News Phosphate rights
Does expected need save pressure?
There is no scope for an exemption in the system of phosphate rights, but there is a margin for additional rights. That writes European Commissioner Margrethe Vestager (Competition) to CDA MEP Annie Schreijer-Pierik. This, coupled with the anticipated needs, could be an opportunity to help those in the pinch.
"The European Commission (EC) maintains close contacts with the Dutch authorities," Vestager said. "This is to solve problems related to the correct allocation of phosphate rights within the framework of the system of phosphate rights." At the same time, solutions for the bottlenecks are also being investigated.
This concerns the group of 800 bottlenecks, of which approximately 200 dairy farmers technically bankrupt Henk Antonissen of Innovative from de Knel announced in mid-June. Together with the livestock farmers, he drafted a letter of fire, in the hope of getting help. Schreijer-Pierik was concerned about the fate of the livestock farmers and put urgent questions to the Commission.
No exemption
There is no room for an exemption, because an upper limit has also been set via the state aid decision SA 46349, which approves the introduction of tradable phosphate rights. "When it is proposed, a new state aid decision will be needed. It should be noted that the decision provides a margin for additional rights, for the unforeseen cases."
This may provide an opening for the bottlenecks, as the allocation of the rights must be in line with the expected need. This is only possible if the total number of allowances does not exceed the guidelines. It appears that the phosphate ceiling is also the upper limit for the issuance of the rights. It is not known what the margin is.
Numerous lawsuits
Schreijer-Pierik argues that the EC would a blow to the arm holds. "This is because of the many lawsuits that livestock farmers have filed against the government. It is a mess in the Netherlands." The EC also does not answer questions about possible alternatives, such as a limited exchange of the different rights between the sectors.
The phosphate monitor, which reports on the first half of 2018, can shed more light on the current standings. This is accompanied by a letter to Parliament from Minister Carola Schouten (Agriculture, Nature and Food Quality). Only then does it become clear whether there is room at all for expected needs.
At the same time, the monitor has already been overtaken by reality, because more cows have been slaughtered and go abroad since the beginning of July. This means that it remains a 'muddle' in the country where almost 1 in 3 dairy farmers, left or right, has a bottleneck.
Herman van den Pol
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