The collection contributions for liquid manure are increasing rapidly now that the spreading season is over. The supply remains high and oppressive and manure intermediaries and contractors are not keen to accept manure, given the uncertainty about price formation in the coming months. The fact that the peak price for liquid manure has not yet been reached is something about which there is no doubt from the sector.
Due to various reasons, such as the phasing out of derogation, buffer strips and the late spring, the manure supply increased considerably last season and the sector entered the autumn with a large volume. Towards the end of the distribution season, collection contributions increased further when it became increasingly clear that the installation space was insufficient for the depressed supply.
Risk
Now that the liquid manure has to be driven back into the storage facilities with the associated costs, the collection contributions are increasing further. Due to the still ample supply, there is a lot of uncertainty about the price level and what is in accordance with the current situation in the fertilizer sector.
Manure intermediaries and contractors run the risk of making fixed agreements and accepting manure. They do not want to fill storages at prices where they may have to add money in the spring to get rid of the manure. That has happened many times in the past season. In addition, not all stores have been emptied this season.
Various manure intermediaries and contractors therefore indicate that they are very reluctant to accept manure. And that is counterproductive in a crowded market. "I have to see where things go. In any case, processors are full for this year, nothing more can be added," says a contractor. Livestock farmers now have to pay considerably more for the disposal of liquid manure that is accepted than a few weeks ago. "The livestock farmer's question now is not what it costs to dispose of, but whether there is room at all," says a manure intermediary.
Spread in collection contribution high
However, there is a wide spread in the DCA collection contributions for pig and cattle slurry. This can partly be explained by the fact that little manure is accepted and contractors and manure intermediaries still have agreements at lower prices. But it is also highly dependent on region and the distance to which it is transported. For example, in regions where the supply is very high, up to €30 per tonne is paid for the disposal of pig slurry. According to the quotations, the average collection contribution in Tilburg for pig slurry is the highest at €28 per tonne. Other regions are slightly lower, but as mentioned earlier, the spread is high.
The DCA collection contributions for cattle slurry are lower, but show a similar trend. In addition, the price difference between cattle and pig slurry is smaller than in other years. An average of €23 to €25 is paid for the disposal of cattle manure, depending on the region. But here too, it is no exception that sometimes more than €25 per tonne is charged for disposal.