In the first 2 weeks of January, dairy farmers in the Netherlands received the decision for the phosphate rights system. This includes Hein Peeters, who milks approximately 350 cows in Breda, but has to go back to about 285 animals or buy additional rights due to the decision.
Was the decision good or bad for you?
"We are now milking 350 cows, but on 2 July 2015 we milked 311 animals. With our 140 hectares we are not land-bound. That means an extra discount of 8,3%. Converted, we come to about 285 cows, assuming that we keep the same number of young stock. Of course this decision is a disappointment, especially if it is written in black and white."
Do you want to fill the gap that has arisen by purchasing phosphate rights?
"I haven't traded yet, because I thought the rights were too expensive. I still think that. Only at €100 does it get interesting. Fortunately, the price now in the right direction: down. I assume it will drop further. If €5 goes off every day, we'll get there."
And if the prices for phosphate rights stabilize or even rise again. What do you do then?
"I've got work to do, so I can just start milking fewer cows. Another option is to outsource the young stock to a breeder. I've already inquired about this, but I don't think the prices charged (per animal per day) too high."
You deliver to FrieslandCampina, are you not afraid of having to downsize (because of the 'milk braking plan') anyway?
"No, we are not bothered by that. Our animals now give an average of 10.500 kilos of milk per cow, last year clearly more before 2 October. Moreover, in the same period we had many cows dry and we therefore supplied many litres. A possible brake on of FrieslandCampina therefore does not hurt me."
Back to the decision, are you considering any steps to challenge it?
"I am indeed considering that. At a lawyer I am now requesting information about this. Mainly information about whether it is promising, and how we should introduce it. I can't say much more about that, but I don't want to leave it at that."
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"I've got work to do, so I can just start milking fewer cows. Another option is to outsource the young stock to a breeder. I've already inquired about this, but I don't think the prices charged (per animal per day) too high."
He says. So, outsourcing young stock costs money, but cows less and the barn is not full. There goes another WU dogma, that more cows would always be more profitable. Sadly too late for many.
