An overview of fertilizer situation in the context of food crises

1
An overview of fertilizer situation in the
context of food crises

• Market friendly ways to address fertilizer access
  by farmers

2
World fertilizer prices
3
Outlook

• Fertilizer prices cannot be expected to fall
  until a new investment cycle reaches fruition and
  supply again matches demand. Even then, after 3
  or 4 years, nitrogen fertilizer prices will
  remain high if the energy prices continue to
  hover at their current level.
• Similarly, phosphate fertilizers, particularly
  diammonium phosphate (DAP), will remain high due
  to higher costs of quality phosphate rock and
  sulfur.

4
Grain prices
5
Cereal yields in different regions
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Per-Hectare Fertilizer Use by Markets and
Economic Regions, 2005/06 (kg/ha)
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Intervention strategy

• Farmers access to improved seed and fertilizer at
  affordable prices together with technology
  adoption, human capacity improvement, and access
  to trade credit provide the most rapid means of
  productivity response and supply chain
  development and are appropriate to this crisis
  situation.
• Supply chain infrastructure investment in
  research, transportation, and services are also
  required but are longer term in nature.
• The objective of any fertilizer crisis
  intervention should now be to attempt to at least
  maintain fertilizer use at previous levels while
  encouraging or at least not disrupting progress
  made toward competitive market system build over
  years with donors investment

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Fertilizer Price in Kyrgyzstan
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Fertilizers importation through private sector
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Fertilizer Requirements for Kyrgyzstan-2008 in Mt

• 2008 Requirements 228,500
• Breakdown by types of fertilizer
• Nitrogen- 133,000
• Phosphate- 59,000
• Potassium- 36,000
• Imported 95,000 (41, 6 of needs)
• Negative balance 133,500

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Sustainable land management

• Sustainable land management can only be achieved
  through the judicious use of both organic and
  inorganic fertilizer materials.
• Integrated Soil Fertility Management (ISFM)
  practices implemented by IFDC in different parts
  of the World has demonstrated that when
  smallholder farmers utilize locally available
  organic matter and apply sufficient plant
  nutrients in the form of mineral fertilizers,
  threefold increases in crop yields can be
  obtained in a cost-effective manner with value
  cost ratios above 3.5 and farm incomes increased
  by 70.

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Integrated Soil Fertility Management Effect of
Integrated Use of Fertilizer and Soil Amendments
Improves in Time

• t/ha

ISFM
control
year
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Wheat fields with no and fertilizer application
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Fertilizer and yields of main crops
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Fertilizer and Farmers incomes
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Evolution of Maize Yield in MaizeNPK/ Crop
Rotation Schemes
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Evolution of Wheat Yield in WheatNPK/ Crop
Rotation Schemes
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Suggestions

• More investment (both short and long term) is
  needed by donors to address agri input shortage
  and further develop input markets
• Food crises should not be considered out the
  context of long term agricultural development in
  Kyrgyzstan

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Market friendly approaches to address fertilizer
shortage in short term run-Vouchers

• Input voucher programs are a pro-poor,
  market-friendly means of providing either direct
  market-smart subsidies or crop production
  credit to resource-poor farmers or ensuring
  emergency market recovery
• Integral characteristics of voucher programs are
  the provision of technical assistance and
  training to both the recipient farmers and
  private sector agro-dealers and the targeting of
  voucher recipients.
• The vouchers are not used just to supply free or
  subsidized fertilizer or other inputs

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Suggestion for long term investment in fertilizer
sector

• Feasibility study in construction a Nitrogen
  fertilizer plant in southern Kyrgyzstan
• Building a fertilizer blending facility (Blended
  fertilizer in addition to higher nutrient values
  is cheaper on nutrient basis)
• Phosphate rock deposits (Studies and analysis
  done by IFDC)

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Thank you!