Judge ignores dairy farmers' objection

"Dutch dairy farmers could have known that the growth of the livestock, after the quota was abolished, would be curbed by the government." The Trade and Industry Appeals Tribunal (CBb) has therefore ruled that the phosphate reduction plan remains in place.

In 2008 it was announced that the milk quota would disappear from 1 April 2015. In response, many dairy farmers expanded their livestock, exceeding the phosphate ceiling (176,3 million kilos). In order to reduce manure production, the Regulation phosphate reduction plan came into effect and many dairy farmers had to reduce their livestock numbers to the level of 2 July 2015 (reference date). 

According to several dairy farmers, the phosphate reduction plan violates their property rights and they lodged an objection with the CBb. They invoked the First Protocol to the European Convention for the Protection of Human Rights and Fundamental Freedoms (EP).

Entrepreneurial risk
However, the CBb rejected the objection and concluded that the phosphate reduction plan is not a form of expropriation. According to the Commission, the plan serves the public interest; after all, a condition of the derogation is that the phosphate ceiling may not be exceeded, and this was known in advance.

The Commission believes that the dairy farmers can be expected to be aware of the 'manure problem'. Thus they could know that unbridled growth was not possible. According to the authority, changing laws and regulations are part of this the entrepreneurial risk.

Compensation?
The CBb does, however, rule that compensation for the damage suffered will come into play if a livestock farmer has been hit disproportionately hard. Agriculture Minister Carola Schouten must weigh up the interests at an individual level and may not reject a request with a single reference to the entrepreneurial risk. 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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