'Phosphate questions Lodders real, but too late'

The parliamentary questions that Helma Lodders (VVD) asked on Friday 1 December about the tradability of phosphate rights are causing a lot of confusion. Various advocates agree with Lodders, but find the call a bit late. LTO prefers no supervision.

Harm Wiegersma, chairman of the Dutch Dairy Farmers' Union (NMV), endorses Lodders' questions. An overheated phosphate rights market is a threat to the cost price position of Dutch dairy farming. "The prices of about €8.000 per cow are unhealthily high. You don't have cost-increasing phosphate rights abroad like we have."

Wiegersma finds it remarkable and significant at the same time that the objections come from a liberal party. According to Wiegersma, there have been discussions in the past about a regulated phosphate bank. "Maybe that's something to get the market more transparent." 

In addition, Wiegersma believes that clearing production rights, in combination with a warm remediation of pig farming, can provide a solution for the phosphate surplus in dairy farming.

'Making the market transparent'
Sieta van Keimpema, chairman of the Dutch Dairymen Board (DDB), speaks of a remarkable move to ask these questions at '5 to 12'. Certainly because the VVD is not in favor of regulation in the case of free lease. Van Keimpema: "The fact that this discussion still has to be had is a sign of a lack of direction on the part of the government. It means that many questions are asked."

Van Keimpema, on the other hand, sometimes agrees with Lodders. That is why she advocates a phosphate grant. A central platform where phosphate rights can be traded at a fixed time, just like the milk quota in Germany and Denmark used to be traded. "That way the market becomes more transparent and a realistic picture probably leads to more realistic prices."

Do not skim lease rights
Van Keimpema also argues in favor of not skimming lease rights. "The skimming of lease rights probably drives up the price," said van Keimpema. Dairy farmers should not be held back from leasing or leasing rights. "Nobody benefits if the phosphate space goes unused."

Van Keimpema is also in favor of the separation of animal rights. The DDB chairman believes that there is a task for the Ministry of Agriculture, Nature and Food Quality to create clarity. According to Van Keimpema, there is still nothing at all and it remains ominously quiet in The Hague. 

Market forces
Wil Meulenbroeks, chairman of the dairy farming department at LTO Nederland, finds Lodders' questions astonishing. Meulenbroeks says that LTO is not in favor of structural measures by the government, because governments succeed each other over time. Meulenbroeks also thinks that the price is currently too high. "A seller is smarter than a buyer at the moment", is the opinion of Meulenbroeks.

Nevertheless, the chairman argues in favor of market forces. "When the pig rights were introduced, they were also expensive in the first year. Later, the buyers ran into themselves and left a quarter of the price." According to Meulenbroeks, there is a contingency arrangement for excessive cases. Grower and stopper can also find each other without the intervention of a commission agent or broker.

LTO is also against the separation of production rights. "Within the different departments of LTO we respect each other's space and we are against separation."

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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