Agricultural Industry Association (IVA)
The Russian attack on Ukraine shocked agricultural markets. Medium-term predictions are hardly possible at the moment, especially with regard to the availability of the most important mineral fertilizers and the development of their prices. “Among the challenges that agriculture has to face, one that we thought had almost been overcome has returned: the fight against hunger. In order to ensure the food supply and at the same time protect the climate and biodiversity, a fundamental transformation in agriculture is required: the desire for both productivity and environment, so we have to work intensively on both now,” emphasized Michael Wagner, President of Industrieverband Agrar e. V. (IVA), today at the annual press conference of the Frankfurt Business Association.
The market for crop protection products, which has shrunk dramatically over many years, recorded growth last year of 5.1 percent to 1.205 billion euros, mainly due to wet weather, but it is still well below the previous high of 1.6 billion euros in 2014 . At the same time, the HRI 1 (“Harmonized Risk Index”), by which quantities of pesticides sold are weighted according to their risks in a standardized EU-wide procedure, shows that the risks of pesticides used continue to decrease.
The German fertilizer market has experienced significantly greater disruptions in recent months. At the beginning of the 2021/2022 fertilizer year, an unprecedented price hike for nitrogen fertilizers began, and with a time delay also for phosphate and potash products. The continuous rise in energy prices and booming demand in the global market were the main drivers of this development. In the 2020/21 season, sales of nitrogen fertilizers fell again by 7.8 percent to 1,265 tons compared to the previous season, and the development of sales in the current season indicates a further decline.
Wagner, President of IVA emphasized that agricultural transformation must be pushed forward even in light of mutually reinforcing crises: “The objectives of the European Farm to Fork strategy are very ambitious, but not far off. Above all, we as an industry want to make our contribution goals from Through technology, advances in breeding, innovations and precision farming with the help of digitization. With a more targeted application, it helps us save about a quarter of the amount of crop protection products – without losing production, so don’t mind.”
Wagner also announced that IVA will be broader in the future. After the department of biostimulants in 2017 and the new central digitization department in 2021, a plant breeding department will be established this year, which will deal with modern breeding methods.
IVA’s Head of Plant Nutrition, Marco Fleischmann, said: “The sharp increase in energy prices presents agriculture and industry with significant challenges. However, despite significantly higher costs of mineral fertilizers and other operating resources, the decline in sales in Germany is limited.
Because in the present situation especially, all analyzes emphasize the economic efficiency of enrichment in the light of high producer prices. The goal of using nutrients as efficiently as possible is self-evident from an economic and environmental point of view.”
About half of the world’s population depends on food produced with the help of mineral fertilizers, according to Fleischmann: “Adequate domestic production of food is a guarantee of security of supply and represents a valuable asset that has gained importance in the public perception. For this, however, industry and agriculture need conditions correct framework.
For the youngest specialized biostimulants in the field of IVA, Board Member Dr. Thomasräder: “The entry into force of the European Fertilizer Product Regulations in July 2022 marks the beginning of the formal market launch of biostimulants. Regardless of regulatory enforcement issues that remain open in detail, the traffic light is green. We see more potential than ever for products Innovative, because interest in agriculture, science and industry is constantly growing. According to an internal survey, about 7 million euros were sold with this young product group last year, and all players expect the market to grow rapidly.”
Industrial Association Agrar e. V. (IVA) represents the interests of the agrochemical industry in Germany. The fields of business of the 53 member companies include crop protection, plant nutrition, biostimulants and pest control. The industry represented by IVA represents innovative products for modern and sustainable agriculture.
Industrivrand Agrar E. V., press office
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Original content from: Industrieverband Agrar eV (IVA), transmitted by aktuell news