Creaming on phosphate rights will remain 20 percent for the time being

The number of phosphate rights issued is still above the ceiling. The skimming percentage will therefore remain 20% for the time being, agriculture minister Carola Schouten reported in a letter to parliament today (18 May). In the long term, the minister will offer dairy farmers the option of leasing a maximum of 100 kilos of phosphate without skimming 

On 1 May 2020, the number of phosphate rights was still more than 85,7 million kilos. Of this, the number of phosphate rights in dairy farming is 85,1 million kilos. The number of rights is therefore still above the sector ceiling for dairy farming of 84,9 kilos. More than 2019 kilos of phosphate rights were skimmed off in 359.000, of which more than 157.000 kilos in December. 

Schouten sees the increase in the creaming percentage as an effective measure and therefore leaves the creaming percentage at 20%. The increased creaming is only canceled when the number of allowances is below the ceiling again. And since the phosphate trade is going smoothly this year for the time being, it may still take a while before that happens 

Cremation-free lease
According to Schouten, the excretion fixed rates for dairy cattle have not yet been updated, as promised earlier. This is because the number of phosphate rights issued is still above the ceiling. The updating will be done when the number of phosphate rights is below the ceiling.

Dairy farmers will then also be given the option of phosphate rights to lease 100 kilos of phosphate annually, without skimming. With this, Schouten is responding to the joint motion of Jaco Geurts (CDA) and Helma Lodders (VVD). This makes dairy farmers more flexible if they threaten to reach a higher phosphate class. 

Click here to read the letter to parliament.

Chanti Oussoren

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets.

c.oussoren@boerenbusiness. Nl

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