Increasing and maintaining Competitiveness in agriculture Agribusiness Forum

1. Increasing and maintaining Competitiveness in agricultureAgribusiness Forum Cape Town, June 15 2009 Willem Sloot, Yara International ASA

2. 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.

3. 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 crop knowledge. We transfer knowledge and proven technology to the developing world

4. Ammonia plants in Trinidad (own and JV) The world�s largest urea producer Qafco (JV) Urea and ammonia plant in Libya (JV) Yara global supply network

5. Yara fertilizer sales in 2008 (million tonnes)

6. Yara presence in Africa

7. Yara initiatives to increase competitiveness of African agriculture

8. Promoting a Green Revolution Facts Many fertilization practices are out of date; there are little or no sustainable and balanced fertilization programs Fertilizer formulas are not matching crop needs Increased competitiveness is key to the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 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.

9. 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. Yara initiatives Develop partnerships, by offering its own core-business knowledge and expertise, with other players in the agricultural value-chain. E.g. The Ghana Grain Partnershipfocusing on market infrastructure The Tanzanian Agricultural Partnershipfocusing on farm inputs The Malawi Agricultural Partnership focusing on agricultural development

10. Agricultural Growth Corridors

11. Agricultural growth corridorsIncrease 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, �. Yara initiatives Invest in fertilizer import terminal infrastructure, which can serve a supply hub for a regional market Improve fertilizer handling,storage facilities Attract other companiesto invest in agriculturalbusinesses along thesecorridors.