At the start of the fertilizer season, there is less pressure on the fertilizer market than in other years. On the left and right, the collection contributions even show some small decreases. In the background, a number of factors seem to influence prices.
The costs for selling pig manure in particular are at a lower level at the beginning of February than we have seen in recent years. In addition, the selling prices for fattening pig manure in Central Netherlands took an additional step back in January (€19,50 per tonne). In the South of the Netherlands, collection contributions have recently been stable (€23,17 per tonne), albeit at a slightly lower level than last year.
The collection contributions for cattle manure appear to be quite stable and in the South of the Netherlands are at the level of recent years (€18,00 per tonne), for the Central Netherlands they are slightly lower than last year (€16,50 per tonne).
Silos don't seem to be filled yet
Traders report that there is still space available in manure silos in arable areas. The supply of manure appears to be somewhat smaller. On the one hand because the pig sector has shrunk somewhat, but also because pig farmers cannot dispose of more manure than strictly necessary due to the dire financial situation.
Because the period until the actual kick-off of the spreading season is getting smaller, some arable farmers are inclined to settle for a lower payment, up to a few euros per tonne. With this they hope to receive sufficient supply of liquid manure in the coming weeks to quickly complete the fertilization at the time that suits them. The fact that, when necessary, fertilizer will require a significant investment also plays a role in this.
Another problem is the limited amount of labor available in manure distribution. It seems increasingly difficult to provide all vehicles with staff in the spring, which may put pressure on the maximum volume of manure to be transported in the peak period of March/April. This also plays a role in the consideration of arable farmers to now receive liquid manure, if necessary for a lower contribution.
The above developments ensure that the collection contributions are at a lower level and tend slightly downwards. Whether the market can quickly take further steps downwards at the start of the spreading season will also depend on the weather conditions. However, at the very least, the market appears to be better balanced than in previous years.