The maximum transport and exit capacity has been used in many parts of the Netherlands in recent days, but in the south customers are once again at a standstill due to the heavy rainfall. The haste in arable farming does not help the utilized placement space. The still full silos continue to restrict the manure market.
The collection contributions for cattle slurry are almost equal to the fine amount for spreading too much manure. Although spending too much is far from realistic due to the discount you get on CAP subsidies. A bright spot for the manure market this week is the main outline agreement of the new coalition, which contains various intentions that should ensure that there is more space for placing liquid manure in the coming years.
It continues to run and stand still this riding season. Last week and this week too, a lot of manure was deposited in various parts of the Netherlands, although the south is now at a standstill again due to the heavy rainfall. Arable farming is demanding now that tilling the land is finally possible and everything is coming together, various contractors say. Serving everyone is not possible because farmers are in a hurry to plant and plant crops, which also means that manure cannot be deposited everywhere on time. Manure transporters and contractors are at their maximum capacity. "We really have to do a lot of work and the capacity is at its maximum these days. The peaks are actually too big, because we also have to miss work. We cannot be everywhere at the same time. As a result, we ignore customers at great distances, because that just takes more time," says a manure transporter from Central Netherlands.
Difficult market continues
It is positive that a lot is finally being sold, but manure transporters also indicate that this is at the expense of installation space because not everyone can be served. The space that is not currently being used can be filled in the autumn, after the harvest. Although that is not certain given the weather conditions and a later growing season. After all, the supply remains extremely high, although it varies considerably per region.
In the center and north of the Netherlands, a considerable amount of liquid manure has been deposited, manure transporters say. Yet sales remain below the average of other years. On the one hand, this is due to less installation space due to legislation and regulations, but the wet spring also left a lot of space unused. In addition, it remained so wet in the south that considerably less has been spread there to date. The storage facilities there are still quite full on average and the same applies to the cellars of the livestock farmers. There is no point in increasing the collection contributions, but in order to get rid of some liquid manure, you sometimes have to drive further. This causes higher transport costs. This combination of factors is oppressive to the market and the prospects for further relief in the fertilizer market remain unclear for the time being.
DCA's manure quotations remain largely stable this week (week 20), but manure transporters and contractors are expected to increase rather than decrease some of the collection contributions. In the southern regions, collection contributions have increased slightly on average in recent weeks for both cattle and fattening pig slurry. It is more difficult for fattening pig slurry to find its way into sales and that - just like at the start of the season - has to do with the fact that cattle slurry simply yields more per hectare. The spread is large and has to do with distance and region, which means that between €30 and €38 per cubic meter is paid for pig slurry. Cattle slurry averages around €29 to €30 per cubic meter.
Fine amount for spreading too much manure is almost equal to the collection contribution
With the development of the manure market in recent months, the current level of the collection contribution for cattle slurry is almost as high as the fine for spreading cattle slurry in excess of the application standard for animal manure. The fine is €7 per kilo of nitrogen and converted into cubic meters of cattle slurry with a nitrogen content of 4,5 kilos, this results in a fine of €31,50 per cubic meter.
However, spreading extra manure above the application standard also leads to the preconditions of the common agricultural policy being violated. Failure to comply with this will result in a livestock farmer having their CAP subsidies reduced. The discount can amount to 100% of the subsidies. Missing out on subsidies and additional consequences ensure that this situation with more manure spreading is absolutely unrealistic. Although it does show how tense the market is.
Smaller buffer strips, restrict derogation-free zones
The 'main lines agreement' that was announced last night by the new coalition of PVV, VDD, NSC and BBB contains intentions that have a positive effect on the manure placement space. For example, it states that the manure crisis is being tackled, so that no generic discount is necessary. It is also the intention to reduce the buffer strips, limit derogation-free zones and scrap the 170 kilos of nitrogen per hectare. This, together with a number of other intentions, should provide more installation space.