The manure spreading season has begun, but dairy farmers are not yet spreading it in full force. The weather hasn't been conducive to disposing of large volumes of manure on the land in recent days. Nevertheless, some manure has been spread in some areas. This is improving sentiment, particularly in the southern Netherlands. Several intermediaries therefore consider it a real possibility that a further price drop is on the horizon.
With temperatures in double digits and sunshine showing up more and more often, spring suddenly feels close. The weather forecast is also favorable so far, raising expectations that the manure spreading will really begin.
Market supply is declining
Manure supply on the market has clearly declined since February 16th, according to manure intermediaries. Many livestock farmers are holding on to their manure for the time being, choosing to spread it on their own land before having it transported again. This is logical, as historically, prices often drop significantly after the start of the spreading season. For now, this price pressure remains limited, but with the favorable weather forecast, it seems only a matter of time before the market moves further, according to the market.
Price relief on the horizon
With the predicted weather forecast, there are ample opportunities for spreading manure on grassland in early March. This will reduce the pressure on storage capacity. This will impact pricing, with the downward trend potentially becoming significant for the first time in roughly a year. However, price trends vary depending on the situation. Manure is cheaper to spread over short distances due to lower transport costs and ample local supply. Prices will remain higher over longer distances, as transport costs play a greater role there.
Intermediaries often believe that prices can fall further if favorable application opportunities persist. However, there are also concerns about the amount of manure that will still be on the market in the near future. Arable farmers closely monitor the manure market and know that high prices are being paid. Several livestock farmers have again held onto manure this winter that would normally have been disposed of by now. As a result, a huge amount of manure will soon be on the market and will have to find its way.
DCA collection contributions
The average collection fee for pig manure this week in the South of the Netherlands is €31,17 per cubic meter and in the Central Netherlands it is €37,17 per cubic meter. For cattle liquid manure, the fees are €29,17 and €36,50 per cubic meter, respectively. In the Leeuwarden region, the DCA collection fee for cattle liquid manure this week is €39,50 per cubic meter.