What are some of the challenges that agri-nutrient producers in the GCC, including GPIC, have been facing?

The reality of the Gulf region’s arid climate, water scarcity, and limited arable land have naturally challenged the entire regional agri-nutrients and food industry. The formidable conditions have restricted local food production and led to a high dependence on imports. During the recent pandemic, this dependence exposed the potential vulnerability of the GCC food systems to disruptions in global supply chains and logistics, with geopolitical tensions further aggravating the concerns. At the same time, the onset of Covid-19 proved to be a positive and potent catalyst. Recognizing the importance of increasing the GCC food sector’s self-sufficiency, government policies have been enhanced to increase domestic food production, reduce food wastage, support research and development, and streamline logistics. Technology and more recently artificial intelligence (AI) have given these developments further impetus. However, much still remains to be done such as increasing the productivity of local farmers, shortening food supply chains, and establishing a pan-GCC entity to oversee regional food security.

At GPIC, we are encouraged and excited about the ongoing transformation of the GCC food industry and look forward to supporting the expanding government endeavors. Yet these are tough times as we are facing our own share of challenges including the volatile prices for our products, intensifying competition from established global players, new and upcoming agri-nutrient capacities worldwide, and securing feedstock for potential expansion projects to enable us to overcome these hurdles.

What is GPIC’s agri-nutrients growth strategy, and how do you plan to balance growth with sustainability targets?

Recently, GPIC redefined its corporate vision with the stated ambition to become a leader in chemicals and agri-nutrients that pursues excellence and sustainability. This strategic pivot has led to the development of the GPIC Growth Strategy 2040, which is centred on product diversification, strategic partnerships, and aligns our company strategy with Bahrain’s ambitious goals of reducing Scope 1 and 2 emissions by 2035 and 2060, respectively.  As part of this, we have launched a comprehensive growth strategy balanced by a decarbonization roadmap focusing on sustainable product development, circular economy principles, resource efficiency, carbon footprint reduction, stakeholder engagement, and transparency and reporting. We believe that this approach will enable the company to grow successfully and also remain committed to low-carbon and sustainable operations that meet our stakeholders’ expectations.

The energy transition and the need for emissions reduction are accelerating, adding pressure on the industry to find new solutions and innovate. How can the industry meet the dual challenge of contributing to food security, while at the same time minimizing its impact on the planet?

It is widely recognized that energy transition entails nothing short of radical change in all human activity. As a result, there is a growing debate on how to do this and most certainly, designing secure and sustainable food networks is at the forefront. Population growth and the increased demand for food as well as the growing sophistication of consumer preferences has complicated in what must be a multifaceted journey to make the global food system sustainable. All of us involved in the food supply chain including agri-nutrient producers like GPIC bear the responsibility of embedding sustainability at the heart of all that we do, beginning with sustainable farming practices and fertilizer production.

More than half of the reduction in the emissions produced by the global food system can potentially be achieved through adopting practices such as ‘Precision Agriculture’ and ‘Nutrient Use Efficiency (NUE)’. Farmers can maximize the proportion of mineral nitrogen taken up by the plant through the implementation of the 4R Nutrient Stewardship: applying the Right nutrient source, at the Right rate, at the Right time, and in the Right place. This will enable farmers to reduce input while increasing crop yield. Other practices such as promoting soil health and utilizing advanced technologies like remote sensing, drones, and AI to monitor crop health, soil conditions, and fertilizer application will further augment the benefits.

Simultaneously, making fertilizer production a more sustainable process will also contribute toward reducing the emissions of the global food system. This includes shifting toward renewable and low-carbon feedstocks for fertilizer production; investing in energy-efficient production processes to lower the industry’s carbon footprint; developing and promoting low-emission fertilizer formulations such as controlled release mechanisms or lower nitrous oxide emissions; implementing carbon capture and storage (CCS) technologies: implementing circular economy principles to minimize waste and maximize resource efficiency; developing systems to recycle and reuse fertilizer byproducts and waste materials; and taking responsibility for the entire lifecycle of fertilizer products, from production to disposal, to minimize the overall environmental impact.

What is the role of policy and regulation in helping to support a more food secure and climate smart planet, as is the theme of this year’s GPCA Agri-Nutrient Conference? What more do you hope to see from policy-makers and regulators to help support the stability and resilience of the industry and the state of food security in the region and globally?

Policy and regulation are essential tools for building a food-secure and climate-smart planet. They provide a compass to guide industries, farmers, and consumers on how to navigate responsibly, efficiently and sustainably. Examples of policy and regulation to achieve this include incentivizing sustainable practices through subsidies, tax breaks, and grants for sustainable practices like organic farming, precision agriculture, and renewable energy adoption; setting environmental standards including regulation on emission levels, water usage, and chemical inputs toward reducing the environmental impact of agriculture and food production; promoting robust food safety regulations to protect consumers and build trust in the global food system; promotion of fair trade policies to support small-scale farmers; and investing in research and development to accelerate new technologies and practices that improve food security and reduce emissions.

But policies and regulations are not enough. We also need to facilitate access to finance so farmers and agribusinesses have the financial support to invest in technologies and practices to make food systems more sustainable and enhance climate resilience. Through such investments, data and technology can be leveraged to augment decision-making in farming systems and thereby improve food system outcomes such as crop yields, profits, environmental sustainability and food security.  We must also strive to create more opportunities for women and young people to participate in the agricultural sector because this contributes to positive economic, ecological and sociocultural changes in farming households and communities, and further enhances food security. Finally, raising awareness about the impact of food practices and choices on nature, sustainable eating habits, promoting sustainable diets, and the importance of reducing food waste through education and information programs is an integral part toward making our global system a sustainable one.

You’ll be delivering the Opening remarks on Day 2 at the GPCA Agri-Nutrient Conference. What do you expect from this year’s gathering and what do you hope to achieve?

Environmental responsibility is top of mind across the globe. Therefore, in this year’s conference I expect a strong focus on exploring sustainable practices for the agri-nutrient industry as well as discussions on carbon reduction strategies and how to adopt principles of a circular economy.

I am confident that the conference will provide rich insights for all of us as we collectively navigate through these very challenging times. By bringing together regional and global industry players, governments and research institutions, I am hopeful that through discourse, exchange of ideas and deeper collaboration, we will be able to forge a credible roadmap toward a more sustainable agri-nutrient industry. To further facilitate this, the GPCA Agri-Nutrients Committee is bringing an impressive group of speakers to this year’s conference covering a broad spectrum of pertinent topics. I look forward to seeing you all very soon.