Price phosphate rights lower again

Traders are increasingly reporting that dairy farmers are sending more cows to the Netherlands bring slaughter in order to reduce phosphate production. The slaughter figures also show this. In addition, financing the phosphate rights does not always seem to be easy. The expectation is that the price will continue to fall in the short term.

Still financed daily  
"The increased prices do not make financing any easier," says Marijn Dekkers, Dairy Farming sector specialist at Rabobank. According to Dekkers, relatively many entrepreneurs have already switched, but there is also a group that still needs to take action. "Time is running out for those companies." Partly because a financing application usually takes several weeks.

Dekkers also states that Rabobank still finances phosphate rights on a daily basis. At the same time, requests are also being rejected because the risks are too great for some companies. "After all, we do not know whether the phosphate rights will retain their value. Sometimes it is wiser to dispose of dairy cattle than to purchase rights that are too expensive."

Dekkers has the impression that the wider supply of phosphate rights may also be due to additional stoppers who are now taking the plunge as a result of the high prices. Nevertheless, he does not foresee a major price drop in the short term. "Buying pressure will probably remain high until the end of this year."

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