely new for the urea industry. The MMV scrubber contains five stages that progressively treat and clean the off-gas (figure 2). With this technology, emissions of less than 10 mg/Nm3 for dust and 20 mg/Nm3 for ammonia can be achieved.

At the first stage, the exhaust gas is cooled down, saturated and most of the coarse particulate urea dust is collected from the gas stream. At this point in the process the concentrated urea solution is purged and available for further (re)processing. The concentrated urea solution is typically between 35 and 45 wt-% urea, and can be fed to the urea melt plant. Downstream of the first quench zone, a secondary quench is used. In this second quench, a dilute solution of urea is used to further cool and humidify the gas flow. This process is a very important step to assure that remaining submicron particulate is exposed to saturated gas, where particles can substantially grow in size through condensation. Inside the scrubber vessel several Dual-

the air circulated in the granulation plant,

• Waste water treatment section, which cleans the effluent from the urea melt plant.

The target of the different sections is to reduce the emissions to air and water to such low levels, that the required environmental emission levels are met. In specific cases, even

Orifice Conditioning (DOI) trays can optionally be installed to further condition the gas stream. Multiple parallel venturi tubes are installed vertically on a diaphragm in the vessel.

The diaphragm forces the gas flow to accelerate through the tubes (figure 3). Each venturi tube includes a converging conical section (the inlet) where the gas is accelerated to throat velocity, a cylindrical throat, and the diffuser outlets of the MMV tubes are aerodynamically designed to reduce the overall pressure drop by slowing down the gas and recovering the energy. In the tubes, gases interact with the particulates and droplets twice (acceleration and deceleration).

Downstream the MMV stage, the ammonia acidic scrubbing takes place. The DOI tray is flooded from above with acidified water and the acid flow rate is controlled by a pH measurement. Typically, sulphuric acid or nitric acid are used to neutralize ammonia, forming an ammonium salt. Depending on the type of acid used, ammonium sulphate or ammonium nitrate salts are formed. They can be fed as a feedstock to the granulation plant in case of ammonium sulphate to produce urea with traces of sulphur. Alternatively, they can be used in a secondary process such as a UAN plant in case of ammonium nitrate, or being supplied to other processes, depending on the specific process layout chosen. By further addition of ammonium sulphate in the granulation plant, urea ammonium sulphate (UAS) compounds are made, satisfying the growing need for sulphur, which has meanwhile become the fourth macro nutrient.

Remaining suspended water droplets are removed from the gas stream in the mist eliminator before the gases leave the scrubber. Fresh (clean) water is continuously sprayed on the mist eliminator to catch and wash away dirty particles. For prilling plants a similar scrubber is available.

byHaroldvanderZande,Business Development Manager, Stamicarbon

The target is to reduce emissions to air and water

Figure 3. MicroMist Venturi

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Figure 1. General layout of the Stamicarbon urea plant

Figure 2. MMV Scrubber stages layout

1. Quenching2. Sub cooling3. Atomization4. Collection

element5. Separation


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An optional Wet ElectroStatic Precipitator (WESP) can be integrated on top of the MMV scrubber to further reduce overall emissions.

Waste water treatmentIn the waste water treatment section liquid effluents from the granulation and urea melt plants are treated (figure 4). The process condensate coming from the evaporation section, together with other process effluents such as sealing water from stuffing boxes, contain ammonia and urea. All of the process condensates are collected in the ammonia water tank. From this tank, the waste water is fed to the top part of the desorber. In the top part of the desorber, the bulk of the ammonia and carbon dioxide are stripped off from the water phase by using the off-gas from the bottom part of the desorber as a stripping agent. The descending effluent still contains urea and some ammonia. To remove the urea, this effluent is then fed to

the hydrolyser, which is a liquid-filled column. In the hydrolyser the urea, at elevated pressure and temperature, is dissociated into ammonia and carbon dioxide by the application of heat (steam) and retention time. The process condensate feed is kept in counter-current contact with the steam in order to obtain extremely low urea content in the hydrolyzer effluent. The remaining ammonia and carbon dioxide in the effluent of the hydrolyzer are stripped off with steam at a reduced pressure in the bottom part of the desorber. The off-gases leaving the top part of the desorber are recycled to the synthesis section after being condensed in the reflux condenser.

The purity of the remaining water satisfies requirements for usage as boiler feed water or cooling water make-up, which means that Stamicarbon urea plants do not produce any waste-water stream. In addition, the water is reused in the granulation plant, or can be used for

the production of DEF (Diesel Exhaust Fluid), depending on the plant configuration.

Due to the optimal layout of process components, not only the required emission levels are achieved, but effectively also a zero-waste urea production process has been developed. This satisfies not only legislative bodies in providing an optimal solution towards environmental emissions, but also meets both economic and environmental challenges. Prevention of waste generation leads to high efficiency, as all feedstock is transformed into final product, and avoids the burden of waste disposal. This has both a cost component, but also leads to pressure on the environment. Stamicarbon’s urea technology leads to a truly sustainable, zero waste production process, meeting the challenges of today and tomorrow.

Note: MicroMist™ is a registered trademark

Figure 4. Stamicarbon's waste water treatment section

SPECIALTY FOCUS...

Supplement

>


Bio fertilizers:new approaches to plant interactionbyIsmaelPanartandLauraSanchez,Fertinagro Biotech, Spain

Plant nutrition and sustainability: an increasingly close relationship

Table 1. Comparison between yields obtained with an integral fertilization program and a conventional one. Trials were carried out in different crops and localities.

Yield (kg/ha)

Crop IFP CP

Olive tree-Alicante 5138 3500

Wheat- Baleares 2900 1375

Potato-Burgos 52800 50000

Pepper-Almeria 101561 80000

Tomato-Zaragoza 95000 88000

Watermelon-Valencia 44800 36400

Orange tree-Sevilla 65500 40000

Zucchni-Badajoz 65000 58000

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One of the most challenging questions for the plant nutrition nowadays is how to give complete crop fertilization with a high level of sustainability.

Plant nutrition is a very dynamic sector where the diversity and number of products oriented for this purpose is increasing quickly.

In spite of this evolution, as plant nutrition specialists we should keep in mind the basics of the topic. Plant fertilization is an interaction between plant and its environment which includes, soil, biotic and abiotic factor, climatic conditions and nutrient inputs.

Our approach is to push this interaction with the use of an integral fertilization programme (IFP) which integrates technologies closely related to:

• Plant phenology and physiology • Soil characteristics • Nutrient evolution pathways in the

soil (avoiding leaching, evaporation, retrogradation and enhance availability and absorption)

• Sustainability

One of the most important recent technologies developed uses aminoacids as an axis due to the multiple important characteristics of free aminoacids for plant energy saving, plant resistance to stress, nutrient complexing capacity and translocation, plant physiological pathways signalling and catalysis.

• The amount of free aminoacids and the process of fabrication: 12% and 55% in the case of liquid and soluble powder respectively obtained by an optimized and patented protein hydrolysis process

• The type of aminoacid: more concentrated in proline in the case of water stress and more equilibrated aminogram for plant biostimulation

• The type and moment of application: specific adaptation and optimization for foliar and soil application at the beginning of the crop cycle for root growth enhancement and to improve blooming process and fruit set

• Study of the genes involved in the response of the plants to exogenous application of a fertilizer: Across this study the

The direct effects of aminoacids on plants include modulation of N uptake and assimilation, by the regulation of enzymes involved in N assimilation and of their structural genes and by acting on the signaling pathway of N acquisition in roots. By regulating enzymes of the TCA cycle, they also contribute to the cross talk between C and N metabolisms.

Plants react to environmental stress activating a set of common mechanisms of response between the majority of plants. We can mention the synthesis of compatible solutes, known as 'osmotic compounds' (sugars, polyalcohols, some amino acids and derivatives), as well as protective specific proteins.

The amino acid proline (PRO) is considered to be one of the principal biochemical markers of stress in horticultural plants: the intracellular concentrations of PRO increase proportionally to the levels of external stress (drought, salinity, high temperatures, cold and radiation)

As for the rest of the osmotic compounds, the principal function of the PRO is the osmotic cellular adjustment in conditions of stress, but it also acts as a chaperone of low molecular weight favouring the direct

necessary knowledge was obtained to deal and to know what genes operate as response after the application of new technologies aimed to improve plant stress resistance.

stabilization of proteins and cellular membranes. It takes part in the defence against the oxidative stress by means of the elimination of reactive oxygen species and it supposes a storage molecule for C and N, which will be used once stress conditions stop.

Chelating and complexing activities of specific amino acids and peptides are deemed to contribute to the availability of nutrients and the acquisition by roots. The same propriety may protect plants also against heavy metals. Antioxidant activity is conferred by the scavenging of free radicals by some of the nitrogenous compounds, including glycine betaine and proline, which contributes to the mitigation of environmental stress.

Indirect effects on plant nutrition and growth are also important in the agricultural practice when protein hydrolysates are applied to plants and soils. Protein hydrolysates are known to increase microbial biomass and activity, soil respiration and, overall, soil fertility.

Other considerations were added to the technological design and production projects such as:

The results obtained in field trials were in accordance with the previously mentioned proprieties. The effect of these products applied even to the soil or by foliar treatment was interesting in terms of plant behaviour, plant

Plants react to stress activating a set of response mechanisms

featureBIOFERTILIZERS


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Specialty fertilizersfor Californian horticulture

California's unique coastal environment provides moderate temperatures year-round and suitable soils which is ideal for growing many horticultural crops from tree fruits and all kinds of vegetables to tree nuts, artichokes and kiwi (450+ crops), which makes it the largest producer of varied food crops in the US. On average, California growers have the highest output of yield per acre compared with other states. For example, lemon trees and spinach in California can produce more than 50-60% yield compared with other states.

Without California, the supply of most grown agricultural products in the US and abroad would incline, and in the first few years, some might be nearly impossible to find. In addition, California represents about 19% of organic farms of the total US farm land. Despite all of this, California farmers face many different challenges such regulatory, economic, environmental protection, urbanization and water and soil issues and seasonal labor shortage. Nitrogen, an essential nutrient for crop growth, is increasingly known to negatively impact California’s ground and surface water resources. Farmers are faced

with a lot of pressure to increase efficiency of nitrogen use, and government officials are challenged on how to protect water quality while supporting the viability of California’s farmers. California’s extreme drought conditions have put a major stress on farmers as well as on groundwater resources. Sustainable water management will require maximizing efficiency at the farm level, to support state management plans that seek to protect agriculture as a vital California resource. Meanwhile, maintaining production of high quality fresh produce for year-round demand is another task growers deal with daily. All these parameters are fertile ground for more sophisticated fertilizers, in terms of the ability to tailor made nutrient solutions required by crops and farmers as well as meeting the new standards of environmental stewardship.

TechnologiesThe use of specialty fertilizers is being widely adapted for California’s crops due to their efficient uptake and utilization of the nutrients by plants, which leads to a lower impact on the environment. For example, the use of controlled release fertilizers (CRF) plays a key role in improving yields and at the same time reducing nutrient losses such as nitrogen, potassium and sulphur and simplifying fertilizer application. In addition, fertigation is a technique by which soluble fertilizers are mixed with the irrigation water to enhance crop production. It is a highly effective and flexible tool that enables precise nutrition to be applied according to the soil fertility status and growth stage of any crop. These innovative technologies allow higher yields, better quality, greater protection against early season ‘salt stress’ while enhancing crop

byDr.OlenaCastello,Market Development and Technical Services Lead, ICL Specialty Fertilizers, USA

The use of specialty fertilizers is being widely adapted for California’s crops

Complete crop nutrition and sustainability: a new Fertinagro Biotech approach

resistance to abiotic stress, blooming capacity and fruit set, nutrient absorption and translocation, yield and quality. The results were also consistent across different localities, different type of crops and agronomists (table 1).

With application of the indicated technologies, synergies in the rhizosphere with soil microorganisms were established, improving both crop rooting capacity and fertilization efficiency and also helping the plant to improve its resistance to stress situations in cold periods, where the appearance of viruses seems to be frequent.

With the application of the IFP in tomato, it was possible to verify the efficiency to minimize the incidence of the PepMV virus and to promote the development of the plant root system.

In the case of IFP, incidence of the PepMV virus did not reach 1%

compared with 19% observed in plants that received the new technology based product. Regarding yield increase; a 40% increase was obtained in the case of the first category compared with the control plants. In the final example, fruits increased by 133%. Regarding the root system – a 67% of increase in root biomass was observed compared with the control plants.

In this approach, plants could be considered a highly intelligent ‘living being’, efficient but with limitations in some cases. Soil was not considered as just a neutral support for the plant root system but as a highly potential living environment. Benefits that could

be derived from its characteristics, proprieties and composition are directly proportional to our amount of knowledge and grade of conscience about its interaction with crops. It is estimated that in a 1 ha of agricultural soil could be present 4000 kg of microorganisms and only 1200 species have been characterized. This reflects the potential of the biological resources in the soil.

The above-mentioned research efforts demonstrate that plant enhancers and biostimulants should be used in biological farming and that the application of bioactive compounds improve the physiological process of crops.

Plant enhancers should be used in biological farming


uniformity through well controlled nutrition application, release and uptake by plants.

Tackling strawberriesStrawberry is the fifth most valuable crop grown in California. The crop is grown across about 36,000 acres and production in 2016 reached 1.7 bn pounds. Coastal California’s rich sandy soil and climate means strawberries can be grown 500 miles up the coast from San Diego to Monterey Bay. California is the leading producer of strawberries in the world and is expected to supply nearly 88% of the volume consumed in the US. According to the California Department of Food and Agriculture the value of the strawberry crop is close to USD2.6 bn. There are approximately 400 strawberry growers in five distinct areas of California: Watsonville/Salinas, Santa Maria, Oxnard, Orange County/San Diego and the Central Valley. Watsonville and Salinas counties account for almost half of the state's strawberry acreage. In general, strawberries are grown as an annual crop and are planted as transplants in the Autumn and Summer to allow continued production for Winter, Spring and Summer. In the northern California, strawberries are replaced each Autumn at the end of harvest, and lay dormant through the Winter. In the Oxnard and Santa Maria areas, plantings in late July through September provide strawberries fruits through the Autumn and Winter. Strawberry are grown on raised beds, using drip irrigation and covered with plastic to prevent disease and conserve water. Strawberries are grown for both the fresh and processing market. Nevertheless, all California strawberries are hand-picked to ensure only the highest quality berries are harvested. Based on plant nutrient requirements strawberry utilizes about 180-220 lb/acre of nitrogen, 90-110lb of phosphorous and 270-330 lb of potassium, 100-300lb/acre of calcium in addition to other elements. Strawberries are highly salt intolerant and ‘unforgiving’ crop that will react rapidly for any cultivation mistakes. The key for growing successful strawberry crop is keeping fine balance

and continue until harvest. However, California growers are challenged by high soil pH and high alkalinity in irrigation water which, if not managed, causes precipitation of certain minerals, ‘scale’ build up in tanks, pipes and emitters, thus resulting in lower nutrient uptake and plant efficiency. Under these conditions, the use of acidic soluble fertilizers (e.g. Agrolution pHLow) allows growers to cope with these phenomena. Indeed, water soluble fertilizer (WSF) is being well adapted in Californian strawberry production to mitigate the above mentioned problems. This WSF is a specialty line of fully soluble acidic and unique combinations of NPK's and micronutrients targeted for root zone fertigation on specialty agricultural crops. It contains patented acidifying technology from ICL, no chlorides and some formulations contain calcium and magnesium.

Recent researchIn 2017, agronomy work demonstrated the performance of Agriform and Agriform with calcium and magnesium in strawberry, potentially preventing the loss of nutrients, and its effect on soil salinity and yield. The trial was carried out in Santa Maria, CA (figure 1), on sandy soils, using ‘Del Rey’ as a strawberry variety. CRF

between plant growth and fruit bearing. California strawberry growers invest millions of dollars in searching for better solutions to conserve water, protect the soil and reduce fertilizer use. New state regulations require growers to track all nitrogen applied to the soil, track volume of irrigation of water used and sample water and soil for nitrogen levels. High soil salinity and phosphorous fixation are additional challenges in California. Due to the fact strawberry are grown on light sandy soils, balanced nutrient fertilization is one of the major factors contributing to strawberry yield and quality. Application of conventional fertilizers may not be the best option for sandy soils because they are prone to soil leaching, volatilization and are often inefficient at a level of 25-50%.

Correct mixThe use of CRF in addition to ‘spoon feeding’ using water soluble fertilizers is being successfully used by strawberry growers. For example, CRF type ‘Agriform Strawberry Blend’ is widely recognized as the industry standard fertilizer for strawberry production. This blend offers well balanced NO3ˉ/NH4

+ ratio that is highly important for field grown strawberries

blend was applied on November 6, 2016 at the rate of 575lb/acre for both treatments (Treatment 1: Agriform 13-4-14 + 4Ca + 2Mg; Treatment 2: Agriform 18-8-13). The yield was based on just the first six weeks of the picking season).

Based on the results, the ‘Agriform Strawberry Blend with Calcium and Magnesium’ increased yields by 13.9% compared with Agriform alone (Figure 2). Agriform Strawberry 13-4-14 + 4Ca + 2Mg reduced soil salinity by 39%, thus promoting healthy growth and yield increase.

This is clear indication that Agriform meters out all applied nutrients evenly and predictably across crop critical stages, maintaining optimum N and Ca (NO3)2 levels in soil solution,

on sandy soils. Both forms of nitrogen are important for plant growth and development as opposed to using only nitrate or ammonium. Higher ratio of NH4

+ can cause a decrease in sugar concentration in roots, followed by gradual deterioration of plants. Strawberry growers have trusted this strawberry mix for decades because of the high quality and consistent performance, for over 30 years. Agriform utilizes 100% resin-coated N-P-K granular substrate release technology to provide a nutrient release that is predictable and consistent, even under warm and cold conditions. Agriform nitrogen products allow growers to deliver nutrients throughout the entire crop cycle, up to 14 months, at a rate that is ideal for plant growth. It is these two factors - early establishment and consistent plant nutrition throughout the growth cycle - that significantly contribute to higher yields and better quality fruit at harvest. It is common practice to apply Agriform in the fall at the rate of 550-600lb/acre as are pre-plant application by incorporating it in the soil with further formation of beds covered by plastic mulch.

At a later stage of growth, nutrients are fed through the drip irrigation

even following heavy rains. As mentioned previously, strawberries are highly salt sensitive, which could be a limiting factor in obtaining even greater yields in strawberry production in Californian high saline soils. It appears that calcium cations replaced sodium (Na) cations, thus removing the salt by up to 40% (reduction of an exchangeable Na from 59 to 36 ppm) and promoting the healthy crown growth and higher quality yield (figure 3).

To summarize, CRF blends allow for relatively easy application method, reduction of the salt stress induced by the application of fertilizers and also meet the crop specific nutrients required. This leads to higher benefit to both the farmer and the environment.

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Figure 1. Trial carried out in Santa Maria, California

Agriform 13-4-14+4Ca+2Mg

Agriform 18-8-13

Figure 2. Yields increased by 13.9% Figure 3. Strawberries are highly salt sensitive, which can be a limiting factor.

CRF blends allow for relatively easy application

ICL Specialty Fertilizers is a global leader in plant nutrition offers a wide range of specialty products that include innovative technologies such as controlled release and water-soluble fertilizers for horticulture, agriculture, landscapers and plant protection products. We leverage state-of-the-art precision nutrition and technologies to ensure maximum growth. ICL Specialty Fertilizers mantra is: grow more and better with less. Our commitment to a greener world spans the globe. Every day and around the world, our experts in the field work with end users to optimize plant nutrition and provide advice, know-how and expertise on location. This combination of world-class technology and a down-to-earth personal touch are the seeds of ICL Specialty Fertilizers’ success.Note: Agriform® is a registered trademark

Conventional fertilizers may not be the best option


Fertilizer managementin containerized crops

While the nutritional needs of plants have not changed over the years, the factors (fertilizer, media and water) influencing plant nutrition are constantly changing. There are new technologies in the fertilizer industry as well as a greater demand for organic fertilizers in some sectors. Quality water sources are being replaced with lower quality secondary water sources, and the availability and quality of substrates for rooting media are always changing. Fertility management means addressing and understanding all three of these components to optimize plant performance. Integrated into fertilizer, water and media are cultural practices and pest management programmes, which will also play a significant role in optimizing the nutritional needs of plants.

This article will briefly highlight fertilizers, water and media management and how they impact plant nutrition. The bottom line is getting sufficient quantities of all the essential nutrients to the plants, when the plants need them. The 14 essential nutrients are typically divided into two groups, macronutrients and micronutrients. The macronutrients are: nitrogen, phosphorus, potassium, sulphur, calcium and magnesium. They are classified as macronutrients because their concentration in

for plant uptake. Because of the dependence on temperature, nutrient availability from granular fertilizer is difficult to control and may not always be in conjunction with plant growth. On the positive side, if a nursery is growing different plant types, granular fertilizers can be customized and added, based on specific crop needs. There are pros and cons to liquid fertilizers as well. Liquid fertilizers offer more control over timing of nutrient availability. However, factors such as water quality and irrigation delivery can impact efficiency of liquid fertilization. In addition, if a nursery is growing different crop types, there may be a need to have more than one liquid fertilization system for the production site, and infrastructure may have to be configured to group crop needs with irrigation systems. To eliminate the cons of liquid and granular fertilizers, many growers use both granular and liquid fertilizers in their nutrition programme.

Granular fertilizersTo overcome the rapid solubilization of granular fertilizers, which can result in nutrient loss through leaching out of containers or damage to crops because of high fertilizer salts, various companies have developed controlled-release fertilizers (CRFs). This technology provides slower release of nutrients into the planting medium throughout the period of crop growth. Most CRFs are coated with polymers which release nutrients at a rate that is positively correlated with temperature, so as temperature increases, the rate of

dried plant tissues in relatively high

and will be reported in most lab

reports as a percentage of plant dry

weight. The micronutrients are: iron,

manganese, copper, boron, zinc,

molybdenum, chlorine and nickel.

The concentration of these nutrients

in plant tissue is very low and is

usually listed in lab reports as parts

per million (ppm).

FertilizersThere are two methods of fertilizer delivery: granular fertilizers incorporated into the media and liquid fertilizers injected through the irrigation system. Granular fertilizers will dissolve over time, based on temperature and moisture - the higher the temperature and moisture, the faster the granular fertilizers will solubilize and be available

by Donald J. Merhaut, Extension Specialist and Horticulturist for Ornamental and Floriculture Crops, University of California, USA

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Figure 1. Cumulative fertilizer release from a polymer-coated fertilizer at 70, 80 and 90oF. Release rate and longevity of product is based on type of polymer coating and coating thickness. Graph represents fertilizer release from a 12 month CRF product, when media temperatures are maintained at 70F. When media temperature increases to 80 or 90F, rate of nutrient release increases, and the duration of fertilizer release from the coated prill decreases to 8 and 6 months, respectively. Controlled Release Fertilizers (CRFs) formulations are available for short term crops (12 week release), up to long term crops (12 months). Fertilizer labels will indicate the temperature used to determine longevity, and this differs among fertilizer brands.

Figure 2. Allocation of nitrogen from four brands of polymer-coated Controlled Release Fertilizer (CRF) products over 11 months. Graph A represents the percentage of the fertilizer applied that went into the tissue and Graph B shows the percentage of the fertilizer that was applied that ended up in the runoff water from the pot. The nitrogen that remained in the fertilizer/media is not depicted. Plants were drip irrigated with an average of 25% leaching fraction.

Figure 3. Different methods of applying granular fertilizer to containerized plants: A) blended into media, B) topical applications, C) dibble placement, and D) layered into media. Diagram depicts a rooted liner placed into a larger container. Yellow arrows indicate direction of fertilizer distribution as it is released from fertilizer prills. In all methods of granular fertilizer application, the greatest likelihood of nutrient release from fertilize and leaching from containers will occur in the beginning of a crop production cycle, since root systems have not developed into the volume of the larger container. With topical applications (B), nitrogen volatilization may occur, especially in humid climates; therefore, some nurseries resort to layered application (D) to minimize this problem.


nutrient release from the CRFs increases (figure 1). In an 11-month study with four brands of CRFs, it was determined that nutrient release was fairly uniform and available for plant uptake, as monitored by nitrogen status in plants and leachates (figures 2A and 2B).

In addition to fertilizer types, the method of adding granular fertilizers can also impact fertilizer uptake efficiency. In figure 3, four methods of fertilizer application are depicted, which are used on #1 containers and larger. Many nurseries blend fertilizer into the media, as shown in figure 3A. Others may topdress (figure 3B), which works well with overhead irrigation, but may not be effective with drip irrigation, since the entire container surface may not be wetted. Topdress can also lead to fertilizer spillage if containers are knocked over in production and/or shipping.

In general, granular fertilizers and CRFs, when used properly, can provide the nutrient needs of most crops. Some of the Better Management Practices (BMPs) associated with granular fertilizers are listed:

BMP1: Planting. Prepare growing media and plant crops in the cooler periods of the year which will allow roots to develop throughout the container. As temperatures warm, nutrients released from CRFs will be taken up by the already present root system.

Australian crops and some bedding plants that are sensitive to higher pH may need to have alkalinity and pH reduced. Production with small plug trays and liners are more susceptible to pH swings from alkaline water than larger containers which have a greater buffer capacity from the rooting media. Finally, short term cropping cycles of several weeks will be less influenced by alkalinity of water than long term crops which will have repeated water applications over months.

One of the last concerns with water quality associated with high EC and alkalinity, is irrigation method. Overhead irrigation with water containing high salts and carbonates, will often cause water spots on foliage. This is a problem in the ornamental and floriculture industries, since aesthetics is everything. The other irrigation option is drip irrigation, which will eliminate water spots on foliage; however, salt build up can clog emitters. Therefore, one must look at the entire operation when considering solutions for irrigation and fertilization needs. Under severe cases, high alkalinity and salts can cause major problems in the irrigation system and on plant performance (figure 4).

Liquid fertilization programs can be successful. However, the following BMPs should be followed for optimal performance:

BMP1: Acid injection and chelates. Never combine liquid chelates stock solutions with the acid stock solutions. The very low pH of the acid stock with denature and precipitate the chelate out of solution. No commercially available agricultural chelate is available with stability below pH 3.

BMP2: Chelate storage. Chelates are denatured and precipitate out of solution when exposed to light. Always store chelate stock solutions in tanks impervious to light penetration.

BMP3: Fertilizer Injection monitoring. When using the same fertilizer formulation and same water source, one can get an estimate of correct injection rates through the measurement of EC. However, always monitor the EC of the water source as well, in case changes in water quality occur. There are also portable ion-selective

BMP2: Irrigation. Minimize excess water leaching out of containers. Unless salt buildup is a problem in containers, a leaching fraction of 25% is usually recommended for many crops.

BMP3: Rooting media storage. If CRFs or other granular fertilizers are blended into the rooting media, prepare only enough media for immediate use. Granular fertilizers as well as CRFs in any unused media will begin releasing nutrients, especially if the pile of planting mix is large and heats up (like a compost pile).

BMP4: Fertilizer storage. Always store unused CRFs and other solid fertilizers in a dry, cool location.

BMP5: Electrical conductivity. EC is not well correlated with nutrient concentrations. Use EC only as a general guideline for troubleshooting, not for direct estimation of specific nutrient levels. Keep records and when fertilizer blends are changed, new EC values need to be established for the new fertilizer type.

Liquid fertilizers and irrigation waterInjecting dissolved fertilizer into the irrigation system is extensively used in the nursery industry. Traditionally, this option has had few limitations. However, with dwindling water supplies, many nurseries are faced with the use of secondary water sources that are of lower quality. Two of the more common problems associated with secondary water sources include: 1) high salts with electrical conductivity (EC) levels above 0.75 dS/m and 2) high alkalinity, with CaCO3- equivalent levels above 1.5 meq/L. There are other problems that can impact water quality such as high sodium > 70 ppm (3 meq/L), chloride > 70 ppm (2 meq/L), boron > 1 ppm, and fluoride > 1 ppm. These other problems are usually regional. However, if these other elements are a problem, especially

electrodes available to give an estimate of nitrate, potassium and calcium concentrations. There are still no ion selective meters available to the nursery and greenhouse industries to measure magnesium, sulphur, ammonium or the micronutrients. While monitoring EC, pH and other ions can easily be done ‘in-house’, it would also be advisable to check your measurements with a professional laboratory on occasion.

Rooting mediaThe third factor that must be considered in a fertilizer program is the rooting media. For most container production, the rooting media is almost 100% organic from substrates such as pine barks, wood chips, coconut husks, peat moss, rice hulls, composted forest products and urban waste. Most of these products add water holding capacity for the rooting media and will provide minimal nutrients to the plants. In fact, some substrates, such as incompletely composted yard waste, or sawdust will actually require nitrogen as they are broken down by microorganisms. This is often seen when rooting media ‘shrinks’, as it is broken down. Inorganics include substrates such as perlite, pumice, and sand, which provide aeration and drainage for a rooting media. Unlike field soils, artificial rooting media for container production offers very little in terms of cation exchange capacity (CEC). The CEC is a material’s negatively-charged sites which have the ability to bind positively-charged nutrients such as ammonium, magnesium and calcium. The most a rooting media

for known sensitive crops, then water purification, such as reverse osmosis may be necessary.

Electrical Conductivity. Electrical conductivity (EC) of irrigation water is the measure of dissolved salts in the water. An EC above 0.75 dS/m can be a problem with liquid fertilization programs, since injecting fertilizer will raise the EC even further. But even if using granular fertilizers, high salts in irrigation water can be problematic. Many sensitive crops such as seedlings, propagation cuttings, and specific crops such as: blueberry, azalea, rhododendron, camellia and ferns will perform poorly if water has a high EC. Symptoms of salt stress include, root dieback and necrosis on leaf margins. In severe cases, wilting will occur. To minimize problems with high EC, choose liquid fertilizer sources that contain only compounds with plant essential nutrients and avoid salts such as sodium and chlorides in the fertilizer blend. As stated above, it may be necessary to implement reverse osmosis before injecting liquid fertilizers. Other options are nursery infrastructural changes, where salt-sensitive crops are sectioned off and are given the more expensive, higher quality water source.

Alkalinity. Alkalinity is the measure of the amount of carbonates (CO3

2-) and bicarbonates (HCO3-) in water, which influences the water’s ability to raise the pH. While some alkalinity is helpful, as it buffers the water from major pH shifts, high alkalinity (> 1.5 meq calcium carbonate/L) can lead to several problems. Irrigation water with high alkalinity and high pH will cause micronutrient chelates to denature and precipitate out of solution. If injecting chelates for micronutrients, choosing the chelate that performs in the pH range of the irrigation water is essential. From a production perspective, there are three factors to consider before adjusting alkalinity: i) pH sensitivity of the crop, ii) container volume, and iii) crop cycle longevity. Crops more sensitive to high pH such as ericaeous plants, some

can provide for holding nutrients, is its water holding capacity, which will provide a reserve of nutrients that are in solution. Understanding nutrient availability and pH of the production system can be easily determined from the rooting media. There are several methods of measuring the nutrient status of a rooting media directly from a container. There is the saturated past extract, where a sample of the rooting media is mixed with a known volume of water. One must take into consideration the water quality of the water used. Deionized water is the best option, as it adds no nutrients and will not affect pH. The other method is the “PourThru Method”. This method, when conducted properly, will easily provide a snapshot of water-plant-rooting media status. With proper record keeping, this tool can provide valuable information to the grower regarding fertilizer, water quality and rooting media status in a crop production cycle.

There are several BMPs regarding rooting media and substrates:

BMP1: Rooting media fertilizer charges: Some commercially available products may already contain a ‘starter charge’ of fertilizer. Check with manufacturers for this information.

BMP2: Sawdust. Sawdust breaks down quickly and ties up nitrogen. Though inexpensive, it causes problems such as rooting media ‘shrinkage’ and nitrogen drawdown.

BMP3: Storage. Rooting media containing fertilizer should not be stored for long periods, as nutrients in the mix will break down quickly and be leached from the rooting media.

A full applied examination of this topic will be released this summer (2018) in a book titled ‘Water and Nutrient Management for Greenhouse Crops’ by Donald J. Merhaut, Kimberly Williams, and Salvatore Mangiafico (eds.), published through the University of California Agriculture and Natural Resources. This book will be available at http://anrcatalog.ucanr.edu.

Article acknowledgements:• Donald Merhaut, Extension Specialist, Nursery and Floriculture Crops, Department

of Botany and Plant Sciences, UC Riverside.• Eugene Blythe, Associate Research Professor, Plant Soil Sciences - Coastal

Research and Extension Center, Mississippi State University.• Joseph Albano, Research Programs Director for the Horticultural Research Institute

(HRI). • Julie Newman, Floriculture and Nursery Crops Advisor emeritus, UC Cooperative

Extension.

There are pros and cons to liquid fertilizers

Figure 4. Salt accumulation on a container surface due to overhead irrigation with water of high alkalinity.

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Spanish plant biotech sector:instrumental to the Europeaneconomy

The Spanish agricultural sector has a great strategic importance in the Spanish and European economy. Spain is the 2nd European state in terms of agrarian extension, 8th as a worldwide exporter of agricultural food and 4th within the EU accounting for 12% of European production. Thanks to its export strength, Spanish agriculture generates associated industries (plant improvement, fertilization, plant protection products, and machinery), creates employment, keeps areas rural and contributes decisively to the demographic balance.

The Spanish agrifood sector is a worldwide leader in fruit and vegetable products (7th producer of fruit, 9th in fruit and vegetable products), citrus (6th producer, 1st exporter), vineyards (3rd producer, 1st per cultivated area) and olive groves (1st producer and exporter).

The strategic potential of this sector is increased by the current global situation, where the supply of raw

Challenges for the sectorThe Spanish food and agricultural sector faces global, commercial and technological issues:

Global challenges

• Improving the sustainable use of limited natural resources: water management, nutrients, arable land and energy. The task being hampered by climate change and extreme ambient conditions.

• Improving performance: per hectare (arable land can not be expanded).

• Food crisis: ensuring food for an increasing population: 9.3 billion people projected for 2050. Doubling food consumption. Agriculture production needs to increase by a multiple of 1.7.

• Increasing food quality• Introducing plants with new added

value: plants as bio-factory, bio-sensors and biofuels

Commercial challenges

• Plant variety development requires 5 to 10 years, at a total cost of EUR1.0-1.5 million

• Plant variety exploitation only lasts 5 or 6 years

• Shifting national production to third parties: occidental countries are

materials, their price variability

and the growing demand for food

present major challenges when it

comes to ensuring the security of

food, energy and sovereignty (see

challenges below). In this context,

variety breeders and technology developers

• Global market: long distances, post-harvest processes > food security > high costs

Technological challenges

• Increasing performance, quality and sustainability of plant production

• New applications.

In order to face these challenges, it is essential to use and develop all plant biology based technologies which are currently available.

Characterization of the Spanish food and agriculture business sectorThe profile of the agricultural company is of a traditional SMEs, highly leveraged by fixed assets (machinery, greenhouse, etc…) with high fixed costs of production and a high level of uncertainty (production, sale prices etc...) which creates difficulties for income forecasts. These characteristics complicate the investment in R&D, which is a long-term bet when agricultural companies are looking for immediate results.

There are a number of companies in different agricultural subsectors (plant improvement in all kinds

research and development play a

crucial role in the improvement

and optimization of the production

process, so they can guarantee food

and raw materials in a sustainable

and environmentally friendly way.

of farming-extensive, intensive, ornamental, plant nutrition, crop protection, bioenergy, forest) with major activity and interest in biology and plant biotechnology, but they are not biotechnology companies. It is important to emphasise that while many companies utilise plant biotechnology or are users of the tools provided by plant biotechnology, they are not agricultural biotechnology companies.

It is a very diverse and fragmented sector with great geographical and climatic differences. The industry is facing global, commercial and technological challenges that make it necessary to innovate and incorporate technologies from plant biology, in order to maintain and improve competitiveness, which until now has been based primarily on Spain’s privileged climatic conditions.

Spanish plant science statusSpain is in great position in terms of plant science and production:

• Spain occupies the 4th position in Europe (2010) in terms of scientific output in life sciences.

• Spanish scientific production in biotechnology: Spain is tenth worldwide in terms of scientific output and GDP invested in R&D.

byDavidLapuentePinilla,Project Technician, BIOVEGEN (Spanish Technology Platform for Plant Biotechnology), Spain

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BIOVEGEN team

David Lapuente Pinilla - BIOVEGEN

Spain is in great position

in terms of plant science


BIOVEGEN activities to boost innovation in the field of plant production BIOVEGEN, the Spanish Technology Platform for Plant Biotechnology, is a public-private partnership, led by the business sector, which brings together entities from the agrifood sector with an interest in R&D in applied Plant Biology. Our objective is to improve the agrifood sector competitiveness through the incorporation of new technologies based on plant biology. To that end, BIOVEGEN coordinates agrifood entities, connects technological offers and demand and generates business opportunities through public-private collaboration. BIOVEGEN develops collaborations and R&D projects, identifying technological challenges of the sector. The platform also serves as an interface between the science community, business sector and administration. To do so, BIOVEGEN offers a wide range of tools to facilitate R&D activities to its members. Currently, the platform has 81 members: 68 companies and 13 research centres, as well as the support of the Secretary of State for R&D, which co-finances the initiative. Furthermore, BIOVEGEN is open to partnerships with other entities within the sector.

It is the fourth country in the EU and accounts for 3% globally.

• A third of the research is concerned with the application of ‘green biotechnology’: plant protection (10%), agriculture and food (14%) and environment (9%).

• Agricultural science is also a major focus

Technology transfer in plant science in SpainIn spite of having a good fiscal framework and support of R&D, the level of knowledge and technology transfer from the scientific sector to business one is lower than expected.

Spanish Food and Agricultural sector need the innovation and the incorporation of technologies from plant biology so they can keep and improve their competitiveness. Nevertheless, it suffers an important deficit in the transfer of technologies, as the following data states:

• Spain carries out between the 30-40% of the exportation of fruits and vegetables of the whole of the EU, but possesses only 1% of the different kinds of registered products

• For the last 20 years, only 2.3% of the applications at the Community Plant Variety Office were Spanish

subsidies, companies would be ready to introduce themselves in advanced phases, with the current credit based financing system. A good example would be to start financing regional R&D projects trough regional mechanisms such as IVACE in Valencia.

Furthermore, another negative issue for the sector is that most of the available agricultural technology, such as plant variety improvement, does not have subsidies for its registration or extension to other countries, in contrast with other patents which have subsidies by the Spanish Patent and Trademark Office.

Finally, the non-consideration of plant varieties as an ‘intangible asset’ makes it impossible to apply for other R&D promotion mechanism known as the ‘patent box’.

There are only a few purely agro-biotechnological companies (understood as intensive companies on R&D on plant biology that offer agricultural services and biotechnological tools to companies), they are usually small, with low invoicing and with serious difficulties to survive and consolidate.

In fact, it is very common to see these companies disappearing only few years after their creation.

It is estimated that only 15% of all the companies in the Spanish biotechnology sector are focused on agro-biotechnology, representing only 9% from the total invoicing of the sector. So, we could say that agro-biotechnology is the private biotechnological sector’s ‘little brother’, and this is reflected in the public subsidy to the R&D received the last decade with only 17% of the subsidies given to biotechnology.

This is mainly because of the reasons previously mentioned (small companies, with high levels of uncertainty, traditional and therefore not intensive on R&D), but also because of a bad connection between researchers and companies, between bidders and technology petitioners.

There is poor collaboration experienced within the agro sector and also poor knowledge about what it is that technology companies need. In addition, the R&D financing tools are not adapted to the characteristics of the agro sector. Consequently, this is an ineffective model to promote R&D in agricultural companies with very little or no experience in this field.

These companies would need to take a first step in gaining confidence and identifying R&D as a useful tool for business development. With this shift, which could be achieved by financing small projects with

BIOVEGEN workshop

BIOVEGEN participates in the launching event of “Retos Colaboración” call in the Spanish Ministry of Economy and Competitiveness.

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There are only a few purely agro-biotechnological companies

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PROQUIMAC PFC, S.A. | C. Berlin, 3-5 Pol. Ind Can Torrella | 08233 VACARISSES Barcelona (Spain)Tel. +34 93 828 06 73 | Fax + 34 93 828 06 76 | [email protected] | www.proquimac.com


A harmonious marriageof fertilizers and microbials

The health benefits of microorganisms have long been understood, both in medicine and agriculture. Penicillium notatum is perhaps the most famous early example; a fungus discovered by Dr. Alexander Fleming in 1928 that produces the antibiotic penicillin. Since its successful isolation and first medicinal use in the 1940s, penicillin has remained one of the most widely used antibiotics in the world. Bacillus thuringiensis (Bt) was a similarly impactful agricultural discovery. A bacterium isolated from dead insects by a number of scientists in the early 1900s, Bt became a commercial insecticide in 1938, used to control flour moths in France. Jump forward sixty years and genetically modified crops including the Bt genes for insect toxin production are on the market. Today, over 80% of US corn and cotton acreage is planted with insect-resistant seeds that include the Bt traits.

Genetic modification of plants to include bacterial traits is one use for microbes, but a newer trend of the 2000s is the use of biologics - natural products, plant extracts, and agents derived from beneficial bacteria and fungi - applied onto the plant rather than artificially inserted into the plant’s genome.

promoting early vigour or producing ammonium and nitrate in the soil. Bradyrhizobium japonicum is a common nitrogen-fixing bacterium used widely in the soybean industry. The second category is application of microbial metabolites. Natural chemistry isolated from microbes, as penicillin is in the pharma world, can be sprayed onto leaves or drenched into soil to provide pest and disease control. Lipopeptides are a class of microbial secondary metabolites commonly used in crop protection. The well-known bacterium Bacillus subtilis is just one example of a lipopeptide producer. A third group of organisms can trigger a plant’s induced systemic resistance (ISR), for which plant defences are ‘turned on’ prior to pest or disease attack. Many Pseudomonas strains prompt activation of the Jasmonic Acid pathway, which is also induced by osmotic stress, wounding, drought, and exposure to elicitors. The final two categories involve microbes acting on other microbes: through competitive exclusion and direct microbial inhibition. In the first instance, beneficial microbes create a barrier around plant tissues to protect against pest attack. In the second, microbes and their metabolites produced in situ inhibit or kill pathogens and pest in the soil.

Modes of actionWhether inside, on top of, or nearby a plant, microbes play a wide-range of roles in the soil ecosystem. From decomposition to nitrogen-fixation to influencing soil structure. Focusing just on plant response, microbes hold direct and indirect influence over plant productivity. Certain microbes can trigger a hormone release within a plant, causing stress responses or influencing root development and structure. Others affect water conservation and retention properties of a plant, providing benefit to those

The needThis understanding of the many

interactions between plants and

microbes is a relatively new scientific

feat and given the trillions of species

of bacteria that reside in the soil,

growing in drought stricken areas. Like Bt, some bacteria and fungi provide pathogen control through direct insecticidal attack. Working in the soil, nitrogen fixers and phosphorous solubilizing bacteria break down nutrients, making them available to plants in the correct form.

All of these interactions are happening naturally in soils all of the time. When put use as commercial ag products, however, microbes can be classified into five main areas of action. The first is plant health and nutrition. In this case, microbes improve overall plant health and nutrient availability, by

it’s likely an area that will continue to be studied for centuries to come. The biologicals market has only become a significant subsector of the chemistry-focused agricultural inputs market in the last decade. Dunham and Trimmer reports that in 2010,

by Holly Meadows-Smith, Manager, Business Development, BioConsortia Inc., USA

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Figure 1. Scientist working the BioConsortia laboratory.

Figure 2. BioConsortia wheat field trial.

Certain microbes can trigger a hormone release within a plant

Figure 3. Scientists gather around a microscope to observe organisms isolated from plants at BioConsortia.


the biocontrol market was valued at USD1 bn, having grown just ten-fold over the 20 years prior. Biocontrol products are naturally sourced crop protection products, such as Serenade by Bayer CropScience and Clariva by Syngenta. Biostimulants, including biofertilizers, have historically made up a smaller portion of the biologicals market, although it has grown to over USD1 bn today. In 2016, the combined market valuation of biocontrol and biostimulant products was around USD5 bn.

There are a variety of drivers for the growth in interest and investment into biological agricultural products. Perhaps the most widely touted is rapid global population growth and the need for innovative crop solutions to feed these new mouths. Simultaneous pesticide residue concerns and regulations limiting fertilizer use make increasing crop productivity to this level a challenge, so researchers and manufacturers are looking to biologicals as an answer. Research into the biologicals space has gained a lot from earlier and similar developments in pharma and industrial biotech, both in terms of scientific understanding and the accompanying technology advancements. We now have an improved understanding of the microbiomes importance as well as cheaper and enhanced DNA sequencing and microbiome analysis tools. When comparing development costs and time to market, biopesticides sit around USD25 mn over 4-6 years, biostimulants and biofertilizers at USD10 mn over 4-6 years, GM traits at around USD130 mn over 12-14 years, and synthetics at more than USD200 mn over 8-10 years. These factors have pushed many companies large and small to turn their attention to biologicals as potential solutions in agriculture and this industry backing, combined with sound data, has greatly enhanced the credibility of natural plant health products.

Past and present investmentOver the last decade, big players in the crop protection market have made investments into microbials through acquisitions and expanded research

of 22.25 mn new shares in Agrinos will support execution of Agrinos’ business plan to develop biological crop input products. The collaboration agreements centre on Agrinos High Yield Technology products and development of new solutions for next generation fertilizer products that incorporate biological technologies. In addition, Bayer and Gingko Bioworks have announced the formation of a new company that will utilize synthetic biology to improve plant beneficial microbes. The main target of the USD100 mn investment is to design microbes that are enhanced to deliver nitrogen to plants.

Focusing on fertilizersOpportunities remain for fertilizer companies in the biostimulant market. As detailed by the European Biostimulants Industry Council, two major areas of agricultural biostimulant effect are through “facilitating nutrient assimilation, translocation and use” and “enhancing soil fertilizer, particularly by fostering the development of complementary soil microorganisms.” Nitrogen fertilization is an obvious focal area for this research - biological nitrogen fixation naturally provides nitrogen to plants, reducing the need for high fertilizer loads. Phosphorous fertilization is another promising area - as in the nitrogen cycle, microbial activity is responsible for a significant portion of available phosphorous found in the soil.

The difficulty in microbial formulation remains, however. Microbes are sensitive to harsh chemistries either on the seed, in a package, or applied simultaneously. More work needs to be done to remedy or overcome this hurdle, especially when considering mixing live organisms in a fertilizer tank. Companies are experimenting with workarounds, such as separate packaging or tanks but realistically a microbial solution will need to be hardy enough to withstand exposure to chemistry in standard agronomic conditions.

BioConsortia has a unique microbial discovery process, Advanced Microbial Selection (AMS), that uses the plant to naturally select the microbes it

programmes. Bayer CropScience bought AgraQuest Inc. for almost USD500 mn in 2012, followed with two more purchases of Biagro and Prophyta in subsequent years. As mentioned earlier, they have found success with the AgraQuest originated biofungicide Serenade. Monsanto formed a USD300 mn partnership with Novozymes, titled the BioAg Alliance, to focus on the commercialization of microbial products. Monsanto also formed a partnership with Synthetic Genomics and acquired assets in Agradis, two biotechnology companies focused on microorganisms. Syngenta bought Pasteuria Bioscience for almost USD100 mn and seed hybrid firm Devgen for EUR403 mn. BASF acquired Becker Underwood for

needs to overcome specific stresses. Throughout the AMS process, standard seed treatment packages and fertilizer regimes are used, so that the output of the iterative selection rounds is a team of microbes that are not only able to compatibly colonize and benefit a plant, but are able to do so a succeed in the presence of harsh chemistries. Thereby, providing the opportunity for superior plant growth from a differentiated fertilizer products containing NPK and a consortium of beneficial microbes.

The number one selling seed treatment in the US contains a

just over USD1 bn, FMC built a strategic alliance with Chr. Hansen and acquired a division of RTI International, and DuPont initiated a joint venture with Danisco, while Pioneer acquired Taxon Biosciences.

As illustrated through the slower growth of the biostimulants market, fertilizer companies were later to the game. That is changing, however. At the end of 2014, Koch acquired Mendel Biotechnology, focused on biostimulant solutions. It later also took a minority equity position in Pathway BioLogic, a microbial-focused plant health company. Last year, EuroChem Group and Agrinos signed an equity investment and two collaboration agreements. According to the Agrinos press release, EuroChem’s acquisition

microbe: PonchoVotivo from Bayer CropScience. Monsanto spends USD50 mn on microbial R&D field testing per year and is adding microbial seed treatment to all new 2017 corn hybrids. EuroChem introduced a line of biostimulants, CRENEL, with yield increases over a fertilizer control of 6-11% across a range of crops. Impact and efficacy of plant beneficial microorganisms has been proven, now’s the time to put them all to work in the fertilizer industry.

Note: Serenade™ is trademarked by Bayer, CropScience and Clariva™ is trademarked by Syngenta

Figure 4. BioConsortia's Advanced Microbial Selection process is based on the ideas of Directed Selection and involves iterative growth rounds that rapidly evolve the microbiome associated with plants able to overcome applied stresses.

Figure 7. Seedlings

Figure 8. Corn plants growing in growth chamber treated with different microbial consortia products.

Figure 5. New microbial products provide innovative solutions to environmental, logistical, and regulatory challenges faced by the agricultural industry.

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Turkey's GSD boosts shipping exposure on global economy recoveryBetting that a strong global economic recovery will benefit the shipping industry, Turkey’s GSD Holding plans to invest further in the acquisition of new vessels.

The company’s five dry bulk vessels are ‘fully employed,’ with daily rental income reaching USD11,000 per ship, Chief Executive Officer Akgun Turer has said. A sixth is due to be delivered in May from Japan’s Imabari Shipyard.

Turer said GSD is looking into entering the tanker market. Tankers generally carry crude oil, petroleum products or petrochemicals, while dry bulk vessels carry items such as iron ore, coal, cement, finished steel,

Belships ASA report 4th quarter 2017Belships operating income in 4th quarter 2017 was USD7.6 mn (Q3: USD6.7 mn), while EBITDA amounted to USD3.7 mn (USD3.5 mn). The Group’s operating result amounted to USD4.6 mn (USD2.9 mn), while net result for 4th quarter 2017 was USD3.2 mn (USD1.7 mn). The figures for fourth quarter includes impairment reversal of USD2.0 mn. Net result for 2017 was USD6.4 mn (USD-14.6 mn). The negative result in 2016 is

fertilizer and grains. Having both types “would provide a balance” in terms of operational profitability, Turer said.

GSD’s game plan is dependent on stronger economy worldwide, as the International Monetary Fund predicts global growth this year of 3.9%, up from an estimated 3.7% in 2017. In a recent report, S&P Global Ratings said demand in key segments of global shipping, including dry bulk and tankers, would outstrip supply for the first time in several years in 2018.

In August 2015, GSD announced the sale of 76% of Turkish lender Tekstilbank for about USD250 mn to the Industrial & Commercial Bank of China. GSD still owns an investment bank and a factoring firm. Half of the proceeds from Tekstilbank was used in

explained by impairment of the fleet of USD13.8 mn. Impairment reversal in 2017 amounted to USD2.5 mn.

Chinese government to boost fertilizer reservesThe Chinese government will more than double the country's national fertilizer reserve to ensure sufficient stocks for the upcoming spring season.

Gas supply shortages this winter have led to numerous gas-based urea plant

the acquisition of a 15% stake in energy company Silopi Elektrik.

Canada fertilizer shipments survey - second quarter 2017/18Shipments of ammonium sulphate to the Prairies (provinces of Alberta, Saskatchewan, and Manitoba) increased by 42 000 t (+13.0%) to 365 000 t in the second quarter of the 2017/18 fertilizer year compared with the same quarter a year earlier.

Canadian ammonia production reached 2 169 000 t in the second quarter of the 2017/18 fertilizer year, down 11.0% compared with the same period a year earlier.

closures, prompting the China Nitrogen Fertilizer Industry Association to warn that the domestic market would face a shortage if the situation was not addressed.

The current lack of urea on offer from China resulted in atypical trades taking place in the Asia Pacific region in mid-January, as traders looked for alternative supply sources. South

Korean chemical producer Namhae bought 30,000t of Omani granular urea for shipment - a larger than

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POTASH Price type Units Timing Low High Latest Change* Date

Dry potash Vancouver - China 60-65kt outright USD/t prompt 17 20 18.5 -1 15-Feb-18

Dry potash Red Sea - WC India 25-30kt outright USD/t prompt 18 21 19.5 0 15-Feb-18

Dry potash Baltic Sea - Brazil 30-40kt outright USD/t prompt 19 22 20.5 0 15-Feb-18

Dry potash Baltic Sea - SE Asia 25-30kt outright USD/t prompt 49 57 53 0 15-Feb-18

Dry potash Vancouver - SE Asia 25-30kt outright USD/t prompt 34 36 35 -2 15-Feb-18

Dry potash Baltic Sea - China 60-65kt outright USD/t prompt 35 40 37.5 1.5 15-Feb-18

Dry potash Baltic Sea - US Nola 50-55kt outright USD/t prompt 17 19 18 0 15-Feb-18

Dry potash Vancouver - Brazil 30-35kt outright USD/t prompt 29 31 30 -3 15-Feb-18

Dry potash Hamburg - Brazil 30-35kt outright USD/t prompt 16 21 18.5 0 15-Feb-18*from previous week

NPK Price type Units Timing Low High Latest Change* Date

Baltic-China 50-60kt outright USD/t prompt 35 37 36 -2 15-Feb-18

Morocco-WC Africa 15-20kt outright USD/t prompt 28 30 29 -1.5 15-Feb-18

Norway-Brazil 20-25kt outright USD/t prompt 21 23 22 -1 15-Feb-18*from previous week

SULPHUR Units Low High Date

50-60kt – Vancouver-China US$/t 18 21 19-Feb-18

Below all 30-35kt 19-Feb-18

Mid East – EC India US$/t 15 17 19-Feb-18

Mid east – North/River China US$/t 21 23 19-Feb-18

Mid East – South China US$/t 18 20 19-Feb-18

Mid East – Brazil US$/t 18 20 19-Feb-18

Mid East – North Africa US$/t 22 24 19-Feb-18

Black Sea – North Africa US$/t 21 23 19-Feb-18

Black Sea – Brazil US$/t 21 23 19-Feb-18

Baltic – Brazil US$/t 28 30 19-Feb-18

Baltic – North Africa US$/t 24 26 19-Feb-18

35-40kt – US Gulf - Brazil US$/t 18 20 19-Feb-18

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average cargo. Meanwhile, a trader is shipping 10,000t of Kuwaiti urea to the Philippines, and traders have sold 10,000-15,000t of Indonesian urea to Taiwan.

The government plans to add 5.5mn t via a tender, pushing the total off-season reserve up to around 10mn t. The decision was announced in a recent circular. The government also said it aims to guarantee stable prices following a period of domestic price escalation.

The reserve will be increased in two tranches of 3mn t and 2.5mn t - the first is required to be purchased over February-April and the tender closes on 24 January. The circular stipulates that at least 40% of fertilizer should be urea - and could increase to as much as 70%, suppliers have projected.

The off-season fertilizer reserve was first introduced in 2005 and reached a peak of 18mn t in 2013. But the government cut the reserve drastically in 2016, to just over 5mn t, amid rampant overcapacity and oversupply.

Tight fertilizer supply has already led to notable price increases since the last spring application season. The Chinese government will incentivise larger fertilizer producers and distributors to participate in the fertilizer stock building programme, with the ultimate hope of sending prices for farmers lower come the spring season. But some market participants question whether domestic production can ramp up sufficiently to supply the reserve, considering constraints such as the environmental clamp down and gas shortages. Any shortfall could then be met by rising imports.

Grodno-Azot set to boost export via Klaipeda portThe state-run railway company Lietuvos Gelezinkeliai (Lithuanian Railways, LG) and Grodno-Azot signed a three-year cooperation contract. Under the fixed conditions, the

Al Mawali occupied various positions at Petroleum Development Oman (PDO), Occidental Oman, Sohar Aluminum and Oman Oil Company. He had held board and sub-committee roles in Oman Rail, Majan Ferrochrome, Oman Gas Company, Vale Oman, Oman India Fertilizer Company and Oman Shipping.

Al Mawali holds Bachelor degree in Mechanical Engineering from the Imperial College London.

“I am excited to take on the role of CEO at Oman Drydock Company and work with the new management team that will lead the ship repair services in Oman into the future,” Al Mawali said.

“The prospects for ODC are bright and I look forward to use the collective experience of the ODC team to deliver excellence in marketing, projects execution, financial sustainability and in general any focus area that make our customers more satisfied,” he added.

Brazil’s Rumo to open Mato Grosso fertilizer rail terminal in AprilBrazilian railway operator Rumo will open a new 7.5 mn t per year fertilizer terminal in Mato Grosso state in April, as producers in the remote hinterland state enter the peak negotiation period for securing inputs for the next grain crop that starts planting in September.

The rail terminal, which will get BRL200 mn (USD63.3 mn) in investments by the time it is finished, is part of a joint venture between Rumo and local fertilizer distributor JM-Link. It is the first of its kind in Brazil’s top grain producing state and will help producers lower their freight costs for operations in Mato Grosso and other centre-west grain states.

Until now, nearly all fertilizer shipments into the country’s leading

Belarusian company will raise exports via the Klaipeda port by 15-20% every year, LG said.

Vidmantas Dambrauskas, CEO of Biriu Kroviniu Terminalas (Bulk Cargo Terminal), one of the three Lithuanian companies that handle Belarusian freight, refused to forecast whether the contract could raise exports via Klaipeda.

"The vague Ukrainian market, the unclear domestic consumption in Belarus. Over the past year, exports of Grodno-Azot production and consequently transit via the Lithuanian territory has been declining because the Russia-Ukraine war has opened up the Ukrainian market, which became very strong and is taking over a large share of the Grodno-Azot production," Dambrauskas told BNS. In his words, Klasco and Bega handle Grodno-Azot fertilizer, in addition to Biriu Kroviniu Terminalas.

According to information provided by LG, Grodno-Azot exports around 500 mn t of fertilizers via Klaipeda every year.

soybean and corn producing region were carried in the back-haul routes of grain trucks circulating between Mato Grosso and the southern ports of Santos and Paranagua, where most of Brazil’s crop nutrients come in by sea.

As the world’s largest soybean exporter and second largest exporter of corn, Brazil is also one of the leading importers of fertilizer, importing three-quarters of its annual needs, according to Brazil’s fertilizer blenders association AMA.

Rumo, which is a unit of Brazilian energy and logistics conglomerate Cosan, operates four rail concessions with more than 12,000 km of railway and said it plans to start shipping

Grodno-Azot says it produced EUR574.5 mn worth of production in 2017, up by 113% year-on-year. The company is operated by the Belarusian state-run oil and chemistry concern Belneftechim.

Oman Drydock appoints new chief executive officerOman Drydock Company (ODC) announced the appointment of Said bin Homoud Al Mawali as new chief executive officer.

Prior to his role at ODC, Al Mawali was providing leadership and governance for the Executive Management of Oman Tank Terminal Company (OTTCO) since February 2014. With the 21 years experience in construction, asset management, plant operations, supply chain, cost control, business development, mergers and acquisition, Al Mawali is leading the corporate strategies and overall policies and procedures to ensure that all key people play constructive role in the development.

fertilizer from the Port of Santos in Sao Paulo state to Mato Grosso’s main grain hub in Rondonopolis in April.

Rumo said the terminal will have the capacity to load 12,000 t per day of fertilizer in trucks that will then distribute it to farms in the region. Arriving trains will be able to unload eight cars at once into underground automated elevators.

Mato Grosso is the country’s leading soybean and corn producing state and thus consumes 20%, or 6.7 mn t, of Brazil’s 34 mn t in annual sales of crop nutrients, according to Anda, the fertilizer industry association.

NITROGEN Units High Low Date

Middle East - US Gulf 45kt US$/t 22 23 19-Feb-18

Middle East - Thailand 30kt US$/t 16 17 19-Feb-18

Middle East - Brazil 35kt US$/t 17 18 19-Feb-18

Baltic - Brazil 30kt US$/t 21 22 19-Feb-18

China - India 60kt US$/t 14 15 19-Feb-18

Algeria - Brazil 30kt US$/t 16 17 19-Feb-18

Algeria - French bay 12kt US$/t 15 16 19-Feb-18

Baltic - EC Mexico 30kt US$/t 21 23 19-Feb-18

Baltic - WC Mexico 25kt US$/t 36 37 19-Feb-18

PHOSPHATES Units High Low Date

Morocco – Brazil 30kt US$/t 16 14 15-Feb-18

Tampa – Brazil 30kt US$/t 27 25 15-Feb-18

Baltic – Brazil 30kt US$/t 27 25 15-Feb-18

KSA – EC India 30kt US$/t 18 16 15-Feb-18

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People&eventsGlobal executive joins top management in TopsoeAmy Hebert becomes new member of the executive management at Haldor Topsoe A/S to further strengthen and develop the company’s position.

Amy Hebert joins Haldor Topsoe A/S as Deputy CEO and Executive Vice President (EVP), Chemicals. Ms. Hebert comes with broad experience having had top positions at global industry players such as Albemarle Corporation and Celanese Corporation. She also has vast experience in various board member positions of both associations and corporations within the chemical industry. Ms. Hebert holds a B.S. in Chemical Engineering from the Georgia Institute of Technology, Atlanta.

“I am pleased to welcome Amy Hebert to Topsoe. She is an international leader with a solid track record for business growth and a deep knowledge of the industries we operate in. Already today, Topsoe is market leader within many of our business areas, but we also have a clear ambition to expand our position and grow even more. I believe Amy is the right person to head that journey together with her talented and dedicated organization,” says Bjerne Clausen, CEO, Haldor Topsoe A/S.

Ms. Hebert looks forward to joining Topsoe, a company well-known to her:

“I have known Topsoe throughout my career, both as a competitor and as a supplier. Topsoe is a company well-known for excellent quality and high credibility. I am very pleased to join and very much look forward to embarking on an exciting growth journey together with my management colleagues and my team,” says Amy Hebert, Deputy CEO & EVP Chemicals, Haldor Topsoe A/S.

With today’s announcement, the executive management consists of: CEO Bjerne S. Clausen, Deputy CEO & EVP Chemicals Amy Hebert, CFO Peter Rønnest Andersen, EVP Refinery Morten Schaldemose, and EVP Sustainables Kim G. Knudsen.

Per Bakkerud, former EVP Chemicals, takes up a position as board member of global strategic partners to Topsoe in Pakistan, Germany and Bangladesh.

Frauke Riva is new Head of Corporate Communications at K&SFrauke Riva has been appointed the new Head of Corporate Communications at K+S Aktiengesellschaft.

After holding managerial positions at Stadtwerke Leipzig and STEAG GmbH, Frauke Riva was most recently Head of

Harebottle, who stepped down as CEO of Aim-listed Gemfields in July last year, will join Kropz on March 28, once his contract with the diamond miner has ended.

“I am excited by the fact that I will soon be joining Kropz and embarking on a new chapter in the plant nutrient business, ably supported by a management team with technical and marketing experience in the phosphate sector. In my lifetime, we have seen exponential population growth coupled with a commensurate decrease in available arable land, which makes the role of increasing crop yields incredibly relevant both today and in the future,” he said in a statement.

Harebottle has over 17 years of experience in the mining sector. Under his leadership, Gemfields grew to become a leading supplier of responsibly sourced coloured gemstones with assets in Zambia, Mozambique, Ethiopia and Madagascar.

Prior to his tenure at Gemfields, Harebottle was CEO of the world’s largest tanzanite producer, Tanzanite One, from April 2005 till February 2008.

The company achieved a market capitalisation of USD400-million under Harebottle’s leadership and was widely

Communications for thyssenkrupp Industrial Solutions AG. In her new position, Frauke Riva will be reporting to Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft.

Public Affairs remains part of Corporate Communications and will, in future, be the responsibility of Oliver Morgenthal (50), the former Head of Corporate Communications. As this area is becoming increasingly important for K+S, Oliver Morgenthal will use his many years of experience and excellent contacts to further develop this field. In his new position, Oliver Morgenthal will report to Frauke Riva.

Lindsay Corp appoints Consuelo E. Madere to boardLindsay Corporation has announced that Consuelo E. Madere has been appointed to its board of directors. Madere is the President of Proven Leader Advisory, LLC, a management consulting and executive coaching firm she founded in 2014. She is a former Executive Officer of Monsanto, a leading global provider of innovative, sustainable agricultural solutions. She has over 30 years of domestic and global experience at Monsanto, spanning manufacturing, strategy, technology, business development, profit & loss responsibility and general management. She served in a number of key leadership positions with significant P&L responsibility across Europe, Middle East and Africa as well as Asia and key markets within the US business. She retired from Monsanto Company in 2013 as Vice President of the company’s Global Vegetables and Asia commercial businesses and was a member of the CEO’s executive leadership team.

Madere serves as a Director of Nutrien, the world’s largest fertilizer company which recently was formed by the merger of Potash Corp of Saskatchewan and Agrium Inc. She also serves as a director of S&W Seed Company, a leading provider of alfalfa, sorghum, sunflower and stevia seeds. From 2014 to January 2018 she served as a director at PotashCorp and was a member of the Audit Committee and the Safety, Health and Environment Committee. Madere serves on the Dean’s Advisory Council of the Louisiana State University Honors College, and is a member of the Latin Corporate Directors Association as well as the Hispanic Association on Corporate Responsibility. Her awards include the Vista Magazine Corporate Achievement Award for ‘Hispanic Women in Business.’ Her professional degrees include an MBA from the University of Iowa and a Bachelor of Science degree in Chemical Engineering from Louisiana State University.

Ian Harebottle appointed Kropz CEOSouth Africa-based plant nutrient company and miner of fertilizer feed materials Kropz has appointed Ian Harebottle as group CEO.

recognised as being one of the highest-dividend payers in the mining sector on the London Stock Exchange (LSE) during that time.

He is recognised for his skills in facilitating high-level operational initiatives, including infrastructure design, process re-engineering, turnaround management and reorganisation.

Steps are under way for the formation of Kropz PLC, the intended holding company for all the various assets in the Kropz group. A range of funding options, including a flotation on the LSE in 2018, are also being explored.

“I have been lucky enough to have worked with Harebottle for many of his 17 years in mining and have experienced first-hand his positive, professional and thorough approach to business leadership. Ian has built an enviable reputation as being a positive ‘disruptor’ and one to challenge traditional practices. We believe Kropz is ideally suited to his skillset to bring about a new player in the African plant nutrient sector,” commented Kropz founder Mike Nunn.

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people & events


Nutrient requirementsin sub-Saharan Africa

In sub-Saharan Africa (SSA) soil fertility regeneration traditionally depends on natural fallows which are allowed to regrow after a limited number of cropping cycles in slash-and-burn systems. Such systems are sustainable below a certain population density. Once population grows, the length of such fallow periods decreases below the minimum required to regenerate soil fertility conditions. Higher population densities also result in land fragmentation. Over time, if farmers continue to grow crops without replenishing the nutrients, soil nutrient stocks decline resulting in ever-decreasing crop yields. Note that some nitrogen (N) can be added to the soil through biological N fixation after integration of legumes in cropping systems. In some cases, limited amounts of nutrients can be added to the soil stocks via deposition processes but these are mostly limited and certainly insufficient to maintain crop productivity.

In most regions of the world, nutrients are replenished by the use of external nutrient inputs, mostly fertilizers, although organic cropping systems allow the use of organic inputs and rock phosphates as sources of nutrients. No region in the world has

As such, nutrient mining induces a series of other degradation processes, including soil erosion (or loss of the fertile topsoil caused by insufficient soil cover), soil acidification (since removal of crops without returning crop residues is an acidifying process), or reduced soil aggregation (caused by reduced levels of soil C that form and stabilize soil aggregates). Delaying measures to counteract these processes results in ever-increasing soil degradation, that can result in non-responsive soils (figure 1a), or soils that do not longer respond to fertilizer, or complete topsoil removal (figure 1b).

What needs to be done to reverse this trend?The need for sustainable intensification of agriculture in SSA has gained support, in part because

been able to increase productivity without the use of fertilizers. In SSA, the limited use of fertilizer (about 10 kg/ha on average) is one of the main factors for limiting agricultural productivity growth. While the commercial sector operating in SSA uses fertilizers in appropriate amounts, smallholder farmers have mostly been unable to do so. Low yields result in low income and thus sustained rural poverty.

What can happen if current trends continue?Producing crops without the supply of sufficient nutrients is often referred to as ‘nutrient mining’ since in such situations, crops mine soil nutrient stocks. If farmers continue to mine nutrients from the soil, these will gradually decline to levels that are no longer sufficient to maintain crop productivity. It is important to note that most of the time, not all fields are devoid of nutrient additions since

of the growing recognition that farm productivity is a major entry point to break the vicious cycle underlying rural poverty. Sustainable intensification aims at increasing crop productivity while ensuring that such increases are stable over time such and do not have negative impact on the environment but rather enhance soil fertility conditions.

Given the low levels of fertilizer use and poor soils in SSA, fertilizer use must increase if the region is to reverse the current trends of low crop productivity and land degradation. The fertilizer summit in Abuja in 2006

smallholder farming households have access to limited amounts of organic resources such as farmyard manure, compost and crop residues. These are commonly recycled but often only on a small part of the farm due to their limited availability.

To maintain soil fertility status, it is also important that organic inputs such as crop residues, compost, or farmyard manure, are added to the soil to ensure that soil carbon (C) levels remain appropriate. Soil C governs a number of functions that are critical to crop growth other than the supply of nutrients, including maintenance of a good soil structure, provision of energy to soil organisms, regulation of cation exchange and retention, and co-regulation of soil water dynamics. Crops with low yields also produce low amounts of crop residues thus limiting the potential to add organic inputs, either as crop residues or as manure. Nutrient mining not only results in reduced availability of nutrients over time but also reduces the potential to recycle organic inputs.

committed to raise fertilizer use in SSA from 8 kg to 50 kg nutrients per ha by improving the marketing, policy and socio-economic environment to increase fertilizer availability at prices affordable to smallholder farmers. Looking at FAO statistics for southern Africa, there appears to be a positive trend between maize yields and fertilizer use for Zambia and Malawi – where fertilizer use has increased over time – while for Mozambique, statistics show little to no change over the past 20 years (figure 2). Of course, not all fertilizers can be assumed to be applied to maize but some direct causal relationship is highly likely.

byDrBernardVanlauwe,International Institute of Tropical Agriculture (IITA), Kenya

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Low yields result in low income and thus sustained rural poverty

Figure 1. Soil degradation processes can result in non-responsive soils (a), or soils on which crops do not respond to fertilizer (the photograph is taken on a sandy soil in Zimbabwe), or complete topsoil removal (b), as observed in the hillsides outside Bukavu, East DR Congo.

+ NP fertilizer+ Manure

+ NP fertilizer

Credit: Shamie Zingore

Sustainable intensification enhances soil fertility conditions


Since fertilizer is expensive in SSA, it needs to be used well. This will only happen if a sufficient supply of nutrients is matched with a similar crop demand for those nutrients. After all, a good supply combined with poor demand will result in nutrient losses to the environment while a large demand combined with a poor supply will result in low yields, as is currently the case in most of smallholder agriculture. In more technical terms, one often refers to as maximizing the agronomic efficiency of applied nutrients, defined as the extra crop yield obtained per unit of nutrient applied.

To achieve this goal, it is important (i) to manage the applied fertilizer well, or to ensure that the source type of fertilizer is applied at the right time in the right place at the right rates, (ii) to co-apply fertilizer with organic inputs such as crop residues, compost, or farmyard manure, (iii) to use good and adapted varieties, and (iv) to apply good agronomic practices in terms of planting time, land preparation, spacing, and weeding, amongst other practices (figure 3). Sometimes the combination of these practices is referred to as Integrated Soil Fertility Management.

Using mineral fertilizers will actually help a farmer produce more leftover crop residue and biomass, which can be used as organic fertilizer.

3. Organic farming relies on mineral inputs too. We may not all have the whole picture on exactly what ‘organic’ farming means. Take the example of phosphorus. This element has no biological equivalent, unlike nitrogen, which can be fixed to soil biologically by leguminous plants like soybean. Plants need phosphorus to grow, so organic farmers will use naturally occurring rock phosphate, which is chemically almost identical to

Which sources of nutrients are appropriate for African smallholder farmers?Nowadays, there is a debate on whether smallholder farmers should apply fertilizer or rather use organic production systems, where fertilizer use is not allowed. Despite passionate support on both sides, no consensus has been reached. This is because it is in fact, a false debate. We shouldn’t be pitting these approaches against each other; we need to embrace both in order to meet the colossal demand for food the continent’s growing population requires. Instead, we should be questioning: how can smallholder farmers get access to both these inputs and use them in the most profitable ways? This is why:

1. Organic and mineral fertilizers have different compositions and functions, and farmers need both. While mineral fertilizers provide

some man-made phosphorus fertilizers such as triple super phosphate (TSP). Even legumes that naturally fix nitrogen to the soil and are therefore hailed as a ‘green’ technology can not carry out this natural function without being fed with phosphorus.

So if this debate has been exposed as false, we need to focus instead of

high amounts of nutrients that plants need in order to grow strong, organic resources contain organic carbon, which is an essential ingredient of healthy soil. Neither mineral nor organic inputs can provide both of these properties on their own. Moreover, applying these in combination often creates added benefits. For instance, in drought situations, applying crop residues in combination with fertilizer can alleviate moisture stress and enable crops to take up the nutrients in found in mineral fertilizers more easily.

2. Farmers can not produce enough organic matter without mineral fertilizer. As mentioned earlier, traditionally, fields would be left fallow to improve soil fertility, but now there is less opportunity to do this, and less organic matter around to apply to soils to help them regenerate.

how we can ensure that smallholder farmers have: i) access to the right type of fertilizer, ii) the knowledge on how to use them in the most efficient and profitable ways, without leaving unacceptable environmental footprints, and iii) the knowledge on how best to integrate organic resources in combination with fertilizer.

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Fertilizer use (kg/ha)

Fertilizer use (kg/ha)TimeTime

Mozambique Malawi Zambia

Maize yield (ton/ha) Maize yield (ton/ha)

Figure 2. Changes in fertilizer use (a) and maize yield between 1995 and 2014 (b) and relationship between both (c) for Mozambique, Malawi, and Zambia. Source: FAO-Stat, 2017.

Figure 3. Essential components to ensure that applied fertilizer is resulting in increased yields while being used most efficiently for economic and environmental reasons: (a) use fertilizer well using the ‘4R’ principles, (b) apply fertilizer in combination with organic inputs, (c) use good varieties, and (d) apply good agronomic practices. While (a) and (b) facilitate the appropriate supply of nutrients, (c) and (d) focus on the demand for those nutrients. The data in (b) show the long term impact of fertilizer, crop residues, and their combination on millet yield in Niger. The data in (c) show the impact of an improved maize variety on crop response to fertilizer and the related value-cost ratio (on top of the bars). The data in (d) show the impact of low, medium, and good management on maize yield and the response to fertilizer.

Local

Improved

Management

Mai

ze g

rain

yie

ld (k

g/ha

)

(a) Manage fertilizer well <Supply>

(c) Use good varieties <Demand>

Right Agronomy

(b) Combine fertilizer and organic inputs <Supply>

(d) Apply good agronomic practices <Demand>

There is less opportunity to leave fields fallow these days

We need to ensure the smallholder farmer has the right resources


Copper sulphate:a critical micronutrient

The impact of micronutrients on plant development is well researched. Despite the rather small quantities, micronutrients play a complex role in crop development and health. Micronutrient sourcing is becoming increasingly critical as low quality products continue to enter the market. The Andes Mountains region is renowned for its rich deposits of minerals. They have a long tradition of metallurgy and mining allowing Chile and Peru to become one of the most important micronutrient sources in the world. Regardless of the source, product awareness of critical factors including bulk density, SGN, hardness, dust levels and manufacturing processes will help protect your investment.

Copper: the element For more than 10,000 years, copper has been one of the most useful metals available to man and was one of the first metals worked. Copper has withstood the test of time, enjoying a wide range of uses over the centuries from ointments to dyes to preserving timber to molluscicides and power transmission. Copper is a major industrial metal, ranking only behind iron and aluminum in terms of consumption. The vast majority of copper is used in

Copper: agronomyCopper (Cu+2) is a micronutrient or trace element, which by definition, is an essential element found in less than 0.01% of the plant dry matter. Copper sulphate is an inorganic compound that combines sulphur with copper. Copper sulphate pentahydrate (CuSO4:5H20) is the most commonly encountered salt and is the preferred source for fertilizer.

SoilBecause micronutrients are located within the soil, this single component plays a crucial role in bioavailability. The impact of cation exchange, organic matter or solid minerals determines the plant uptake ability. Copper is taken up as Cu2+ (cupric ion) by plants primarily through diffusion. Therefore, cation exchange is a significant factor in copper supplementation.

Role: Copper is an essential redox, active transition metal, cofactor responsible for activating enzymes and catalyzing reactions necessary for plant growth. It is also closely linked to vitamin A production and protein synthesis. Plants also rely on copper for carbohydrate and chlorophyll production as well as lignin synthesis and nitrogen processes. Many crops respond positively to proper copper supplementation, but grains-wheat,

electrical equipment (conducts heat and electricity well) construction (roofing and plumbing) and industrial machinery (heat exchangers).

The major copper-producing countries are Chile, Peru and China. Roughly 20 mining companies produce close to 60% of the copper worldwide. Copper metal does occur naturally, but by far the greatest source is in minerals such as chalcopyrite, chalcocite and bornite. Copper naturally associates with sulphur in ore deposits, but the average grade of copper is below 0.6%. Liberating the copper requires several chemical, physical and electrochemical processes. Smelting,

barley and legumes are known high users of copper.

Organic Matter: Copper is more tightly bound to organic matter than other micronutrients which can reduce its bioavailability. Copper may also form chelates (Greek for ‘claw’) with soluble organic matter. Metallic chelates are complexes of metal ions bound to organic molecules (ligands). Positively charged metal ions, such as Cu+2, readily react with negatively charged hydroxide ions (OH-), making them unavailable to plants. Hydroxide ions are abundant in alkaline or neutral soils and soil-less media.

Synthetic chelates, most commonly manufactured with EDTA, and are an option in micronutrient management. These chelation compounds are more stable in compromised soil, thereby increasing the plant availability of the metal micronutrients due to the ligand (a molecule that binds to a central metal atom) coating of the metal ion protecting it from the surrounding hydroxide (OH-) ions. Like all micronutrients, copper is an essential cofactor and a toxic element in excess or deficiency.

Soil pH: Copper availability paradoxically decreases as pH increases primarily due to the decreased solubility. Soils that contain higher amounts of oxides and carbonates also tend to have low copper availability.

leaching and electrolysis processes are dictated by the parent ore mineral composition.

Copper use in agriculture was first documented in 1761 to inhibit seed-born fungi. By 1807, copper sulphate was standard treatment to control bunt of wheat. It was so effective at controlling bunted wheat, this disease now has limited economic impact. Arguably, the most important agriculture breakthrough for copper sulphate occurred in Bordeaux, France, in 1880 as a treatment for fungus diseases. The Bordeaux Mixture (copper sulphate and lime) is still the gold-standard fungicide in vineyards, orchards and gardens.

ToxicityConsistent with most micronutrients, copper has a narrow therapeutic range. Copper toxicity can also persist for an extended period due to its low mobility. Toxicity affects seed germination, root system development and plant vigor.

DeficiencyCopper deficiency symptoms vary by crop. Because copper is immobile, and it tends to bond to organic molecules like humic and fulvic acids, deficiency symptoms first appear in new growth tissue. Copper also interacts with Zn and Fe impacting uptake.

ApplicationSoil applications of copper sulphate before seeding is most common either by broadcast or banded with other fertilizers at a rate of 4 lbs of copper 25/acre. Efficiency is improved when combined with water soluble fertilizers Ideal physical properties for granular copper is a round, prilled granule with a screen analysis of 2-3mm and a bulk density of 50-65 lbs/cu ft. Hardness should able be above 6 lbs pressure and ideally have a low dust level. Foliar applications can also be an effective way to correct known copper deficiencies.

by Christian Schmalz, Marketing Director, UlexAndes-USA

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Deficiencies occur in high organic matter and sandy soils

Table 1. Top 10 copper producing countries.

2016 production (mn t)

Chile 5.5

Peru 2.3

China 1.74

United States 1.4

Australia 0.97

Dem. Republic of Congo 0.91

Zambia 0.74

Canada 0.72

Russia 0.71

Mexico 0.62

Table 2. Form/chemical formula

Form Chemical formula Cu %

Copper Chelate Na2Cu EDTA 13

Copper Sulfate (pentahydrate) CuSO4∙5H20 25

Cupric Ammonium phosphate Cu(NH4)PO4∙H2O 32

Copper Sulfate (monohydrate) CuSO4∙H20 35

Cupric Oxide CuO 75

Cuprous Oxide Cu2O 89

Table 3. Soil conditions limiting copper uptake

• Sandy, leachable soils

• Soils with a pH reading below 5.0 or above 6.5

• Weathered acidic soils-highlly leached, coarse soils

• Soil during drought, cold or wet growing conditions

• High-organic matter or muck soils


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