Analysis Milk
Phosphate rights: now full pound for half price
Trading in phosphate rights started calmly in the new year. Yet trade continues, despite the threat of ministerial intervention in the phosphate market. Reason: the current situation also offers opportunities.
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The main opportunity is that buyers can now buy for half the money they had to shell out until about September last year. So two for the price of one. Sellers can also benefit from selling now. At the moment it is still possible without skimming.
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It's a fun trade, say brokers and other intermediaries. It is important that transactions are reported to RVO as quickly as possible, because what has now been established is safe. After all, the fear is that the minister could quickly intervene in the market.
Outgoing Agriculture Minister Adema does not refute the fear of intervention, but has so far hesitated about whether and how he will intervene in the market. Intervention may not be disproportionate, not for a subsector as a whole and not in relation to other sectors. So what is the right choice?
Most transactions involve purchases of rights, while there is much less demand for leasing rights. Which is not unusual for the beginning of the year.