Despite the approaching spreading season, manure prices in the Netherlands continue to rise. The reduction in application standards in recent years has significantly limited application space, while the manure supply is only gradually decreasing. As a result, the manure market has not only become considerably tighter but also more sensitive to regional variations in supply and sales opportunities, as is becoming clear again this week.
What's striking is that the price difference between the Southern Netherlands and the rest of the country is widening, something a manure broker said seemed unrealistic five years ago. This week, average cattle manure prices in Central Netherlands rose by €0,84 to €36,67 per tonne, while prices in the Southern Netherlands remained stable at an average of €30,33. This widened the difference to a staggering €6,34 per tonne. Manure brokers cite the complete phasing out of derogation as the main cause of the rising manure prices, with the difference compared to the Southern Netherlands partly explained by the relatively higher number of farmers quitting their jobs in that region.
Price differences continue to increase
It's unusual for manure prices to rise sharply so close to the spreading season. At the same time, the differences between sales regions within the Netherlands have never been greater. A manure intermediary from the south of the country notes that this trend is new to the market. Despite the high pressure, especially in central and northern Netherlands, livestock farmers are still bringing manure onto the market because they have a large amount of manure to dispose of again next year. "You can wait until the manure spreading season starts, but that doesn't reduce the supply," they say. Consequently, intermediaries don't expect prices to drop immediately from the start of the spreading season.
It was already clear at the beginning of last year that sales opportunities in Friesland were under pressure, and little has changed. While manure could previously be spread largely within the province, the phasing out of the derogation has significantly limited sales opportunities. Compared to the same period last year, the price of cattle manure in the Leeuwarden region rose by €4 this week, to €38,50 per tonne. This means the difference with the price of cattle manure in the southern Netherlands has widened to a staggering €8,17 per tonne.
Lower usage standards increase regional pressure on the manure market
The impact of the lower application standards is clearly noticeable at the farm level. A difference of 20 kilos of nitrogen per hectare compared to last year quickly means that on a 70-hectare farm, approximately 350 cubic meters less manure can be spread. In the southern Netherlands, where a relatively large number of farms have closed down, the manure market is still finding some equilibrium, and prices remain relatively stable. In central and especially northern Netherlands, the stricter regulations are actually resulting in an increasing amount of manure on the market, further increasing pressure on sales and prices, which has led to the significant difference compared to the southern Netherlands.