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1 in 3 companies threatens to produce too much phosphate

8 November 2018 - Kimberly Bakker - 6 comments

Figures from the PhosphatePlanner of the breeding organization CRV, which was completed by 14.000 dairy farmers, show that 1 in 3 dairy farms is in danger of exceeding phosphates.

Figures from the organization show that approximately 33% of the companies threaten to produce more phosphate than is allowed on the basis of the company's available phosphate rights. Exceeding this quota is an economic offense in which the government hefty fines can impose.

Uncertainties
Various advisors have stated that this exceedance is mainly due to the lack of clarity and uncertainties in the phosphate planning. An example of this is that for many farmers it is not yet clear how the average production per cow on the farm is determined and how it ultimately turns out in their own situation.

The same advisers also say that a considerable number of companies have room to increase the phosphate rights lease† The purchase of rights is with the current, high price financially uninteresting for many dairy farmers.

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Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.
Comments
6 comments
Subscriber
andre vw 8 November 2018
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/melk/ artikel/10880460/1-op-3-bedrijven-dreigt-te-veel-phosphate-te-produceren]1 in 3 companies threatens to produce too much phosphate[/url]
If I understand this correctly, as an employee at CRV you can benefit from this.
Insider trading.


Yesterday I spoke to a phosphate trader who did not yet have this knowledge.
Subscriber
De Boer 9 November 2018
@ andre vw. I'm betting that the phosphate trader has the knowledge, but doesn't share everything he knows with you. Suggesting shortages keeps the price higher.
john 9 November 2018
there are simply still many rights hanging over the market. the necessary agreements will probably have been made for the leasing or purchase of rights that are not yet visible at rvo and crv.
andre vw 9 November 2018
Hi De Boer, thank you for your comment.
This trader indicated that he would also like to know how it stands now (of course remains a trader)

Would you like to submit the question whether phosphate production should be made public or not?
Bob 9 November 2018
If you produce too much phosphate, just throw away cows/young cattle and pay differently.
Raising young stock is also possible, but it also costs money.
Prices will soon become 1.50 for feed and manure + 1.30 for phosphate/day, otherwise it is better to sell it.
Karel 9 November 2018
Then rather lease 10 years for 30,-/kilo phosphate than rearing, you only have to cut 1% once.
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