INTERVIEW-Valmont says irrigation demand to keep growing

By Christine Stebbins

ST LOUIS, May 20 (Reuters) - Demand for more efficient irrigation will continue rising worldwide as climate change and water shortages spotlight its key role in food production, a Valmont Industries (VMI.N) official said on Wednesday.

"The world needs to better use the existing water sources. The water issue is more important than our carbon dioxide issue," Bernhard Kiep, general manager for the international division of Valmont, an Omaha, Nebraska-based manufacturer, said in an interview at the World Agricultural Forum.

Valmont makes support structures and coatings but also has a growing worldwide business in mechanized precision irrigation that features computerized, low-pressure pivot systems that Valmont says raises efficiency and use satellite-based GPS technology that track usage to cut costs and water waste.

Those contrast with traditional flood or newer "drip" technology, which can provide water and nutrients to plants almost continuously through small-diameter tubes.

"Drip is a great technology but it's not easy, it doesn't work that easily," Kiep said. "The adoption rate is minimal even in the U.S., even with sophisticated farmers. Mechanized irrigation is growing because it's easier to use -- it saves water and it's more forgiving."

Kiep said U.S. water use for agricultural production has been generally stable for the past 10 years mainly due to more efficient irrigation systems. He said those lessons have not been lost overseas, where Valmont sales are rising.

"We have done some exciting projects in Zambia and Mozambique. China is probably one of the most exciting projects. It's all mechanized, no drip. Drip won't work in large scale," he said.