Inside Milk
Stopped dairy farmer dumps phosphate rights
The price of phosphate rights has fallen through its hooves in recent days. How come?
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This makes the downward trend of the recent weeks extra speed. The decline is the result of an ample supply from dairy farmers who have now retired.
Offer from stoppers corner
In recent years, hundreds of dairy farmers have stopped, but the phosphate rights are often sold in phases. "Now that prices are falling sharply, they are increasingly offering phosphate rights. This way they hope to limit losses," traders say. In doing so they reinforce the price drops. Until recently there was little demand, but now that prices have been significantly reduced, interest is increasing again.
It is difficult to estimate whether prices will continue to decline. The bottom will have to be formed by 'bargain hunters', given that the majority of dairy farms will have phosphate space left this year.