industry as a partner for sustainable development fertilizer

Fertilizer IndustryInternational Fertilizer Industry Association (IFA)

Developed through a multi-stakeholder processfacilitated by:

Accounting

Advertising

Aluminium

Automotive

Aviation

Chemicals

Coal

Construction

Consulting Engineering

Electricity

Fertilizer

Finance and Insurance

Food and Drink

Information andCommunications Technology

Iron and Steel

Oil and Gas

Railways

Refrigeration

Road Transport

Tourism

Waste Management

Water Management

For further information contact:

International Fertilizer IndustryAssociation (IFA)28 rue Marbeuf75008 ParisFrance

Tel: +33 1 53 93 05 00Fax: +33 1 53 93 05 45/47E-mail: [email protected] site: http://www.fertilizer.org

United Nations Environment ProgrammeDivision of Technology, Industry and Economics39-43 Quai André Citroën75739 Paris Cedex 15FranceTel: +33 1 44 37 14 50Fax: +33 1 44 37 14 74E-mail: [email protected] site: http://www.uneptie.org/wssd/

Fertilizer industry profile

• Achievements- The industry has made significant efforts to develop and adopt new technologies that have significantly reduced

emissions from fertilizer production.- The industry has been instrumental in getting distributor and adviser certification schemes off the ground in some

countries.- Leading fertilizer associations and research organisations are involved in research and training to improve the

efficient use of plant nutrients.

• Unfinished business- Internal knowledge and technology transfer will help all fertilizer production facilities come up to the levels set by

industry leaders.- The fertilizer industry’s safety record is among the best of the chemical-related sectors, but continual improvement

is an absolute imperative.- The industry’s community and stakeholder relations have developed significantly in recent years, but more can be

done globally.

• Future challenges- As commodity products, most fertilizers currently have little in-built technology to enhance the efficiency of nutrient

uptake.- More research is needed on removing naturally occurring impurities from fertilizer raw materials.- The fertilizer industry faces the challenge of more fully engaging its traders and retailers in efforts to address

sustainability issues.

Industry as a partner forsustainable development

1

Production Design by Beacon Creative+44 (0) 1825 768811Printed by The Beacon Press using their environmental print technology that is both water andalcohol free. No film processing chemicals were used and 90% of the cleaning solvent was recycled.

The electricity was generated from renewable resources and vegetable based inks were used.Registered to the environment management system ISO14001 (Certificate No. E.9586) and EMAS the EcoManagement and Audit Scheme (registration no. UK-S-00011), and the printer holds FSC Chain of Custodycertificate number SGS COC 0620. Over 85% of any waste associated with this product will be recycled.

This report is released by the International Fertilizer Industry Association (IFA) and the UnitedNations Environment Programme. Unless otherwise stated, all the interpretation and findings setforth in this publication are those of the International Fertilizer Industry Association (IFA).

The designations employed and the presentation of the material in this publication do not imply theexpression of any opinion whatsoever on the part of the International Fertilizer IndustryAssociation (IFA) or the United Nations Environment Programme concerning the legal status of anycountry, territory, city or area or of its authorities, or concerning delimitation of its frontiers orboundaries. The contents of this volume do not necessarily reflect the views or policies of theUnited Nations Environment Programme, nor does citing of trade names or commercial processesconstitute endorsement.

This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holders, provided acknowledgementof the source is made.The International Fertilizer Industry Association (IFA) and the United NationsEnvironment Programme would appreciate receiving a copy of any publication that uses this reportas a source.

First published in the United Kingdom in 2002.

Copyright © 2002 The International Fertilizer Industry Associationand United Nations Environment Programme

ISBN: 92-807-2183-6

Fertilizer Industry

Industry as a partner for sustainable development

A report prepared by:International Fertilizer Industry Association (IFA)28 rue Marbeuf75008 ParisFrance

Tel: +33 1 53 93 05 00Fax: +33 1 53 93 05 45/47E-mail: [email protected] site: http://www.fertilizer.org

DisclaimerIn a multi-stakeholder consultation facilitated by the United Nations Environment Programme, anumber of groups (including representatives from non-governmental organisations, labour unions,research institutes and national governments) provided comments on a preliminary draft of thisreport prepared by the International Fertilizer Industry Association (IFA).The report was thenrevised, benefiting from stakeholder perspectives and input. The views expressed in the reportremain those of the authors, and do not necessarily reflect the views of the United NationsEnvironment Programme or the individuals and organisations that participated in the consultation.

Contents 32 Fertilizer

5 Part 1: Introduction 5 Preface

7 Executive summary

9 Part 2: Putting the mineral fertilizer industry into the sustainable development context11 2.1 Introduction

19 Part 3: Meeting the challenges of sustainable development19 3.1 Social and economic dimensions (Agenda 21, Section I) 28 3.2 Conservation and management of resources (Agenda 21, Section II)

45 Part 4: Means of implementation (Agenda 21, Section IV)45 4.1 Transfer of environmentally sound technology, co-operation and

capacity-building (Agenda 21, Chapter 34)50 4.2 Science for sustainable development (Agenda 21, Chapter 35)51 4.3 Promoting education, public awareness and training (Agenda 21, Chapter 36)

53 Part 5: Future challenges and goals54 5.1 Policies for effective plant nutrition55 5.2 Key areas of industry progress58 5.3 Where does future progress need to be made?

60 Annexe 1: Abbreviations61 Annexe 2: Research institutes affiliated with the fertilizer industry63 Annexe 3: References

Contents

PrefaceThis document is not really complete andprobably could never be so. Understanding ofsustainable development evolves constantly. Somuch effort goes into addressing these issuesthat we could not possibly cover it all in sofew pages, and new projects are beinglaunched at least weekly. However, behind thisflurry of activity, there is a relentless marchforward.

The industry should be particularly proud ofits record on the production side. Efficiency isin some cases reaching theoretical limits. Socialissues have received increasing attention.

The fertilizer industry remains concernedabout the effects of its products even afterthey leave the factory gate, and it beganpromoting efficient and balanced use longbefore most industries were adopting life cycleproduct responsibility. In theory, as many astwo billion farmers could use fertilizers on anygiven day. Ensuring that they have the bestagronomic information, quality fertilizers andappropriate and efficient technology is adaunting task. However, under-use, over-use orunbalanced use all unleash negative impactsthat must be eliminated to achieve trulysustainable production of quality food.

Technology has a role to play, but capacity-building is probably the most important factor.Managing these key agricultural inputs on aglobal scale requires mobilisation of industry,international organisations, governments,scientists, educators and trainers, farmers,agricultural workers, non-governmentalorganisations (NGOs) and local communities,all working together.

Although the research to prepare this reportrevealed much progress, a number ofchallenges remain.

This report is the first attempt of its kind tolook at the contribution of the fertilizerindustry to sustainable development, and toconsider the challenges that face the industryas regards sustainability. Material from acrossthe globe was reviewed, and we are gratefulto the numerous organisations that providedinformation.

Invaluable stakeholder input was contributedby Mahmood Ahmad (Federation of PakistanChambers of Commerce & Industry), JingenCheng (Ministry of Agriculture, China), ArendHoogervorst (Eagle EnvironmentalConsulting), Bob Pagan (Cleaner ProductionGroup), Richard Perkins (WWF), RudyRabbinge (Wageningen University & ResearchCentre), Heino von Meyer (OECD) and BillVorley (IIED). Keith Isherwood and DiannaRienstra assisted in drafting and editing thereport. UNEP, of course, played the invaluablerole of facilitator and its support has beensubstantial.

Sincerely,L M MaeneDirector General,International Fertilizer Industry Associations (IFA)

4 Fertilizer Introduction 5

Part I: Introduction

Executive summary 76 Fertilizer

Imagine the world 50 years from now.Worldpopulation has stabilised.What will be themajor role of mineral fertilizers? What doesthe world fertilizer industry need to do tobecome sustainable in the long term after thatdate? In this context, sustainability can beviewed as having two parts.

How can the mineral fertilizer industry and itsproducts support the sustainable developmentgoals of the wider community?

1. By contributing to food security on a locallevel, thus contributing to povertyalleviation and human development.

2. By helping prevent and correct soildegradation to meet global environmentalobjectives such as combatingdesertification.

3. By ensuring that negative environmentalimpacts of fertilizer production and use areeliminated where possible and otherwiseminimised.

What measures need to be taken by theindustry to ensure that mineral fertilizers areproduced and used in ways which contributeto those objectives?

1. Development of improved products withgreater nutrient efficiency.

2. Processes which remove unwantedimpurities and, where possible, identificationof new uses which turn these wasteproducts into valuable resources.

3. Working to ensure that the entire fertilizervalue-chain, down to retailers, is involved incapacity-building to enable correct use offertilizers.

4. Ongoing training and capacity-building offarmers and their organisations;

5. Further development of stakeholderrelationships.

It is clear that the industry must developbetter, value-added products and services tohelp meet the major challenges posed bysustainability.The industry must establish apattern of minimal losses, maximum efficiencyand maximum recycling.Today is not too earlyto start imagining this future and the shifts thatneed to occur to realise this vision.

More research and product development arekey. Farmers must receive better training in theuse of fertilizers, but how? By whom?

This report seeks to put fertilizers in contexttoday, discuss ways that the fertilizer industryhas moved towards sustainability and, mostimportantly, highlight ways to move forwardtoward a vision of sustainability.

Executive summary

Putting the mineral fertilizer industry into the sustainable development context 98 Fertilizer

Part 2: Putting the mineral fertilizer industry into the sustainable development context

A brief overview

An FAO definition of sustainable agriculturaldevelopment is: ‘The management andconservation of the natural resource base,and the orientation of technological andinstitutional change, in such a manner as toensure the attainment of continuedsatisfaction of human needs for present andfuture generations. Such development...conserves land, water, plant and animalgenetic resources, is environmentally non-degrading, technically appropriate,economically viable and socially acceptable.’[Loftas, 1995]

Are mineral fertilizers necessary for thispurpose? Professor Vaclav Smil of theUniversity of Manitoba has made thecalculations and writes: ‘If we were to providetoday’s average per capita food supply withthe 1900 level of agricultural productivity, wecould feed only about 2.4 billion people,’ and‘Nitrogen fertilizers provide the proteinrequirements of 40% of the world’spopulation.’ [Smil, 1999, pp. 10-11] The sameauthor has written: ‘We know that even themost assiduous recycling of inorganic wastescombined with crop rotations, includingleguminous crops and green manures, cannotsupply more than 120-150 kg N/ha in highlyintensive traditional cropping. Suchagroecosystems can produce around 200 kgof protein per hectare and feed at least ten to11 people on largely vegetarian diets. Incontrast, today’s most productiveagroecosystems yield around 800 kg ofprotein per hectare in multicropped fieldsreceiving high applications of inorganicnitrogen.’ [Smil, 2001]

Evidently maximum use should be made ofmaterials such as organic manures beforemineral fertilizers are applied. Mineral

fertilizers are then needed to supply theremainder of the crop’s nutrient requirements,the main nutrients being nitrogen, phosphateand potash.

There is ample evidence that mineralfertilizers are in no way inferior to organicmanures as suppliers of nutrients, and insome ways they are superior. Some peoplebelieve that mineral fertilizers reduce soilorganic matter, whereas they can actuallyincrease it, due to the larger quantity of cropresidues. Organic manures and mineralfertilizers complement each other, particularlyunder certain tropical conditions.

Organic farming is another, separate issue.Work in the UK [Leake A, 1999] hasdemonstrated that organic farming giveswheat yields about 60% to 70% ofconventional systems.This can becompensated by subsidies and the pricepremium for such products.There is a goodmarket for such products where people canafford to pay the price, but on a global basis areduction in food production of much lessthan 30% to 40% would lead to starvation inthe poorer countries of the world.

The fertilizer industry is far from being amonopoly of monolithic companies fromdeveloped countries. Until the 1960s, itsdevelopment was indeed in the developedcountries of Europe, North America andJapan. However, in the 1970s and early-1980s, the construction of new nitrogenfertilizer plants shifted to the gas-richcountries of the Soviet Union, Caribbean andNear East and to some large consumingcountries such as China, India, Indonesia andPakistan.

During the same period there was a trendtowards the processing of phosphate rock in

Putting the mineral fertilizer industry into the sustainable development context 1110 Putting the mineral fertilizer industry into the sustainable development context

Mineral fertilizer use has increased dramaticallyin recent decades to meet the food needs of afast-growing population. About 2.2 billionpeople now depend directly or indirectly onfertilizer for their daily food. As a result, inmany developing countries, fertilizer supply isas politically sensitive as food supply itself[Park, 2001]. Fertilizer use is uneven: in someplaces it is overused, in others too little isapplied, and in still others they are optimallyused.These differences occur within and acrosscountries and even seemingly ‘optimal’ totalapplications may hide imbalances betweenindividual nutrients.

Discussions about mineral fertilizers andsustainable development must be based on aclear awareness of the differences betweendeveloped and developing countries.Developed countries are mature markets,where food security is assured andoverproduction not unheard of. Major soilfertility problems have been solved and

environmental concerns have become asimportant politically as food supply, if not moreso. Developing countries continue to face foodinsecurity and serious problems of soildegradation exacerbated by nutrient mining.

Agricultural conditions are also very different.Most developed countries lie in temperatezones where soils retain organic matter forlong periods, and many developing countriesare in the tropics where soil organic matterbreaks down as much as four times faster.

2.1.1 A review of the challengesThis report attempts to review therelationship between the mineral fertilizerindustry and sustainable development, outliningthe contributions that mineral fertilizers canmake and the challenges that must be met ifthe industry’s future is to be sustainable. Itpresents industry initiatives and responses, andoutlines major areas for future improvement.Although every attempt has been made to

2.1 Introduction

0

20

1920 1930 1940 1950 1960 1970 1980 1990 2000

40

60

80

120

140

100

160

1920 to 2000 (million tonnes nutrients)

Figure 1:World fertilizer consumption

Source IFA

countries with substantial natural resources ofthis material, especially in North Africa andthe United States, but also in the Near Eastand South and West Africa. Potash isproduced mainly in the few countries wherethe major ore deposits are located.

As a result of these trends phosphate andpotash production is concentrated in a fewcountries, nitrogen less so since the materialsrequired for its production, atmosphericnitrogen and energy, are universally available.

Over the past 40 years technologicalprogress has resulted in the practical size ofammonia and nitrogen plants increasing by afactor of five or more. Integrated phosphatemining and processing offer significanttechnical and economic advantages.Economies of scale have led to gradualelimination of small fertilizer plants, mergersand consolidation.

In western Europe a massive restructuring ofthe fertilizer industry and a large number ofmergers and acquisitions took place from1980 onwards. Since 1983, the number ofpeople employed in the western Europeanfertilizer industry has declined by more than80%.The United States fertilizer industry alsohas experienced a large number of mergersand acquisitions since the beginning of the1980s. In India, five companies account for48% of the ammonia capacity and 54% of theurea capacity. Several of the major fertilizerproducers are state-owned or farmers’co-operatives – the fertilizer industry is notone of large multinational corporations.

Basically the manufacturing processes aresimple.To produce nitrogen fertilizers theindustry fixes atmospheric nitrogen.Phosphate rock is treated with acids to makeit more soluble and hence more readilyavailable to plants. Potash needs little chemicalprocessing. However, the large scale of theplants has required considerable technicalinnovation, and the scale enables the mostadvanced technology to be incorporated. In

modern plants the use of energy is highlyefficient. Most atmospheric emissions havebeen reduced to acceptable levels. Otherlosses to the environment are minimal.The emission of carbon dioxide in ammoniaproduction is unavoidable, but can beminimised by optimising energy-use efficiency.As in other spheres of human activity, this isthe price to be paid for the benefits of large-scale food production which are currentlyconsidered to outweigh the cost.

The elimination of certain naturally occurringharmful elements in phosphate rock is aproblem that remains to be resolved due tothe economics. Fertilizers are very bulky, lowvalue materials which cannot supportexpensive processing.

The natural resources required for theproduction of fertilizers are sufficient forcenturies to come.They are unlikely to be aconstraint to fertilizer production even in thevery long term, but, of course, waste shouldbe avoided and recycling optimised.

The report argues, therefore, that the mainconstraint to sustainability is at the use level,on the farm.The problem is that nutrients,especially nitrogen and phosphate, whichescape into the environment can lead to theproliferation of plant organisms whosepresence in excess is harmful, quite apartfrom the wasteful economic loss.

At present, nutrient use efficiency is low inmost developing countries. In developedcountries considerable progress has beenmade but more can be done. Influencing theuse of mineral fertilizers is difficult in view ofthe very large number of farmers areinvolved. Furthermore, the manufacturer isoften separated from the end user by adistribution system that has to handle millionsof tonnes of material. In India, for example,there are 260,000 fertilizer retailers in directcontact with the farmer.

In the 1970s and 1980s, the geographicalbalance of the industry shifted strongly towardthe former communist economies and thedeveloping countries.The communist countriespinned their faith on fertilizers to spearheadthe modernisation of their agriculture andimprove poor crop yields.The developingcountries viewed fertilizers as a strategicnecessity to combat the threat of famine in asituation of rapid population growth.Thosewith abundant natural gas, phosphate rock orpotash saw fertilizer production as a primarymeans of economic development. Financefrom lending agencies such as the World Bankwas often available on favourable terms.

All this led to a rapid growth of productioncapacity and a sharp increase in stateownership. In the 20 years from 1965 to 1984,the share of state enterprise in the worldammonia industry rose from 30% to 64%. Inthe potash industry, it rose from 40% to 65%,and in the phosphoric acid industry, from 10%to 46%. Similarly, by the mid-1980s, nearly 60%of world phosphate rock production wasstate-owned.

The collapse of the Soviet Union and thestrong privatisation movement of the 1990sreversed this trend. In Russia and throughouteastern Europe, the withdrawal of stateownership and the reduction or elimination ofheavy subsidisation of both industry andagriculture, led to a large fall in the productionand consumption of fertilizers, and theindustry was largely transferred into private orsemi-private hands.

A worldwide excess of production capacity,the trend towards industrial globalisation, andcontinuing competition from state-owned, orstate-regulated enterprises in numerousdeveloping countries, notably India and China,obliged the private sector to concentrate itsresources.This led to widespread plantclosures, numerous company mergers andacquisitions, and massive restructuring.

2.1.3 Fertilizer productionMineral fertilizers are mainly produced from asmall number of distinctly different rawmaterials and intermediate products. Some ofthese are also used directly as fertilizers.Themain raw materials are hydrocarbons/energy,phosphate rock, potassium salts and sulphur.

Putting the mineral fertilizer industry into the sustainable development context 13

give an accurate overview, space constraintslimit the depth of discussions and theexhaustiveness of case studies. Nor does thereport purport to have solutions for all thechallenges listed.

The issues are crosscutting and overlap intomany areas. Readers may be surprised by theamount of space dedicated to agriculture.Thisis because the fertilizer industry recognisesthat the major environmental impacts of itsproducts occur in the field, and accepts its rolein minimising unwanted effects beyond thefactory gate.

We also included positive impacts that theindustry has had with regard to the varioussustainable development issues brought intofocus by the United Nations conference onenvironment and development.This is becausewe believe that a discussion of the sustainabilityof the industry should take the good with thebad, especially as decisions about what is mostsustainable may involve trade-offs betweendifferent objectives. Obviously thesecontributions do not in any way cancel out theefforts that need to be made in other areas.

The task for this report was to look atprogress since 1992, but many efforts from thefertilizer industry began well before this date,in an early recognition of the importance ofovercoming major sustainability challenges.The reader is encouraged to see this

document as a starting point for discussionand co-operation among a wide range ofrelevant players.

2.1.2 The fertilizer industryThe world mineral fertilizer industry isextremely heterogeneous. Among the largestproducers, one finds giants of the chemicalindustry in all parts of the world – companieswith sales measured in billions of dollars.Producers of the main raw materials forfertilizer production form an important part ofthe petrochemical and mining industries. Atthe other extreme, there are many smallenterprises which have no primary chemicalproduction at all, they buy all their materials tomake mixtures or blends, which are oftentermed ‘compound’ fertilizers.

Because of this complexity, not all initiativesundertaken by the fertilizer industry arecovered in this report. Notably, readers arereferred to chemical industry and miningreports to learn more about initiatives such asResponsible Care and the Global MiningInitiative (and its ‘Mining, Minerals andSustainable Development’ project) in whichmany members of the fertilizer industryparticipate. Fertilizer companies alsoparticipate in sustainable developmentinitiatives of organisations like the InternationalChamber of Commerce (ICC) and the WorldBusiness Council for Sustainable Development(WBCSD).

12 Putting the mineral fertilizer industry into the sustainable development context

1980/81 31% World: 63 million t. N

53% World: 88 million t. N1999/2000

Developing countries as % of total world

Figure 2: Nitrogen fertilizer production NorthAmerica

17%

West andCentral Europe

14%

FSU10%

Middle East(inc. Egypt and Libya)

7%

Others14%

China26%

India12%

Figure 3: Nitrogen fertilizer production 1999/2000

Source IFASource IFA

products is relatively small. But at the end ofthe production chain a great diversity of finalproducts appears.

Each product has its own advantages for aparticular crop, soil and climate. It may be solidor fluid. Solids may be either chemicallyhomogeneous particles or mixtures (blends)of different products. Fluids may be saltsolutions or suspensions of solid particles.Theymay even take a gaseous form, as in the caseof the injection of anhydrous ammonia directlyinto the soil – a widespread practice in theUnited States and a few other countries.

The content of nitrogen, phosphorus pentoxide(P205) and potassium oxide (K20) in a fertilizerforms the main basis of its commercial value. Itmay also contain other macro-nutrients such ascalcium, sulphur, and magnesium, as well asmicro-nutrients like boron, iron, manganese andzinc, which all affect its value.

In 1999/2000, the world fertilizer industryproduced about 88 million metric tonnes (Mt)of nitrogen, 41Mt of P205 and 26Mt of K20 – atotal of 155Mt of primary plant nutrientswhich were contained in about 380Mt of thevarious finished products.

Nitrogen fertilizer production is based mainlyon the synthesis of ammonia fromatmospheric nitrogen and the hydrogen inhydrocarbons.This transformation is necessary,because elemental nitrogen is inert andtherefore unavailable for plant nutrition.

In the case of phosphate fertilizers, nearlythree quarters of the world production ofP205 is based on phosphoric acid, whichrequires large amounts of sulphur in the formof sulphuric acid, in order to convert the P205

in phosphate rock to a more soluble form.Ammonia, phosphate rock, potash and sulphurhave many other industrial uses apart fromfertilizers, but the fertilizer industry consumesmost of their production. Consequently, thegeographical structure of the fertilizer industry

is not only governed by the location of itsmarkets but also by the location ofcommercial sources of these raw materialsand intermediates.

The wider fertilizer industry family alsoincludes engineers, traders and numerousregional and national associations as well asresearch institutes which are closely affiliatedwith the fertilizer industry.These latter havebeen set up on one hand to speak out on thegeneral issues concerning the industry, but alsoto carry out those activities which are outsidethe scope of a single company, such asresearch and training. Most companies belongto multiple associations and support morethan one research institute.

2.1.4 Fertilizers and the imperative forsustainable agricultureIn developed countries, most people no longerhave a close link with rural areas andagricultural production.This subsectiontherefore briefly explains the role of fertilizersin sustainable agriculture.

In agriculture, solar energy is converted intochemical energy with the help of chlorophyll inplants. However, essential nutrients arerequired to sustain plant life: nitrogen,phosphorus and potassium, sulphur, calcium,magnesium and a number of micro-nutrientsor trace elements.

Rainfall supplies water and some oxygen, whilethe atmosphere supplies carbon (as CO2) andthe rest of the oxygen. Legumes and certainother plants can obtain part of their nitrogenrequirement from the atmosphere, but mostplants obtain almost all their nitrogen from thesoil. All other plant nutrients must be obtainedentirely from the soil.

Like the food that humans eat, mineralfertilizers are made up of the nutrients thatplants need. Adding nutrients is necessary forthe following reasons:


The main sources of energy are natural gasand other hydrocarbon materials. Natural gasalso provides a large proportion of the worldsupply of sulphur, as many commercial gasdeposits are ‘sour’ and the gas cannot be useduntil the sulphur has been removed. Phosphaterock and potassium salts are mined in various

parts of the world.The mining of elementalsulphur is also important. In addition, sulphur isrecovered from oil refineries, iron and copperpyrites and by-product sulphuric acid.

Using these raw materials, the number ofchemical process routes to the finished


Others7%

Canada36%

Russiaand Belarus

27%

West Europe19%

Israel and Jordan11%

Figure 4: Potash production 2000

USA28%

Africa28%

China14%

Others9%

Russia10%Middle East

10%

Figure 5: Phosphate rock production

Source IFA

Source IFA


• soils may not naturally contain all thenutrients that a crop needs;

• today, very few farming systems are closedsystems where nutrients pass from soil toplants to animals and people and then backto the soil in the same location. Every timea truck leaves the farm loaded withproduce, the farm and its soil lose someproductive capacity unless those nutrientsare replenished;

• even in ‘closed’ systems, there areunavoidable losses of plant nutrients.

The challenges of sustainable agricultureinclude soil degradation, inefficient use andpollution of water and loss of biodiversity. Inaddition, lack of proper infrastructure andinsufficient education, advisory services andresearch in developing countries prevent wideradoption of practices which address theseproblems.

Restoring, maintaining and preferably increasingsoil productivity are essential for sustainablefood production. A proper and a balancednutrient supply is important for maintainingsoil productivity and reducing soil degradation.Fertilizers can have a positive effect on theenvironment in several ways [Lægreid et al,1999]:

• the efficient use of plant nutrients ensuresthat yields are higher than those obtainedon the basis of inherent soil productivity bycorrecting deficiencies or imbalances ofnutrients;

• fertilizers replenish nutrients removed fromsoil by harvested produce, thus maintainingand enhancing production potential;

• because they increase yield per unit areaon good, arable land, fertilizers allow landof poor quality, such as land susceptible toerosion, to be withdrawn from cultivation.This relieves overall pressure on the land,for example by reducing deforestation andovergrazing of currently non-croppedareas. Sustained high yields on a limitedamount of land also prevent the

encroachment of agriculture intouncultivated areas that are likely wildlifehabitats. (Fertilizers can also enablecultivation on marginal lands. Although thismight be necessary on a local level toensure adequate food supplies, it is notdesirable at a global level);

• plant nutrients ease the problem oferosion-control on cropped land becauseof the protection provided by a dense andvigorous crop cover;

• properly nourished crops use water moreefficiently.

Mineral fertilizers are estimated to contributeabout 40% of the nitrogen taken up by theworld’s crops. Crops provide about 75% of allnitrogen in human protein consumption(either directly or indirectly through animals),thus nearly one-third of this protein dependson fertilizers. In western Europe, at least halfthe present agricultural output can beattributed to fertilizers [Smil, 2001].

2.1.5 Expanding fertilizer consumption The use of fertilizers as a regular farmingpractice began in most European countries inthe mid- to late-19th century, butconsumption increased dramatically in thethree decades following World War II.

Their increasing use in developing countriesstarted in the 1960s and by 2000, accountedfor about 60% of the world total, comparedwith 12% in 1960.This trend is continuing. Aspopulations increase in developing countries,agriculture production and the development offertilizer use is a high priority – and rising onboth national and international politicalagendas.


30.0 million tonnes nutrients 136.5

1960/1961 2000/2001

Developed88% Developed

36%

Developing12%

Developing64%

Figure 6:World fertilizer consumption (regional shares)

West Europe12%

Others9%

Central Europeand FSU

5%

Latin America9%

Developing Asia49%

NorthAmerica

16%

Figure 7:World fertilizer consumption in 2000/2001

Between 1989 and 1994, fertilizer consumption in developed countries as a whole fell from 84Mtnutrient in 1988 to 52Mt nutrient in 1994.This was largely due to the poor economic situation ineastern Europe after the fall of the Berlin Wall. In addition, fertilizers were used most inefficientlyunder the centrally planned systems.Source IFA.

Between 1993/94 and 1999/2000, world total fertilizer nutrient consumption increased from 120to 141Mt, an average rate of increase of about 3% per year. Consumption in China, South Asiaand Latin America increased by 12, 7 and 2.5Mt respectively. In 2001, world fertilizer consumptionfell, for various reasons, to return to its 1997/98 level.Source IFA.

This section aims to give an overview of majorsustainable development issues as they relatespecifically to mineral fertilizers.Whereindicated, section headings reflect relevantissues in Agenda 21. Many of the headings thatdo not mention a specific chapter of Agenda21 fall under Chapter 14, ‘Promotingsustainable agriculture and rural development’.Some topics may not fit neatly under one ofthe chapters of Agenda 21, but werenonetheless considered useful in thisdiscussion of sustainable development.Examples of industry responses are alsoincluded to give an indication of ongoingefforts to contribute to sustainabledevelopment.

3.1 Social and economicdimensions(Agenda 21, Section I) Over the last 50 years, fertilizer production,consumption and trade has become asignificant factor in the world economy.Fertilizers and fertilizer raw materials areproduced and consumed in very largequantities – the total traded in the bulkshipping market is fourth in volume after onlyiron ore, coal and grains.

In the mid-1990s, the total trade in fertilizermaterials was typically 120Mt, accounting for8% of all sea-borne bulk trade.This compareswith the grain trade, which averaged 190-200Mt. [Park, 2001] Because of fluctuatingcommodity prices, comparisons of themonetary value of fertilizer products in twodifferent years are not very useful formeasuring the magnitude of the industry. Infact, by general Wall Street standards, thereturn on investment in the mineral fertilizerindustry is very low.

3.1.1 Global food security The world population is expected to growfrom approximately six billion today to morethan eight billion by the year 2020. More than97% of this projected growth will take place indeveloping countries. At present more than800 million people suffer from hunger ormalnutrition.

These figures make it clear that adequateagricultural production at global level does notnecessarily imply food security at local level. Asdistribution issues are unlikely to be solvedsoon, the best option is to increase yields indeveloping countries, requiring significantintervention in cases where soil fertility ispoor. Davis,Thomas and Amponsah write:‘...Imports may be appropriate to bridge short-term gaps or during emergencies, but for mostdeveloping countries imports cannot substitutefor local production...the argument that globalfood production is sufficient and that foodsecurity problems can be solved byredistribution is inadequate...’ [Davis, 2001].

At the same time, most developing countriesare experiencing economic growth, and theirpopulations are demanding higher-gradefoodstuffs, such as meat and dairy products.Thiswill require increased agricultural productivity.

The International Food Policy ResearchInstitute (IFPRI) recently estimated that theworld’s farmers will have to produce some36% more grain in 2020, compared with 1997,[IFPRI, 2001]. However, the expansion of thecereal area is unlikely to be more than 5%,almost two-thirds of which will be in thedifficult region of sub-Saharan Africa.

Inevitably, most of the higher production mustcome from higher yields-per-unit area, whichwill require a correspondingly larger quantity

Meeting the challenges of sustainable development 19

2.1.6 An opportunity and a challengein developing countriesIn sub-Saharan Africa, the current net nutrientloss from the soil is estimated at some 10Mtper year. Even today’s low-yielding crops areextracting nutrients from the soil three or fourtimes faster than they are being replaced.While the recycling of organic matter isrecommended, it is not adequate under thesecircumstances.

The rates of fertilizer used are generally verylow in many developing countries, but they arehigher in the commercial plantation sector.Rates of fertilizer-use for food crops areparticularly low.There is a large variation inapplication rates between countries. FAOexpects this trend to continue, with concernsabout declining soil fertility as a result [FAO2000]. Appropriate mineral fertilizer use canhelp produce higher yields, simultaneouslyincreasing food production and the availabilityof soil organic matter, but it requiresovercoming obstacles to access.

2.1.7 The industry’s duty in the verticaland horizontal life cycle The life cycle of fertilizers must be consideredvertically (the passage of nutrients through thefood chain from fertilizer, to soil, to crop andon to the final food product and the eventualdestination of waste products) but alsohorizontally (the transportation of nutrients,often great distances, from their source to theland where they are applied and on to thefinal consumer). In turn, the life cycle of plantnutrients is linked to the natural nitrogen andcarbon cycles and the increasing food and fibredemands of a growing world population [IFA,1999].

The industry has a responsibility to promotean efficient, economic, environmentally-conscious use of mineral fertilizers, and toensure that relevant scientific information ismade available. Despite many outreachprojects, it is not possible for the industry tohave a direct influence on each of the world’stwo billion farmers.Therein lies one of thechallenges of sustainable mineral fertilizer use.


Part 3: Meeting the challenges of sustainabledevelopment


of plant nutrients. Generally the ‘nutrientbudget’ is negative. Nutrients in soils aremined, leading to soil degradation and erosion.In southern Mali, for example, about 60% offarmers’ income is, in effect, derived fromstripping the soil of its nutrients.

3.1.2 Combating poverty(Agenda 21, Chapter 3)There is consensus that eliminating poverty,hunger and malnutrition is the cornerstone ofsustainable development. Poverty remains theprincipal challenge for feeding the world’spopulation in a sustainable manner. Globalfood supply has improved considerably overthe past 20 years, but poverty is stillwidespread. Many people cannot buy enoughfood. Africa, in particular, has seen dramaticdeclining food availability per capita, and manyAfrican countries face a bleak future unless thistrend can be reversed.

Hunger and malnutrition also create conditionswhich perpetuate poverty.The 167 millionchildren who will go to bed hungry tonight arelikely to suffer from stunted physical andmental development which will decrease theirchances of becoming fully-productive adults.The after-effects of the diseases andimpairments of the hungry and physically weakadd an additional financial and healthcareburden to already poor states and families.

Most of the world’s poor are rural. Even whenthey are not engaged in their own agriculturalactivities, they rely on non-farm employmentand income which depend directly orindirectly on agriculture. Rural people accountfor more than 75% of the poor in many sub-Saharan and Asian countries.

3.1.2.1 Agriculture is an engine for economicdevelopmentThere is wide agreement that with a fewexceptions, prosperous agriculture is anecessary condition for economic growth inmost developing countries. However, somedeveloping countries do not attach sufficient

importance to agricultural development inpolicy planning. A recent United Nation reportnoted, ‘While a shift from agriculture tomanufacturing and services is part of thenormal process of economic development, it isoften occurring prematurely in developingcountries...’ [United Nation, 2001]

The multiplier effect of agricultural growth indeveloping countries is well documented andis probably a necessary precursor toindustrialisation. A study [Mellor, 1995]examined in depth eight countries and states,of which six were judged to have successfullyused agriculture to lead growth over a century.The authors concluded that in all the cases,sustaining agricultural growth depended oncost-reducing, yield-increasing technologies.

Agriculture also has an amplifying effect on theeconomy in developed countries. For example,in the United States and France, the total valueof the food sector is several times higher thanthat of agricultural production itself.

If agriculture is to be productive, it follows thatcrops should receive, from one source oranother, the nutrients they require. It issuggested that the lack of manure, andexcessive exploitation of soil and waterresources beyond their population-carryingcapacity, have been major factors in thecollapse of several ancient civilisations. Cases inpoint are the Sumerians in Mesopotamia andthe Mayans in Central America, where soildisintegration was caused respectively bysalinisation and deforestation – two of themajor threats of today. [Johnston, 1995]

It is now recognised that soil fertility is a majorpillar for building any strategy for sustainableland and natural resources management. Casestudies have demonstrated the increasedprofitability of improved soil fertility practices,and it is obvious that increased incomes leadto improved socio-economic conditions andthe well-being of the farmer.

20 Meeting the challenges of sustainable development

Case studies: Richer soil reducespoverty

1. Soil fertility kick-starts growth in BrazilThe Brazilian extension organisationEMATER, in the region of Pato Branco,Paraná (Bragagnolo, 1997) [Pieri, 1998]did a survey of 477 farms at the onset ofa soil fertility project in 1989/90 and fiveyears later.The following results weremeasured:

• the area of rural buildings increased by58%, mostly from chicken houses andpiggeries;

• all farmers now own their farms, and 14%of them have increased the size of theirproperty from 26.84 to 29.32ha;

• the farm area under soil conservationpractices increased by 60%, from anaverage of 11.2ha to 18ha;

• farmers possess more equipment: onaverage, 8.14% more tractors, 10.21%more broadcast spreaders for lime and14.29% for cattle manure;

• animal populations have increased in totalhead by 3.8% (cattle and pigs) per farm;

• gross income per family labour unitincreased from 3,400 to 5,475 reales;

• the average farmhouse increased in sizeby 5.04 sq. metres;

• families bought 5.5% more refrigeratorsand 9.7% more gas cookers.

There were also spin-off benefits such asmarket/purchasing activities, infrastructuredevelopment and education programmeswhich have not been officially accounted forbut are clearly perceived by individuals andthe society at large in Paran· andneighbouring states.

2. Fertilizers and sustainable agriculturaldevelopment in West AfricaThe ‘Fertilizers & Sustainable AgriculturalDevelopment (F&SAD) project’, financedby IFA and USAID, started its firstactivities in the agricultural season of 1996in three West African countries:Togo,

Benin and Niger.The project is beingimplemented by the IFDC through itsAfrica Division, IFDC-Africa, incollaboration with the national agriculturalresearch institutes in the respectivecountries. Emphasis is put ondemonstration of integrated soil fertilitymanagement (ISFM) technologies.

ISFM strategies are based on the combineduse of soil amendments and chemicalfertilizers. Lime and gypsum are the productsmost frequently used to improve pH; solublesources of phosphorus (P) and rockphosphate can be used to increase theavailability of P.

The more difficult challenge is to improve thestatus of organic matter in the soil, more andbetter organic manure is needed. However, itis difficult to get organic matter wheninappropriate agricultural practices cause soildegradation and the cost of transportation oforganic matter is high. Crop residue recycling,green manure, fodder crops or agro-forestrycan eventually improve the availability andquality of organic matter.

The F&SAD project has producedconsiderable evidence that ISFM provides afeasible pathway for sustainable agriculturalintensification – and a way out of the viciouscircle between poverty and land degradation.Partnerships have been extended toextension services, rural developmentprojects and non-governmental organisations(NGOs). Farmers, bankers, traders and policymakers at the local level have become thekey stakeholders.

There are now ISFM projects in seven WestAfrican countries, with 2,500 farmers directlyinvolved. IFDC-Africa collaborates withinternational and national agricultural researchinstitutes to develop new ideas on ISFMtechnologies for different agro-ecologicalzones.

experts estimate that modernising Chineseproduction facilities could do away with asmuch as 90% of the approximately 1.2 millionjobs in the sector today. Policy-makers willhave to take this likely development intoaccount to avoid significant social andeconomic impacts at local level.

3.1.2.3 National income for exportingcountriesFor many exporting countries, fertilizers havebecome an important source of nationalincome, with substantial encouragement in thepast by the World Bank. In the Soviet Union,for example, fertilizers were one of the fewindustrial products which met world qualitystandards and could be exported for hardcurrency.With the collapse of domesticdemand in recent years, exports have onlygained more importance for the Russianeconomy.

In the 1970s and early-1980s, the Soviet Unionsupplied ammonia to the United States inexchange for superphosphoric acid. It alsopurchased modern plant equipment fromwestern contractors.Today, pipelines andexport facilities make the countries of theformer Soviet Union as a bloc the world’sbiggest exporter of ammonia and urea.

In the early 1990s, the World PhosphateInstitute (IMPHOS) estimated that phosphatesand derived products accounted for 40-50%of exports from the IMPHOS membercountries. Phosphate production acts ascatalyst for transformation industries,equipment manufacturing and thedevelopment of the service sector.

3.1.2.4 Fertilizer policy in developingcountriesIn some developing countries, changes infertilizer prices and/or subsidies are aspolitically sensitive as changes in food prices.China, in an effort to be more self-sufficient,has focused on building up its fertilizerindustry. In India, fertilizer subsidies are a

significant portion of the national budget; thetotal direct subsidy bill in 1998-1999 wasbudgeted at USD2.2 billion.

India and China have made major effortsthrough national plans to develop a domesticsupply and avoid an over-dependence on theworld market. In China, new urea plants thatcame into operation between 1996 and 1998added 2.6Mt of nitrogen to the existingcapacity. At the same time, the output of small-and medium-scale urea plants increased. As aresult, nitrogen fertilizer production increasedfrom 16.7Mt nitrogen in 1994 to 20.4Mt in1997, and then to 21.9Mt in 1998. It increasedby a further 1.4Mt nitrogen in 1999.This amplysupplied national requirements, and Chinaessentially ceased to import nitrogen fertilizersin 1997.

However, both China and India rely onimports for all their potash requirements andfor a substantial proportion of their phosphaterequirements.

Some analysts believe that in early days,domestic subsidies can help the fragile nationalindustry get off the ground and stimulatedemand.The challenge for developingcountries is then to move away from subsidiesin such a way that does not cause structuraldamage.This unfortunate scenario happenedin many African countries. Central governmentplanning was abandoned, leaving a void, asthere were no market structures ordistribution systems in place to take up theslack.This has contributed greatly to Africa’sdeclining soil fertility and problems feeding itspopulation.

3.1.3 Promotion and protection ofhuman health (Agenda 21, Chapter 6)3.1.3.1 Safety in the workplaceMost fertilizer materials are mineral-based andnon-hazardous in nature. Ammonium nitrate-based fertilizers with a nitrogen contentgreater than 28% must comply with additionalsafety precautions as they have oxidising


3.1.2.2 Employment For those countries with large fertilizerindustries, there are significant employmentand revenue implications with attractivepotential spin-off benefits into other industrysectors.These include shipping, trucking,warehousing, packaging, sack-making, urea-formaldehyde resins, melamine, explosives,fibres and detergents.

Exact employment figures are difficult tocompile as the fertilizer industry cuts acrossmany sectors, including mining, raw materialsuppliers, manufacturing, warehousing,packaging distributing, transportation, retailingand farming – to name a few. About 50% ofthe industry is located in developing countries.

Highest employment rates occur in developingcountries which, as a general rule, have lessadvanced technology for production. Improvedproduction techniques used elsewhere haveminimised environmental impacts of fertilizerproduction, but often include mechanisationthat has eliminated much individualemployment in the sector. Increasedproductivity in western Europe has reducedjobs there from some 120,000 in the early1980s to less than 20,000 today, and ongoingcuts are likely.

Despite high production levels, there are likelyto be numerous jobs eliminated in comingyears in the industry in developing countries,with China being a notable case. Some


Case study: Easing the social andeconomic transition

Fertilizer producers in China will have manyexamples of companies around the worldthat have gradually reduced their workforcesas production techniques have become lesslabour-intensive. However, the changes inChina could come abruptly as the country’smembership in WTO will allow foreignproducers enter the market and set upproduction facilities on a scale not previouslyexperienced.

The experience of a potash miningcommunity in north eastern France providesan excellent example of how a company cancontinue to positively impact economic andsocial development even as it prepares toreduce or end its direct influence on the dailylife of a community.

Mining of the potash orebodies in the regionbegan in 1910.The workforce peaked in 1965at around 14,000 and dropped to 1,300 bymid-2000.The ore deposit is approachingexhaustion, with completion of mininganticipated by 2004. Company planning andpreparation for this eventuality began anumber of years back and, looking beyond

environmental aspects of the closure, hasincluded creation of alternative employmentfor the workforce and community.

Incentives have been provided for thecreation of new businesses with an emphasison small- and medium-size enterprises(SMEs). A number of the old mine buildingsare being refurbished to provide space tohouse some of these new enterprises.Training is provided to interested employeesto allow them to develop their ownbusinesses or prepare for work in a newindustry.

Additionally, a hazardous waste managementcompany has commenced operation, usingunderground openings created during theextraction of salt for long-term storage ofhazardous waste.This has created around 100 new jobs for former potash miners.

Communication with employees and thecommunity on the closure plans and activitieshas been important in alleviating concerns. Aninteresting method that has been used byMines de Potasse d’Alsace to assist thisprocess is the publishing of a comic bookstory that conveys information about theforthcoming closure in a manner and stylethat is easily understood by all.

unit of fertilizer while applying the requiredquantities to satisfy the world’s agriculturalrequirements.

Farmers control the quantity and mixture ofnutrients applied, which is the ultimatedeterminant of whether fertilizer use isbalanced and efficient. Nonetheless, theindustry has a responsibility to facilitate gooduse and must provide the farmer – industry’sprimary consumer – with safe, quality productsand guidance on their use. Best practice in thisregard is specific to each farm and representsa delicate balance between environmentalaspects, the quality of produce and profitability.

Where they have access to improvedcultivation practices, application techniques andcrop varieties, farmers have shown theireagerness and skill for adapting integratedmanagement practices. Promising results arealso emerging in the field of ‘site-specific’ or‘precision agriculture’.

In the long-term, these successes mayinfluence the structure of the industry –perhaps changing it from a commodity, rawmaterial supplier into a value-added serviceprovider, offering farmers a fully integratedsystem in which the fertilizer is merely aningredient and the delivery mechanism is theprofit centre. [IFA, 1999] This vision offershope for improving the long-term sustainabilityof the fertilizer industry, but under presentcircumstances, there are few signs of it beingrealised.

Larger farmer co-operatives in the UnitedStates and India which both produce fertilizerand provide nutrition services are,unfortunately, the exception rather than therule. Under current market conditions, it isunclear how the industry can take this leap, ascurrent profit margins do not allow for theadded cost of providing these services.Farmers are unlikely to voluntarily pay morefor fertilizers as long as their own marginsremain quite low.

3.1.4.1 Nutrient accountingNutrient accounting is a tool for reducingunwanted environmental impacts. In brief, thismanagement technique requires a farmer tobudget the quantity of nutrients introduced tothe farming system and the quantity escapingeither through crop harvest or losses to theenvironment.

Nutrient accounting was first developed inEurope to respond to concerns aboutnitrogen pollution of water. Balancedfertilization, as well as timely and appropriateapplication, can help achieve the correctnutrient budgets. In some cases, nutrientbudgeting has entailed a reduction of theamount of fertilizer applied, but has probablyresulted in increased efficiency of use in manyof these cases through better targeting of theamounts applied.

The nutrient accounting technique is a usefultool because it generates information on:

• the health of soils in various areas undervarious cropping systems,

• the current efficiency of fertilizer use,• the scope for increasing organic

fertilization,• minimising losses of plant nutrients from

the system,• appropriate fertilizer strategies for

intensifying crop systems.

Required nutrient accounting might spur theindustry into developing more value-addedproducts in future because farmers wouldthen have a strong incentive to pay more formore efficient nutrients.

3.1.4.2 Precision agricultureIn developed countries, computers andsatellite technology have paved the way forprecision agriculture, which uses high-techsystems to map the specific nutrient needs ofsmall plots within crop fields.This allows afarmer with the proper equipment to tailorthe application of nutrients to suit the needs


properties. Nonetheless, the fertilizer industryhas traditionally paid great attention to safetystandards.

This care has resulted in a safety recordsuperior to much of the chemical industry.There have been extremely few majoraccidents in the history of the fertilizerindustry.To maintain this safety record mostfertilizer associations have produced safetyhandbooks, product safety sheets, inspectionrecommendations and other guides.TheEuropean Fertilizer Manufacturers’ Association(EFMA) recently ran its fourth safety seminar.Most companies already have disaster-preparedness plans.

Both EFMA and IFA have incident-reportingschemes which allow member companies toexchange information on minor mishaps, ‘nearmisses’, and the rare full-scale accident. Bylearning from shared experiences, this systemhelps avoid the repetition of preventableincidents and their potential undesired impacts.Electronic communications have facilitatedincident reporting.

In recent months, associations and companiesalike have been re-evaluating existing safetystandards and looking for any weakness thatmay have previously been overlooked. In somecountries, companies are also being warned toredouble vigilance around products which

could be misused for violent purposes.

3.1.3.2 Fertilizers and crop qualityCorrect fertilization has a positive impact onthe quality of agricultural produce.The bakingquality of wheat, the brewing quality of barleyand the colour, crispness and texture ofvarious vegetable crops all benefit fromappropriate fertilization. Similarly, potassiumimproves the quality of potatoes and the sugarcontent of sugarcane, and sulphur increasesthe protein content in grain and the oilcontent of oil-seed crops. [Isherwood, 2000b]Proper, balanced plant nutrition avoids cropquality disorders and improves their resistanceto stress due to drought, frost, diseases andpests.

3.1.4 Changing consumption patterns(Agenda 21, Chapter 4)Inefficiencies in use represent both anenvironmental hazard and a substantialeconomic loss. A 20% loss of nitrogen meansthat one-fifth of what the farmer spent iswasted.

More efficient fertilizer uptake by plants hastwo major benefits. Farmers can apply lessfertilizer while maintaining increased yields,thus saving money. More efficient absorptionalso reduces the quantity of plant nutrientswhich might otherwise leach into watersystems.The aim is to optimise production per


Case study:The European FertilizerManufacturers Association (EFMA)‘Guidance for the compilation ofsafety data sheets for fertilizermaterials’

In 1996 EFMA published a series of modelsafety data sheets for ten different fertilizers and fertilizer materials, compiled in theGuidance for the Compilation of Safety DataSheets for Fertilizer Materials. Each sheet hassections on: composition, hazardsidentification, first-aid measures, fire-fighting

measures, accidental release measures,handling and storage, exposurecontrol/personal protection, physical andchemical properties, stability and reactivity,toxicology, ecological considerations, disposal,transport and regulations.There are modelsfor anhydrous ammonia, ammonia solution,ammonium nitrate, ammonium nitratesolution, ammonium sulphate, calciumammonium nitrate, diammonium phosphate(DAP), monoammonium phosphate (MAP),nitric acid, NPK fertilizer (ammonium nitratebased), phosphoric acid, sulphuric acid andurea.

An important aspect of distribution is thedevelopment and standard of the road andrailway system, the availability of watertransport, or a pipeline. In many developingcountries the density of the roads is low.Thepoor transport system is probably the singlemost important factor limiting China’s ability tobenefit from its great agricultural diversity.Thisresults in a growing division between aprosperous, diversified agriculture around thecoastal periphery (with its large cities) and apoor, relatively unprogressive agriculture in theremote interior. Only governments caneffectively deal with such infrastructure issues.

A factor contributing to high transport costs insome countries is the insistence of somegovernments that fertilizers be made availableto all farmers, even in the most remote areas.Not only does this increase transport costs,but the increased amount of food producedmust in turn be transported to markets at ahigher cost. Food producers which, by reasonof their location, are best placed to producefood for the market are penalised by having toabsorb the costs associated with transport toand from remote areas.

However, purely economic efficiency is not theonly consideration: if universal access tofertilizers is managed in such a way as toensure balanced plant nutrition by those whowould be farming anyway, and in this wayprevent nutrient mining, a government maydeem that a legitimate policy objective andworth the economic cost.

3.1.6 Quality controlTo ensure quality control, a number of IFAcompanies have adopted the ISO 9000 seriesfor quality assurance. In an informal survey in1999, 56 IFA member companies reportedthat they had already adopted these standards.

Although quality is carefully controlled by themanufacturer, mineral fertilizers can easily beadulterated during distribution, and the farmeris usually unable to check the quality. Indeveloped countries, regulations ensure thequality of the product remains high until itreaches the farm. In most developingcountries, even where regulations exist, meansfor enforcement are not adequate.


of each metre of his or her field.This hasgreatly increased the efficiency of fertilizer useand reduced the loss of nutrients into theenvironment.

While such technology is beyond the means ofmost farmers in developing countries, theprinciples of testing and mapping can still beharnessed to help farmers apply theappropriate mix of fertilizers for each part of afield.They can improve the precision of theirplant nutrient programmes given soil testingfacilities and sound advice.

3.1.4.3 Fertigation, controlled-releasefertilizers and other speciality products Fertigation enables farmers to maximise theuse of water resources and to increase theefficiency of fertilizer use. It is particularlyuseful for high value crops under arid andsemi-arid conditions. It involves adding solublefertilizers into irrigation systems using a dripsystem which allows uniform waterdistribution and feeding of the crop. Fertigationcreates a double efficiency: properly fed plantsabsorb water better, and the careful targetingof fertilizers optimises nutrient uptake.However, as with any technique, it must beproperly managed; use and maintenancerequire skilled labour. Initial investment costsare high.

Controlled-release and other specialityfertilizers hold a lot of potential for use indeveloping countries. Because the technologyis built into the product through a specialformulation which only releases nutrientsgradually or under certain conditions, evenfarmers using animal traction could benefitfrom the precision of these products.However, their higher costs mean that, at thistime, use is even more unlikely in developingcountries than that of traditional fertilizers.

3.1.5 Distribution and transport issuesThe cost of getting fertilizers from the plant tothe farm accounts for a substantial proportionof the farm-delivered cost. In remote cornersof developing countries, transportation

difficulties, logistical complications and theensuing high costs can effectively preventfarmers from having access to fertilizers andother agricultural inputs.

Even if the products make it to the farmer’smarket, the prices are likely to have becomeso high that a small farmer cannot hope tobuy them. Such chronic problems requirecreative thinking on the part of all players,including industry.

Fertilizers are bulky. As a result, transport costsare a major element of the total cost ofdelivery to the farm and can have a majorimpact on the profitability of a factory ordistributor. More efficient fertilizers would takeup less space and weigh less, have a lowertransport cost per unit of nutrient and reducethe environmental impacts of distribution.

Costs vary widely. According to a 1998 survey[Dante, 2000] of the situation in Asia and thePacific, the costs of transporting fertilizer fromthe factory to the survey area ranged from aslow as USD2 per tonne in Fiji to a high ofUSD45.8 in Indonesia, where transportationcosts accounted for 84% of total marketingcosts. In landlocked countries of Africa, thecost of fertilizers at the farm gate can beseveral times higher than the cost in the portof entry.

The key element before processing is the costof delivering the raw materials andintermediates to the factory (sea freight,discharge at port, storage at port, transport bytruck to the factory). Following processing, thecost of transport to the farmer (involvingtransport by truck to an intermediate store,discharge, storage, re-loading and final deliveryto the farmer) adds significantly to the finaltotal.

A large proportion of sea-borne trade involvessupply of raw materials and intermediates tothe major manufacturers and also intra-company movements of intermediates andfinished products from one site to another.


Case study: Providing small farmerswith access to fertilizers

One creative solution for helping farmersovercome the high-cost barrier was put inplace by a Kenyan NGO, the SustainableCommunity-Oriented DevelopmentProgramme (SCODP). In 1995 SCODPopened seven shops in western Kenya to sellseeds, fertilizers, pesticides and other inputs.Commercially-available fertilizers werepurchased in 50kg bags and weighed out andsold in quantities according to farmers’requests.

Because a 50kg bag may cost the equivalent ofseveral chickens or a 90kg bag of maize, theprogramme was off to a slow start until ‘mini-packs’ – provided by the fertilizer industry –were introduced for experimentation.

Containing a few vital ingredients, the 100gmini-packs were sold. Farmers then startedbuying affordable 1kg bags of ammoniumphosphate fertilizer, and most progressed tobuying 10kg or 25kg bags once they saw theresults.The shops became profitable, cropsflourished and the local communities nowenjoy better nutrition and greater economicdevelopment.

Farmers themselves can experiment with thisnew technology without going into debt. AsSCODP says: ‘Because mini-packs are notgiven away free, farmers respect the inputsand use them carefully. Because they costmoney, farmers are encouraged to treatagriculture as a business...(Farmers) invariablyreturn to SCODP to seek more advice, andto purchase inputs in larger quantities.’

3.2.1 Mineral fertilizer productionProduction is normally associated with largefactories, sources for emissions of acidifyingcomponents to air and water. Large amountsof energy are consumed (or transformed intoplant nutrients) with emissions of greenhouse

gases. Using modern technology, emissions canbe reduced to acceptable levels. At least in theindustrialised countries, and in severaldeveloping countries, fertilizer manufacturershave made great progress in this respectduring the past two decades.


3.2 Conservation andmanagement of resources(Agenda 21, Section II)Fertilizers help minimise soil degradation, inparticular soil erosion and plant nutrientmining, while maintaining and enhancing soilfertility as a whole.They improve farmingefficiency and water conservation. Mineralfertilization, with macro- and micro-nutrients,provides for nutrient balance and optimumsoil-productivity to stimulate healthy, vigorouscrop growth. Fertilizers allow for quick canopycover and establishment of efficient rootsystems and more aboveground plant growth.They also play a positive role in carbondioxide (CO2) assimilation by improving thefixation of carbon by crops.

Modern fertilizers are relatively simpleinorganic chemicals. Nonetheless, there are

significant environment issues throughout thefertilizer life cycle that this section will consider.

Since the Earth Summit held in Rio de Janeiroin 1992, IFA and UNEP have togetherprepared a series of publications drawingattention to the environmental issues at eachstage of the fertilizer life cycle:Environmental Aspects of Phosphate and PotashMining (2001)Mineral Fertilizer Production and the Environment(1998)Mineral Fertilizer Distribution and theEnvironment (2000)Mineral Fertilizer Use and the Environment(2000, revised edition)

A complete overview of the fertilizer industryand its relation with food supply is presentedin:The Fertilizer Industry,World Food Supplies andthe Environment (1998)


RawMaterials Production Production

EnergyEnergy Energy Energy

Energy

NH3N Ox N2OCO2 N2O CO2

CO2

Use inagriculture

Figure 8:The fertilizer life cycle

Environment Impacts SolutionsAir Environmental management systemsWater TechnicalSoil Regulations and policyHealth and safety KnowledgeEnergyResource depletion

0

1015

5

1991

1 8 15 22 29 36 43 50 5 12 19 26 33 40 47 2 9 16 23 30 37 44 51 6 13

1992 1993 1994

202530

4045

35

50Kg NH4- N/h

Integrated processcontrol system

week number in each year

Figure 9:The effect of an improved regulating system in an existing facility

As an example, the following diagrams illustrate how Norsk Hydro has reduced emissions from itsplants in Norway:

1970 1975 1980 1985 1990 1995

Relative scale (1970 =100)

Fertilizer production

Emission to air

P discharge to water

N discharge to water

020406080

100120140160180200220

Figure 10: Annual production and emissions at plants in Norway

Source IFA

Source Norsk Hydro

Source Norsk Hydro

3.2.1.1 ISO 14000 SeriesBy 1999, 13 IFA member companies hadimplemented the ISO 14000 series forenvironmental management systems. Anupdated survey would likely show a muchhigher current application of ISO 14000 asmember interest in ISO certification hasconsistently registered as being very high inrecent years. A number of other systems arein place as well, such as the EuropeanEnvironmental Management AssessmentSystem (EMAS).

3.2.1.2 Best available techniques (BATs)EFMA began a series of booklets on bestavailable techniques in 1995 and updatedthem in 2000. Public concerns wereincorporated. The BAT approach has nowgained wide acceptance to the extent that theEuropean Union’s Integrated PollutionPrevention and Control (IPPC) directiveprovides a mandate for BAT References(BREFs) to be drafted for a wide range oftechnologies.Through EFMA’s BAT efforts, theindustry has gained heightened credibility, notonly with the public but also with national andEuropean regulatory authorities.

The BATs are set out in the series of bookletsBest Available Techniques (BATs) for PollutionPrevention and Control, which serve asreferences for facilities around the globe:

• Production of Ammonia.• Production of Nitric Acid.• Production of Sulphuric Acid.• Production of Phosphoric Acid.• Production of Urea and Urea-Ammonium

Nitrate.• Production of Ammonium Nitrate and

Calcium Ammonium Nitrate.• Production of NPK Compound Fertilizers by

Nitrophosphate Route.• Production of NPK Compound Fertilizers by

Mixed Acid Route.

In the booklets, two sets of emission guidelinesare given, one set for new plants and the other

for existing facilities (those built before 1990).For new plants, modern prevention technologycan be readily integrated into the processdesign. For existing plants, emissions can bereduced only by installing end-of-pipetechnologies or through costly revamps. In bothcases, careful operation and maintenance is stillnecessary to achieve the emissions target.

These standards represent the best balancebetween emissions, wastes and energyconsumption, based on the fact that areduction of one emission may give an increasein another, or a higher energy consumption.Local environmental conditions may dictate aspecific balance of what can be achieved. EFMAand IFA carry out benchmarking to helpmember companies see how theirperformance compares with these goals.

Deviations from the BAT standards may beacceptable:

• if the environment can tolerate higheremissions, without local, regional or inter-regional negative effects;

• if the social cost of achieving the standardis too high;

• if the size of the production process, theavailability of energy sources and rawmaterials, or the product range beingmanufactured, are different from what isassumed in the EFMA BAT booklets;

• during start-up and shut-down operationsand in emergencies.

The booklets include sections giving details ofsuitable analytical techniques andrecommended frequencies of analysis for thecontrol of both air and water pollution byfertilizer manufacturers.

It was found that achievable emissions levelsfor plants built after 1990 are often 25-30% ofthose for older, less innovative facilities.


These results were obtained by putting asubstantial amount of money into old plants,partly building new ones based on improvedtechnology, and, last but not least, doing thingsmore cleverly. In the first figure, theconsequences of introducing improvedregulating systems into an old plant, providingbetter training for the people who operate theplant and tying a bonus system to the level ofemissions are evident. [Lie, 1997]

Most phosphate fertilizers are producedthrough a route which involves the acidulationof phosphate rock to produce phosphoricacid. A by-product of this process isphosphogypsum, five tonnes per tonne ofP2O5 produced. It is difficult to find acommercial outlet for phosphogypsumbecause of contaminants coming from therock. In most countries disposal intowaterways or the sea is strictly regulated, andthe material has to be stored in large stacks.


Case study: ISO 14001 and QAFCO, Qatar

During the process of implementation of ISO14001, one of the Qatar Fertilizer Company’s(QAFCO) important tasks was theidentification of environmental aspects andthe evaluation of these aspects forsignificance.This process covered theactivities, products and services of theorganisation, and involved all functions ofQAFCO. Considering all the inputs andoutputs of the activities, services andproducts permitted relevant aspects to beidentified in the following categories:

• resources,• air emissions,• discharges to the sea,• waste management,• soil ground water,• ozone depletion agents,• physical agents,• services,• products.

The aspects were ranked according to theirimportance. Each aspect was evaluated fornormal, abnormal and emergency situation,and also whether it is a current, present orfuture issue.

So far QAFCO has identified 105 aspects, ofwhich nine were considered ‘significant’ andone ‘emergency’. For the ‘significant aspects’,policy was re-formulated, objectives and

targets were made and environmentalmanagement programmes were prepared.

Another consideration was communicationwith the local community. For this purpose,QAFCO organised various environmentalcampaigns (in which several hundredcommunity members and QAFCO employeesparticipated), exhibitions, school competitions,etc., together with posters carryingenvironmental messages and differentpromotional materials.

This environmental management system wasimplemented successfully thanks to thefollowing factors:

• firm management commitment;• allocation of adequate resources;• clear definition of roles, responsibilities

and authority;• environmental awareness and training of

all employees;• setting measurable and achievable goals;• QAFCO’s work culture and experienced

work force.

The EMS complemented the already-existingwaste-management programmes, safety andquality-management systems and emergencyprocedures and preparedness.

Certification was not an end in itself, but seenas the means to maintaining and continuallydeveloping a sound environmentalmanagement system. [Al Haimi, 1999]

Individual states are also taking the lead indeveloping controls over packaging, usedproduct disposal, recycling, environmentaladvertising and related matters. Sanctions rangefrom the serving of ‘improvement notices’,which require action to be taken within areasonable time limit, through fiscal penaltiesand imprisonment to temporary or permanentplant closure.

3.2.2 Distribution issuesThe potential negative environmental impactsof mineral fertilizer distribution are obvious –accidents in storage facilities, spillage, misuse ofthe products and losses of nutrients to theenvironment during transport and storage.These are addressed by a number ofinnovative solutions. One company recentlydeveloped new equipment to allow fordustless filling of bulk fertilizer containers.

If the farmer is to have the fertilizer in a timelymanner and in the form required for optimumuse, an efficient distribution system is the key.However, in some developing countries,consumption has overtaken that of developedcountries, while distribution systems have notkept pace, resulting in waste and inefficiencies.[Isherwood]

In general, the distribution sector of theindustry receives insufficient attention. IFA, inco-operation with FAO and UNEP, hasprepared several publications on the subject:

• Fertilizer Retailing Guide (with FAO, 2001,updated French version and 2002 updatedEnglish version);

• Mineral Fertilizer Distribution and theEnvironment (with UNEP, 2000).

3.2.3 Mineral fertilizer application‘It is in the application of its products inagriculture that the fertilizer industry is mostvulnerable from the environmental point-of-view. The challenge is to retain the benefits offertilizers while minimising adverseconsequences.’ [Maene, 2000].

Insufficient and excess fertilizer application aswell as unbalanced use can have unwantedenvironmental impacts. Proper use is mademore challenging by the diversity of site-specific factors which influence localrequirements. In the mine-to-crop continuum,it is the application of fertilizers whichrepresents the biggest potential environmentaleffect.The complex issues involved are detailedin the following sections.


3.2.1.3 Cleaner productionAt the annual conference in Oslo, (May 2000),the President of IFA signed the UNEPInternational Cleaner Production Declarationon behalf of members, whereby they pledgedto promote the cleaner production principlesacross their operations. As section 3.2.2 shows,the industry had already taken significant stepstowards cleaner production, and continues tomake progress.

3.2.1.4 Environmental legislationEnvironmental legislation may set out emissionlimits or guideline values, together with anenforcement system based on officialinspection. Such a system should contain detailsof recognised test methods. In many countriesthere is a national (federal) authority such asthe United States Environmental ProtectionAgency (EPA), policing environmental pollutionfrom all sources, but authority is sometimesdelegated to lower levels of government.

The enforcement of legislation may be effectedthrough fiscal incentives, taxation, subsidies,environmental liability, civil law and marketforces. In most developed countries, state andlocal advisory organisations are fully involved.Enforcement may be international, national orlocal, depending on the type of legislation.Sanctions may be under criminal or civil lawdepending on the offence.

Environmental protection is usually in the handsof national government bodies, with regionalenforcement. Sanctions include fines andpossible closure of polluting plants. In theUnited States, the federal government hasdirect enforcement authority for itsenvironmental programmes, but there are alsostate and local environmental officials andrequirements. Even where the federalgovernment has legislated in a particular area,most of the environmental laws leave the statesfree to adopt stricter standards.


Case study: Cleaner production in Canada

Based on government estimates, about 3% ofCanada’s greenhouse gas emissions(measured in tonnes of CO2 equivalent)comes directly from the use of nitrogensources, including mineral fertilizer, manureand legumes.

Realising that this issue could significantlyimpact the domestic industry, the CanadianFertilizer Institute (CFI) took a proactivestance to gather more information and lookat possible responses. Canada is the world’slargest potash producer and exporter withapproximately 40% of world trade. It is also amajor source of nitrogen and the world’slargest supplier of traded sulphur. In total,Canada supplies some 12% of the world’sfertilizer materials.

In a first step, the institute initiated threeresearch projects: one to gather data on

fertilizer manufacturing emissions, a second toobtain more accurate estimates of the actualgreenhouse gas emissions from agriculturalnitrogen sources, and a third to consider thepotential role of carbon sequestration.

The results of this early work showed thatfocusing only on fertilizer production facilitieswould have little overall effect, since theCanadian industry has already made greatstrides to reduce the environmental impactsof its activities, and Canadian facilities are nowamong the most energy-efficient in the world.

Ongoing work in this area has thereforeconsidered, among other options, how theCleaner Development Mechanism (CDM) canbe applied in the industry. Doing so couldhave multiple benefits as it would help Canadameet its Kyoto commitments, would reducethe negative environmental impact in anothercountry and would also help maintain thecompetitiveness of the Canadian fertilizerindustry.

by-product of the ammonia productionprocess, but improving the efficiency of energyconsumption reduces the emission of carbondioxide.

The process used for the production of mostphosphate fertilizers involves the productionof sulphuric acid, with a risk of emissions ofsulphur compounds. Emissions of sulphurcompounds may give rise to acid rain, whichincreases soil acidity over wide areas, withadverse effects on the flora and fauna. Mostcountries impose strict limits on sulphuremissions. Modern technology permits therecovery of almost all the gaseous sulphurcompounds emitted from sulphuric acidproduction. In the decade beginning 1987,phosphate fertilizer plants in the United Statesreduced their emissions by 83%.

3.2.4.3 Emissions benchmarkingAs discussed above, EFMA’s BATs reveal thatachievable emissions levels for plants built after1990 are often 25-30% of those for older, lessinnovative facilities. EFMA carries out abenchmarking exercise to help membercompanies see how their performancecompares with these goals.

IFA has recently extended this benchmarkingto the international level. In a first round, 37companies participated, of which 29 werefrom developing countries, six from developedcountries (IFA uses the FAO classification inwhich South Africa is a developed country)and two from countries in transition. Some80% were found to conform to the emissionsguidelines specified for existing plants in theBATs. Participating companies receive a reportwhich shows how their performancescompare with the industry at large. A secondround of benchmarking will be carried out intwo years, which will allow companies to plotindividual improvements and reveal overalltrendlines.

3.2.4.4 Emissions from applied fertilizersIn future, greater attention must be paid to

atmospheric emissions from applied fertilizerand the agro-ecological system. Experimentshave shown that ammonia lost to theatmosphere following the application of ureacan amount to 20% or more under temperateconditions. Losses are even higher – 30% to40% and more – under tropical conditions onflooded rice and crops which do not involvethe tilling of the soil such as bananas, sugarcane, oil palm and rubber.

This environmental challenge may drive thesearch for a fundamentally different mechanismto supply crop nutrients, perhaps using somecombination of biological and chemicalprocesses. However, a new study jointlycommissioned by FAO and IFA from ABouwman, a respected expert in the subject,suggests that the contributing factor ofnitrogen fertilizer to N2O emissions isconsiderably lower than earlier versions of hismodels indicated, averaging 0.8% per tonne ofnitrogen applied as opposed to 1.25%[Bouwman, 2001].

IFDC’s ‘Adapting nitrogen managementtechnologies’ project focuses onenvironmentally-friendly and efficient nutrient-management technologies to improve theuptake of nitrogen in rice paddies, which willhelp reduce emissions. Since the mid-1990s,farmers in Bangladesh and now Nepal andVietnam have been placing small ureabriquettes, by hand, up to four inches deep inthe saturated paddies. Briquette farmersreport yields up to 20% higher while cuttingback on nitrogen by as much as 59%. Inaddition the project has provided a newmarket for local machine shops from whichprivate entrepreneurs buy the briquette-making machines.The International Fund forAgricultural Development (IFAD) supports theproject, and a total of nine NGOs collaborate.

Fertilizer industry associations and researchinstitutes strive to improve scientific knowledgeregarding greenhouse gas emissions fromfertilized fields, and in trying to design and


3.2.4 Protection of theatmosphere(Agenda 21, Chapter 9)3.2.4.1 Dust – common throughout allmining activitiesDust generated by vehicle traffic can bereduced by a variety of means. Regularwatering with mobile water trucks or fixedsprinkler systems is effective but raises issueson wastefulness of water use.The applicationof surface binding agents, the use of suitableconstruction materials and the sealing ofheavily-used access ways can be more suitable.Dust emitted during the treatment ofphosphate rock can be controlled by watersprays, baghouses and wet scrubbers.Captured dust can usually be returned to theprocess.

3.2.4.2 Efficiency gains in productionAtmospheric pollution is high on the globalenvironmental agenda.The industry hasresponded well to the challenge of improvingthe efficiency of fertilizer production,particularly energy consumption and especiallyin Europe and North America. Since theEnvironmental Protection Agency began

collecting data in 1987, nitrogen fertilizer plantsin the United States have cut emissions byabout 75%.

One expert calculated that energyconsumption using best available productiontechniques (BATs) was about half in 1998what it was in 1968 – 2,743 Gigajoules versus5040 for 134Mt total nutrients.Thisimprovement can be directly attributed toimproved production technology.

The production of fertilizers currentlyaccounts for about 2% of total global energyconsumption, used mostly in nitrogenproduction. Although nitrogen production willalways consume large amounts of energy,because the processes require hightemperatures and pressures, the industry hasbecome much more energy-efficient. Ammoniafactories built in 1990 used about 30% lessenergy per tonne of nitrogen than thosedesigned around 1970. In the best plants, thetheoretical efficiency limit is being approached.

Fertilizer production accounts for about 1% ofglobal carbon dioxide emissions.The emissionof carbon dioxide is an unavoidable


01987 to 1998

10

20

40

50

30

60

0

1

2

4

5

3

7

6Pounds released/short ton produced Nitrogen production(million short tons)

-75%

Figure 11: Nitrogen plant emission reductions in the United States

Source:The Fertilizer Insitute

More recently an IFPRI report on the worldfood situation said that past and currentfailures to replenish soil nutrients in manycountries must be rectified: ‘While some of theplant nutrient requirements can be metthrough the application of organic materialsavailable on the farm or in the community,such materials are insufficient to replenish theplant nutrients removed from the soils. It iscritical that fertilizer use be expanded in thosecountries where a large share of thepopulation is food insecure.’ [IFPRI, 1997].

Major impacts on soil qualityIn mining activities, the land surface and sub-surface is disturbed by such activities as theextraction of ore, the deposition ofoverburden, the disposal of beneficiationwastes and the subsidence of the surface.Removal and stockpiling of topsoil forrehabilitation is carried out by many miningoperations within the fertilizer industry. Closeco-ordination and planning is requiredbetween mining and rehabilitation operations.

Deforestation, agricultural mismanagement,industrial pollution and warfare cause soildegradation, with hillsides and dryland regionsmost vulnerable. Crops remove considerablequantities of nutrients from the soil whichmust be replaced if soil fertility levels and long-term sustainability are to be maintained. Inmany countries, soils have been put at risk bymining both the nutrient and organic mattercontents of the soil.

Most forms of agriculture increase the erosionpotential, especially practices which leave thesurface of land vulnerable. Globally, moderateto severe erosion affects about 900 million ha.Prevention of soil erosion is a key issue in thesustainability of agriculture.

Fertilizers can reduce the problems associatedwith erosion by:

• increasing crop growth so that the soil israpidly covered by vegetation whichreduces the eroding action of raindrops;

• increasing yield not only of the crops, butalso of roots which bind soil particles andof crop residues which cover the soil afterharvest;

• contributing to the maintenance of soilorganic matter ;

• helping to re-establish plant cover whereerosion has removed the topsoil andnutrients;

• increasing yields, thus reducing the need toexpand crop-growing onto fragile soils.

There is sound evidence that the proper useof fertilizers increases the organic matter ofsoils because increased yields generate morecrop residues from roots and tops. An indirectimpact may, however, be that mineral fertilizeruse permits practices such as mono-croppingwhich burn up the organic matter.This can becountered by using mineral fertilizers within anintegrated plant-nutrition management schemewhich includes the regular incorporation oforganic matter.

Some symptoms of erosion can be masked fora while by increased fertilizer application, butfertilizer should form part of soil managementplans, not be used as a substitute for goodmanagement practices [Lægreid et al., 1999].


promote better plant nutrient managementsystems to mitigate these emissions.TheBouwman study is an example of this. As wellas updating models to take into account theevolution of expertise in this field, the newstudy looks at the specific contribution ofdifferent types of nitrogen fertilizers togreenhouse gas emissions. Importantcontributing factors are highlighted to helpidentify the best preventative measures.

FAO/industry working group activities onclimate change include some reports preparedon the release of emissions from the use offertilizers. IFA was also the reference for dataon fertilizer consumption and use by crop.

3.2.5 Integrated approach tothe planning and managementof land resources(Agenda 21, Chapter 10)In 1996 IFA published Plant Nutrients for FoodSecurity, a paper which focused on theimportance of the effective management ofplant nutrients as a major component ofagricultural development.The sources of plantnutrients may include mineral fertilizers,biological nitrogen fixation and/or organicmaterials.

At an FAO conference on the topic ofIntegrated Plant Nutrition Systems (IPNS) forsustainable development held in New Delhi(India) in 1997, recommendations to furtherdevelop IPNS included an improved service tofarmers in the form of technical advice, inputs,credit, marketing facilities and publicinvestment in agriculture. IPNS, they decided,should address both increased productivityand profitability for farmers, with specialattention paid to the alleviation of poverty inrural areas. In addition, it should:

• integrate the maintenance andrehabilitation of natural resources and theenhancement of productivity in agriculture;

• be system-oriented, in particular taking into

account the interactions between plantnutrient supply and water supply, andbetween plant nutrients supply and thecontrol of pests and diseases;

• improve the availability of energy for therural population, to save fuel wood andorganic materials used as an energy source;

• be science-based, embracing agronomy,ecology and social science;

• use a ‘farming systems’ approach, notlimited only to cropping systems.

IFA supports the ‘Soil Fertility Initiative forAfrica’, together with IFPRI, the InternationalCentre for Research in Agroforestry (ICRAF),FAO and the World Bank, which focuses onintegrated plant nutrition managementprogrammes designed to reverse the trend ofdeclining soil fertility in many parts of sub-Saharan Africa.

3.2.5.1 Soil conservation ‘The single most important factor limiting cropyields in developing nations worldwide – andespecially among resource-poor farmers – issoil infertility.This problem is acute in much ofsub-Saharan Africa and in the highland areas ofLatin America and Asia. Unless soil fertility isrestored in these areas, farmers will gain littlebenefit from the use of improved varieties andmore productive cultural practices. Soil fertilitycan be restored effectively by applying theright amounts of the right kinds of fertilizers,’according to D. Norman Borlaug, who wonthe Nobel Prize for his role in the GreenRevolution and helping large numbers ofpeople avoid starvation. [Borlaug, 1994].

This problem is particularly acute indeveloping countries, where year after year farmore nutrients are being extracted from soilsthan are being replaced, (this potential existson any farm were nutrients are transportedoff the farm through crop sales). In 1990, FAOdescribed plant nutrient depletion in manydeveloping countries as ‘a real and immediatethreat to food security and to the lives andlivelihoods of millions of people’. [FAO, 1990].


3.2.6 Conservation ofbiological diversity(Agenda 21, Chapter 15)3.2.6.1 Fertilizers contribute to preservingnatural habitat Without the additional nutrients supplied byfertilizers, farmers would not have been ableto sustain the growing world populationwithout a massive expansion of the agriculturalarea and a consequent loss of natural habitatand biodiversity. Fertilizers alone have notachieved this, but they have been an essentialingredient in the mixture of improved cropvarieties and other agricultural technologieswhich have contributed greatly to keepingmany hectares from going under the plough.

In 1960, farmers harvested about 1.4 billionha. By the 1990s, there were still less than 1.45 billion ha under cultivation, yet food andfeed supplies had been doubled. [IFA (withUNEP), 1998]

With intensification, the agricultural area istending to decrease in much of the developedworld, with corresponding increases inforested area. But in the developing world, theagricultural area is increasing, tropical forest isbeing transformed into agricultural land andagricultural land is being lost to urbanisation.This results in a loss of biodiversity.

Plants and animals may be directly affected byvariations in the quality of water, air and soiland sediments and through disturbance bynoise, extraneous light, and changes invegetative cover.These changes in turn affectthe biosphere, for example habitat, food andnutrient supplies, breeding areas, migrationroutes, vulnerability to predators or changes ingrazing patterns, which in turn may have asecondary effect on predators.

Soil disturbance and removal of vegetation andsecondary effects such as erosion and siltationdirectly affect ecosystems.They may also lead

to indirect effects by upsetting nutrientbalances.

Over-grazing is one of the major causes of soilerosion and the grazing livestock population istending to increase.The increased productionof fodder, with appropriate fertilizationpractices, is one way to reduce the pressure oflivestock on grazing land.

The heavy fertilization of grassland, especiallywith nitrogen fertilizers, can reduce biologicaldiversity.The fertilization of pasture and animalfodder crops accounts for 30% of worldnitrogen fertilizer use. Half of this isconcentrated in the regions of western Europewith maritime climates which favour grasslandand high rates of fertilization. Elsewhere, ratesof fertilizer use on grassland are low andunlikely to have a major impact on biodiversity.Phosphate and potash applications may, in fact,favour biodiversity.

Mineral fertilizers which result in theacidification of soils have also been accused ofhaving an adverse effect on soil invertebrates,in particular earthworms.This can easily bemitigated by adding lime and other soilamendments, as farmers have been doing forthousands of years.

3.2.6.2 Some effects of mining and extractionactivitiesThe land surface and sub-surface is disturbedduring mining by activities which could result ina wide range of potential impacts on the land,geological structure, topsoil, aquifers andsurface drainage systems. Additionally, theremoval of vegetation may affect thehydrological cycle, wildlife habitat andbiodiversity of the area.

The fertilizer industry, which is a signatory tothe UNEP Cleaner Production Declaration, iscommitted to minimising the impacts of itsactivities on the land where it operates.Thereplanting of small trees from areas to bemined and the placement of dead trees on


Balanced fertilizationIf any plant nutrient is deficient, crop growth isaffected. Balanced fertilization is the nutrientmix which gives the optimum economic returnin the sense that the proper balance assuresthat the plant absorbs each nutrient and doesnot waste any of what is applied.

Farmers tend to prefer using nitrogenfertilizers because of their relatively low costper unit, their widespread availability and thequick response of the plant. However,increased yields due to nitrogen application inisolation deplete the soils of other plantnutrients. For this reason, a healthy balancebetween nitrogen, phosphorous, potash andother necessary plant nutrients must bemaintained if soils are to be managed in asustainable manner.

China’s most productive double-croppedpaddies in Hunan or Jiansu, which received nomineral fertilizer in 1950, yielded less than

2.5 t/ha.They now receive more than 400 kgof nitrogen and a single crop produces morethan 6 t/ha [Smil, 1999].While this has helpedincrease food production significantly,application has largely been unbalancedtowards nitrogen. Efforts are underway toencourage farmers to use only as muchnitrogen as needed by plants and inproportion to other nutrients made availableto the crop.


Some balanced fertilization projectsaround the globe:

• Balanced fertilization project in India – carried out in co-operation by theFertilizer Association of India, IFA and theSulphur Institute, this project is in itssecond phase. During the first phase, asurvey was carried out to identify sulphurdeficiencies, which are becoming prevalentin India. Results from the experimentsshowed significant responses to sulphur.Publications in local languages withinformation about sulphur use have beenprovided to farmers.

• The BALCROP project, established in 1994in Vietnam deals with balanced fertilizationfor better crops.

• In recent years, the World PhosphateInstitute (IMPHOS) has carried out

balanced fertilization projects indeveloping countries in Asia, theMediterranean region and sub-SaharanAfrica. Following the drop in fertilizerdemand in central and eastern Europetriggered by the collapse of Communisteconomies, IMPHOS has undertaken aspecial plan of work to evaluate theeffects of sustained low phosphateconsumption in this region.

• The International Potash Institute (IPI)promotes balanced fertilization in a widerange of countries, the most recent beingArgentina, Belarus, Brazil, Bulgaria, China,Czech Republic, Egypt, Hungary, India, Iran,Morocco, Poland, Romania, Russia,Slovakia,Turkey and Vietnam. IPI currentlypublishes in 20 languages, which allowsfarmers in many countries to draw oninformation about the importance ofbalanced fertilization.

• the erosion of fines from disturbed groundsuch as open-cut workings, overburdendumps and spoil piles,and waste disposalfacilities;

• the release or leaking of brines;• the weathering and potential leaching of

contaminants in overburden material(barren removed to expose the ore insurface mines).

Surface and ground water contamination mayoccur through the release or seepage oftailings effluent and brings from dams, pondsand stacks.

In addition, large volumes of water are used which may lead to a fall in the water

table, affecting the surrounding eco-system and potentially resulting in competition withother users.

Principles found in the UNEP InternationalCleaner Production Declaration are alsoapplied to industry activities which mightimpact on local water resources.

3.2.7.2 The quality of water and fertilizerapplicationIn its nitrate form, nitrogen is highly solubleand therefore may leach into groundwater ifplants do not efficiently absorb it. Nitrate itselfis not toxic but nitrate in drinking water isconsidered to be a public health problem.Twofactors are involved:


rehabilitated areas has been used to acceleratethe establishment of vegetation and provide awildlife habitat.

Today, rehabilitation of mined areas hasbecome the industry norm and is afundamental principle of good businesspractice in the mining sector. Rehabilitationactivities generally involve the design andreaction of stable and safe landforms, followedby the establishment of self-sustainingecosystems to replace those disturbed duringthe mining process.The effectiveness ofrehabilitation is enhanced by integration withthe mine plan and conducting it progressivelythroughout the life of the mine.The objectivesof rehabilitation can range across a spectrum:

• complete restoration of the area’s originalnatural values;

• reclamation to re-establish the pre-miningland use;

• development of a completely new use forthe area, such as lakes, forestry oragriculture;

• leaving land of marginal value in a safe andstable condition.

In some countries, post-mining land-use isdetermined through discussion andconsultation with stakeholders such as stateand local government agencies, localcommunities and private landholders, todevelop an appreciation of their needs anddesires. Important considerations for decision-making include the climate, topography, soils,pre-mining land-use of the site andsurrounding areas, legal requirements and thedegrees of post-closure maintenance andmanagement.

Rehabilitation involves a sequence of activitiessuch as:

• topsoil removal and placement,• landscaping of disturbed areas,• re-vegetation and re-establishment of the

nutrient cycle,

• wildlife introduction,• maintenance of rehabilitated areas,• monitoring and determination of

rehabilitation successes.

More extensive information is reported in theIFA-UNEP joint publication EnvironmentalAspects of Phosphate and Potash Mining (2001).

3.2.7 Protection of thequality and supply offreshwater resources and ofthe oceans and seas(Agenda 21, Chapters 17and 18)Agriculture uses more than 70% of the world’ssupplies of developed water, and in the drierfarming regions, crop production is heavilydependent on irrigation. Agriculture is facingincreased competition for limited waterresources. Over the next three decades, therewill be an increasing number of water-deficitcountries and regions.

The efficiency of irrigation is often low – about50% of the increase in demand for water couldbe met by increasing the effectiveness ofirrigation. [Isherwood, 2000] The industryrecognises the critical importance of efficientwater use. It is established that somethingapproaching the economic maximum of plantmaterial ensures high water efficiency.Thisobjective will only be achieved with a well-nourished plant. Experiments havedemonstrated that the return from nitrogen ismuch increased by irrigation. According to FAO,any input factor which increases economic yieldwill improve water use efficiency.

3.2.7.1 Protecting water quality during miningDuring the mining phase of fertilizerproduction, water quality can be affected bythe release of slurry brines and contaminantsinto process water. Surface waters may becontaminated by:


Industry dilemma: Economic viabilitycan undermine environmentalstewardship.

A critical challenge regarding mineralfertilizers lies in the marketing and applicationof nitrogenous fertilizers. Even the mostresponsible fertilizer producers are in adilemma on how to move forward.

Low-cost commodity nitrogen fertilizersproduced by countries such as Russia, with itslarge resources of low-cost natural gas andvarious financial advantages, are readilyavailable worldwide. At the same time, thereare few constraints on farmers as regardsfertilizer application, and misuse can haveimportant environmental consequences asevidenced by concerns over nitrates in someareas and research on the contribution offertilizer use to greenhouse gas emissions.Compulsory plant nutrient plans arerestricted to a small number of mostly smallwestern European countries and problemareas such as the polluted Chesapeake Bay inthe United States.

This situation discourages companies frommaking substantial investments in more

efficient but more costly fertilizers. Forfarmers in developing countries who can atbest barely afford typical fertilizers, moreexpensive speciality products are not anoption. Indeed, few farmers, most of whomdo not fully understand the potentialenvironmental impacts of nitrogen overuseand who are facing low prices for theirproducts, see the logic in paying extra formore efficient fertilizers.

At the same time, low fertilizer prices haveforced producers to cut back on the veryextension and training services which couldincrease the uptake of best agriculturalpractices and raise awareness of theenvironmental imperative for buying‘improved’ products. In fact, in the age ofinformation overload, such efforts by fertilizercompanies are likely to be regarded withsuspicion as veiled marketing.

This creates a real dilemma on how to moveforward. Clearly, value-added products aredesirable from an environmental point-of-view, but in a commodity-based industry withlow margins, how can this research anddevelopment investment be funded, especiallyif farmers are not willing to pay more for theextra value these products would provide?

nutrient enrichment of surface waters.The fertilizer industry shares concerns overthese issues. It is involved in numerousprogrammes which promote nutrientmanagement practices intended to minimisethe potential for negative impacts on waterquality while maintaining the productivity andprofitability of agricultural systems. Goodprogress in improving nutrient-use and land-use efficiency in these regions has occurredover the last two decades.The industry iscommitted to the continuation of thesetrends.

The agricultural techniques for minimisingnutrient loss to water bodies and theassociated eutrophication, while at the sametime allowing for the most efficient use offertilizers, are known, are being continuallyevaluated, and are included in therecommendations of best agricultural practicespublished by fertilizer industry bodies. In theUnited States, for example, fertilizer companieshave been instrumental in forming theNational Conservation Buffer Council,designed to encourage farmers to employ thispractice.The industry has also worked closelywith the USDA to urge farmers to meet thenational goal of planting two million miles ofconservation buffer strips by 2002.

3.2.8 Waste disposal issues(Agenda 21, Chapter 21)Three major waste streams are producedduring the mining of phosphate rock: brines,fines and salt tailings.These products maycause a variety of adverse environmentaleffects if not managed and disposed of in asafe, stable and environmentally-sound manner.The industry uses a variety of disposalmethods, including:

• stacking salt tailings on the surface;• retention of the fines and brines in surface

ponds for solar evaporation;• deep well injection of brines into confined

permeable geological strata;• backfilling of mined underground openings

with salt tailings, fines and brines;• release of wastes to rivers or seas after

being treated for contaminants.

The methods used at each location areinfluenced by the characteristics of the wasteand the site as well as legal requirements.

3.2.8.1 Production wastesPhosphogypsumAll phosphate ores contain traces ofradioactive elements and a number of metals.The main waste is phosphogypsum, whichcontains trace amounts of the mineralimpurities which accompany phosphate rock.One of these is radium, the parent of radon.Other trace impurities include arsenic, nickel,cadmium, lead, aluminium, fluoride andphosphoric acid. Mainly because of the radoncontent, the United States EnvironmentalProtection Agency restricts use ofphosphogypsum and stipulates that nophosphogypsum with radium of 10 p/Ci/g canbe removed from stacks adjacent to thechemical plants.

The industry has made recommendationsconcerning the design and construction ofphosphogypsum disposal areas.The use ofphosphogypsum for other purposes has beenwidely encouraged, but economic and/orquality problems and/or the low demand forthe resulting products frequently inhibit this.There is ongoing research and development inthis area.

Disposal of spent catalystsThe steam reforming process for ammoniarequires that catalysts be replaced every twoto six years. Spent catalysts containing oxidesof hexavalent chromium, zinc, iron and nickelare returned to the manufacturer or othermetal recovery companies.The carbon dioxideremoval stage can use potassium hydroxidesolutions containing activators, aqueous aminesolutions or other chemicals.The industryencourages and promotes the responsiblemanagement of spent catalysts.


• nitrate in drinking water has beenassociated with cases of the ‘blue babysyndrome’, whereby the oxygen-carryingcapacity of the blood is reduced. It occursin babies up to six-months old, normallywhen very high nitrate levels are associatedwith polluted water.The occurrence of thesyndrome is now rare;

• nitrite reacts with compounds in thestomach to produce nitroso compounds,which have been found to be carcinogenicin certain animal species. A link to cancer inhumans has not been demonstrated.TheUnited States National Research Council,for example, concluded that ‘exposure tothe nitrate concentrations found in drinking water in the United States isunlikely to contribute to human cancer’. Infact, there is recent evidence that somenitrate is beneficial to human health.[Leifert and Golden, 2000 and L’hirondeland L’hirondel, 2002]

These two factors together have resulted in a‘precautionary approach’. In the mid-1980s theWorld Health Organization (WHO) set aguideline of 50 mg of nitrate, NO3, per litre ofwater. It reviewed the guideline value in April1997 and concluded that, on the basis of thelatest scientific evidence, the value of 50mg/litre should be maintained.

Surface watersThe over-enrichment of surface waters leadingto an excessive multiplication of algae andother undesirable aquatic plant species, withvarious undesirable consequences, is aphenomenon known as eutrophication.Whereas phosphate tends to be the limitingnutrient in inland waters, both nitrogen andphosphate appear to be involved in theeutrophication of coastal waters, depending onthe circumstances. Potassium has no knownadverse impact on human health or theenvironment at the concentration found inground water.

Inland watersPhosphate in the soil is rather immobile, and

the loss of water-soluble phosphate throughleaching is low.The primary losses ofphosphorus from the soil are by erosion (windand water), run-off and through crop removal.Excessive surface applications of animalmanures can result in significant losses inparticulate matter due to run-off.

Phosphate enrichment of lake and river watermay lead to the growth of algae and otherundesirable aquatic plant species. Urban andindustrial wastes usually account for most ofthe phosphate loading. However, surface runoff(including soil erosion) from cropland, pastureand forest, can contribute to phosphateloading of surface waters.

In tropical lakes, there is evidence that nitrogenalso can be the limiting nutrient, whose inputmay result in eutrophication. Phosphateconcentrations in the water are often higherthan in temperate regions, while inputs ofnitrogen from surrounding land may be low.

Coastal watersIn Europe large areas of the North Seacoastlines and areas of the Mediterraneanhave experienced eutrophication due tonitrates. In the United States, nitrates andphosphates are suspected of being among thefactors causing hypoxia (low oxygen content)in some shoreline waters of the Gulf ofMexico. However, there is a great deal ofcontroversy as to the importance ofagricultural nutrients relative to other factorssuch as fresh water flow volume into coastalregions and other sources of nutrients. Indeed,the final action plan of the MississippiRiver/Gulf of Mexico Watershed Nutrient TaskForce identified at least three causes ofhypoxia, all of which should be addressed in anintegrated fashion if efforts to reduce theproblem are to be successful.

No direct link has been established betweenagricultural phosphorus inputs and sporadicPfiesteria piscicida outbreaks in the ChesapeakeBay and the waters of North Carolina, but theissue has heightened public concern about


4.1 Transfer ofenvironmentally soundtechnology, co-operation andcapacity-building(Agenda 21, Chapter 34)Technology transfer and capacity-building havebeen part of the fertilizer industry’s historysince production began shifting to developingcountries. Joint ventures on new plants havebeen a particularly fruitful way of bringingmodern production technology to developingcountries.

The industry has also begun trainingprogrammes to raise awareness of the needfor and capacity for carrying out production inthe most efficient and environmentally friendlymanner. In 2001, for the first time, IFDCconducted a training workshop on advancedfertilizer production technology.This workshopwill be repeated every two years and istargeted at engineers early in their careers toencourage thinking about the off-site effects ofproduction over the long term.

There were 54 participants from 22 countriesat the first workshop, and participation wasevenly divided between delegates fromdeveloped and developing countries. In thecase of the latter, this was significant, because itwas feared that the registration fee and costs

for accommodation and travel might act as adisincentive to attend.The industry also dedicates significantresources to training and technology transferfor end users of fertilizers. Providing thenecessary site-specific information on fertilizer-use to such a broad range of people poses adaunting challenge. One FAO official recentlynoted that the industry-supported FAOFertilizer Programme which lasted over 30 years had made some significantachievements in this regard. Unfortunately, theprogramme was discontinued by FAO in theearly- 1990s.

The challenge is particularly thorny in regionssuch as Africa where basic infrastructuresrender even distribution of fertilizers difficult,let alone adequate training for retailers andfarmers. But there is scope for both top-downand bottom-up approaches in technologytransfer and co-operation activities. Forexample, the village retailer has an invaluablerole to play as a conduit for communication ofinformation in both directions.The role of thefertilizer distributor needs to be re-examinedand expanded.

The Arab Fertilizer Association’s annualTechnical Conference seeks to improve thecapacity of the regional industry to satisfyinternational norms for safety andenvironmental protection.

Means of implementation 4544 Fertilizer

Part 4: Means of implementation(Agenda 21, Section IV)

Case study:The Food and AgricultureOrganisation of the United Nations(FAO) fertilizer programme

The FAO fertilizer programme, from its startin 1961, promoted the idea of ‘balancedfertilization’.This programme started as thefertilizer industry’s contribution to FAOs:

‘Freedom from hunger’ campaign. Later, itbecame a joint venture between governmentsof developed countries, governments ofdeveloping countries, the fertilizer industryand FAO.The evaluation of the data from100,000 trials and demonstrations showedthat 1kg of plant nutrient (N +P2O5 + K2O)from mineral fertilizers produced on averagebetween 8 and 12kg of extra grain.

Means of implementation 47

4.1.1 Fertilizer use recommendationsThe industry has prepared many guidelines topromote correct fertilization practices. Inconjunction with other associations, IFA hasproduced or updated the following bestagricultural practices to optimise fertilizer usefor a number of regions within the past decade:• Western Europe - with EFMA (EFMA also

produced a Best Code of AgriculturalPractice for Nitrogen in 1999),

• Asia and the Pacific – with the FertilizerAdvisory, Development and InformationNetwork for Asia and the Pacific(FADINAP);

• Latin America – with PPI and AssociaçãoNacional para Difusão de Adubos(ANDA), available in English and Spanish;

• The Philippines – with the PhilippineFertilizer & Pesticide Authority (available inEnglish and a local language),

• North America.

Dissatisfied with the dissemination of theseguides, IFA is now exploring ways of leveragingvarious stakeholder partnerships to improvetheir uptake, including the possibility oftranslation and adaptation to national-level

conditions.The International Federation ofAgricultural Producers has agreed to co-operate in this effort to provide farmerswith the guidance on optimal fertilizer use.However, regional guidelines still requiresignificant tailoring to the specific on-farmconditions, so most farmers would benefitfrom implementing them under the guidanceof a crop advisor.

IFA has published a 632-page World FertilizerUse Manual containing detailed information onuse recommendations and practices for a widerange of world crops. Following anintroduction on fertilizers and their efficientuse, there are chapters on individual crops orgroups of crops, each written by an authorwho is a recognized expert on the crop(s) inquestion; some 80 agricultural expertscontributed to this project.

Each chapter contains: information on thebiology of the crop, plant and soil analysis data,nutrient uptake and removal figures,recommendations for fertilizer use, currentfertilizer practice in different countries, andfurther reading. A Chinese version of the

46 Means of implementation

This table extracted from page 45 of the World Fertilizer Use Manual gives a flavour of the guidance offered in the 18-page chapter on rice fertilization and illustrates the impossibility ofmaking blanket recommendations.Source: IFA, 1992

Table 1: Recommended/optimum levels of NPK for lowland rice (selected countries)

Countries Recommended/optimum levels (kg/ha)N P2O5 K2O

Bangladesh 80 28 17Bhutan 75 50 0Egypt 100 37 0India 90-125 26-45 45-50IndonesiaLampang – Dry season 140 35 30

Wet season 80 18 30West Java 115 25 40Japan 170 122 170Malaysia 80 30 30Pakistan 120-135 26-40 0-37The Philippines 80-100 28-50 0-30Sri Lanka 73 58 58

Case study: Rebuilding distributionchannels in Russia

Several major Russian fertilizer companieshave launched a market developmentinitiative both in Russia and neighbouringrepublics through promotional activities andinvestments in facilities.

The Russian Fertilizer Demand WorkingGroup was established in the mid-1990s toassist the industry to manage domesticfertilizer distribution following the collapse ofthe country’s agriculture. In June 2001, itconducted a comprehensive assessment offertilizer market development activitiesunderway by major Russian fertilizerenterprises and Belgorod regionalgovernments.

Today, initiatives include the establishment offarm input distribution centres, bulk blendingunits and extension services. New fertilizerapplication approaches are being assessedwith a view to optimising crop productionwhile eliminating waste and environmentaldegradation resulting from misuse. InNovember 2001, a Russian delegation visitedFrench farms, fertilizer units and co-operativesto evaluate best practices.

The working group comprises major industryassociations, including EFMA, IFA and theFertilizer Institute (United States). It isassociated with IFDC and representatives ofmajor fertilizer producers in Russia.Thesejoint activities will benefit from internationalco-operation with a view to enhancingsustainable development.

Case study:The New Zealandfertilizer code

New Zealand’s environmental regulationaddresses the impact nutrients have on plantgrowth and the environment, rather thantrying to establish limits to fertilizer use outof context. Fert Research, the fertilizerindustry association in New Zealand,developed a code of conduct in 1999 whichcombines the commercial needs of farmingwith the environmental requirements ofsustainable land management.

The Code demonstrates that these two

activities need not be in conflict by placingresponsibility for good environmental practicein the hands of individual farmers. It requiresfarmers to establish their production goalswith regard to economic and environmentaloutcomes, and gives guidance on how to goabout achieving those outcomes withoutcompromising either economic returns or theenvironment.

The success of the Code in achieving itsobjectives is demonstrated by its inclusion in a number of regional plans, wherecompliance with the code is seen ascompliance with the plan.

intensification through a combination ofmeasures including soil and waterconservation, soil fertility restoration andimprovement, as well as support for ruralorganisations and institutions working toimprove access to inputs for farmers.Farmers are encouraged to intensify theiragricultural production through affordableappropriate technology packages.

• Addressing stagnating rice yields in Asia –field-specific integrated nutrientmanagement in intensive irrigation ricesystems, carried out in co-operation withIRRI, PPI and IPI and the government ofSwitzerland, is in its second phase.The firstphase involved on-farm research andprovided good results with a betterapplication of fertilizers.The second phasewas more concerned with the transfer ofknowledge of these improved technologiesto farmers. Known until recently asFSINMIRS, the project is now calledReaching Towards Optimum Productivity(RTOP).

• Farmer Field Schools on integrated plantnutrient systems and the development ofan input supply micro-credit scheme in

Zambia were co-ordinated by FAO, IFADand the Ministry of Agriculture in Zambiafrom March to October 1998. Field schoolswere held on 41 days in five provinces andattended by 900 farmers and more than100 technical and extension staff.TheZambian Ministry of Agriculture providedprovincial and district agricultural advisors,economists, irrigation engineers and campofficers to ensure comprehensiveagronomic skills training.

4.1.3 Fertilizer use recommendations4.1.3.1 Progress depends on stakeholderinvolvementBecause of the enormity of training two billionfarmers, progress depends on effective co-operation among the large number ofstakeholders to determine priorities and co-ordinate efforts. Most important isinvolvement of farmers in evaluation andadaptation of techniques and technologies.Once the needs and problems of farmers havebeen identified, universities and similarinstitutes must undertake the fundamentalresearch work. Governments have a majorrole in providing and funding training, as well asin creating national and international policyframeworks and necessary infrastructures.


manual has been published. It has been putonto a CD-rom and on the Internet in a waythat enables users to access information on achosen crop.

Fertilizers and Their Use, a pocket guide for usein the field by extensions officers, wasproduced jointly by IFA and FAO as a handytool to explain various aspects of application. Ithas been disseminated widely through bothFAO channels and requests to IFA. More than2000 copies have been sent, mostly togovernment ministries where they will be usedto educate farmers.

4.1.2 Training farmers At farm level, much technology is market –and product-driven, and distributors play amajor role in providing information to thefarmer. Only by successful transfer oftechnology to individual farmers will theworldwide benefits of increased fertilizerefficiency be realised.The following are just a

small number of the hundreds of industry-supported fertilizer projects being runthroughout the world.

• BALCROP project – managed by the Potash& Phosphate Institute and the Potash &Phosphate Institute of Canada (PPI/PPIC),BALCROP, in its second phase, involves IFAwith a number of Vietnamese groups.Established in 1994, it deals with balancedfertilization for local conditions to achievebetter crops.The third phase began at theend of 2001, when the Vietnamesepartners took ownership of the project.During the past decade, the balance ofnutrients applied has greatly improved. In1991, the nutrient ratio (N:P2O5:K2O) was100:21:3 and now is closer to 100:37:24.

• Fertilization and Sustainable AgricultureDevelopment – this project in West Africa iscarried out in co-operation with IFDC.Started in 1996, it promotes agricultural


Case study: Soft-drink technologyquenches crops’ thirst

Despite drought conditions, in 2000 some5,000 farmers in Niger were better able toavoid crop failures by using beverage bottlecaps to dispense accurate amounts offertilizer. Farmers who micro-dosed milletcrops – Niger’s staple food – with a capful offertilizer placed in the planting hole not onlyprevented harvest losses, but significantlyincreased production.

Because soils in the region lack phosphorusand are low in nitrogen and organic matter,plants respond dramatically to very smallamounts of fertilizer.

Farmers who applied this method harvested50% to 100% more millet than theirneighbours. In some cases, productiondoubled, while other harvests broke localrecords using only one-third, and often less, of

the amount of fertilizer commonly used inEurope and North America.

Millet, the world’s most drought-tolerantcereal crop, is all that stands between survivaland starvation for the 50 million people livingin the Sahel. Farmers have traditionally triedto improve soil quality by applying animalmanure, but the land cannot generate enoughforage to feed the animals needed toproduce the large volumes of manurerequired. As a result, soil fertility hascontinued to decline. According to the WorldBank, Niger’s millet yields have decreased byalmost 3% annually since the mid-1980s eventhough the area cultivated has doubled.

The research was carried out by the SahelianCentre of International Crops ResearchInstitute for Semi-Arid Tropics, IFDC (aninternational centre for soil fertility andagricultural development), Niger’s Institute forNational Agricultural Research, FAO and theUniversity of Hohenheim.

Industry dilemma: Success dependson appropriate public policies.

A programme aimed at enhancing public-private co-operation shows great potentialfor increasing both yields and balancedfertilizer use in China. However, results todate show that, without appropriategovernment policies, research anddemonstration trials, although necessary, arenot sufficient if China is to developsustainable high yield agriculture.

If fertilizer sector policies are not favourableto correct use, imbalances will continue tooccur.The Balanced FertilizationDemonstration Programme (BFDP) waslaunched 15 years ago with support from the

Potash & Phosphate Institute/Potash & Phosphate Institute of Canada (PPI/PPIC) andthe Canadian Potash Export Co. Ltd.

The programme used simple comparisondemonstration field plots, harvest field days,field inspections for leaders, media outreach,scientific and popular publications, as well asvideos to publicise the economic andenvironmental benefits of balancedfertilization.

In 1989, the programme redefined balancedfertilization to include all essential plantnutrients, to address the fact that a mixtureof deficient secondary and micronutrientsexists throughout the various soil types inChina [Meister Publishers, 2001].

priced, bulky commodity that offers little scopefor product differentiation.

4.3 Promoting education,public awareness and training(Agenda 21, Chapter 36)4.3.1 Certified crop advisersCertified crop advisers have provided aneffective way to promote efficient andresponsible use of fertilizers and otheragricultural inputs in a number of maturemarkets.

The fertilizer industry in the United Statessupported the establishment of the CertifiedCrop Advisor Programme (CCA),administered by the American Society ofAgronomy, in 1992.The credentialdemonstrates that an adviser has theknowledge and skills necessary to help farmersmake decisions to produce economical andenvironmentally-sound crops. Certification isvoluntary, based on an examination whichcovers nutrient management, soil and watermanagement, integrated pest management andcrop management. Applicants also sign a codeof ethics.To encourage continued learning, theprogramme grants ‘Continuing Education Unit’which add to the value of certification.The Canadian Fertilizer Institute brought theCCA to Canada in 1996.

FACTS is an independent certification schemefor sellers and advisers on fertilizers in the UKwhich was established in 1993 to improvedealer expertise on environmental andtechnical issues. All fertilizer staff who sell andgive advice are strongly recommended toobtain the Certificate of Competence withinthree years of entering the industry, duringwhich time they should be working under thesupervision of a qualified member of staff.

The FACTS Committee comprisesrepresentatives from the FertilizerManufacturers’ Association (FMA), the United

Kingdom Agricultural Supply Trade Association(UKASTA), the Agricultural DevelopmentAdvisory Service (ADAS), the Association ofIndependent Crop Consultants (AICC), theDepartment for Environment, Food and RuralAffairs (DEFRA), the National Farmers Union(NFU), National Association of AgriculturalContractors (NAAC), the National Associationof Principal Agricultural Education Officers(NAPAEO) and the Potash DevelopmentAssociation (PDA).

4.3.2 PublicationsMany associations and research institutespublish basic publications which explain therole of various nutrients in soil fertility andplant nutrition.These are often adapted fornational or regional audiences.

Various publications act as a bridge betweenthe fertilizer industry and its stakeholders.Theymay explain the international policy frameworkin which the industry operates, for those insidethe industry whose focus on businessconcerns may make it difficult to follow theintricacies of international governance. At thesame time, these publications highlight some ofthe ways in which the fertilizer industry isaddressing issues of sustainability, such asclimate change and concerns over clean water.


4.2 Science for sustainabledevelopment(Agenda 21, Chapter 35)Increased efficiency will be born out ofresearch worldwide, both on how to improvefarm practices and to discover innovativetechnologies.The challenge lies inincorporating new ideas into practical farmingtechniques and encouraging their adoption byfarmers. Research also needs to take a holisticapproach to farm systems.

4.2.1 International Fertilizer AwardSince 1993, the IFA International FertilizerAward has been offered every year to anindividual for research that has led to asignificant advance in the efficiency of mineralfertilizer use, and that has been communicatedto the farmer in the form of practicalrecommendations.The positive environmentalimpacts of the research have now beenassigned a greater weight in the evaluationprocess.

The award alternates each year betweenresearch relating to conditions in developedand developing countries. Individuals from thepublic or private sector, from the industry,research or educational institutes may benominated.

4.2.2 The declining research baseIn an industry with very low margins, fertilizer

companies are limited in their ability to carryout costly research and development activities.For this reason, the industry supports nationaland international associations andorganisations as well as institutes anduniversities which engage in R&D andeducation initiatives.

Research on mineral fertilizers has beendramatically reduced over the past twodecades in both the private and public sectors.As a result of new vogues in scientific andpolicy circles, competent researchers havechosen other fields of study. IFA was forced todiscontinue an annual prize targeted at youngresearchers in the field due to a dearth ofqualified applicants.

For this reason, IFA – and other industry-supported non-profit associations and researchinstitutes – is a major sources of informationabout the global industry. However, scientistsand other experts peer review all publications,as is common practice by such associations.

The sustainability challenge may ultimatelydrive more research by fertilizer industrycompanies. Already, a few companies areleading the development of a range ofspeciality fertilizers, including slow-andcontrolled-release fertilizers and specially-tailored formulations for specific applicationsand crops. However, as discussed earlier, thereis little incentive to invest in the R&D of a low-


Case study: Co-operation is the wayforward

Fertilizer Requirements in 2015 and 2030,published by the Food and AgricultureOrganisation of the United Nations (FAO) in2000, is an excellent example of fruitful co-operation between the private and publicsector.The study looked at which crops willaccount for future fertilizer demand.Geographic distribution was also an

important factor, which helps policy-makersanticipate future food productiondevelopments and potential environmentalimpacts.The results are considered offundamental importance for world agricultureand the world fertilizer industry.

The joint study represents an unprecedentedco-ordinated effort involving fiveorganisations – FAO, IFA, USDA EconomicResearch Service,The Fertilizer Institute andIFDC. [Daberkow, et al., 1999]

Much of the material in this section is drawnfrom Fertilizer Strategies. [FAO (with IFA),1999]

How can sustainable food availability beachieved? Each country needs to take adecision to produce more or import. Givenlimited financial resources, macroeconomic andsocial goals and a comparative advantage inagriculture, many countries opt to producemore.

One possibility to do so is to bring more landunder cultivation. However, this extra land isoften more marginal and less productive.Moreover, with a growing population, farmland suffers from encroachment by urban andindustrial uses.Thus, the potential is generallyrather limited.

Another approach is to increase the efficiencyand reduce the wastage of current practicesthrough improved management. In manycountries there may well be considerablescope for improvement. However, there is apractical ceiling to such improvement.

A third way, which offers the greatestpotential, is to bring about sustainableincreased food production by intensifyingbalanced fertilizer use.The basic ideaunderpinning the proposals outlined below isthat crops which provide farmers with stablehigher profit margins will encourage them toadopt and increase their use of fertilizers.

At the agricultural sector level, and in thepresence of an appropriate macroeconomicpolicy, a supportive agricultural marketing andpricing policy should facilitate efficient marketoperation and ensure competition. (If someindustries are natural monopolies, they willneed regulation.) Emphasis on competition inmarkets is key as competitive markets haveimportant efficiency advantages.

At the same time, as economic developmentleads to greater domestic and internationaleconomic interdependence and commercialactivity, new and improved methods of doingbusiness and of organising activity will beneeded to maximize the benefits of thiseconomic development.This will require aproactive and dynamic fertilizer policy.Thus,government still has a significant role to play inthe provision of public goods with a view tocreating and sustaining a market-friendlyenvironment through:

• legislation,• information,• infrastructure,• education,• research.

Some services may no longer be provided bybusiness and industry after liberalisation andmay have to be provided by government,either in a transition period or permanently.These include credit (especially inputs), sharingof risk and extension/education.

Output market development programmes cancontribute to fertilizer profitability by reducingfarmer’s risks and transaction costs.Theexpansion of market infrastructure can reducefarmers’ marketing costs and increaseprofitability, so promoting smallholder use offertilizer.

Some measures can improve fertilizer andoutput market efficiency simultaneously, suchas the reduction of road taxes within nationalboundaries and the improvement ofinfrastructure, especially roads andcommunications, as there is a strongcorrelation between fertilizer use andkilometres of road per hectare.

Future challenges and goals 5352 Fertilizer

Part 5: Future challenges and goals

5.2 Key areas of industryprogressIn general, the industry is environmentallyaware both in extraction, mining andproduction practices and in its holisticapproach to contributing towards sustainableagriculture and world food supply. But themove from awareness to action is not yetcomplete.

• Mining of raw materials continues to bedogged by many of the environmentalcommunity-relations issues which face allmining sectors – the importance ofrehabilitation, protection of water andother local environmental assets and socialimpacts on surrounding communities. Bestpractices have been widely adopted, butthere is always room for continualrefinement to achieve even better results.

• On the production side, the industry hasdeveloped best available techniques toencourage the conversion of older plants tonew technologies and the construction ofstate-of-the-art facilities. Greater energy-efficiency has been achieved, andsignificantly reduced emissions have resultedfrom the adoption of improved processingtechnologies instead of end-of-the-pipefixes. But this progress is uneven acrossgeographies, and some processes areapproaching theoretical limits of efficiency.

• The industry’s safety record is generallysuperior to that of the overall chemicalindustry.There have been very few majoraccidents to date. Incident reportingschemes allow member companies toexchange information on minor mishapsand encourages dissemination of bestpractice.

• In a limited number of places, the industryhas been instrumental in getting distributorand adviser certification schemes off theground.

• Regarding the effects of fertilizers in thefield, efforts have been made to ensure bestpractices which avoid the unwanted effectsof fertilizer use, but considering that one-third of the world’s population are farmers,many of them scattered in remote regions,projects to date have only managed toreach a limited number of farmers.

There are important driving factors whichjointly need to be overcome within a multi-stakeholder framework.These includeinfrastructure, differences between small-scalefarming and larger agro-industry enterprises,and the need for appropriate governmentpolicies, to name just a few.

The industry recognises the need toovercome and reduce environmental problemsand has made considerable progress to datewith a view to promoting the efficient use ofplant nutrients in agriculture. Some highlightsdiscussed in this report include:

• The industry has consistently invested incapacity-building in developing countries asdemonstrated, in part, by the partnershipcase studies in this report.

• The industry has pursued policies whichaddress consumption patterns. It attemptsto engage in a ‘mine-to-crop’ approach,through information and training, and hasdeveloped codes of best practice.Theindustry continues to advocate for – andsupport – farmer education and traininginitiatives.

• A number of techniques are used byagricultural scientists for reducing nitrate-leaching losses, including growing high-yielding crop varieties, deep placement andsplit application of nitrogen fertilizers, anduse of ammonium or amide fertilizers inaddition to adoption of Integrated PlantNutrient Systems (IPNS).The industrysupports such initiatives and funds researchand development (R&D).

Future challenges and goals 55

5.1 Policies for effective plantnutritionLong-term planning and monitoring of the useof plant nutrients and fertilizer must reconcilefour objectives:

• agronomic and economic efficiency tomaximise agricultural output from availablenutrients,

• increasing the production capacity of thenatural resource base,

• consistency with a country’s overalleconomic and environmental goals,

• safeguarding social security and equity forrural populations.

An agenda for effective policy should addressthe following topics:

• determining the balance between domesticfood production and food imports forcountries aiming at food self-reliance;

• assessing plant nutrient requirements;• choosing the sources and combination of

plant nutrient supplies;• determining domestic production and

imports of fertilizer products and rawmaterials;

• setting price levels for nutrients vis-à-vis theprice of produce;

• providing distribution marketing and creditfacilities, including adequate foreignexchange allocation;

• legislation;• supporting extension and research (access

to technology).

In the presence of an appropriatemacroeconomic setting and agricultural policy,increased fertilizer use can make a significantcontribution to achieving the objective ofguaranteeing and increasing food availability. Inrecent decades, input subsidies have boostedfertilizer adoption and use. However, due tothe economic distortions and high fiscalburden this approach involves, it cannot besustained indefinitely.

Other measures to improve farmers’ capacityto use fertilizer correctly and to facilitate theiraccess to it are important. However, in thelong run, fertilizer use will depend on whetherfarmers believe they will make more moneywith the fertilizer than with alternative uses ofthe available cash. If farmers can obtain stable,higher margins on the crops they currentlyproduce, or indeed change over to otherhigher value crops, then they will gain theconfidence to adopt and/or increase their useof an input whose purchase represents asignificant outlay for many of them.The termsof trade facing farmers should be improved toenable sustainable agricultural development.

It should be recognised that although theremay well be pressure for change, there willalso be resistance to it. Fertilizer policy iscomplex and politically very sensitive. It needsto be seen in the context of a much broaderset of issues.The goal, objectives and intendedbeneficiaries need to be clearly understoodand agreed on.The effects of the componentsof fertilizer policy and of changing them needto be understood in the context ofmacroeconomic and other sector policies andpossible changes therein.There is a need for acomprehensive, objective, quantitative analysisof the factors in/effects of current policy andvarious alternatives.

54 Future challenges and goals

Convinced that a communications failureabout food production could be devastating,one North American fertilizer producerrecently decided to be proactive and tell awide range of stakeholders what fertilizers areall about.The company was inspired to act bya poll of United States Congressional staffmembers which revealed that 70% did notknow the source of either the nitrogen orpotash that plants use, and 61% had no ideaabout phosphate’s origin.The resulting ‘FertileMinds’ campaign has included a symposiumand ‘mini-expos’ which allow discussionalongside traditional one-way communicationtools, like advertisements.There is also a Website at: http://www.fertile-minds.org.

This step reflects a growing awareness withinthe fertilizer industry of the need to directlyengage a wide range of stakeholders.

5.2.1.2 The International Agri-Food Network(IAFN)The establishment of IAFN in 1996 was a stepforward in international co-ordination for allparticipating sectors. It is an informal networkfor liaison among the professional organisationsin the agri-food chain at global level. IFA wasinstrumental in the creation of IAFN.

As a major group focal point, IAFN was theco-ordinating mechanism for the participationof business and industry at the eighth session

of the United Nation Commission onSustainable Development (CSD-8) in April2000. It continues to serve as the focal pointin the ongoing multistakeholder dialogue onagriculture mandated by CSD-8 and facilitatedby FAO.

Since the multistakeholder dialogue in April2000, the five major groups that participated(farmers, NGOs, indigenous people, businessand industry and trade unions) have beenworking with FAO to push forward discussionsabout solutions for Sustainable Agriculture andRural Development (SARD).The ongoingrelationships have proved extremely beneficialto constructive co-operation at theinternational policy level.

At international, regional and national levels,the fertilizer industry seeks continuingopportunities to meet with other businessgroups, government representatives, NGOs,consumers and other stakeholders. In somecases, these encounters are facilitated byinternational organisations like the UnitedNations Environment Programme (UNEP) orumbrella organisations like the InternationalChamber of Commerce (ICC).


• Some new and promising methods includethe use of nitrification inhibitors, and slow-release nitrogen fertilizers includingindigenous materials such as neem cake oroil-coated materials. However, technologyalone cannot prevent over-enrichment withnutrients, so the industry needs to remainactively involved in fostering farmingpractices which manage all nutrients withinthe system widely.

5.2.1 Building stakeholder relationshipsThe fertilizer industry consists of manyinterlocking organisations, institutes,programmes and associations, as well asindividuals. Each organisation or individual is tosome extent constrained in what he can dobecause part of the supply chain is outside hiscontrol.There is no common view of howsynergies can be created, nor is there anoutline of useful roles for each group so thattheir contribution adds to a collectivemovement in the direction of sustainabledevelopment.

The fertilizer industry cannot be considered inisolation. It is an important but not the onlyagricultural input, and the purpose of all theinputs is to enhance the production ofagricultural products.The market for the latteris subject to the demand of consumers.

At least 11 categories of institutions areinvolved.

1. Farmers’ associations. Given their very largenumbers, it is difficult to communicatedirectly with individual farmers, particularlysmall-scale farmers.

2. Fertilizer manufacturers and distributors.Different categories of company havedifferent strengths. For example,multinationals are strong in technology,while local companies have lower overheadand management costs and are closer tothe customer.

3. Fertilizer associations (national andinternational) can expand the

representation of their members andinfluence policy.

4. Other input suppliers and their associations– seeds, plant protection products.

5. The agricultural marketing sector, foodprocessors and retailers.

6. Banks and credit institutions.7. Educational establishments.8. National governments. Ministries of

agriculture and of environment and otherministries such as planning, health, labourcan play a regulatory role. Governmentalresearch and advisory services areparticularly relevant to the fertilizer sector.

9. Inter-governmental organisations.TheEuropean Commission, FAO, OECD, UNEP,UNIDO,World Bank and others can playimportant enabling roles.

10. Non-government organisations (NGOs).Certain NGOs have effective programmesfor small-scale farmers and good relationswith the government services.Environmental organisations should beinvolved. NGOs are relatively flexible andcan operate across national boundaries.

11. Donors (bilateral and multilateral).Thesecan support the high costs of providingaccess and capacity-building.

In the case of mineral fertilizers, there aremajor problems of underuse, overuse andmisuse, inadequate research and advisoryactivities. Neither business and industry norgovernments alone can resolve the problems.The participation and vision of the entiresupply chain is needed for sustainabledevelopment.

5.2.1.1 Talking about fertilizersCommunication by the fertilizer industry isincreasingly based on the premise that manypeople today are unaware of both the linkbetween the food in supermarkets and thefarmers who produce it and of the role offertilizers in that process.


Case study: Stakeholders andfertilizers in France

A good example of stakeholder involvementis the Ferti-Mieux operation in France,whereby under the government-establishedComité française d’étude et dedéveloppement de la fertilization raisonnée(COMIFER), rational fertilization is promotedby making use of all scientific, technical andpractical means. It is composed ofrepresentatives of public authorities and

educational establishments, farmers’organisations, fertilizer producers anddistributors.

Ferti-Mieux defines the steps to be taken inorder to obtain, in a given catchment area, aprogressive change in agricultural practicesthat would minimise the risk of pollutingwater. Participation is voluntary. In 1998 therewere 54 approved Ferti-Mieux operations,most of which are located in vulnerablezones as defined by the EU Nitrate Directive.

5.3.2 Ongoing support for agronomicresearchMindful that adjustments in the factory cannever address all sustainability issues, theindustry needs to continue fostering researchon how to best use mineral fertilizers under awide range of conditions.The industry alsoneeds to offer guidance to researchers onwhere there are gaps in scientific knowledgeabout the impact of fertilizers or on how toimprove their performance. Stakeholder inputwill also be important when designing researchquestions.

5.3.3 Education, training andinformationTraining programmes alone will not overcomethe sustainability challenges facing the fertilizerindustry, but ongoing industry involvement infarmer training, education and information isindispensable. Because of the nature of plantnutrition and soil science, fertilizers must beused in a very site-specific way. Bridging thegap between industry expertise, scientificunderstanding of soils and plant nutrition, andfarmers’ knowledge is therefore vital forachieving sustainable use of mineral fertilizers.

Farmers do not just need training on theeffective use of fertilizers.They need productand market information that allow them tomake intelligent decisions which areappropriate for their situation.They also needchannels for feeding their ideas and concernsback into the product development process.

As farmers’ organisations become strongerand more common in developing countries,they could also play a valuable role in ensuringthe flow of information in both directions.Thefertilizer industry must continue to buildrelationships with these groups. In some areaswhere the distribution system is poor, thesefarmers’ groups may even help ensure betteraccess to necessary input.

Large farmer co-operatives which producefertilizers in the Unitec States and India doprovide crop nutrition services rather thanacting simply as bulk commodity sellers. Inboth cases, subsidies currently play a large rolein the viability of providing this value-addedservice.

The retailer is well placed to give advice, butneeds to be informed, trained and motivatedand supported by appropriate policies.This isparticularly important in view of today’sliberalised markets. Certification may also bean important step to give a farmer anobjective way to recognise the legitimacy ofthe advice. In fact, it is probably a key wayforward. Such certification schemes alreadyexist in several mature fertilizer markets, andhave been set up with the support of thefertilizer industry.The fertilizer industry shouldundertake an initiative to generalisecertification throughout the world in comingyears.


5.3 Where does futureprogress need to be made?5.3.1 Product research anddevelopmentClearly one of the greatest unresolvedsustainability issues facing fertilizer producers isthe relative inefficiency of uptake of thenutrients from these products. Limitedresources of some nutrients make this anespecially pressing issue, but the impacts ofrunoff and leaching of unused nutrients alsoraise concerns.

This creates an imperative for improvedproducts which deliver nutrients moreefficiently, and minimise the potential for lossesto the environment. Some products alreadyexist. Slow- and controlled-release fertilizers aswell as nitrification and inhibitors canconsiderably reduce nitrogen losses to waterand to the atmosphere while at same timesignificantly improving fertilizer efficiency.However, there has been little significantchange in the fundamental nature of fertilizerproducts for decades. Due to economicconstraints, these more costly products areused primarily in horticulture at this time. (Riceproduction in Japan is a notable exception.)

Several obstacles must be overcome if productresearch and development is to take off.Fertilizers are mostly priced as commodities,which means that manufacturers are subject tounpredictable and normally low prices for theirproducts.Therefore the costly investment inresearch and development is relatively morerisky than in a high-growth industry.

Demand for these products also remainslimited.This is probably influenced both by thehigher price of speciality products and a lack ofappreciation on the part of farmers as to thereal economic and environmental costs offertilizer inefficiency. Public policy may helpovercome this stumbling block. For example,restrictions on the quantities of nitrogen thatfarmers are allowed to apply could incite them

to seek a better return per kilogram used,rendering the costlier but more efficientproducts more attractive.

It is a chicken-and-egg situation. Co-operativeapproaches for product development atindustry level are not feasible because theywould produce unfair market advantages forsome members of industry associations. Stateagencies no longer carry out this type ofresearch in the name of policy goals.Thisposes a fundamental dilemma about how toachieve this important step.

One caveat remains, however, no matter howwell formulated the products are, they muststill contain the basic plant nutrients: nitrogen,phosphorus and potassium as well as anumber of secondary and micronutrients.There are no other substances that can besubstituted.This means that even extremelysophisticated products may be misused.Technology innovation is a necessary, butinsufficient step towards sustainability.

Another key issue for research is the presenceof naturally-occurring contaminants in fertilizerraw materials. Most of the concerns aboutsuch unwanted substances are related to theenvironment. Processes exist for the removalof some impurities, but solutions to othersremain out of reach.The industry needs tocarry out more research to develop innovativenew processes for removing these impuritiesand disposing of them in an acceptablemanner.

At first glance, this type of research is purely acost centre, but the reality is more complexand should figure into industry thinking.Thefirst producer who finds a way to removesome of the impurities that cause concern willhave a market advantage for its products.Thetechnology itself could be licensed to othercompanies to generate income. Furthermore,finding uses for these waste products wouldturn them into resources and improve theoverall efficiency of the production process.


Annexe 2: Researchinstitutes affiliated withthe fertilizer industry

FADINAPESCAP Population, Rural & UrbanDevelopment DivisionUNITED NATION Bldg, Rajdamnern AvenueBangkok 10200ThailandTel: +66 2 288 1394Fax: +66 2 288 1056Web site: http://www.fadinap.org

Florida Institute of Phosphate Research1855 W. Main StreetBartow FL 33830United StatesTel: +1 863 534 7160Fax: +1 863 534 7165E-mail: [email protected] site: http://www.fipr.state.fl.us

IFDCP.O. Box 2040Muscle Shoals AL 35662United StatesTel: +1 256 381 6600Fax: +1 256 381 7408E-mail: [email protected] site: http://www.ifdc.org

Institute of Plant Nutrition and Soil ScienceFederal CentreBundesallee 5038116 BraunschweigGermanyTel: +49 531 596 2104Fax: +49 531 596 2199E-mail: [email protected] site: http://www.pb.fal.de

Instituto de Pesquisas Tecnológicas (IPT)Avenida Prof. Almeida Prado, 532Cidade Universitaria, Butanta05508-901 Sao Paulo, SPBrazilTel: +55 11 376 74 252Fax: +55 11 376 74 052E-mail: [email protected] site: http://www.ipt.br

International Fertilizer Society (The)P.O. Box 4York YO32 5YSUnited KingdomTel/Fax: +44 1904 492 700E-mail: [email protected] site: http://www.fertilizer-society.org

International Food Policy Research Institute(IFPRI)2033 K Street, N.W.Washington DC 20006 – 1002United StatesTel: +1 202 862 5670Fax: +1 202 467 4439Web site: http://www.ifpri.org

International Potash Institute (IPI)Schneidergasse 27P.O. Box 16094001 BaselSwitzerlandTel: +41 61 261 2922Fax: +41 61 261 2925E-mail: [email protected] site: http://www.ipipotash.org

Nutrient Management Institute B.V. (NMI)Agro Business Park 206708 PW WageningenThe NetherlandsTel: +31 317 479 620Fax: +31 317 479 621E-mail: [email protected] site: http://www.nmi-agro.nl

Annexe 2 61

Annexe 1: Abbreviations and acronymsADAS Agricultural Development Advisory Service (UK)AFA Arab Fertilizer AssociationAICC Association of Independent Crop Consultants (UK)ANDA Associação Nacional para Difusão de Adubos (Brazil)BAT Best Available Technique(s)BFDP The Balanced Fertilization Demonstration ProgrammeCCA Certified Crop Adviser (United States and Canada)CFI Canadian Fertilizer InstituteCDM Cleaner Development MechanismCOMIFER Comité français d’étude et de développement de la fertilization raisonnée (France)DEFRA Department for Environment, Food, and Rural Affairs (UK),EFMA European Fertilizer Manufacturers AssociationEMAS Environmental Management Assessment SystemEU European UnionFACTS An independent certification scheme for sellers and advisers on fertilizers.

Established in the UK in 1993FADINAP Fertilizer Advisory, Development and Information Network for Asia and the PacificFAI Fertilizer Association of IndiaFAO Food and Agriculture Organisation of the United NationsFert Research The New Zealand Fertilizer Manufacturers’ Research AssociationFMA Fertilizer Manufacturers’ Association (UK)GMI Global Mining Initiativeha HectareICRAF International Centre for Research in AgroforestryIAFN International Agri-Food NetworkIFA International Fertilizer Industry AssociationIFAD International Fund for Agricultural DevelopmentIFDC IFDC – An International Centre for Soil Fertility and Agricultural DevelopmentIPNS Integrated plant nutrient system(s)IPPC Integrated Pollution Prevention and Control DirectiveIFPRI International Food Policy Research InstituteISO International Organisation for StandardisationISFM Integrated soil fertility managementIMPHOS World Phosphate InstituteMt Million tonnesNAAC National Association of Agricultural Contractors (UK)NAPAEO The National Association of Principal Agricultural Education Officers (UK)NFU National Farmers’ Union (UK)OECD Organisation for Economic Co-operation and DevelopmentPDA Potash Development Association (UK)PPI Potash & Phosphate Institute Potash & Phosphate Institute of CanadaPPIC Phosphate Institute of CanadaQAFCO Qatar Fertilizer CompanyRTOP Reaching Towards Optimum Productivity project (Asia)SCODP Sustainable Community-Oriented Development Programme (Kenya)TFI The Fertilizer Institute (United States)UKASTA UK Agricultural Supply Trade AssociationUNEP United Nations Environment Programme

60 Annexe 1

Annexe 3 63

Potash & Phosphate Institute (PPI)655 Engineering DriveSuite 110Norcross, GA 30092-2837United StatesTel: +1 770 447 0335Fax: +1 770 448 0439E-mail: [email protected] site: http://www.ppi-ppic.org orhttp://www.ppi-far.org

Potash & Phosphate Institute of Canada (PPIC)Ste 704, CN TowerMidtown PlazaSaskatoon, SK S7K 1J5CanadaTel: +1 306 652 3535Fax: +1 306 664 8941

The Sulphur Institute (TSI)Suite 6121140 Connecticut Avenue N.W.Washington DC 20036United StatesTel: +1 202 331 9660Fax: +1 202 293 2940E-mail: [email protected] site: http://www.sulphurinstitute.org

World Phosphate Institute (IMPHOS) 3, rue Abdelkader Al Mazini3e EtageCasablancaMoroccoTel: +212 22 484 124Fax: +212 22 484 121E-mail: [email protected]

62 Annexe 2

Annexe 3: References

Al Haimi,Y, 1999 Implementation of environmental managementsystems ISO 14001 in QAFCO Arab Fertilizer Association – Abu QirWorkshop on Fertilizer Industry andEnvironment Protection, Alexandria, Egypt

Borlaug, N.E, 1994Supplement to Transactions 15th World Congress of Soil Science, Mexico

Bouwman, A, 2001 Global estimates of gaseous emissions of NH3,NO and N2O from agricultural landFAO (with IFA), Rome

Daberkow S, Poulisse, J and Vroomen, H. 1999 Fertilizer requirements in 2015 and 2030 In The Land, Journal of the International LandUse Society. 2: 101-122. Kent, United Kingdom

Dante, Edgar, 2000Summary results of the survey on fertilizermarketing costs and margins in Asia and thePacific In Agro-chemical News in Brief, July-September 1998. FADINAP, Quoted in Mineralfertilizer distribution and the environment, K.F.Isherwood, IFA (with UNEP), Revised edition,Paris, p. 13

Davis CG,Thomas, CY and Amponsah,WA,2001Globalization and Poverty: lessons from thetheory and practice of food security.In American Journal of Agricultural Economics83(3), American Agricultural EconomicsAssociation, Ames, Iowa

FAO, 2000Agriculture:Towards 2015/30Technical Interim Report

FAO (with IFA), 1999Fertilizer strategiesRevised edition, Rome

FAO, 1990Press Release, Rome

IFA, 1999Supplying plant nutrients for sustainableagriculture – life cycle approaches in the fertilizerindustryIn Industry and environment, UNEP, April –September 1999

IFA (with UNEP), 1998The fertilizer industry, world food supplies and theenvironmentRevised edition. Paris

Johnston, AE, 1995The efficient use of plant nutrients in agricultureIFA, Paris

IFA, 1992IFA World fertilizer use manualParis

IFPRI, 2001 2020 Global food outlook: trends, alternatives,and choicesInternational Food Policy Research Institute,Washington

IFPRI,1997The world food situation: recent developments,emerging issues and long-term prospectsInternational Food Policy Research Institute,Washington

Isherwood, KF, 2000aMineral fertilizer distribution and the environmentIFA (with UNEP), Paris

Isherwood, KF, 2000bMineral fertilizer use and the environmentRevised edition, IFA (with UNEP), Paris

Lægreid, M., Bøckman, OC, Kaarstad O, 1999Agriculture, fertilizers & the environmentCABI Publishing,Wallingford, United Kingdom

Leake A, 1999 On CWS Agriculture’s ‘Focus on FarmingPractice’ project, in M. Laegreid et al,Agriculture, fertilizers and the environmentCABI Publishing.Wallingford, United Kingdom

Leifert, C and Golden, Michael H, 2000A re-evaluation of the beneficial and other effectsof dietary nitrateMeeting, 28 November 2000,The InternationalFertilizer Society,York

L’hirondel, J and L’hirondel, J-L, 2002Nitrate and man: toxic, harmless or beneficial? CABI Publishing,Wallingford, United Kingdom

Lie, OH, 1997Meeting the environmental challenge – anindustrial perspectiveIFDC workshop on environmental challengesof fertilizer production – an examination ofprogress and pitfalls, September 1997, Atlanta

Loftas,Tony (ed.), 1995Dimensions of Need: An atlas of food andagricultureFAO. Rome

Maene, LM, 2000Efficient fertilizer use and its role in increasingfood production and protecting the environment6th Annual AFA International AnnualConference, January 2000, Cairo

Meister Publishers, 2001Improving balanced fertilizer useIn Farm Chemicals International, April 2001,Meister Publishers

Mellor, John W (ed.), 1995Agriculture on the road to industrialisationPublished for the International Food PolicyResearch Institute by Johns Hopkins UniversityPress, Baltimore

Park, Murray, 2001The Fertilizer industryWoodhead Publishing Ltd, Cambridge, UnitedKingdom

Pieri, Christian, 1998Soil fertility improvement as a key connectionbetween sustainable land management and ruralwell being16th World Congress of Soil Science, August1998, Montpellier, France

Smil,Vaclav; 2001Enriching the Earth: Fritz Haber, Carl Bosch andthe transformation of world food productionMIT Press, Cambridge, Massachusetts

Smil,Vaclav; 1999Long-range perspectives on inorganic fertilizers inglobal agricultureTravis P. Hignett Lecture, IFDC, Muscle Shoals,Alabama

United Nation, 2001Implementing Agenda 21Report of the Secretary-General, UnitedNations Economic and Social Council. NewYork

64 Annexe 3

• consulting engineering• electricity• fertilizer• finance and insurance• food and drink• information and

communications technology• iron and steel

• oil and gas• railways• refrigeration• road transport• tourism• waste management• water management

• accounting• advertising• aluminium• automotive• aviation• chemicals• coal• construction

UNEP contribution to the World Summit on Sustainable Development

The mission of the United Nations Environment Programme (UNEP) is to provide leadership andencourage partnerships in caring for the environment by inspiring, informing, and enabling nations andpeoples to improve their quality of life without compromising that of future generations. The UNEPDivision of Technology, Industry and Economics (DTIE) contributes to the UNEP mission byencouraging decision-makers in government, business, and industry develop and adopt policies, strategiesand practices that are cleaner and safer, make efficient use of natural resources, ensure adequatemanagement of chemicals, incorporate environmental costs, and reduce pollution and risks for humansand the environment.

This report is part of a series facilitated by UNEP DTIE as a contribution to the World Summit onSustainable Development. UNEP DTIE provided a report outline based on Agenda 21 to interestedindustrial sectors and co-ordinated a consultation process with relevant stakeholders. In turn,participating industry sectors committed themselves to producing an honest account of performanceagainst sustainability goals.

The full set of reports is available from UNEP DTIE’s web site (http://www.uneptie.org/wssd/), whichgives further details on the process and the organisations that made it possible.The following is a list ofrelated outputs from this process, all of which are available from UNEP both in electronic version andhardcopy:

- industry sectoral reports, including

- a compilation of executive summaries of the industry sectoral reports above;- an overview report by UNEP DTIE;- a booklet including an extended version of the executive summary of the UNEP overview report;- a CD-ROM including all of the above documents.

UNEP DTIE is also contributing the following additional products:- a joint WBCSD/WRI/UNEP publication entitled Tomorrow’s Markets: Global Trends and Their

Implications for Business, presenting the imperative for sustainable business practices;- a joint WB/UNEP report on innovative finance for sustainability, which highlights new and effective

financial mechanisms to address pressing environmental, social and developmental issues;- two extraordinary issues of UNEP DTIE’s quarterly Industry and Environment review, addressing key

regional industry issues and the broader sustainable development agenda.

More generally, UNEP will be contributing to the World Summit on Sustainable Development withvarious other products, including:

- the Global Environmental Outlook 3 (GEO 3), UNEP’s third state of the environment assessmentreport;

- a special issue of UNEP’s Our Planet magazine for World Environment Day, with a focus on theInternational Year of Mountains;

- the UNEP photobook Focus on Your World, with the best images from the Third InternationalPhotographic Competition on the Environment.

industry as a partner for sustainable development fertilizer

Documents