The International Economic Forum of the Americas Montreal, Canada June 9-12, 2014

1. Agricultural and Fertilizer Innovation Ensuring Global Food and Nutrition Security The International EconomicForum of theAmericas Montreal, Canada June 9-12, 2014 Patricio Contesse G. ChiefExecutiveOfficer SQM S.A.

2. Agriculture Sources: IWMI, Foresight, WRI, CIA, World Bank, FAO, ILO

3. Converging challenges to global agriculture

4. Food security and meeting a growingdemand • Feed 2billion more people by 2050 • Still 850million hungry • Increasing demand for livestock products • Competing demand for feedstock for biofuels / bioenergy

5. “Fertilizer is the world’s most important humanitarian product”…. Andrew Youn, One Acre Fund Fertilizers represent an essential ingredient in the drive towards world food security

6. Innovation in agriculture Improved crop varieties Manufactured fertilizers Irrigation and other technologies ’Green Revolution’…agricultural innovation

7. Closing the ‘yield gap’ is an imperative • Adoption of existing technologies • Access to inputs • Access to knowledge 

8. Innovations in nutrient management: 4R NutrientStewardship Right Rate Right Time Soiltesting Yield goal analysis Cropremoval balance Nutrient management planning Plant tissue analysis Applicator calibration Cropscouting Record keeping Variable rate technology Site-specific management Application timing Controlled-release technologies Inhibitors Fertilizer product choice Right Product Soil testing N, P, K, secondary and micronutrients Enhanced-efficiency fertilizers Nutrient management plans Right Place Application method Incorporation of fertilizer Buffer strips Conservation tillage Cover cropping

9. Knowledgetransfer to farmers • Developing countries account for 2/3 of world consumption • Inefficient ‘conventional’ governmental extension services • Hundreds of million smallholder farmers are not satisfactorily advised on fertilizer management poor use efficiency • Develop solutions to supplement extension workers • Develop common knowledge platform to ensure consistent messages • Train agri-input dealers to provide agronomic advice

10. Innovation: new productswithadded value Slow- and controlled release fertilizers Stabilized fertilizers • Mostly used on specialty crops • Constrained by price differential • New products could alleviate the price constraint • Virtual Fertilizer Research Center (launched in 2010 by IFDC): Creating the next generation of fertilizers Fertilizers supplemented with micronutrients Soluble / liquid fertilizers (fertigation, foliar sprays)

11. Fertilizing crops to improve human health Enriching fertilizers with micro-nutrients = macro effect Zn Se Micronutrient-enriched fertilizers (agronomic biofortification) to fight malnutrition TurkeyZinc-enriched fertilizers for wheat crops FinlandSelenium-enriched fertilizers fighting cardio-vascular disease China Iodine-enriched fertigation

12. Bio-FortificationProcess READILY BIOAVAILABLE AND ASSIMILATED Iodine, Zn, Se, Fe Iodine, Zn, Se, Fe ENRICHED FERTILIZER SOLUTION Iodine, Zn, Se, Fe BIOFORTIFIED FOOD Iodine, Zn, Se, Fe UPTAKE Through leaves (foliar applied) Through roots

13. Farmersneedour collective efforts • INNOVATION: Research and develop new products and best management practices • PARTNERSHIPS: Develop new business models for emerging markets • FARMERS: Cooperate in innovative extension services – effective outreach and last-mile delivery