Background Land market
FrieslandCampina slows down dairy farm sales
FrieslandCampina's plans seem to act as a brake on the sale of dairy farms. Something that also plays a role in the background are the phosphate rights. However, it does not mean that no companies are sold at all. In addition, grassland remains popular.
Dairy cooperative FrieslandCampina made up April 16 known to work on a so-called growth agreement. The rough lines are known, but the exact details have yet to be found and that creates uncertainty. Also at the banks. Just like during the announcement of the phosphate rights, the sale of dairy farms.
Reluctant buyer
The above is mainly observed in the province of Friesland. It all goes a little easier when the milk is delivered to A-ware. This really doesn't apply to all companies; for example, there are also companies that are easily bought up split by the neighbors. Only the bigger one companies encounter a slightly more reluctant buyer. It remains to be seen how the dairy farmers who are considering stopping will react to this.
Still, the undertone is mostly positive. Dairy farmers want to continue and that is also confirmed in the provinces of Drenthe and North Brabant. In Drenthe, there is slightly less hindrance from the plans of the Netherlands' largest dairy cooperative. "There is continuous demand for companies," says a broker. In this area there is a little less method seen, compared to 2017.
The phosphate rights are more pronounced in North Brabant. Dairy farmers try to obtain sufficient rights here in the first instance. That sometimes goes a long way; For example, there are known scenarios where land has been sold to obtain refinancing, in order to be able to purchase rights. The financing that dairy farmers can get does not go to expansion or the purchase of another company, but to rights.
It is difficult to say how developments at FrieslandCampina are affecting the south of the country, according to a broker. "For various dairy farmers, it means that the calculation has to be made again."
Big difference in prices
What remains in demand anyway is grassland† An average price cannot be mentioned. It depends on the size of the lot, the location, the quality and how much demand there is in the area. For example, the bandwidth in Friesland is between €40.000 and €60.000. In Drenthe, the spread is no less great.
Only in the autumn will there be more insight into the true value of grassland. Sales are now in low season. Dairy farmers mainly use the land themselves.
Herman van den Pol
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
