Brussels gives phosphate plan the benefit of the doubt

Despite the fact that the Dutch dairy sector has violated the derogation conditions for three years in a row, 'Brussels' is prepared to offer our country one more chance. With that news, State Secretary Martijn van Dam returned from the EU capital on Friday evening. If the entire sector can achieve results, then the derogation is not in danger.

On Friday, Van Dam spoke with European Commissioner Karmenu Vella of the environment. That same evening, he informed his ministry of the opinion from Brussels. If the dairy farming sector can strictly adhere to the phosphate reduction plan, the derogation will not be endangered.

The Netherlands has violated the derogation for three years in a row. 'Enough reason for Brussels to withdraw the derogation', Van Dam said. 'Because they now give us the opportunity to realize the phosphate reduction plan, it is a big step to take. It is up to the dairy farmers, the dairy and animal feed sector to reduce phosphate emissions.'

If the sector can show results, the plan for 2017 is not in danger. According to the State Secretary, new opportunities will then present themselves for discussing 2018 and the further future. A final decision will only be made when the Netherlands no longer violates the rules. In order to do this, the livestock has to shrink, according to the Stas.

Van Dam will inform EU Commissioner Vella about the progress on a monthly basis. Various parts of the package of measures are additionally guaranteed through a ministerial regulation. Kees Romijn, LTO department chair Dairy Farming, calls it an irreversible point for the sector. 'The European Commission considers the phosphate reduction plan sufficient to start with. The derogation will no longer be a discussion for 2017 when the dairy herd is shrinking. If this is achieved, we will be back at the negotiating table for 2018.' Romijn himself gave text and explanation about the plan in Brussels. That did not take away the critical attitude of the EC. Roman acknowledges that. 'It remains an enormous challenge.'

At the negotiating table, the phosphate reduction plan was amended on a number of points. For example, the milk money scheme has been scrapped, in favor of the LU scheme. Van Dam will record the measure in a ministerial regulation. The reduction plan is based solely on a reduction in livestock. This will happen from March 1. At farm level, livestock should be reduced to the level of July 2015, XNUMX, minus four percent. This is stated in a letter that the House of Representatives received on Friday evening.

The exception for land-based companies remains. Companies that do not comply with this will pay a levy. This income is used to pay a bonus to entrepreneurs who reduce their dairy herd to below the level of the reference date. In total, the reduction should result in 4 million kilos of phosphate reduction.

The package of measures has two other important components, in addition to the LU reduction. Feed companies are going to adjust the phosphorus content in feeds and the stopping scheme will be drawn up by RVO on 20 February. At least that is the expectation of the sector parties. Anyone who disposes of all their dairy cattle this year will receive a premium within the scheme. EUR 50 million has been set aside for the scheme. Half is financed from the sector. A total of 1.000 to 2.000 dairy farmers are expected to make use of the scheme. However, according to department chair Romijn, dairy farmers have already started downsizing.

© 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.