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Hardly or no trade in phosphate rights
In the first days of the new year there was little or no trade in phosphate rights. The current affairs of last year are being completed and buyers are keeping the cat out of the tree for the time being. The letter to parliament from outgoing Minister Schouten about the possible introduction of animal rights may make buyers extra cautious.
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There was a lot of trading for higher prices in the last week of the year. In the first new week of the year things are traditionally different and it is extremely quiet in the market. Traders indicate that there is hardly any information provided by buyers or sellers.
animal rights
Just before the holidays, Schouten reported in a letter to Parliament that it cannot be ruled out that the phosphate rights system will be replaced at some point by a system of animal rights. This has to do with an update of the phosphate excretion tables. New calculations (based on cycle indicators from the years 2017, 2018 and 2019) show that an additional 3,6 million kilos of phosphate could be used. However, this would lead to further exceeding of the nitrogen ceiling by dairy farming, which could further increase the pressure on the phosphate rights system.
The uncertainty about these passages from the letter to Parliament may mean that trade in the coming weeks will have to wait a bit, mediators report. Because there is currently no reference for a quotation, DCA will not determine a phosphate rights quotation this week.