It is a recurring phenomenon in the last weeks before New Year's Eve, the trade in replacement processing agreements (VVOs). The value of a VVO has already dropped somewhat since the beginning of December and there is currently quite a bit on offer, but there is also no shortage of buyers. The trade in VVOs is therefore not yet a done race.
The DCA quotation for replacement processing agreements (VVOs) this week amounts to €1,64 per kilo of phosphate. That is a decrease of €0,21 per kilo compared to a week earlier. At the end of November the quotation was around €2 per kilo and even slightly more. Last year the market also ended at approximately €2 per kilo.
The price of VVOs has fallen steadily in recent weeks and continues to do so and is the result of more supply than demand. Last week it seemed that slightly fewer VVOs were needed than previously thought. Information has been available for some time and only limited purchases have been made, but buyers are now also taking action now that the price has dropped, according to a call round. It also shows that sellers do not want to go lower than €1,60 per kilo given the way trade is going at the moment. However, it is also indicated that some only take stock after Christmas, which makes expectations about further developments unclear. However, intermediaries are of the opinion that the price will not fall completely this year and is tending towards stability.
The processing obligation varies per region. In the south of the country, 59% of the phosphate surplus that cannot be placed on private land must be processed. For the east this percentage is 52% and for the other regions the percentage is 10%
Manure prices continue to rise
The selling prices for pig and cattle slurry will also increase in the last weeks of 2023 according to DCA manure quotations. The peak has therefore still not been reached. On average, disposal costs per region increase slightly every week. There is no stabilization yet. The disposal of liquid manure remains very difficult and many manure intermediaries and contractors are cautious about accepting new manure outside their regular customers and volumes. Depending on transport costs and the region, selling prices for pig slurry already exceed €30 per tonne. Cattle slurry is slightly lower on average, but depending on region and transport costs, it is also around €28 per tonne. In some cases for direct disposal and if there is room, €30 per tonne or more is also paid.