• Theindustry’sresponsehasfocusedonoptimizingproductionandusinghighlymechanizedapplicationmethods(attractivetointensiveagricultureintheworld'sdevelopedregions)forcurrentfertilizers(whicharelargelyunchangedsincethe1980s).However,thesefertilizersandapplicationtechniquesarenotaseffectiveinthedevelopingregions.

3. Next Generation Fertilizer Technology PrioritiesThefollowingtechnologicalprioritieswillguidethedevelopmentandcommercializationofthenextgenerationofintelligentfertilizersthatmustbemorefail-safe,adaptive,eco-sensitiveandeconomical:

• FocusonNandP;improvenitrogenuseefficiencyby25-50percent.

• Reducetheriskofcropfailureforsmallholderfarmers.

• Increasetheconvenienceandaccuracyofdeliveringsecondarynutrientsandmicronutrients.

• Improveorfindalternativestocurrentsourcinganddeliveryprocessesthatreducecost,increaseself-relianceandlessenenvironmentalimpact.

4. VFRC – Purpose and OrganizationTheVFRCisaninnovativeinitiativeestablishedbyIFDCspecificallytoadvanceandcommercializethetechnologydevelopmentprioritiesforthenextgenerationoffertilizers:

• TheVFRCwillcreatetheenvironmentandplatforminwhichthesefertilizerproductsandprocesseswillbedevelopedthroughglobalresearchefforts(includingpartnershipsbetweenscientists,governmentsandbusinesses)workingonacommontechnologyagenda.TheVFRCwillserveascatalyst,change-agent,stimulatorandinitiator.Itwillserveasacoordinatorandintermediaryamongpartnerstoensurethatefficient,consistentandpersistentprocessesmovethroughthetechnologyagenda.Followingsuddenandsignificantglobalpricehikesinfood,

fuelandfertilizerin2007-2008,theIFDCBoardofDirectorsmetinearly2009todiscussthechallengesinvolvedinensuring"responsible,sustainablefoodsecurity"fortheworldoverthecomingdecades.

Inparticular,therewerethreeareasofgreatestconcerninthediscussionaboutfoodsecurity:thestillsizablemalnourishedpopulation(primarilysmallholderfarmersandtheirfamiliesindevelopingregions);thesubstantialincreaseprojectedforglobalfooddemandandsubsequenthigherprices,alsoprimarilyindevelopingregions;andtheroleofsyntheticfertilizersinfoodsecurity(over75percentofglobalfertilizerconsumptionisindevelopingregions).Thesefertilizersremainessentiallyandtechnicallyunchangedsincetheirlaunchduringthe"GreenRevolution,"butnowarebeingusedinaneraofscarcerarablelandandwater,uncertainclimaticconditionsandheightenedenvironmentalandeconomicsensitivity.

In2010,theU.S.AgencyforInternationalDevelopment(USAID)providedfinancialsupportforIFDCtodevelopa'proofofconcept'tostudytheseareasingreaterdepthandtoidentifyopportunitiesfortheapplicationoftechnologicaladvances.

IFDC’sproofofconceptresultedintheVirtualFertilizerResearchCenter(VFRC),whichwaslaunchedinMay2010.TheVFRCishelpingdevelopanewgenerationof'intelligent'fertilizerstoenableresponsible,sustainablefoodsecurity,particularlyintheworld’sdevelopingregions.

ThisdocumentprovidestheessenceofIFDC’sfindingsandtheunderpinningsfortheVFRCinfourchapters:

1. Food Demand and Smallholder FarmsCommercialsmallholderfarmersplayavitalroleintheoverallfoodsupplychainindevelopingcountries.These

farmers’roleswillbeevenmorecriticalasthesecountriesprepareforthesignificantgrowthinfooddemandexpectedfromcontinuedpopulationgrowth,urbanizationandeconomicdevelopment.Whileglobalfooddemandisprojectedtoincreaseby70percent,thevastmajorityofthisincreaseisexpectedtooccurinthedevelopingregions,whichcouldfaceafooddemandincreaseapproaching90percentby2050.Accordingly:

• Commercialsmallholderfarmersmustmorefullyadoptintensivefarmingpractices(includingagriculturalbestpracticesandthejudicioususeoffertilizers)tohelpachievetheyieldincreaserequiredinthefuture(around1.5percentperyear).

• Inaddition,thesefarmerswillneedtargetedpolicyinterventionsbytheirgovernmentstoovercometheeconomicandinfrastructuralchallengestheyfacetoaccessneededsuppliesandland,improveagriculturalproductivityandparticipatemorefullyinpost-harvestmarkets.

2. Current Fertilizers – Challenges and OpportunitiesDuetoincreasinglandandwaterscarcity,intensivefarming(includingtheproperuseofsyntheticfertilizers)andimprovedsupplychaininfrastructuresmusthelpdeliverthenearly90percentincreaseprojectedindevelopingregions'fooddemands.Additionally,thesefertilizersmustmeetthespecialneedsofcommercialsmallholderfarmerswhowillcontinuetoplayakeyroleinfuturefoodsupplychains.However:

• Currentsyntheticfertilizersareoftennotaccessiblenoraffordableforsmallholderfarmersindevelopingcountries,andthemostcommonlyusedfertilizers–nitrogen(N)andphosphorus(P)–havephysicalcharacteristicsthatleadtosubstantialeconomicwasteandadverseenvironmentalimpact.

“Farmers are paying way too much for fertilizer products because we are transporting millions of tons of material that is not nutrient and because much of the nutrients in applied fertilizers are never used by the crop. Nutrient losses to the environment are high with consequences for global warming and water pollution.

“Work should begin now on the next generation of fertilizer products using advanced techniques such as nanotechnology and molecular biology, especially in conjunction with plant genetics research. 'Smart' fertilizer products that will release nutrients only at the time and in the amount needed should be developed.” (August 2008) Dr. Norman Borlaug

Nobel Peace Prize RecipientIFDC Board of Directors (1994-2003)

Introduction

IFDC-trainedfertilizerdealersinKabul,Afghanistan.

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