FERTILISER BLENDS, A LOCAL INDUSTRY

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1 March 2017 Published by FERTILISER BLENDS, A LOCAL INDUSTRY FOR PRECISION FARMING AFCOME is a professional association that brings together cooperatives and private companies working in the field of fertiliser distribution and blending. Through its members, AFCOME today accounts for some 75% of the market for mineral fertilisers distributed in France, i.e. almost 6 million tonnes, including 600,000 tonnes of fertiliser blends. In a spirit of responsible product management, it contributes to user safety. Committed to sustainable agriculture, it promotes an effective and environmentally friendly fertilisation. ABEAN was created to improve the access of the European stakeholders to the nutrients that are essential to crops growth. Its members include 1,000,000 farmers, 3,000 fertiliser distributors and cooperatives, 700 blenders and compound fertiliser plants and logistic operators. They have decided to join ABEAN having realised that the European agricultural competitiveness could be improved through better access to nutrients: better quality fertilisers, secured availability and a fair price compared to other major agricultural regions with whom European farmers compete. Contributors:

2 INTRODUCTION The European agricultural sector is today facing a dual challenge, both economic and environmental: On the one hand, the economic situation of farmers forces them to provide the accurate dose of nutrients required by soils and crops. On the other, the drive of farmers, public authorities and citizens to limit the environmental effects of agriculture also encourages precision fertilisation. WHAT ARE BLENDED FERTILISERS? Compound fertilisers associate multiple raw materials to constitute formulas providing: Primary nutrients: nitrogen (N), phosphorus (P), potassium (K), Secondary nutrients: calcium (Ca), sulphur (S), magnesium (Mg), sodium (Na), Micro nutrients: iron (Fe), manganese (Mn), molybdenum (Mo), copper (Cu), boron (B), zinc (Zn), cobalt (Co). Three major categories of compound fertilisers exist according to the industrial production process: 1. Blended fertilisers: granular fertilisers are mixed together using the bulkblending technique. The blending unit is an industrial site where raw materials are delivered, often in bulk. Once controlled they are stored, shaped and assembled. 2. Compound fertilisers obtained through clustering or compacting: the different raw materials in solid and powder forms are thoroughly blended by pressurisation then the fertiliser is granulated for a homogenous composition and appearance. 3. Compound fertilisers obtained through chemical reactions between phosphate rock, ammonia, nitric, sulphuric and phosphoric acids, potassium chloride and/or sulphate. 2

3 A MAJOR OPPORTUNITY FOR FARMERS Compound fertilisers make it possible to cover all the nutritional requirements (N, P, K, Mg, S, Fe ) of the crops. The farmer saves time by providing all the nutrients at once, while machine, labour and fuel costs are reduced. Compound fertilisers make it possible to offer custom-made fertilisation: providing what is strictly necessary in the right place at the right time according to the crops, climates, soil types and intermittent deficiencies in nutrients. Bulk blending is the industrial process which provides the greatest flexibility in the design of formulas, a factory being able to: Manufacture up to 400 different formulas with an industrial tool where recalibration takes some minutes to switch from one formula to another. By way of comparison, a complex fertiliser factory using chemical reactions can only make 5 to 8 formulas, usually standard formulas such as NPK Offer small quantities by formula 5 to 20 tonnes at least to meet the specific nutrient needs of a particular plot or farmer [appendix 1]. Blended fertilisers are an excellent solution to vary doses between plots, or even within each plot [appendix 4]. Provide specific fertilisers for some crops (e.g. market gardening, linen, potato, beetroot, pastures ) for which there are no alternatives to blended fertilisers [appendix 1]. Provide more nutrient-concentrated fertilisers if necessary, in order to optimise the number of agricultural machine passes, labour and fuel costs. Offer very soluble fertilisers where nutrients are immediately absorbable by roots, especially phosphorus. Blended fertilisers allow for optimised fertilisation. Cooperatives and businesses are increasingly including soil mapping, analysis of nutritional requirements (sensors, drones ), formulation of recipes adapted to the needs of the plot, and the production of blends and their delivery. About 80% of the fertilisers consumed in the United States and Brazil are blended fertilisers, which constitutes a major competitive advantage for the agricultural sectors of these countries. Blended fertilisers have an excellent price/performance ratio. Blending is a strong value-adding operation for farmers and it is also inexpensive, costing between 10 to 15 Euros per tonne of finished product. The European cereals sector, which is mainly export-oriented, is facing increased competition (Brazil, USA, Russia, Ukraine ) and international prices which are increasingly close to cost prices. 3

4 MORE ENVIRONMENTALLY-FRIENDLY FERTILISATION The agricultural sector is facing the challenge of limiting the impact on the environment as much as possible while, at the same time, meeting the increasing global demand for foodstuffs. In order to maintain and even increase yields and crop quality, it is essential to provide soils with the required nutrients (N, P, K, Mg, S, Fe ). Blended fertilisers allow for efficient and environmentally-friendly fertilisation, mindful of sustainable agriculture. Indeed: As the crop s nutritional requirements are entirely included in the formula, the farmer only needs one tractor pass for fertilisation. This significantly reduces the CO2 emissions resulting from using mechanised units. ADEME s report Les sols portent notre avenir (Soils carry our future, 2015) recommends reduc[ing] fertiliser applications to the strict minimum. The blends, along with the mapping of the requirements of soils and crops, make it possible to provide the right nutrients, at the right place and the right time, in the optimised proportions. The production of blended fertilisers does not emit any pollution in the atmosphere or in the soils, contrary to the production of straight fertilisers or compound fertilisers produced through chemical reactions. It is a clean industry since the raw materials used are already in a solid state and do not emit waste during the industrial process. The energetic consumption for the production of blended fertilisers is 0.5 kw per tonne whereas that of compound fertilisers produced through chemical reactions amounts to 70 kw per tonne, which is 140 times greater. The proximity between the consumption and the production sites drastically reduces CO2 emissions resulting from the transportation of finished goods, while the raw materials are often routed by sea. The average distance between the blending units and the farm is shorter than 50km. A HIGH ADDED-VALUE AND NON-RELOCATABLE INDUSTRY The blending unit is an industrial site where raw materials are received most often in bulk. The production process consists of several successive steps: Raw material inspection: samples are collected and sent to laboratories for analysis of nutrients, grain size, density or presence of heavy metals. Storage of raw materials in compliant concrete compartments. These require regular maintenance to manage moisture and corrosion associated with certain raw materials. The treatment of soils and concrete walls using special acid and base resistant paints allows for the optimisation of maintenance costs [appendix 1]. 4

5 Formulation of finished goods: the compound fertiliser recipe is developed according to farmers needs and physical and chemical compatibilities between the raw materials. One formula can use 2 to 5 raw materials depending on the chosen nutrients and their proportions. Screening: raw materials can be filtered by machines, the disposal of agglomerates and dust, allowing for better control of the manufacturing quality [appendix 3]. Calibration of the machines: a weighing machine controls the different industrial stages, the operative communicating with it via a terminal. The operative s presence is essential for controlling the workflow and calculating the exact values of the masses effectively located in the blender. He has to manage the quantities of the products supplied during the last cycle in order to comply with the required production [appendix 2]. Assembly: each raw material is weighed using a weighing hopper then transferred to a mixing hopper. Once mixed, the finished product is then sent to the conveyors. An alternative method is to connect multiple hoppers with a conveyor belt, where the raw materials are pre-mixed before being gradually introduced into the finishing stage blender [appendix 2]. Packaging: finished goods are automatically transported by conveyors to the bagging lines [appendix 3]. Blended fertilisers can be coated with solutions of urease inhibitors (such as NBPT Novius) which enhance the environmental performance of the finished goods. The production of blended fertilisers represents a great industrial added value: It requires expertise to guarantee a quality product. The optimal calibration of the machines, purchase of adequate raw materials and knowledge of merchandising standards and hazardous materials are critical. They make it possible to ensure a correct chemical composition as well as the homogeneity of the granules [appendix 2] in order to verify the absence of segregation and a homogenous spreading. Blenders are continually investing in Research & Development to create better quality products to meet the expectations of the farmers. Thousands of formulas have already been tested in the blending plants. The industrial facilities require regular investments (from 4 to 10 million Euros for the commissioning of a blending plant with a 20,000 tonnes capacity) and also regular maintenance costs, which can reach tens of thousands of Euros per year. 5

6 Throughout the manufacturing process, quality controls are carried out in order to validate the homogeneity of raw materials and finished goods, check the quality of the packaging and comply with good manufacturing conditions. Traceability is ensured through manufacturing data sheets which include the batch numbers and used raw materials. The fertiliser policy (EC n 2003/2003) strengthens the industrial value of the production of blended fertilisers and reinforces regulations to guarantee a homogenous production quality. Cooperatives and private companies concentrate their production units closest to consumption locations, thus combining reactivity, flexibility and logistic optimisation. Local implantations and proximity logistics for the distribution of finished goods are necessary in order to anticipate and satisfy the needs of every farmer. The proximity of the blending units to gas fields and mineral deposits (phosphate or potassic rocks) is not a key factor in competitiveness, contrary to the production of fertilisers through chemical reactions. Indeed, the raw materials for the production of blended fertilisers are solid granules which are easy and inexpensive to transport in bulk. In France, 300 blending units generate many industrial jobs in order to achieve the different stages of production (calibration and machine monitoring, hopper loading quality check, packaging, handling, etc.) A unit creates 4 to 5 direct industrial jobs, representing between 1,200 and 1,500 at national level, as well as numerous qualified agronomists and researchers who develop and test new formulas. As the production of blended fertilisers need to take place near the farmers, these industrial jobs cannot be relocated and are evenly distributed in rural, and often deprived, areas. HOW CAN THE DEVELOPMENT OF BLENDED FERTILISERS BE INCREASED? The bulk blending industry needs available and competitive raw materials to develop custom-made fertilisers and provide Europe with the means to develop precision farming. The raw materials best suited for blends, such as urea or diammonium phosphate (DAP), are purchased on international markets. Their prices are very volatile and depend on the available supply. The blending industry is competing with foreign companies which enjoy a privileged access to raw materials, which grants them significantly lower prices. These foreign manufacturers, historically positioned on low added-value raw materials, are broadening their lines towards compounds produced through chemical reactions. This creates an unfair competition for European blenders who have to pay custom tariffs on imported raw materials. 6

7 The level of competition between international raw material suppliers is insufficient, which leads to: Poor availability of the product, intermittently due to logistical problems (congestion at the departure port, poor climate conditions) or during production shutdowns (social issues), and structurally during the second and third quarters, endangering the supply and the continuity of compound fertiliser production in Europe; Prices that are significantly higher in the Union than in other major agricultural regions such as Brazil (+10-15% for urea and DAP), at the expense of the agricultural and compound fertiliser industries competitiveness; Recurrent quality problems on imported raw materials: poor physical (irregular grain size, presence of dust, low resistance to crushing) or chemical (unmet nutrient contents, presence of heavy metals) characteristics. In order to ensure the longevity of the blending industry, greater competition between raw material suppliers must be promoted, especially by suspending the customs tariffs on raw materials. 7

8 CONCLUSION As the European agricultural sector is facing this double economic and environmental challenge, the blend fertilisers industry is a unique lever to develop precision farming. Provided that measures capable of reinforcing it are taken, this clean, non-relocatable industry with a high agronomic value can contribute to the development of ecologically sustainable and economically viable agriculture. The competitiveness of raw materials and access to a wide range of suppliers are essential conditions for the development of the industry. 8

9 APPENDICES 9

10 Appendix 1: Compound fertiliser plant in Chalon sur Saône Compound fertiliser plant in Arles Storage of raw materials in concrete compartments 10

11 Appendix 2: Assembly operations Homogenous finished product Calibration and machine monitoring 11

12 Appendix 3: Conveyor and screening tools to evacuate the agglomerates and dust Storage of finished products in «big-bags» Conveyor before packaging Formulas of compound fertilisers specific to different crops and soil types Custom-made fertilisers to meet the specific needs of a farmer 12

13 Appendix 4: Diagnostic tool Recommendation map GPS console(s) and fertiliser spreader Intra-parcel Modulation dose The rise of new communication technologies has made it possible to have better knowledge of agricultural plots and their heterogeneity. Technical innovations allow for an understanding of the needs of crops in different locations of the same plot and, thanks to intra-plot modulation, the provision of the best dose for each location in the parcel. Using an image (taken with a satellite or a drone), the mapping of the parcel can give fertilisation recommendations (i.e. nutrient requirements). Today, this mapping can be directly loaded into the tractor using a USB key, allowing for an adjustment of the doses of the provided products, be they fertilisers or crop protection products. Good for the environment, this practice also has an economic impact for the owner as it reduces the use while increasing the efficiency of farm inputs. 13