Inside: Dairy Market
Phosphate rights sold again
After a difficult week, the trade in phosphate rights is coming back to life. This is done at lower prices. Something that can partly be attributed to the news from FrieslandCampina, but the activities on land are also not doing the trade any good.
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The DCA quotation for phosphate rights drops to €17 per right in week 176,50. This with a bottom of €175,50 and a top of €178. The lower prices were mainly made in the first half of the week. It's an opportunity for those who have yet to purchase rights to get them at a discount.
Demand is increasing
In the second half of the week, the €178 per right will apply again, according to market players. This is due to an increasing demand; There are 2 arguments for this increasing demand. On the one hand, the news from FrieslandCampina is about the plans with the milk lake landed; especially now that dairy farmers have had the time to see what it means for their company. On the other hand, the work on the land is mentioned. These take precedence and only then will the purchase or sale of the rights be considered again.
The phosphate rights trade continues steadily, but dairy farms are also being sold again. Construction plans are slowly starting to be submitted to municipalities again, resulting in dairy farmers being bought out and having to buy back another company. Another development is seen towards the German border, where dairy farmers are taking over entire companies. This indicates that the increase in scale is continuing.
FrieslandCampina does not stop growth
The steps taken by FrieslandCampina will not prevent this either. However, there are indications that there are dairy farmers with expansion plans and that they are considering switching to another processor. This means that the demand for rights will not decrease yet.
View the development of the price of phosphate rights.
| DCA listing phosphate rights | Price range (wk 17) | Number of problems | Average |
| €176,50 (-€2,00) | € 175,50 - € 178 | 6 | €176,50 |
| Explanation DCA Markets: After FrieslandCampina's revelation that it would discourage rapid growth in milk production from 2019, the trade in phosphate rights came to a standstill. More trading took place again in the first half of week 17, but at lower prices. Meanwhile, prices of €178 are starting to become more dominant again. |
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