The issues surrounding environmental pollution and food safety, combined with the growing demands placed on farmers to increase crop yields, require action now to ensure sustainability of our food supply into the future.

It also impacts upon our business directly: Terravana’s palm mills require a steady supply of crude palm oil from palm plants, while our bioenergy business hinges on the success of cassava growing programs. In order to mitigate risk and assure the future viability of our businesses, Terravana has to become involved right at the start of the growing process; for this reason, we are establishing a biofertilizers business in countries across Sub-Saharan Africa and South Asia.

The biofertilizers business is based on assured buybacks from partners with a strong local presence, and will enable us to focus on building a farmer-friendly, value-oriented business line, from initial growing phase through to the final product.

Terravana has already raised the capital for our first three plants in Zambia, Malaysia and Indonesia. We have also invested $18.6 million for a further six plants – three in India and one each in Kenya, Ethiopia and Malaysia – bringing our total number of plants to nine by the end of 2016.

In 2017, we will be investing $12.4 million into a further four plants, in Zambia, Indonesia, Sierra Leone and Vietnam, giving us a total of 13 plants. Our greatest presence will be in India, followed by Indonesia and Malaysia, where our bioenergy and palm mills operations take place.

plant timeline

Each plant can be fully operational after two years, and can begin production after a maximum of nine months of set-up time. In the second year of construction, there is a focus capacity and efficiency increase across to 100% over a five-year period, and the consolidation of our marketing and sales activities for our products. Our efforts in this regard will be differentiated for our main South Asia and Sub-Saharan Africa markets due to the differences in market maturity.

Our differentiated efforts will be tailored to our two specific markets. In Sub-Saharan Africa, our primary customer will be the government, and therefore sales will be generated through participation in tenders and other public systems. Terravana will also leverage links with local government bodies and philanthropic organisations to bring about policy changes favourable towards biofertilizers, to ensure both the future sustainability of this business model, as well as improved crop yields.

Meanwhile in South Asia, our primary customers will be the palm mills and the farmers themselves. The market itself is more economically developed, and potential clients will be able to be reached through both physical and virtual means. In India, we will also leverage our network with the Consortium of Indian Farmers Association to build sales.


A rapidly multiplying global population places heavy pressures on farmers to grow enough crops to satisfy increasing demand; in turn, farmers require more from their soils, stripping them of their natural fertility. As traditional techniques such as crop rotation and allowing for a fallow season are rejected, in favour of gaining the highest yields possible of a particular crop year on year, soil is leeched of its nutrient content, enhancing the problem.

Farmers have increasingly turned to agrochemicals and fertilizers to try to recover their soil’s fertility and, in turn, increase yields. Chemical fertilizers are industrially manipulated substances which can cause air and ground water pollution, and are damaging to both localised micro-organisms and friendly insects. As nutrients are leeched from the soil, crops become more susceptible to disease, and further chemicals are required to mitigate the effects: farmers then become stuck in a Catch-22 situation.

Biofertilizers offer an organic solution to the problem, as well as preventing residual chemicals ending up in foods. They contain living microorganisms, promoting plant growth by increasing the supply of primary nutrients through natural processes and converting complex organic material into simple compounds, to improve take up by a plant’s roots. The microorganisms restore the soil’s natural nutrient cycle and build soil organic matter, ultimately improving yield by up to 35%, even in semi-arid conditions.

In 2014, around 185 million tons of fertilizers were used; according to a report released by Renmin University, the problem of overuse of fertilizers is particularly endemic in China, where farmers use 40% more fertilizers than necessary. Chinese waterways end up being polluted by 10 million tons of fertilizer every year.

The demand for fertilizers in South Asia is expected to increase by 3% annually by 2020, while this jumps to 6.3% year-on-year in Sub-Saharan Africa. Governments around the world are recognising the twin problems of requiring more food for a growing population and the finite resources with which to produce it. Policies, as well as the economic environment, are stimulating demand for biofertilizers; they are more cost effective than chemical fertilizers, as manufacturing costs for nitrogen and phosphorous are comparatively high.

Governments are increasing incentives for adopting eco-friendly practices. India, which has 200 million hectares of agricultural land and the most supportive government in terms of biofertilizer policy in South Asia, has implemented a centralised scheme involving the establishment of a National Biofertilizer Development Centre.

Indonesia has 60 million hectares of agricultural land available, and the government has implemented two main policies to reduce chemical pollution: an increase in farmer subsidies for using organic fertilizers, and an initiative to turn Bali into an entirely organic province. In Malaysia, which has eight million hectares of arable land, the government’s fertilizer subsidy scheme provides financial incentives to smallholder farmers for the purchase of fertilizers through farmers’ associations.

While governments are less focused on the issues surrounding agriculture in Sub-Saharan Africa, activity to improve the fertility of the soil is already underway. In Zambia, the implementation of the Comprehensive Africa Agriculture Development Program aims to create an encouraging environment for private sector investment. The Ethiopian government has committed to specific policy actions to improve the environment for private investment in agriculture, and private companies have subsequently signed letters of intent for investment. Kenya is part of the BrazilAfrica Dialogue to adapt Brazil’s policies on the matter, which includes the promotion of biofertilizer alongside sustainable farming practices.