Analysis Phosphate rights
The hour of truth comes for the pinched
What will Minister Carola Schouten (Agriculture, Nature and Food Quality) do with the 2 million kilos of phosphate that has been unlawfully allocated to non-dairy farms? The group of trapped people thinks they are entitled to this and demands that Schouten meet them. If not, the curtain will fall for hundreds of dairy farmers.
The hour of truth is dawning for the action group'Innovative from the Knel', a collective in which approximately 800 dairy farmers have united. It is mainly entrepreneurs who have invested more than €250.000 in a more sustainable barn in recent years, who have grown by more than 10% and who had obtained the permits by the reference date (2 July 2015). Spokesperson Henk Antonissen says that half of that group is currently at a loss.
2 million kilos of phosphate
When allocating the rights, the Ministry of Agriculture, Nature and Food Quality promised that the bottlenecks would be taken into account. It now appears that there is no room for this, because the phosphate ceiling (84,9 million kilos) was already exceeded when the rights were granted. This is where the shoe pinches, because unauthorized rights (about 2 million kilos of phosphate) have been granted to beef farmers and non-dairy companies.
The allocation to that group is not in line with the requirements set by the European Commission. The rights are therefore afterwards withdrawn, but that does not mean that this phosphate space is automatically released for the pressure cases. "The signals indicate that Schouten will not meet the bottlenecks, but that is seriously unjustified," said Antonissen.
Help is promised
According to Antonissen, Minister Schouten, through Marjolein Sonnema (director-general Agro and Nature at the ministry), recently announced that bottlenecks are the first to be met; provided there is space. Antonissen says that this clearance exists because the ministry has made mistakes by allocating phosphate rights to the wrong group.
- Henk Antonisen
If Minister Schouten leaves the troubles alone, then half of the group will be heading for bankruptcy. Antonissen emphasizes that the tension for these agricultural entrepreneurs (mostly family businesses) is almost unbearable. "Many are distraught and also feel powerless."
Milk money is badly needed
It is not the case that the bottlenecks do not anticipate and view the situation passively. Antonissen says that the group can roughly be divided into three. “About 33% of the group needs the milk money so much (to keep the business running) that they can't afford to clear out cows.”
Sometimes these have dairy farmers 50 cows more than the allocated phosphate space allows. Antonissen emphasizes that these entrepreneurs are heading for an economic offense and risk a hefty fine if Schouten does not meet them. "The banks have already indicated that they will withdraw the financing if it comes to an economic crime."
Another part of the group has a shortage of phosphate space, which can be 'supervised'; in order sizes from 500 to 1.500 kilos. However, according to the spokesperson, there are also dairy farmers who have half the barn empty, due to a lack of phosphate space. As a result, the revenues are not in line with the financial liabilities. "A house of death construction", according to Antonissen.
The requirement: 1,2 million kilos of phosphate
According to Antonissen, the bankruptcies can be prevented if the ministry allocates 1,2 million kilos of phosphate to the bottlenecks. However, whether Schouten shows leniency is highly doubtful. "In any case, we will continue to fight until the last moment and hope that justice will prevail. If not, the curtain will fall for hundreds of family businesses that have fought for sustainability."
Wouter Job
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