Agri09-Day II - Session II - Willem Sloot - Yara

Increasing and maintaining Competitiveness in

agriculture

Agribusiness Forum

Cape Town, June 15 2009

Willem Sloot, Yara International ASA

Yara International - What we do

� Yara is the world’s leading chemical company that converts energy, natural

minerals and nitrogen from the air into essential products for farmers and

industrial customers.

Fertilizer

Willem Sloot 15 June 2009

Energy

NaturalMinerals

Ammonia

Urea

NitricAcid

Industrial

Yara strategy to strengthen competitiveness

� Established in 1905 as the world’s first producer of mineral nitrogen

fertilizer we develop innovative plant nutrition solutions aimed at using less

water, use nutrients more efficiently, are less dependent on soil quality

and that minimize environmental impact

� Yara crop nutrition specialists are on field in 50 countries, developing crop

nutrition programs for all major crops, combining fertilizer, application and


nutrition programs for all major crops, combining fertilizer, application and

crop knowledge.

� We transfer knowledge and proven technology to the developing world

Yara global supply network


1. Ammonia plants in Trinidad (own and JV)

2. The world’s largest urea producer Qafco (JV)

3. Urea and ammonia plant in Libya (JV)

4. World’s largest NPK production site in Norway

5. Europe’s largest nitrate fertilizer site in Holland

6. Yara’s phosphate mine in Finland1 Trinidad 2 JV in Libya 3 JV in Qatar 4 Porsgrunn 5 Sluiskil

Yara fertilizer sales in 2008 (million tonnes)

By Product

10,8

1,9

7,6

By Market

2,3

1,7

2


5,6

3,8

NPK Nitrate Urea UAN CN Other fertil izer

10,7

4,7

2

Europe Latin America North America Asia Africa

Yara presence in Africa

� Yara sells about 1.7 million tonnes

of fertilizer to 30 countries

each year

� The JV in Libya produces

ammonia and urea.


Yara offices

Yara production

ammonia and urea.

� Other production locations are

blending / mixing plants

Yara initiatives to increase competitiveness of

African agriculture

Promoting a Green Revolution

Develop balanced fertilization

programs adapted to local growing

conditions

Yara is initiating agricultural value-chain


Invest in large import terminal facilities in

strategically located sea ports

Develop Value Chain

Partnerships

Agricultural Growth Corridors

Yara is initiating agricultural value-chain

partnerships to help develop

African agriculture.


� Facts

– Many fertilization practices are out of date; there are little or no sustainable and balanced fertilization programs

– Fertilizer formulas are not matching crop needs

– Increased competitiveness is key to the development of African agriculture

� Yara initiatives


Develop Value ChainPartnerships




– Developing more suited new fertilizer formulas and crop nutrition programs for maize, rice, wheat, tobacco, tea and other key crops

– Conducting fertilizer trials, like the ones in Malawi, Tanzania, Ivory Coast, Mozambique, Ghana.

Develop value-chain partnerships

� Facts

– In many markets agricultural value chains are in-efficient, as key elements are

missing. Examples are: raw material inputs, distribution systems, transportation,

storage and agronomic advisory services, financing facilities, market outlets etc.


– Develop partnerships, by offering its own core-business knowledge and





– Develop partnerships, by offering its own core-business knowledge and

expertise, with other players in the agricultural value-chain. E.g.

– The Ghana Grain Partnership

focusing on market infrastructure

– The Tanzanian Agricultural Partnership

focusing on farm inputs

– The Malawi Agricultural Partnership

focusing on agricultural development


� Port investments of USD 60 million

in Dar and Beira

� Develop infrastructure into a

regional distribution hub for

agricultural inputs





Dar es Salaam

Beira

Agricultural growth corridors

Increase efficiency along

supply chains

� Facts

– Supply chain costs for fertilizer, per mt product, are highest in the world

– Inefficiencies in shipping, port operations, inland transport, storage and handling,

paperwork, customs tariffs, government regulations, …

– Poor infrastructure; lack of management skills, knowledge, ….







– Invest in fertilizer import terminal infrastructure, which can serve a supply hub for

a regional market

– Improve fertilizer handling,

storage facilities

– Attract other companies

to invest in agricultural

businesses along these

corridors.

Beira Corridor is a major transport

route for South-Eastern Africa



Documents

Agri09-Day II - Session II - Willem Sloot - Yara