Further increase foreseen
Phosphate rights not yet at their peak
The Netherlands Enterprise Agency (RVO.nl) has so far distributed 85,4 million kilos of phosphate rights. That is slightly more than 0,5% above the sectoral ceiling, but agriculture minister Carola Schouten states that the allocated phosphate rights are not yet at their peak. That is precisely what creates a dilemma.
The program CBS presented a rosy prognosis for phosphate production in dairy farming in May. For example, the sector, with an estimated production of 83,3 million kilos, remains well below the ceiling (which is used under the Nitrates Directive). In contrast, however, the allocated phosphate rights allow a production of 85,4 million kilos to date.
Further increase possible
"I expect that there will be a limited increase in this, because the assessment of the pressure cases is still ongoing," Schouten reports. In addition, objection and appeal procedures regarding the award decisions are still ongoing. This creates a difficult situation for Schouten, because the European Commission states that the number of rights granted must be brought under the European ceiling, the minister said in a letter to the House of Representatives.
This means that Statistics Netherlands' prognosis is promising, but it also means that the number of rights allocated carries more weight. It also means that the danger of a further generic discount has not yet disappeared, although Schouten does not report anything about this in this context. She does indicate that the solution for the beef farmers can also help the dairy farmers.
Starters get help
The generic discount is mentioned in associated with the crashes. This may not result in any further discount for non-land-bound companies. It does not mean that they are left completely out in the cold, because Schouten will do her best to help starters. For example, she is in consultation with the European Commission to be able to help starters who did not yet supply milk on 2 July 2015.
In the case of the companies that have invested heavily in sustainability, Schouten sees no opportunity to define the group sharply. "I once again appeal to the banks to do their utmost to support these entrepreneurs in the start-up phase of the phosphate rights system. I expect that they will take their responsibility and make an effort to prevent future-oriented companies from being forced to stop." ."
Herman van den Pol
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