an overview of fertilizer situation in the context of food crises market friendly ways to address...
Post on 14-Dec-2015
217 Views
Preview:
TRANSCRIPT
An overview of fertilizer An overview of fertilizer situation in the context of situation in the context of
food crisesfood crises
Market friendly ways to Market friendly ways to address fertilizer access by address fertilizer access by
farmersfarmers
World fertilizer pricesWorld fertilizer prices
OutlookOutlook
• Fertilizer prices cannot be expected to fall Fertilizer prices cannot be expected to fall until a new investment cycle reaches fruition until a new investment cycle reaches fruition and supply again matches demand. Even and supply again matches demand. Even then, after 3 or 4 years, nitrogen fertilizer then, after 3 or 4 years, nitrogen fertilizer prices will remain high if the energy prices prices will remain high if the energy prices continue to hover at their current level. continue to hover at their current level.
• Similarly, phosphate fertilizers, particularly Similarly, phosphate fertilizers, particularly diammonium phosphate (DAP), will remain diammonium phosphate (DAP), will remain high due to higher costs of quality phosphate high due to higher costs of quality phosphate rock and sulfur. rock and sulfur.
Grain pricesGrain prices
Cereal yields in different Cereal yields in different regionsregions
Per-Hectare Fertilizer Use by Markets Per-Hectare Fertilizer Use by Markets
and Economic Regions, 2005/06 (kg/haand Economic Regions, 2005/06 (kg/ha))
177
165
158
127
109
109
105
99
96
90
85
64
62
42
24
24
7Sub-Saharan Africa
Eurasia
Africa
South Africa
Oceania
Central America
Developed Countries
Latin America
North America
South America
North Africa
United States
World
Developing Countries
Eastern Europe
Western Europe
Asia
Developing Markets Developed Markets
Transitional Markets Economic Regions
World
Intervention strategyIntervention strategy
• Farmers access to improved seed and fertilizer at Farmers access to improved seed and fertilizer at affordable prices together with technology adoption, affordable prices together with technology adoption, human capacity improvement, and access to trade human capacity improvement, and access to trade credit provide the most rapid means of productivity credit provide the most rapid means of productivity response and supply chain development and are response and supply chain development and are appropriate to this crisis situation.appropriate to this crisis situation.
• Supply chain infrastructure investment in research, Supply chain infrastructure investment in research, transportation, and services are also required but are transportation, and services are also required but are longer term in nature.longer term in nature.
• The objective of any fertilizer crisis intervention should The objective of any fertilizer crisis intervention should now be to attempt to at least maintain fertilizer use at now be to attempt to at least maintain fertilizer use at previous levels while encouraging or at least not previous levels while encouraging or at least not disrupting progress made toward competitive market disrupting progress made toward competitive market system build over years with donors investment system build over years with donors investment
Fertilizer Price in KyrgyzstanFertilizer Price in Kyrgyzstan
Fertilizers importation through Fertilizers importation through private sectorprivate sector
102030405060708090
100
2006 2007 2008 Janyary-June Fertilizer 83,7 84,5 95
83,7 84,595
10
00
/Mt
Quantity of imported fertilizers to Kyrgyzstan
Fertilizer Requirements for Fertilizer Requirements for Kyrgyzstan-2008 in MtKyrgyzstan-2008 in Mt
2008 Requirements: 2008 Requirements: 228,500 228,500
Breakdown by types of fertilizer:Breakdown by types of fertilizer:
• Nitrogen- 133,000 Nitrogen- 133,000
• Phosphate- 59,000 Phosphate- 59,000
• Potassium- 36,000Potassium- 36,000
Imported: 95,000 (41, 6% of needs)Imported: 95,000 (41, 6% of needs)
Negative balance: Negative balance: 133,500133,500
Sustainable land Sustainable land managementmanagement• Sustainable land management can only be achieved Sustainable land management can only be achieved
through the judicious use of both organic and through the judicious use of both organic and inorganic fertilizer materials. inorganic fertilizer materials.
• Integrated Soil Fertility Management (ISFM) practices Integrated Soil Fertility Management (ISFM) practices implemented by IFDC in different parts of the World implemented by IFDC in different parts of the World has demonstrated that when smallholder farmers has demonstrated that when smallholder farmers utilize locally available organic matter and apply utilize locally available organic matter and apply sufficient plant nutrients in the form of mineral sufficient plant nutrients in the form of mineral fertilizers, threefold increases in crop yields can be fertilizers, threefold increases in crop yields can be obtained in a cost-effective manner with value: cost obtained in a cost-effective manner with value: cost ratios above 3.5 and farm incomes increased by 70%.ratios above 3.5 and farm incomes increased by 70%.
Integrated Soil Fertility Management: Effect Integrated Soil Fertility Management: Effect of Integrated Use of Fertilizer and Soil of Integrated Use of Fertilizer and Soil Amendments Improves in TimeAmendments Improves in Time
t/hat/haISFM
control
year
www.ifdc.org
Wheat fields with no and fertilizer Wheat fields with no and fertilizer applicationapplication
Fertilizer and yields of main Fertilizer and yields of main cropscrops
Fertilizer and Farmers’ Fertilizer and Farmers’ incomesincomes
Evolution of Maize Yield in Maize+NPK/ + Crop Rotation Schemes
0
1000
2000
3000
4000
5000
6000
7000
8000
2005 2006 2007
Evolution of Wheat Yield in Wheat+NPK/ + Crop Rotation Schemes
0
1000
2000
3000
4000
5000
6000
7000
2005 2006 2007
Suggestions:Suggestions:
• More investment (both short and More investment (both short and long term) is needed by donors to long term) is needed by donors to address agri input shortage and address agri input shortage and further develop input marketsfurther develop input markets
• Food crises should not be considered Food crises should not be considered out the context of long term out the context of long term agricultural development in agricultural development in KyrgyzstanKyrgyzstan
Market friendly approaches to address Market friendly approaches to address fertilizer shortage in short term run-fertilizer shortage in short term run-VouchersVouchers• Input voucher programs are a pro-poor, Input voucher programs are a pro-poor,
market-friendly means of providing either market-friendly means of providing either direct “market-smart” subsidies or crop direct “market-smart” subsidies or crop production credit to resource-poor farmers production credit to resource-poor farmers or ensuring emergency market recovery or ensuring emergency market recovery
• Integral characteristics of voucher Integral characteristics of voucher programs are the provision of technical programs are the provision of technical assistance and training to both the assistance and training to both the recipient farmers and private sector agro-recipient farmers and private sector agro-dealers and the targeting of voucher dealers and the targeting of voucher recipients. recipients.
• The vouchers are not used just to supply The vouchers are not used just to supply free or subsidized fertilizer or other inputs free or subsidized fertilizer or other inputs
Suggestion for long term Suggestion for long term investment in fertilizer sectorinvestment in fertilizer sector• Feasibility study in construction a Feasibility study in construction a
Nitrogen fertilizer plant in southern Nitrogen fertilizer plant in southern KyrgyzstanKyrgyzstan
• Building a fertilizer blending facility Building a fertilizer blending facility (Blended fertilizer in addition to higher (Blended fertilizer in addition to higher nutrient values is cheaper on nutrient nutrient values is cheaper on nutrient basis)basis)
• Phosphate rock deposits (Studies and Phosphate rock deposits (Studies and analysis done by IFDC)analysis done by IFDC)
Thank you!Thank you!
top related