Ignoring LU for grower in milk costs 50.000 euros

Dairy farming has once again taken an important turn. Refused by the phosphate ceiling in the requirements for maintaining the derogation for manure, from which exports cannot be deducted, the LU scheme came into effect on 1 March. But what does it cost a dairy farmer if he does not take action? Countus calculated it. 

The LU scheme will apply to dairy farmers from 1 March, but non-dairy farms that do keep cattle will also be affected. Something that, for example, produces gray hair in those who purchase cattle in the spring, have them graze on natural grounds and sell them in the autumn. The LU will not allow that this year. This also results in a difficult issue for so-called bull breeders, whereby the main question for dairy farmers is whether the Netherlands Enterprise Agency (RVO) has already issued a correct phosphate reference.

countus calculated what it costs an average dairy farmer, who has grown since 2 July 2015, if he does not participate in the LU scheme. With a growth of 10 percent, the price tag amounts to 50.000 euros. For a larger grower, the accountancy calculated a loss of 140.000 euros via the milk money.  

A calculation made for the dairy farming meetings. Differences from the original plans are: the destination of the discharge is no longer relevant and the exemption from reduction in periods 4 and 5 when companies have achieved the target number in the first 3 periods is not included in the scheme.

Although the exemptions for periods 4 and 5 have been deleted, the sector can ensure that the reduction percentage in periods 3 to 5 falls below 20 percent. 'It also appears that the average Countus dairy farmer does not suffer any damage when he reduces the young stock and removes a number of low-productive animals.' In that case, reference is made to 10 percent growth. For strong growers, a phased livestock unit reduction is recommended from the start.

On the other hand, there is money to be made for those who did not grow compared to July 2, 2015. This can be done through bonus milks. On the one hand, it can help to keep a little less young stock and get rid of low-yielding animals, so that the bonus is as high as possible. Another advice is to try to milk as much as possible by exchanging young stock for dairy cows.  

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