Download Creating Impact and link to Yara Value Proposition 2ND NEXUS

2ND NEXUS ROUND TABLE ON
NOVEMBER
12,
2014
Creating Impact and link to Yara Value
Hosted by Permanent Delegation of the Netherlands to the OECD
Proposition
– in cooperation
with the OECD and the IEA
Climate Smart Agriculture
Partnership in Practice –
A Tanzania Case Study
Sean de Cleene, Senior Vice President, Yara
Climate Smart Agriculture
According to FAO Climate Smart Agriculture (CSA) is to jointly
address food security and climate challenges.
It is composed of three main pillars:
1. Sustainably increasing agricultural productivity and grower
incomes;
2. Adapting and building resilience to climate change;
3. Reducing and/or removing greenhouse gases emissions
2
Three levels of engagement through
partnership
Yara sees it is important to develop a robust approach to engagement
to address climate smart agriculture at different levels simultaneously
1. Supporting transformational multistakeholder partnerships
2. Developing new and inclusive business models sustainably
increasing agricultural productivity and grower incomes;
3. Robust applied R & D into sustainable intensification and climate
smart agriculture
Yara promotes both a partnership strategy and sustainable
intensification of crop production as a response. Sustainable
intensification of crop production is to help growers to produce more
crop on the same land with less environmental impact.
3
Working through various collaboration models
Model types
Single lead
player
Description
▪ One organization leads on the
initiative, collaborating with others
on an ad hoc basis
▪
Two or three organizations partner,
with similar levels of responsibility
and ownership
▪
A loose network of multiple
companies coordinates on an
initiative
▪
Third-party organization/partnership
unit pro-actively orchestrates action
by multiple parties
▪
Platform approach which pro-actively
facilitates transformative action by
multiples of affiliated & non affiliated
parties
Partnership
Loose
network
Orchestrated
Partnership
Transformative
Partnership
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1. Support for transformational partnership agendas –
eg: SAGCOT
• In support of
national growth
strategies
• Basis for scalable
inclusive agricultural
business models
• Increased sector
competitiveness and
investment
• Green growth
overlay
1 (cont). Support for transformational partnership agendas
- SAGCOT
•SAGCOT partners aim to
bring 350,000 hectares
into profitable production,
transition 100,000 small
scale farmers into
emerging commercial
farmers, create 420,000
new employment
opportunities, and lift two
million people out of
poverty whilst creating
$1.2 billion annual farming
revenues
SAGCOT – investing in Green Growth
Elements of Green Growth in SAGCOT as promoted by the SAGCOT Centre
• Scale up component investments in which environmental sensitivity,
reduced emissions, social benefits and climate change adaptation are core
to the investment model
• Realize synergies and reduce trade-offs by managing interactions among
investments and land uses in different parts of the landscape
• Align sectoral programs and priorities to save money, reduce conflict, and
establish critical masses of socially and environmentally beneficial
investment
• Use democratic governance processes to negotiate development priorities
and parameters, recognizing legitimate local,regional, national and
business interests
• Design public policies and programs that shift investment incentives
toward green growth
2. Supporting integrated domestic models
which promote a shared value approach
Integrated Domestic Model in Tanzania
What needs to be in place to establish a
smallholder inclusive model:
Example district

A
A



O/T
D



A



D
A
Yara Distributor
Local agro-dealer
Village with lead farmer
O/T
Off-taker


Achievable critical mass
Dedicated investments into local capacity
resourcing
Committed partners with a long-term focus
Smallholder farmer and value chain financing
solutions
Food security strategy
Inclusive green growth strategy
Sufficient core infrastructure
Off-taker – a sustainable market for produce
Impact assessment framework
Positive local perception
Governmental support and appropriate enabling
environment
Clearly defined roles and responsibilities
Smallholder inclusive models are an integrated
part of the Yara domestic model in Tanzania
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3. Promoting PPPs in applied R&D and climate smart
agriculture
• The Environment and Climate Compatible Agriculture (ECCAg)
project is a partnership between Yara and Syngenta together with
Sokoine University,Tanzania and the University of Life Sciences,
Norway
• Initiated in Dec 2010, as a contribution towards the emerging
SAGCOT Green Corridor work
• Aims to develop a clear understanding of the impacts of agriculture
on the environment and climate change, and to test if
intensification of agriculture through the use of agricultural inputs
can be compatible with environmental sustainability and climate
change – while also improving the productivity and profitability at
farm level.
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3. Promoting PPPs in applied R&D (cont’)
In order to meet these objectives, the project has developed and
tested :
• A framework to understand and measure the impact of agriculture on
the environment.
• Protocol for environmental measures and models.
• Best practice protocols in agronomy and technology use for specific
crops.
• Calculators for improved productivity and profitability as well as
carbon footprint reduction
• First such trials in Tanzania to measure environmental impacts,
alongside productivity and profitability, with smallholder farmers
producing maize and rice.
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Tanzania: The challenge for maize & rice
production
Present situation
 Population – 45 Mio
 Diet

Future projection (2050)
 Population – 138 Mio
 Diet
–
Maize (25%) & rice (10%)
–
Assume no change
–
Other crops & little meat
–
Eliminate under nourishment
–
Still some under nourishment
Crop Production
–
Maize – 4.65 mio t
(3 mio. ha @ 1.55 t/ha)
–
Rice – 2.33 mio t.
(1 mio. ha @ 2.33 t/ha)

Crop Production – required
–
Maize ~ 18.6 mio. t
–
Rice ~ 9.3 mio. t
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If average maize yields are improved to 6 t/ha, no
additional land is required for maize production in TZ
Required land for maize production in 2050 (in Mio ha)
14
12
10
at current yield level
at 2 t/ha
at 6 t/ha
8
6
Maize area in
2010 at 1.55 t/ha
4
2
0
2010
2050
Calculation based on data from FAO and UN statistics
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Even today it is possible to produce 6 t /ha
with improved crop nutrition
Marketable grain yield (t/ha; 86% dm)
10
9
8
7
6
5
4
3
2
1
0
2011
2012
2013
Target yield
Farmer practice
Yara protocol
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Carbon footprint guarantee for Yara N fertilizers
– verified by third party audit (DNV)
Yara guarantees a
carbon footprint of
<4 kg CO2eq/kg N
produced
The data and calculations
are verified by an
independent third party,
Det Norske Veritas (DNV)
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Carbon footprint of maize production (including
potential land use change emissions)
Carbon footprint (kg CO2eq / t maize grain)
6000
FP = Farmer practice
Y = Yara
5000
4000
3000
2000
1000
0
FP
Y
Kichewa
2011
FP
Y
Matiganjola
2012
FP
Y
Welela
2012
FP
Y
Sokoine Univ.
2012
CO2 emissions from potential land use change to compensate for yield difference between FP
and YS (tropical scrubland into arable, acc. to IPCC, 2006)
Emissions from maize cultivation including production of farming inputs, e.g. fertilizer
15