Fertilizer prices have not been this low in two years

Manure disposal costs for cattle farmers were lower in 2017 than in the previous 2 years. The collection contributions of cattle slurry clearly show a downward trend, both in the southern and central manure regions. The price of fertilizer processing agreements will fall from the beginning of November.

The largest price decrease was in the middle region. In the middle of September 2016, cattle farmers in the region paid €21,30, 1 year later this is €15,20. That is a price drop of almost 27%. The decrease is smaller in the south region. Compared to last autumn, the price of cattle slurry there fell by 21% to €16 per cubic meter.

The reason for the price drop is the increasing processing capacity in the central and eastern regions. Although mainly pig manure is processed, manure processing still has a price-depressing effect on the regular market. The supply of manure was also smaller this year. At the same time, the manure could be spread more quickly. Last year, weather conditions hampered finishing, so the application season was very short. A lot of slurry has already been applied in the spring this year.

Erratic price trend in 2017
The course of 2017 is somewhat erratic. At the start of 2017, cattle slurry was the most expensive in the middle region. The average price in January was around €20 per cubic meter. That is €1 per cubic meter more than the average price in the South region. It was not until mid-April that the average price of cattle slurry in the region in the middle fell below that of the South region. The best fertilizer is mid-August. The price difference between south and center is then around €0,80 per cubic meter.

Manure prices have been rising again since August. The increase is strongest in the south region. The livestock farmers in this region pay almost as much as at the beginning of the year. The Tilburg and Uden regions are the most expensive. There, cattle farmers pay an average of €20 per cubic meter. That is €4 per cubic meter more than at the beginning of August. The cattle farmers are paying more and more to dispose of their manure. This is mainly caused by the increase in supply. This while the sales opportunities are very limited. It puts pressure on the market and therefore also the price.

Strong difference in regional price
The collection contributions for cattle slurry this autumn vary considerably. On balance, cattle farmers in the central region pay a few euros (per cubic meter) less than the southern cattle farmers. The collection contributions in the middle region are almost equal to the 5-year average and are around €17 per cubic meter at the beginning of November. The Barneveld region is the most expensive with €18,50 per cubic meter. Prices in the Markelo area are €2 lower.

The reason for the price difference is that there is an unexpected and persistent supply of cattle slurry in the south and that the sales space is minimal. Distributors indicate that they have enough manure to fill the storage areas.

Prices on average lower than 2016
Although manure prices in the South region rose sharply this autumn, cattle slurry prices are slightly lower than last year until early November. The difference is minimal: approximately €0,30 per cubic meter. Prices in the middle region are considerably lower than in 2016: an average of €2 per cubic meter. The average price in the middle region in 2017 (until week 45) is equal to the 5-year average.

The trade in VVOs is slowly getting going in late summer. This is quite late compared to previous years. It is expected that cattle farmers in particular will have to get their manure accounting in order and that they will have to rely on VVOs for this. They will start doing this when the maize is in the silage and it pays the bill.

The price of replacement processing agreements was very stable. The value is approximately €1,15 per kilo of phosphate in mid-September. From the second week of November, the manure processing prices fall. The traders are noticing more movement in the market. The prices of VVOs, 3POs and Code 61 agreements are between €1,10 and €1,13 per agreement.

This article was recently published in 'Zuivelmarkt De Analyze 2017'. Click here to still receive the magazine.

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