Dairy farmer holds phosphate rights for beef cattle

The unallocated phosphate rights that dairy farmers have purchased from beef farmers do not have to be returned with retroactive effect. Carola Schouten, Minister of Agriculture, Nature and Food Quality (LNV) made this announcement in a letter to the House of Representatives.

At the end of March, the Ministry of Agriculture known not to include the young stock of beef cows in the system of phosphate rights. At that time, approximately 10 beef cattle farmers had already sold the phosphate rights to dairy farmers. The trade related to a volume of 2.200 kilos of phosphate, which is equivalent to about 50 dairy cows.

Take care of price increase 
As a result, these 10 beef cattle farmers have, in retrospect, received unauthorized state aid. In principle, the dairy farmers in question bought fictitious rights. When that became known at the end of March, the price of phosphate rights (the DCA listing) has already risen sharply. The price continued to rise in the months that followed.

The dairy farmers were concerned that they would have to buy the purchased rights 'again', for a (significantly) higher price. Legal proceedings were therefore initiated. Now Schouten announces that the dairy farmers may keep the purchased rights. The (partial) financial advantage that beef farmers have enjoyed must be repaid to the State.

Click here to download the Letter to Parliament to read 

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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