Phosphate rights price under pressure in week 1

The price of phosphate rights in week 1 is lower than in week XNUMX last week of 2017. This week the DCA quotation for phosphate rights stands at €195,60, a decrease of €6 per right compared to last week.

Waiting for decision
The price could fall this week, because buyers are cautious and supply is cautiously increasing. Dairy farmers who want to buy phosphate rights will have to wait until January 15. From that date, the Netherlands Enterprise Agency (RVO.nl) the transfer forms available to actually trade in phosphate rights. The intention is that dairy farmers will have received a decision on the allocated phosphate rights before that date from RVO.nl. 

Falling milk prices inhibits desire
Another reason why dairy farmers are cautious is the falling milk price. The guaranteed price from FrieslandCampina is €4 per 100 kilos lower for January and also DOC Kaas announced to reduce the payment price by €5 per 100 kilos.

(Text continues below the chart)The price of phosphate rights is under pressure in the first week of 2018.

There is another factor that can cause the price of phosphate rights to drop, namely the capture of the phosphate rights manure production ceilings per sector in the manure law. As a result, the possibility of exchange between the sectors is in principle no longer possible. This is also stated in it sixth action program Nitrates Directive.

Minister Carola Schouten (Agriculture, Nature and Food Quality) expects that the chance of obtaining a derogation is greater without the exchange of production rights between the different sectors. This will also the price on pig rights valleys. 

Supply is slowly increasing
The trade does report that supply is increasing very cautiously. Yet there are also dairy farmers who plan to stop, but postpone this for a few more months. They first use up their stocks and benefit from the relatively high milk price.