Inside Milk
Livestock farmer economical on phosphate due to nitrogen crisis
The price of phosphate rights shows a rising picture. The driver for this is...
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Our country is in the grip of the nitrogen crisis and this also affects the market for phosphate rights. (Dairy) farmers are unsure of what is to come and therefore decide to wait and see.
In the back of my mind there is the 'fear' of a new reference date for phosphate. This despite the fact that the government has already announced to base oneself on October 4 and the provinces use October 8 as the counting date for the company-specific animal numbers.
Supply evaporates
The uncertainty creates a barrier to selling phosphate rights, causing the supply to evaporate. At the same time, there is little need to purchase additional allowances, because the majority of dairy farmers have phosphate space left for this year. As a result, relatively few rights are traded.
Prices are rising due to the tighter supply. The DCA quotation for phosphate rights increases this week by €11,50 to €139,50 per right.