IFA AGRO-ECONOMICS COMMITTEE CONFERENCE

23-25 June 1997 VINCI - Centre International de Congrs, Tours, France

DEVELOPING SULPHUR FERTILIZERS IN EUROPE

by P.M. Sweeney Kemira Agro Ltd, United Kingdom

DEVELOPING SULPHUR FERTILIZERS IN EUROPE by P.M. Sweeney Kemira Agro UK Ltd, United Kingdom

INTRODUCTION In Europe, industrial emissions of sulphur from combustion of fossil fuels have fallen since their peak of over 20 million tonnes S in the 1970s and the level returning to earth has also fallen over the same period. As emissions continue to fall through the continued decline in heavy industry and compliance with targets set for power plant in the Large Combustion Plant Directive, the proportion of agricultural land which receives adequate sulphur for optimal growth will also fall. These changes are already increasing the demand for fertilisers containing sulphur and the trend will become more marked over the coming decade. The challenge to fertiliser producers is to supply agronomically effective sulphur, adapting its products and technology to cater for the anticipated demand. BACKGROUND In 1970, sulphur deposition, i.e. sulphur returning to earth both in rainfall (wet deposition) and via absorption in gaseous form (dry deposition), was greater than the now accepted threshold of 50 kg / ha SO3 ( 20 kg / ha S) in over 80% of western Europe. Crop deficiencies were almost unheard of despite sulphur long being recognised as a major nutrient. As the level of deposition fell, so came the recognition that an increasing proportion of crops were now at risk of sulphur deficiency and research commenced. Sulphur is principally required for the synthesis of plant proteins and is a constituent of certain amino acids. A shortage of the nutrient exhibits itself as pale growth not dissimilar to a shortage of nitrogen. Indeed, farmers observing sulphur deficiency often attribute the symptoms to a shortage of nitrogen fertiliser and make an additional application, usually exacerbating the problem. FORECAST CONSUMPTION Detailed forecasts by Kemira in Great Britain suggest that consumption of fertiliser sulphur will rise to in excess of 160 kte SO3 (64 kte S) by 2005. At anticipated product types and concentration, this will be equivalent to over 1100 kte finished fertiliser product containing sulphur. 60% of sulphur nutrient is forecast to be contained in nitrogen and sulphur products which will account for 40% of product volume. By contrast, compound fertilisers containing all or a combination of N, P and K, in addition to sulphur will account for 60% of the volume containing 40% of the nutrient. This points to a five-fold growth in the requirement for sulphur fertilisers over present levels, a growth which will require substantial development of manufacturing technology together with agronomic research, field development and marketing.

Paper presented at the IFA Agro-Economics Committee Conference, Tours, France, on 23-25 June 1997

Initial forecasts by Kemira among EU member states suggests that the growth trend within GB will generally be matched elsewhere. Total nutrient sulphur is forecast to grow to approximately 1 million tonnes SO3 (400 kte S) by 2006, a figure broadly in line with that of The Sulphur Institute in Washington, USA, which estimates a figure for western Europe of 1.25 million tonnes SO3 (500kte S) by 2010. These forecasts clearly follow the weighting of crop areas, such that France and Germany are expected to dominate the demand for sulphur, followed by GB and with time the more southerly states of Spain and Italy. The perspective of these levels of growth is focused by the overall market volumes. In Britain, 1.1 million tonnes sulphur fertilisers are likely to represent a little less than 25% of all fertilisers. In Denmark the change has been much more rapid. As market leader, Kemira has responded to a particularly strong demand for sulphur and has included the nutrient in all its products, so that around two thirds of all fertilisers sold in Denmark now contain sulphur. Likewise in Finland, Kemiras home market, sulphur is featured in the majority of products. In Europe as a whole, 5 - 7 million tonnes total S-containing product will represent between 20% and 25% of total product. But however they are viewed, sulphur fertilisers, although a tremendous growth area, are likely to represent a minority of the overall market. Likewise, excellent though the economic returns are from using sulphur fertilisers, it cannot be expected within Europe as a whole that farmers will universally adopt sulphur fertilisers, nor use them where there is no agronomic justification. ECONOMICS AND PRODUCTS In developing its sulphur fertilisers, Kemira has been very aware of the needs to demonstrate the clear economic position to farmer customers. At the same time there is a need to establish a commercial value for sulphur in products. Inclusion of an additional raw material necessarily entails costs which should be reflected in the product value. In NPK fertilisers, including sulphur often involves a re-formulation of nutrient analysis, such that the additional cost of sulphur is not immediately obvious. Although this may be initially appealing in marketing terms, it does not particularly help in addressing the issue of establishing cost-benefit analysis that any commercially-aware farmer and adviser will naturally look for. Conversely, with straight nitrogen fertilisers, addition of sulphur will immediately alter the relative nutrient values, particularly when there is a tangible difference in price. In aiming to establish a commercially recognised value for sulphur, development of straight nitrogen fertilisers containing sulphur have clear appeal. Not only do they address a clear need for products of this type with associated farmer-benefits of flexibility and fitting with existing practice, Kemira DoubleTop (marketed in GB) allowed the Company to lead the market by establishing a realistic and tangible value for sulphur, in line with both raw material costs and the level of economic response a farmer could achieve. ELEMENTAL OR SULPHATE? The argument over the most suitable form of sulphur fertiliser is likely to continue for a long while. The argument broadly falls into the primary consideration of whether elemental or the oxidised form of the nutrient is most suitable in agronomic terms.
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To date, Kemira has adopted sulphate as its route to providing sulphur. This has largely been driven by the consideration that crop plants require sulphur in the sulphate form for root uptake. Immediate availability is considered to be the most critical factor affecting crop response and therefore sulphate was considered the only option. To date, all Kemira sulphur-containing products have been based on inclusion of either ammonium sulphate or the anhydrite salt of calcium sulphate. Research by both Kemira and independent organisations has clearly demonstrated that sulphatebased fertiliser materials are effective in treating sulphur deficiency and give consistent and reliable responses. Further, comparisons between soluble and insoluble sulphate salts in ammonium sulphate and gypsum demonstrate that both are equally effective in rectifying deficiency. Elemental sulphur does, however, offer a real potential to compete effectively with sulphate products provided certain problems can be overcome, principally technical and economic. At current retail terms, sulphur in Kemiras and competitors products equates to around $320 / tonne S compared to a figure around $1000 / tonne S in elemental. Compared to fob. prices for molten sulphur below $50 / tonne, consideration of fundamental costs would suggest that elemental products ought to be much closer to sulphate-based products. In addition, detailed consideration should also be given to the essential agronomic factors which govern the crops responsiveness to the nutrient and the farmers margin opportunity. PRODUCT REQUIREMENTS Within Europe, fertiliser products, rates and timings vary quite widely depending on particular requirements usually dictated by agronomic considerations or historical factors as to how the fertiliser industry has evolved. The two main types of fertiliser are straight nitrogen, mostly CAN and Ammonium Nitrate, but also Urea, and NPKs. In the UK and France, Ammonium Nitrate is the predominant nitrogen fertiliser whilst most other countries use CAN. Europe is perhaps unique in that the majority of phosphorus and potassium is applied in combination with nitrogen as complex NPKs as opposed to straights or bulk blends. Given this difference, it is clear that many of these NPK products will, in future, include sulphur. Sulphur fertilisers are needed which are both effective and, vitally, integrate well with conventional fertilisers so as to minimise the inconvenience and additional application cost associated with their use. As fertiliser products and techniques vary widely across Europe, so it is not always easy to develop products which meet all the criteria, even before consideration of manufacturing technology and safety. For the practical farmer adopting sulphur fertilisers, convenience is a major consideration. Apart from ease-of-use there is also the consideration that an additional application could well cost more than the nutrients applied! For example, the cost of the sulphur in some commercial products, over the other nutrients may be less that 2 / ha, against an application cost of 4 - 5 / ha. Thus, formulation not only has to deliver sulphur at a suitable range of rates, but also must complement the other nutrients required. These complications are further compounded by different fertiliser types and crops. For example, oilseed rape and winter wheat will require broadly similar levels of nitrogen, usually supplied as straight N, whereas oilseed rape will require twice the level of sulphur compared to winter wheat. AGRONOMIC CONSIDERATIONS Product formulations must take into account both local constraints of agronomy and normal fertiliser techniques as well as more exacting technical requirements. It is also clear that many soils
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are undergoing a transition from adequate sulphur to deficiency. In the days of excess sulphur availability, it is likely that a certain level of mineral accumulation occurred, particularly on soils with higher base exchange capacity. Therefore, many soils will move into a vulnerable status only slowly and some not at all. Such facts mean that it is not only difficult to define the extent of sulphur requirement but also that the optimum rate is a moving target. Add to this leaching effects and year to year carryover and it becomes easier to explain why crop effects are sometimes only transitory and not always consistent between seasons. Continued research will help define both the extent of the problem and the remedy; it is vital that product innovations link closely with research to ensure the best practical and commercial solutions. Testing alternative formulations, application timing, rate and residual effects will lead to a constant refinement of the process. Delivering the best performing products to the farmer will give the key to commercial success. KEMIRAS APPROACH Preparing for such significant changes that could easily mean over one third of Kemiras fertiliser granulation capacity will need to include sulphur requires detailed planning and integration of all functions. Kemira is committed to a process of evaluating customer requirements in developing new products and modifying its plant and technology. There is no merit or justification in selling sulphur fertilisers to those farmers who do not need them. Thus, considerable effort is being applied to offering farmers analytical services to assess their need, as well as researching risk-assessment techniques for the future. A continuously changing scenario means that products will need to be adapted as greater understanding develops. Specifically, Kemira is now assessing sulphur requirements in its key markets, appropriate to local requirements. For example, Kemira Denmark demonstrates how the close combination of independent research and the State farm advisory service have led to the opportunity to apply sulphur almost universally with inclusion in all Kemira products. In GB a policy of developing a major branded fertiliser product for each of the five crop sectors which will account for 90% of demand has been adopted. This has seen the introduction and establishment of a small range of targeted products offering the farmer products specific to his requirement and at the same time offering the choice of sulphur-free alternatives. Likewise, in Germany, France and the Low Countries, similar development is taking place in readiness for the sustained growth in sulphur demand that is now evident. CONCLUSIONS Sulphur as a nutrient has come of age. Long used as an intermediate in phosphate production, sulphur is now a major fertiliser nutrient in its own right. As the environmental controls really bite and emissions dwindle, demand for sulphur will grow dramatically over the next decade or more. In Europe, annual reductions in emissions will see a fall of between 15 and 20 million tonnes sulphur (S) to be replaced by 400 to 500 thousand tonnes sulphur (S) in fertilisers. In Britain, annual
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sulphur emissions will fall by almost 90% or over 3 million tonnes (as S), to be replaced agriculturally by a little over 50 thousand tonnes (as S) in fertiliser. Thus, less than 3% of previously emitted polluting sulphur will be used to address the specific crop requirements in fertilisers. The fertiliser industry needs to prepare carefully how to achieve the best balance of product development, technology and customer satisfaction in meeting this need. Kemira is working hard to satisfy these requirements and provide its customers with the best products and to help them derive maximum benefit from their use.

Paul Sweeney - Career History Graduating from University of Wales in 1985, Paul Sweeney joined the State advisory service of the UK Ministry of Agriculture working as farm adviser and agronomist. In 1989 he joined Kemira and has held positions as agronomist and product manager. He is currently responsible for new product development and field research within the UK and Ireland. Sulphur has long been a study area for Paul Sweeney and he is well known both within Kemira and internationally for his work on developing sulphur fertilisers, market forecasting and in developing Kemiras Sulphur Strategy.

Contact address and telephone numbers Kemira Agro UK Ltd., Ince, Chester, CH2 4LB, UK Tel: + 44 15 13 57 27 77 Fax: + 44 15 13 57 56 05 Home: + 44 15 13 34 54 15 e-mail: paul.sweeney@kemira.com