Agricultural and Fertilizer Innovation
Ensuring Global Food and Nutrition
Security
The International Economic Forum of the Americas
Montreal, Canada
June 9-12, 2014
Patricio Contesse G.
Chief Executive Officer
SQM S.A.
1

Sources: IWMI, Foresight, WRI, CIA, World Bank, FAO, ILO

Converging challenges to global agriculture

Food security and meeting a growing demand
 Feed
2
billion more people by 2050
 Still
850
million hungry
 Increasing demand for livestock products
 Competing demand for feedstock for biofuels / bioenergy
60
% increase in total agricultural production (latest
FAO projection)
Increase yields and cropping intensity: 90% of the anticipated gain
Greater (and more efficient) use of fertilizers (and other nutrient sources)
Industry responds through heavy investments in additional capacity

“ Fertilizer is the world’s most important humanitarian product”…. Andrew Youn, One Acre Fund

1. Improved crop varieties
2. Manufactured fertilizers
3. Irrigation and other technologies
’Green Revolution’…agricultural innovation

Adoption of existing technologies
• Access to inputs
 • Access to knowledge

Right Product
Soil testing
N, P, K, secondary and micronutrients
Enhanced-efficiency fertilizers
Nutrient management plans
Right Time
Application timing
Controlled-release technologies
Inhibitors
Fertilizer product choice
Right Place
Application method
Incorporation of fertilizer
Buffer strips
Conservation tillage
Cover cropping
Right Rate
Soil testing
Yield goal analysis
Crop removal balance
Nutrient management planning
Plant tissue analysis
Applicator calibration
Crop scouting
Record keeping
Variable rate technology
Site-specific management

 Developing countries account for 2/3 of world consumption
 Inefficient ‘conventional’ governmental extension services
 Hundreds of million smallholder farmers are not satisfactorily advised on fertilizer management
 poor use efficiency
 Develop solutions to supplement extension workers

Develop common knowledge platform to ensure consistent messages

Train agri-input dealers to provide agronomic advice

Innovation: new products with added value
Slow- and controlled release fertilizers
Fertilizers supplemented with micronutrients
Stabilized fertilizers
Soluble / liquid fertilizers
(fertigation, foliar sprays)
 Mostly used on specialty crops

 Constrained by price differential
New products could alleviate the price constraint
 Virtual Fertilizer Research Center
(launched in 2010 by IFDC): Creating the next generation of fertilizers

Fertilizing crops to improve human health
Enriching fertilizers with micro-nutrients = macro effect
Zn
Se
• Turkey
Zinc-enriched fertilizers for wheat crops
• Finland
Selenium-enriched fertilizers fighting cardio-vascular disease
• China
Iodine-enriched fertigation
Micronutrient-enriched fertilizers
(agronomic biofortification) to fight malnutrition

Bio-Fortification Process
Iodine, Zn, Se, Fe ENRICHED
FERTILIZER SOLUTION
READILY BIOAVAILABLE
AND ASSIMILATED Iodine,
Zn, Se, Fe
Through roots
Iodine, Zn, Se, Fe UPTAKE
Iodine, Zn, Se, Fe
BIOFORTIFIED FOOD
Through leaves
(foliar applied)

 INNOVATION: Research and develop new products and best management practices
 PARTNERSHIPS: Develop new business models for emerging markets
 FARMERS: Cooperate in innovative extension services – effective outreach and last-mile delivery