Delivering Sustainable Solutions. Bartolomeo Pescio September 28 th 2018

Transcription

1 Delivering Sustainable Solutions Bartolomeo Pescio September 28 th 2018

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3 The agriculture industry has delivered over the past 100 years Synthetic Fertilizer (1909) 2.7 Billion Blood Groups (1902) 1.09 Billion Smallpox Vaccine (1796) 530M Green Revolution Wheat (1940s-50s) 259M Chlorination of Water (1919) 177M Measles Vaccine (1958) 118M Penicillin Mold (1928) Drug (1940) 82M Diphtheria & Tetanus Vaccine (1926) 60M Oral Rehydration Therapy (1968) 54M DDT-Malaria Prevention (1939) 21M 1B 100M Source:

4 The agriculture industry has delivered over the past 100 years Food supply has outgrown population Indexed, 1980 = Yields are improving Global average wheat yield, tonnes per ha Food supply Population 0 Food prices are reducing in real terms Indexed, 1900 = 100 Barley Corn Rice Wheat Under-nourishment is decreasing Number of people who are undernourished, bn Source: World Bank (2018) Source: FAO, IFAD, UNICEF, WFP and WHO The State of Food Security and Nutrition in the World Source: David S. Jacks, "From Boom to Bust: A Typology of Real Commodity Prices in the Long Run," 4

5 But it has more challenges than ever ~2 billion ha of agricultural land degraded ~80% of large marine eco-system subject to significant eutrophication FOLU contributes 25% of emissions Our systems waste 1/3 of food >80% of people in urban areas experience air pollution +500 million farmers & fishers live in poverty 800 million people go hungry every day 2 billion people overweight or obese 43% of agricultural workforce are women, many with limited access to credit, inputs, markets Agriculture accounts for 70% of freshwater withdrawals Source: SYSTEMIQ 5

6 And with that...comes responsibility Fertilizer consumption contributed to ~1-2% of the total world emissions and 6% of total agriculture emissions in 2010 GHG emissions Gt CO 2 e 2010 Share of total GHG emissions AFOLU 1 Gt CO 2 e 2010 Share of total agriculture World total 49 Total AFOLU 11.6 Energy 17 35% Land use change % AFOLU 12 24% Entric Fermentation % Manure % Industry 10 21% Fertiliser consumption 0.7 6% Transport 7 14% Rice Cultivation 0.6 5% Buildings 3 6% Other 0.6 6% 1 AFOLU: The Agriculture, Forestry, and Other Land Use sector Source: IPCC 2014 Climate change synthesis and AFOLU reports, FAOSTAT, SYSTEMIQ 6

7 To Deliver For the Next 100 Years... Water scarcity Global warming Food scarcity

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9 We have pioneered agricultural growth and production for over 100 years Birkeland s invention Birkeland s discovery that hydroelectric power could be used to extract nitrogen from the air led to Norsk Hydro opening December 2, Attracting Royal attention New large scale production plants opening and under construction in Notodden and Rjukan respectively are visited by King Chulalongorn of Siam. The plant at Herøya established in First production of regular NPK fertilizer in Extending our reach Stockholm is home to a new sales office and the USA becomes a customer. The Glomfjord plant opens using hydroelectric power to upgrade ammonia to calcium nitrate and NPK. Going global Qafco JV established in Yara acquires companies in the Netherlands, Sweden, Germany, the UK, France, Italy and China and establishes an office in Zimbabwe. Adubos Trevo is acquired in Brazil. Going public industry shaper March 25, 2004, Yara is listed on the Oslo Stock Exchange. The tagline Knowledge grows introduced. Yara offers solutions and work with public and private partners to create profitable and sustainable growth both for shareholders, stakeholders and society at large Knowledge grows providing shared value Yara s knowledge, products and solutions grow farmers, distributors and industrial customers businesses profitably and responsibly while nurturing and protecting the earth s resources, food and environment.

10 And with a global reach, we are poised to take our next step The number of people we employ +160 The number of countries we sell to +60 The number of countries we operate in million people our products help to feed 9000 Retail outlets 800 Agronomists on the ground 20 million The number of farmers we work with

11 To leverage our knowledge and fulfill our mission of responsibly feeding and protecting the world

12 Mission Vision v v Responsibly feed the world and protect the planet A collaborative society; a world without hunger; a planet respected.

13 Strengthen Food Value Chain Collaboration Promote sustainable crop solutions and nitrate based products Scale Up Digital Farming

14 Strengthen Food Value Chain Collaboration to deliver More value from an ever growing integrated and consolidated food value chain Increased focus on v food nutrient content and crop quality Higher traceability and documentation of sustainable production methods 14

15 Promote sustainable crop nutrition solutions and nitrate based products to deliver 2-20% increased yield up to 90% reduced ammonia emissions up to 15 % lower GHG emissions best fit for precision agriculture societal burden reduction by 7-43 busd only N-source in a carbon negative future

16 Scale Up Digital Farming to Deliver Field insights for millions of hectares providing customized services & nutrition Knowledge to every v level of grower in every part of the world Land and resource stewardship backed by unparalleled agronomic expertise 16

17 We ve seen change happen already? Organic agriculture land Mln ha Beef consumption US Kg/cap/yr 2014 % of global total 1.0% n/a Global electricity production from renewables (excl. hydro), % Same level as example agriculture parameters today Global organic fertilizer trade 1 US$ mln 1.2% Average of global total import and export value. % shown represents share of total 2014 estimated global fertilizer trade value of US$ 66bn Source: The world of organic fertilizer 2017, FIBL, OECD, World Bank, FAO, SYSTEMIQ / 17

18 We are bringing new ideas to the market

19 And new ways of working

20 Because Yara Will Be the Crop Nutrition Company of the Future AtFarm Water-sensor solutions Adapt-N

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