The price of phosphate rights is now falling really fast

Paid dairy farmers last week still between €190 and €196 per right, this week it is €179 and €185 per right. This means that an average of €182 is paid per right. 

More offer
The fact that the price drops by more than €3 per right in week 10 compared to last week is due to the increasing supply on the market. Dairy farmers have theirs decision of the Netherlands Enterprise Agency (RVO.nl) received and now know what they can do. These are often dairy farmers from North Brabant and to a lesser extent Limburg. They have lost interest in farming due to the increasing regulatory pressure from the national and provincial government, no successor or minimal expansion options.

(Text continues below the chart)The DCA listing of phosphate rights shows a sharp decline.

The demand, on the other hand, mainly comes from dairy farmers in the north of the Netherlands. However, dairy farmers who need phosphate rights are waiting. They see the DCA listing phosphate rights after all, declining week after week. In addition, dairy farmers who have more cows in their stables than phosphate rights have until the end of December to redeem them. Some traders indicate that they mainly trade smaller lots. 

Accountancy
The Combined assignment (March 1 to May 15) may also be a time in the year when the phosphate rights price can increase. Farmers must therefore have their accounts complete in order to be able to submit the correct key figures for their company to RVO.nl.

The mediators have been busy these weeks to actually transfer the contracted options on the phosphate rights, which have been concluded over the past 1,5 years.