Value Chain, Coffee

Value Chain, Coffee
Chrystel Monthean,
Value Chain Director,
Yara International ASA.
Born in Norway, we have pioneered agricultural growth
and production for over 100 years
1900-1905
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, 1905.
1906-1939
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 1928.
First production of
regular NPK fertilizer in
1938.
1940-1959
1960-2003
Extending our reach
Going global
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.
Qafco JV established in
1969. 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.
2004-2014
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
2015
Knowledge grows —
providing shared
value
Yara´s knowledge,
products and solutions
grow farmers’, distributors’
and industrial customers´
businesses profitably and
responsibly while
protecting the earth´s
resources, food and
environment.
2
“Our aspiration is to be the
leading provider of sustainable
crop nutrition solutions,
supporting farmer profitability
through knowledge, quality and
productivity”.
What do we mean by Sustainable Crop Nutrition
Solutions?
What do we mean by Sustainable Crop Nutrition
Solutions?
Water Footprint Network
Farmer sophistication
High
UNEP/SETAC
Precision Farming
Low
Yara Crop Nutrition Farm Management System
Products, Tools and Knowledge
to support more sustainable practices.
Sustainability lies on 3 pilars
People
Profit – Coffee Vietnam
55 farmers – Robusta long term trials.
Planet – Technology to reduce Green House Gaz
effects at production stage
test
9
Planet – Coffee Vietnam
The average product carbon footprint was 16% lower in the PPP fertilization
program
1800
kg CO2e/t of green beans
1600
1400
energy use
1200
other inputs: production & transport
1000
lime: soil CO2
800
urea: soil CO2
600
compost: N2O emissions
400
mineral fertiliser: N2O emissions
200
mineral fertiliser: transport
mineral fertiliser: production
0
average farmer practice
Average kg mineral N/ha:
325
average PPP program
264
Calculation based on the Carbon Footprint Product
Category Rules for Green Coffee (Environdec 2013)
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Understanding the Coffee Challenge
The world will need 12 mill. tons beans in 2030
3 mill. tons more than today
1950
1989
2015
2030
Consumption/
capita
(kg/pax/year)
0,88
1,04
1,23
1,43
World
population
2600
5300
7300
8400
Demand*
38
92
150
200
Production*
39
95
144
???
* Mill. 60kg bags
Source: Neumann Kaffe Gruppe – GCC, Milano, Sept 2015
10 million Has of Land producing coffee
40% not fertilized
Fertilized vs. Unfertilized land (`000 ha)
5.890
4.110
1.886
1.051
861
565
893
821
448
210
Brazil
Other South
America
Unfertilized land
Central America
1.643
1.622
Africa
Fertilized land
Asia
Total
Understanding the Value Chain
to better support the Coffee Farmers.
Understanding better the coffee industry specific needs
helps us to support better the Coffee farmers.
Direct Procurement
Local
Traders
International
Traders
Social, Environmental
Crop Nutrition
Crop Nutrition
Brands/Retailers/
Roasters
Profit
Crop Nutrition is part of the Sustainable Coffee equation.
Tree
longevity
Alternate
bearing
Less yield
fluctuation
Maintain
productivity of
older trees
Quality
Better taste
Bigger beans
Yield
Health
Improve farmer
profit
Disease
resistance
Soil fertility
Maintain
optimum pH,
CEC and OM
Environment
Nutrition
Carbon footprint
water footprint
acidification
Yara’s response.
3 pilars of activities
R&D
Agronomic
Knowledge
Dedicated
Ressources
to Coffee
Partnerships
with Value
Chain
Coffee Platform roll out so far
Hanninghof
Mexico
Vietnam
East-Africa
Colombia
Brazil
Coffee Platform roll out – way forward
Hanninghof
Mexico
RoCAmerica
Vietnam
East-Africa
Colombia
Peru
India
Brazil
Indonesia
Be part of the solution
Increase farmers productivity
helping reducing the supply/
demand gap to secure your
morning coffee.
Increase farmers profitability
bringing Economic
sustainability.
Transfer technology and
increase farmers’knowledge
to bring Environmental
sustainability to the Industry.
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Yara.com/coffee