Inside Milk
Phosphate law more expensive towards the end of the year
The price of phosphate rights has slowly but surely declined in recent months. Over the past week, however, there appears to be an uptick in traded volume and the price is moving up, according to the weekly stocktaking of brokers and rights traders.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
In the trade it is noticeable that in the past week there have been significantly more telephone calls from entrepreneurs asking about phosphate rights. Trading continued at a very quiet level for a long time, but there is now some more action to be seen. It was recently widely expected that there might be less demand for phosphate rights this year due to low Dutch milk production. However, there is always a group of companies that have increased the number of animals and therefore need extra rights, it sounds like.
Milk price
In addition, the recently significantly increased milk prices appear to give livestock farmers confidence and financial scope. It is reported that after the recent increases at FrieslandCampina (Monday) and DOC (Tuesday), there was an increase in purchasing interest. The price quotes from traders at DCA this week bring the DCA quotation for phosphate rights to €146. That is €3,50 more than last week.
However, intermediaries indicate that with the increased prices, buyers are immediately more cautious when business needs to be done. It is therefore uncertain whether the price increase will continue.