Analysis Milk
Phosphate rights transactions are lagging behind
Although clearly fewer phosphate rights have been traded this year than in previous years, the price has continued to fall sharply in recent weeks. It appears that buyers have less need for phosphate rights, or that there is otherwise less interest.
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In recent years, according to an overview by the government service RVO, relatively stable numbers of purchasing rights have been traded, while the trade in leasing rights has increased.
So far this year, the trade in phosphate rights does not seem to be going well at all. In a letter to the Senate, Minister Adema announced that 2.024.598 kilos of phosphate had been sold until the beginning of November, while almost 730.000 kilos of phosphate had also been leased.
It is possible that dairy farmers have purchased fewer rights due to a lack of money, or that a number of farms have produced much less, but something does not seem to be going quite right somewhere. There must be a category of dairy farms that do not yet have sufficient phosphate rights, traders believe.
Fear of government intervention in the phosphate market could also be a reason, but there does not seem to have been any concern about this for very long.
Be that as it may, purchasing rights for phosphate remain stable and low-priced for the time being, while trading in leasing rights is starting to pick up again, but still quite cautiously.