Inside Milk
Phosphate rights (too) expensive: rising slaughter figures
While the price of phosphate rights is leveling off, the number of cattle slaughtering shows a sharp increase. Is this related?
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The slaughter figure has been showing an increasing trend for 4 weeks. Traders speak of a wide range of 'sausage cows'. Many dairy farmers are busy making up the phosphate balance. Reportedly, quite a few companies are still heading for a (small) phosphate surplus.
The price of phosphate rights has now risen to more than €270 per right. Those who still want to buy rights are often dependent on financing. However, banks are cautious and apply short repayment terms.
That is why dairy farmers take dairy cows to slaughter more often in order to reduce phosphate production. Traders report that in many cases the removal of dairy cows is limited to a handful of cows. In other words: many addresses that get rid of a few cows. The supply is so large that slaughterhouses have to shift the supply of cattle every week.
Stable listing
The price of cattle is therefore under pressure, although this is not directly reflected in the quotations. The price of sausage cows (quality 1) has been trading stable between €1,90 and €2,15 per kilo in recent weeks.