Manure processors are in trouble due to the high electricity prices. This is a reason for fertilizer processor GreenFerm to adjust a surcharge to the applicable gate rate. A call round learns that other processors will not adjust the rates, but they do recognize that the calculation is no longer correct.
GreenFerm informed its suppliers in writing yesterday (30 August) that they would immediately introduce an energy surcharge. This is to compensate for the sharply increased energy costs. According to the company, this has increased the cost price by €7,60 per tonne, assuming an electricity price increase of €0,38 per kWh. Director Willem Berkhof is disappointed with the measure, but according to him it cannot be averted. Greenferm checks the amount of the surcharge on the basis of the energy rates every week.
In the contracts, Greenferm takes the consumer price index (CPI) into account, but this is not sufficient to absorb the current cost price increase. In addition to the price of energy, fuel prices have also risen sharply, according to Greenferm. In addition to taking the CPI index into account, Greenferm now charges 75% of the increased energy costs in the gate tariff, the letter states. The average gate rate is €16,50 per tonne, including the phosphate surcharge. With an electricity price of €0,55 per kWh, this would result in an extra surcharge of €5,70 per tonne.
Kumac
Manure processing cooperative Kumac from Deurne says it will not apply an energy surcharge. However, the energy costs hit hard, says John van Paassen. "We performed well in the first half of this year. This is partly due to the increased prices of fertilizer substitutes, which benefit from the high fertilizer prices." For the second half of this year, Kumac is heading for a negative result, Van Paassen thinks. However, the company does not want to impose an extra allowance on member pig farmers who are already having a hard time financially.
The cooperative has 32 pig farmers as members who jointly bring in 80.000 tons of manure for processing. Kumac uses a collection rate of €15,50 per tonne for this year, excluding phosphate. A surcharge of €1,50 per kilo applies for this. The processing rates may be adjusted from 2023. "We will look at that by then," said van Paassen. Shutting down the manure processing installation is not an option, according to Kumac, given the shortage of VVOs in the market.
Twice
Manure processor Twence from Hengelo is also not tinkering with the rates, a spokesperson said. The company works with long-term contracts of 3, 5 or 10 years that can be indexed. The company currently applies a gate rate of €17 per tonne, including phosphate. "We are still in the start-up phase. The intention is to fully utilize our capacity from next year." Twence partially converts the manure into green electricity. The sharply increased rates for this partly compensate for the higher cost, the spokesperson said.