accessibility and affordability of urea fertilizer in the ... resources/2014_agrf... ·...
TRANSCRIPT
Accessibility and Affordability
of urea fertilizer in the heartland
of Africa
AGFR Side-event “Smallholders access to fertilizer”
Rutger Bonsel
Marketing Manager
Stamicarbon
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Urea: from Plant to Plant
Licensor Contractor Plant Owner Trader Farmer
As the market leader in urea fertilizer technology licensing, Stamicarbon has designed >50% of the world’s urea plants
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Africa is perfectly suited for wheat growth, but fertilizer consumption falls far behind world standards
Market potential in Africa’s heartland
Fertilizer Accessibility & Affordability are limiting Africa’s potential
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Accessibility? Key issues can only be dealt with by Ecosystem Thinking
Finance Distribution Knowledge
Bring together relevant parties in the chain, to remove inefficiency in the chain, creating win-win-win situations
Farmer Co-operatives
Micro-credit Institutions Non-governmental
Organizations
Agronomists & Research Centers
Private Sector: input suppliers Insurance providers
Trade & marketing organizations
Governmental Institutions
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Affordability? High port price create inaccessibility to large share of Africa
Structurally high urea prices already at Africa’s port entry
Source Stamicarbon analysis, based on WorldBank, Integer, CRU, IFA
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Affordability? High distribution costs cause inaccessibility to large share of Africa
Source Stamicarbon analysis, based on WorldBank, FAO, IFDC
High local distribution and logistical costs create a 40% surplus
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Affordable Fertilizer in the heartland of Africa Breaking the Status Quo
Urea production facilities are: • Focused on
economy of scale (up to 4000 mtpd),
• Part of larger petrochemical complex
Result: production focussed in Middle East and USA
Status Quo Key Problem
Urea fertilizer is unaffordable in heartland Africa:
• Port entry prices
• Local distribution
costs
Radically break with current status quo and move to Local Production, based on
• Small-scale
feedstock reserves
• Dedication to fertilizer production
Solution
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Local Production: Creating Affordable urea fertilizer
A small-scale, fully self-sufficient fertilizer
complex based on bankable best available technology and latest sustainability
standards
Natural gas / coal
Raw water Optional: Power
LP steam
Urea–based Fertilizer
The Solution
Anticipated cost reduction on national market by elimination of distribution and logistical costs: 40%
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Key Considerations for local production
Feedstock
• Raw materials: gas, conventional, coal-based, and shale gas
• Available and untapped resources in e.g. Uganda, Rwanda, Ethiopia, Mozambique, etc
Secondary Benefits
• Investing in industry means developing a local economy beyond agriculture
• One urea plant (in)directly offers employment to >2000 people
Sustainability
• Sustainable operation with minimal impact on local community
• Stamicarbon first to bring emissions below WorldBank standards
Significant lower urea prices result in increased farmers’ yield, propelling local economy and food security
Source: EIA, IHS
• Ecosystem Thinking is key to accessibility of fertilizers, and
• Local Production could be a solution to create affordable fertilizer, though still with many open questions…..
The only way to address the opportunity is to explore this together, to make fertilizer accessible and affordable for African farmers.
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Conclusion & Discussion
• Thank You
• Any questions, thoughts or ideas:
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[email protected] – www.stamicarbon.com
Mercator 3 6135 KW Sittard
(The Netherlands) Ph. +31 46 4237000 Fax +31 46 4237001
Sittard Room 3503, floor 35th,
Jingcheng Mansion, No.6 Xin Yuan Nan Road,
Chao Yang District 100004 Beijing
Ph. +86 10 84862886 Fax +86 10 84862836
[email protected] www.stamicarbon.cn
Beijing Naberezhnaya Tower, Block B
10, Presnenskaya Naberezhnaya, 8th floor, Office Maire Tecnimont
123317 Moscow Russian Federation Ph. +7 495 7306316 Fax +7 495 7306313
[email protected] www.stamicarbon.ru
Moscow
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