Responsible growth. Farmland

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1 Care for growth The world s population is growing by 200,000 people a day. That means 200,000 new mouths to feed every day, even though the amount of available agricultural land per person is decreasing dramatically and pressure on the climate and environment is increasing. This is a dilemma that we need to be fully aware of, and one that confronts farmers daily. The question is how to increase world food production while reducing pressure on the environment at the same time. The efficient way mineral fertilizers can supplement organic fertilizers means they can play an essential role in solving this problem in a responsible manner. They improve the productivity of agricultural land and drastically reduce the impact on the environment.

2 Responsible growth We are witnessing explosive growth in the world s population. By 2030, there will be an estimated 8.3 billion people on the planet. In order to feed them, food production will need to increase by 50%, 1 but the methods used must be sustainable and responsible. Getting more from existing farmland Using more and more virgin land for farming is not the solution to our growing demand for food. In fact, exploiting scarce unspoilt habitats greatly increases emissions of greenhouse gases 2. A better strategy is to get more out of existing farmland while reducing the impact on the environment 3,4. The most logical approach is to utilize available organic fertilizers as efficiently and effectively as possible, supplemented by mineral fertilizers. Organic farming is often viewed as a way of reducing energy consumption and emissions*. That is correct on a per-hectare basis, but for each tonne of product, organic farming consumes as much or more energy and produces as many or more emissions as normal farming 5. The main reason for this is that organic farming generates lower yields, in fact 20 to 60% lower than normal farming 6,7. Achieving the necessary crop yields with organic fertilizers alone would mean that the world s livestock population would need to be eight times bigger 8. That is obviously not an option, certainly not when we consider that feed production for those animals would also need to be eight times higher, which would again require a great deal of extra farmland. *One of the reasons organic farming has low emission levels is that the emissions generated by livestock production are not counted towards the amount of animal manure used 5. Available farmland per person The growth in the world s population means that the amount of available farmland per person is rapidly decreasing. Farmland (ha per person) till 2030 Farmland World population World population (in billions)

3 Mineral fertilizers are responsible for feeding 48% of the world s population. The best way to achieve efficient and sustainable food production is to combine organic manure and mineral fertilizers as effectively as possible. Mineral fertilizers in fact make a significant contribution to efficient food production. That s because they work quickly and reliably and can be geared precisely to what a crop needs. When combined with the correct dosage of available organic fertilizers, mineral fertilizers optimise output efficiency and lead to the most sustainable result. Calculations show that mineral fertilizers are already responsible for feeding 48% of the world s population 9, a percentage that is set to increase in the years ahead.

4 Eco-conscious farming reduces the CO 2 footprint Eco-conscious farming More and more farmers are adopting eco-conscious farming practices and therefore reducing the carbon footprint of food production. They select sustainable solutions that do not undermine sound business operations. The entire food production chain - from seed to end product - is becoming more sustainable, with a particular concern for soil quality. Mineral fertilizers make an essential contribution to this because - with effective fertilization planning and advice, and the right spreader setting - they are highly efficient. This leads to maximum yields from valuable farmland while reducing the impact on the environment. Mineral fertilizers are therefore an indispensable component of a climatefriendly solution to the world s food problems. A good product Eco-conscious farming and maximum environmental benefit begin with a good product, one that combines maximum yield with minimum environmental impact and that strikes the right balance between costs and benefits. A good return on investment and sustainability can go hand in hand. OCI Agro applies strict quality requirements and controls, from feedstock right through to end product. Besides our ISO 9001 certificate, we are also a member of Fertilizers Europe and we comply fully with product stewardship requirements concerning health, safety, security, and the environment. OCI Agro is leading when it comes to reducing emissions and conserving energy. In recognition of this, we received the 2008 Responsible Care Award.

5 Mineral fertilizers help boost productivity significantly. Sustainable agriculture OCI Agro actively supports projects and organizations that promote sustainable agriculture, for example the Dutch foundation Stichting Veldleeuwerik. We carry out field trials with Wageningen University and other partners, and we also demonstrate our responsibility to the community in other ways. For example, we are in the vanguard of lowemission production of mineral fertilizers; we have streamlined our logistics as much as possible; and we provide clear information about storing and using our fertilizers. Sound advice and products of reliable quality are the basis for healthy crop growth, leading to long-term relationships with our customers. STICHTING VELDLEEUWERIK

6 Opting for the environment Deliberate choices Mineral fertilizers are not all equally efficient in all circumstances, so environmental gains depend on selecting the right one. This is because plants do not absorb every form of nitrogen equally effectively. In the case of UAN, urea, or urea-based fertilizers, some of the nitrogen needs to be converted into usable nitrate before the plant can absorb it from the soil. Ammonia losses also occur in this process (see illustration). gaseous ammonia losses and CO 2 emissions leaching conversion process Urea CO(NH 2 ) 2 Ammonium NH 4 + Nitrate NO 3 - Comparison between fertilizers used on winter wheat 2009 on loess soil (100%N = 195 kg/ha) Yield in kg/ha kg/ha 3x UAN 3x Nutramon-CAN Source: Report WR Bemestingsonderzoek wintertarwe DSM Agro G. Meuffels and C. Crombach, Praktijkonderzoek Plant & Omgeving, Wageningen CAN delivers the highest nitrogen utilization. It will result in a higher yield per hectare for the same nitrogen application. Opting for CAN Calcium ammonium nitrate (CAN) has the lowest ammonia losses and the highest nitrogen efficiency of all fertilizers. It keeps the greatest quantity of nitrogen available to the plant and therefore delivers the most benefits to both plants and environment. CAN therefore leads to higher crop yields and better crop quality than liquid fertilizers. Its predictable effect also means that farmers can depend on attaining high crop yields. Opting for crop yield Mineral fertilizers show the best result from a number of different perspectives. Not only do they guarantee the lowest possible environmental impact, but they also gain the highest yield per hectare: on average, every euro invested in mineral fertilizers produces the end product in five-fold 10. In short, mineral fertilizers mean responsible food production, both now and in the future.

7 The average plant generates 6 to 12 times the energy needed to produce and transport the necessary mineral fertilizers. 10

8 Opting for results Nutramon-CAN: the best spreading properties The granules recognizable by their orange colour are hard, round, and uniform. They contain no dust or lumps. The product features allow for precise distribution over large spreading widths. Less affected by wind because of the granular form and bulk density. Excellent storage quality. In the case of Nutramon-CAN, user-friendly, up-to-date spreading tables are available online for a large number of spreaders. The distinctive orange granules also tell you that you are working with the right product.

9 On average, every euro invested in mineral fertilizers produces the end product in five-fold. Benefits Crop yield Crop quality Crop certainty Spreading properties Spreading with the right spreading table Nutramon-CAN CAN Urea UAN Known producer / Can be spread across great widths / Hard and round / Sustainability Low total CO 2 emissions Low CO 2 emissions in use

10 OCI Agro products: responsible products Our Nutramon-CAN is produced from natural raw materials, namely air, natural gas, and dolomite. Manufacturing fertilizers produces the greenhouse gases carbon dioxide (CO 2 ) and nitrous oxide (N 2 O). Using the latest technologies, it is now possible to minimize emissions of these gases. Nutramon-CAN emits 60% less CO 2, compared to other CAN products. Emissions of nitrous oxide are minimal. Our Nutramon-CAN is therefore the calcium ammonium nitrate with the lowest CO 2 emissions in Europe. The CO 2 produced is captured and supplied to the greenhouses and soft drinks industries. We are also constantly working towards further environmental improvements and, most importantly, with respect to health and safety. CO 2 emissions in % 400% 350% 300% 250% 200% 150% 100% 50% 0% Greenhouse gas emissions in the production of calcium ammonium nitrate 100% Nutramon-CAN +50% CAN (best technology in Europe*) +145% CAN (European average 07/08) +250% CAN (Russian) * Best technology in Europe means the best available techniques designed for general use in the production of calcium ammonium nitrate in Europe. OCI Agro, your responsible partner We are a reliable partner with a long history going back to Our work is based on a single central guiding principle: sustainability and corporate social responsibility. Our core values are quality, sustainability, and reliable service. We are not aiming to be the biggest but the best-performing company on the market. This makes us a responsible partner for responsible growth. Nutramon-CAN produces the lowest CO 2 emissions in the world.

11 OCI Agro: care for growth References 1. Food and Agriculture Organization of the United Nations (2003): World Agriculture towards 2015/ EFMA (Fertilizers Europe) annual report The Economist: The 9 billion-people question (special report on feeding the world) (The Economist, 24 February 2011) 4. Marc Driscoll (head of the One Planet Food Programme at WWF) in Feeding nine billion people in 2050 (The Guardian, 19 June 2012) 5. Bos, Jules; de Haan, Janjo and Sukkel, Wijand: Energieverbruik, broeikasemissies en koolstofopslag: de biologische en gangbare landbouw vergeleken (Wageningen UR 2007) 6. SCB (Statistics Sweden 2008) 7. Finnish Food Safety Authority (2006) 8. Fresco, Louise; Rabbinge, Rudy and van Kanteren, Joost: Voedselvoorziening noch milieu gebaat bij biologische landbouw (NRC Handelsblad, 19 April 2005) 9. Erisman, J.W., M.A. Sutton, J. Galloway, Z. Klimont and W. Winiwarter (2008) How a century of ammonia synthesis changed the world (Nature Geoscience Vol. 1 (Oct.): ) 10. Fertilizers Europe

12 OCI Nitrogen B.V. Mijnweg 1, 6167 AC Geleen P.O. Box 601, 6160 AP Geleen The Netherlands T F E info.agro@ocinitrogen.com About OCI Agro Trading under the name OCI Agro, OCI Nitrogen B.V. sells and distributes nitrogen fertilizers. With an annual production of more than 2 million tonnes of fertilizers, OCI Agro one of the market leaders in northwest Europe. Our head office and production facilities are located in Geleen (Netherlands). Disclaimer All information provided by or on behalf of OCI Nitrogen about the properties, specifications, and use of products and other matters is based on research, including desk research, and is considered to be reliable. OCI Nitrogen can accept no liability for that information or for the functioning or the results of using the products or said information, or for any harm that may be caused by or to products or by said information. The purchaser accepts all responsibility associated with the application of the products and the use of said information. OCI Nitrogen accepts no liability for infringements of trademarks, patents, or other rights owned or controlled by third parties resulting from your production process, formulation, use, or sale of the products and information.