News Milk
Phosphate rights continue to fall in price
The trade in phosphate rights will also remain calm this week. Still, the prices have fallen somewhat and the quotation is now quite a bit away from the €140 that started trading in 2022.
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Traders report that livestock farmers have many questions about the phrases from the letters to parliament from former minister Carola Schouten at the end of last year, in which the possibility of introducing an animal rights system to replace the current phosphate rights system is not ruled out. Although no one is clear whether this system of rights will ever come into existence and how it would be introduced, it is causing some movement, especially among some selling parties.
Owners' rights without livestock
Intermediaries indicate that selling parties who no longer own dairy cattle are more willing to do business. They fear that they may be missing out when a new system is introduced. Interested buyers of phosphate rights are sometimes reluctant to purchase (much) more rights than for the cows that are actually in the stable.
These developments mean that the price for phosphate rights took a significant step back last week. While trading was done at the beginning of last week for almost €140 with 100% usable rights, the average price quotes from traders today (January 19) for the DCA quotation of phosphate rights is €134,50. That is €4,50 lower than the previous quotation.