Monday, February 15, 2010

Any old amount is not good enough…..

Fertco advocates heavy use of customising fertiliser requirements to exactly what farmers need – not willy nilly spread as much as you can philosophies….. this is important for both the farm and environment…. here’s why.

China using 'mind blowing' amount of fertiliser

Ecologist

14th February, 2009

Overuse of nitrogen fertilisers in China is leading to rapid soil acidification and is causing lasting damage to ecosystems, according to soil study

Nitrogen fertilisers used to increase crop yields in China are having ‘extreme’ environmental consequences, according to a study from leading soil scientists.
Scientists from China, the UK and the United States measured the pH of soil samples taken from agricultural land across China in the 1980s and 2000s and found widespread acidification caused by nitrogen fertilisers.
On average, the pH of soil across the country had decreased by 0.5 in 20 years. In parts of Hunan province, in south China, the pH of the soil had dropped to between 3 and 4.
Most crops are suited to a neutral range between pH 6 and pH 8.

Intensification drive
Dr Goulding, head of soil science at Rothamsted Agricultural Research Centre, said Chinese farmers had been encouraged to use more fertilisers to drive up yields, but had not been warned about the risks.

‘The message from the Chinese government was very simple: put nitrogen fertiliser on your crops and get more yield. The result in many parts of the country is extreme acidification,’ said Goulding.
Professor Peter Vitousek of Stanford University, who worked on the study, said the amount of fertiliser being used in China was ‘mind-blowing.’
‘Whereas on a grain farm in Illinois, an average of 200 kg of nitrogen fertiliser are being used per hectare, on a maize farm in China that could be as much as 800 kg per hectare.
‘More than half of that is not going into the crop: instead it's having grave environmental consequences downwind and downstream,’ he said.

Cutting fertiliser usage

Professor Vitousek said the research had shown that farmers could cut the amount of nitrogen fertilisers used almost in half without affecting yields.
'This would be an absolute benefit to the environment and farmer costs,’ he said.

Sunday, February 14, 2010

Emerging Markets view…. fertiliser

VALE Is Expanding Into Fertilizers With $1bn Stake in Fosfertil (Equities Analysts view)

This is great news. Our favorite mining company in addition to a dominant position in the iron ore markets they have deftly expanded into other minerals and now fertilizers. Vale’s Finance Director, Fabio Barbosa, stated, “Our perception is that the rapid per capita income growth in emerging markets will have a big impact on demand for protein, so there will be a structural shift in the demand for [fertiliser] which has only limited supply.” Per capita income growth in big emerging economies is the theme song for all of our investments!  As investors, we can buy better value at a better price and lower risk than developed markets.

It will also be very interesting to see if Vale begins purchasing their own ships in order to deliver ore to spot markets instead of relying on customers to collect.

Wednesday, February 3, 2010

Fonterra Invests In China

Fonterra has announced that it intends to invest in two more dairy farms in China to continue growing a high quality and secure supply milk on the ground.

Philip Turner, Managing Director for Fonterra China, said that the Chinese dairy industry is continuing to develop quickly but that the current supply of high quality fresh milk cannot keep up with demand.

“We are looking to help grow a safe, secure and sustainable milk supply in China in order to meet this demand and expand our customer base.”

The China dairy market is set to become the world’s largest dairy market in the next few decades and is forecast to experience double digit annual growth over the next 10 years. The Chinese Government has acknowledged that the development of the dairy farming industry is not only crucial for meeting the growth in demand, but also for developing rural communities and their livelihoods.

Mr Turner said Tangshan Fonterra Farm, Fonterra’s pilot farm in Hangu established in 2007, had succeeded in demonstrating that Fonterra can successfully produce New Zealand standard milk in China. It has reached target production levels ahead of timetable and is producing record levels of milk for China.

“We are confident that with further investment in good technology, people and high quality genetics, we can replicate this model on further farms. This will complement our New Zealand milk supply and help us better meet the needs of our key customers, who are increasingly looking for local sourcing capability.”

Fonterra has identified several possible sites for the new farms in Hebei Province and will consider partnering on the investment. However, Mr Turner said Fonterra would want to have full management of the farms.

“It is important that we keep the next two farms in close proximity to Tangshan Fonterra Farm in order to achieve efficiencies in transport, milk supply and Fonterra management.”

Mr Turner said due diligence was already underway and the aim was to complete the final long-term lease agreement by mid-2010.

Tangshan Fonterra Farm is already producing its second generation of China born heifers, following two successful rounds of calving since the farm was first established. The total herd has grown to nearly 5800 cows, around half of which have been raised from the original imported herd of Friesians.

Each of the new farms is planned to be of similar size to Hangu, with around 35 hectares of land and around 3300 milking cows, creating employment and training opportunities for 350 people in Hebei Province.

Tangshan Fonterra Farm manager and experienced veterinarian Todd Meyer said the second round of calving was proof that Fonterra had successfully adapted the New Zealand-quality herd to the farming environment in China.
“We couldn’t have asked for a better result. We have introduced new China-born blood into our herd and are meeting our production targets for high quality local milk.”

TheCattleSite News Desk

Friday, December 25, 2009

Tuesday, December 15, 2009

Sharp fall in use of P and K

 

15 December 2009

THE latest figures from fertiliser trade organisation the International Fertilizer Industry Association indicates farmers in several countries have been postponing applications of phosphorus and potassium in response to the current volatility in grain and input prices.

According to the IFA, total consumption in 2008/09 was down 6.7 per cent, to 156.4 million tonnes of nutrients for the three main nutrients NP and K.

Consumption is estimated to have contracted much more sharply for P and K fertilisers, down 10.5 and 19.8 per cent, respectively, than for N, which was only down 1.5 per cent.

Demand increased in South Asia and Eastern Europe and Central Asia, remained fairly stable in Africa and declined in all other regions. Some of the largest changes in volumes occurred in Western and Central Europe – down 4.3mt and North America – down 3.4 mt.

The IFA is forecasting a recovery in N use in 2010, a small increase in P consumption and a continuing decline in K consumption.

Saturday, December 12, 2009

Fertiliser industry aims to reduce CO2 emissions

 

| Sourced From Commodityonline.com |

PARIS (Commodity Online): The International Fertilizer Industry Association (IFA) has mooted a life-cycle approach encompassing fertiliser production, transport and use to reduce the impact of the industry on climate change.

A white paper, “Fertilizers, Climate Change and Enhancing Productivity Sustainably” provides a review of the impact of fertiliser industry, both negative and positive, on climate change.

The fertilizer life-cycle accounts for 2 to 3% of total global greenhouse gas (GHG) emissions. Yet, nitrogen fertilizers are estimated to contribute to feeding as much as half of the world’s population. As agricultural production rises to meet food, feed, fibre and bioenergy demand worldwide, fertilizer use will also increase. Climate change creates an imperative for the fertilizer industry to contribute to mitigation and adaptation in order to achieve a more sustainable path to global food security. Increasing agricultural productivity, through efficient fertilizer use, is critical to prevent further deforestation, protect biodiversity, and thus reduce the emissions level per unit of agricultural output.

The fertilizer industry recognizes that it contributes directly and indirectly to GHG emissions, particularly carbon dioxide (CO2) and nitrous oxide (N2O) and it has set as a priority to reduce them. The technology and knowledge is available to achieve significant reductions. Some of the current solutions include: Improving the management of operations using Best Production Techniques, in order to reduce energy consumption and direct GHG emissions in natural gas-based ammonia production, which carries the largest share of the industry’s emissions. IFA estimates that the potential energy savings could reach 15% globally.
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Utilizing state-of-the art technology, such as secondary N2O abatement catalysts in nitric acid production. Energy savings could reach more than 25% (and possibly 40% if Best Available Techniques become the norm).

The improved performance in all manufacturing processes has an emissions reduction potential of up to about 120 Tg CO2-equivalent per year. Future Carbon Capture and Storage technology may add some 100 Tg CO2-equivalent in coal-based ammonia production facilities (principally in China).

The fertilizer industry has an economic rationale and direct control over the performance of its production facilities. However, the production of fertilizers accounts for less than 1% of total GHG emissions and fertilizer use for 1.5%. The industry is helping farmers to reduce emissions by sharing knowledge, products and technologies to improve the efficiency of fertilizer use in the field. IFA has developed a global framework for Fertilizer Best Management Practices, in partnership with policymakers, scientists, extension agents and farmers, to ensure that an ever-growing number of farmers uses the 4R approach: Right Product @ Right Rate, Right Time, Right Place. Good agricultural practices are essential in order to minimize unwanted impacts of intensified agriculture. In addition, judicious fertilizer use helps increase cultivated soil carbon reserves by increasing the photosynthetic conversion of CO2 to biomass that is subsequently converted to soil organic matter. The paper notes the potential gain of soil carbon sequestration on degraded soils, such as in much of Sub-Saharan Africa.

Fertilizer production and agriculture are both truly global businesses. Policy decisions related to climate change need to take into account local conditions and the possibility of trade substitution (which could lead to “carbon leakage”). Otherwise, competitiveness could be distorted and emissions reduction targets could be undermined. Appropriate and timely policy decisions are critical to ensure desired emissions reductions. They should recognize early adopters and providers of improved technologies in order to encourage appropriate investments in the near term. Financing mechanisms need to address barriers to technology adoption. They also need to take into account the specific needs of agriculture.

Efforts by the fertilizer industry to take responsibility for its greenhouse gas emissions can only be fully effective if policymakers and other stakeholders, such as farmers, also play their part. The critical goals of protecting food security, reducing poverty and fighting climate change must coexist. The fertilizer industry, along with other members of civil society, calls on governments to include agriculture in the post-Kyoto negotiations that will take place in December in Copenhagen. (Courtesy:PRWeb)