The pressure on the fertilizer market was already high at the start of this season and has only increased in recent weeks. Manure prices continue to rise steadily and manure transporters are alert with the quantities of manure they accept. While there is supply coming from all sides.
The pressure on the manure market started early with the late, wet spring, resulting in less manure being spread during that period. Even though with the phasing out of the derogation and the new buffer strips (fertilization-free zones), the installation space had already decreased. Milk production also increased, which led to extra manure that had to be sold. The liquid manure supply was already depressed during the summer and remained so until the last day of the spreading season. This led to very high sales costs for that time of year. All these circumstances create the current, erratic situation in which the fertilizer market now finds itself.
Be cautious about accepting manure
Currently, the sales costs of cattle and pig slurry continue to rise steadily. While the fertilizer market usually shows a stable price trend during this period. Supply remains much greater than demand. Manure intermediaries and contractors are alert and sometimes reluctant to accept the quantity of manure, making agreements with current prices entails risk. They now drive to the storage facilities, but many of them only serve regular customers and do not accept extra manure. They still have to serve regular customers throughout the winter and still have regular appointments. The additional supply on the market is therefore even greater. In addition, the manure storage facilities of every manure intermediary and contractor have not been emptied, meaning there is less space this winter.
It is mainly the additional supply of cattle slurry that has caused the sales costs of slurry to rise this year. Due to a derogation, dairy farmers are allowed to use less manure on their own land and that is now being added to the market. It does not mean that the sales costs of pig slurry have increased less. In some regions, sales costs are closer to each other than the long-term average.
Collection contributions
According to DCA manure quotations, the average collection contribution for cattle slurry in week 45 is around €25,00 per tonne. The average collection contribution for the Barneveld region is €25,50 and in Markelo it is €24,50 per tonne. However, the spread in the assignments is large and varies per region.
For fattening pig slurry, the average collection contribution in the South region (Uden, Tilburg, Deurne) is an average of €28 per tonne. The Central region (Barneveld, Lichtenvoorde, Markelo) averages €27,00 per tonne. Here too, the difference in assignments is large, partly depending on where it has to be collected. For example, in some regions more than €30,00 per tonne is paid.
An overview of all DCA fertilizer quotations can be found here.