Analysis Milk
New nitrogen regulations make phosphate market alert
The cabinet decision of last Friday on nitrogen and the subsequent announcements on livestock farming have already put the phosphate market on edge a bit. Reason for this are, among other things, statements by Minister Wiersma. She seems to suggest that phosphate rights will again play a more important role for the position of dairy farms.
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How this should work exactly is not yet entirely clear. Nevertheless, it is clear that the phosphate market reacted almost immediately to the cabinet decision. The prices of purchase rights immediately jumped up. This has happened before, but then the reason was mainly a rumour about a possible generic discount, this time the reason is more concrete.
Immediately after the cabinet decision last Friday there was a revival of trade. Sales prices were increased and trade followed suit, albeit still hesitantly. This is also because many livestock farmers are busy working on the land, but also because many are still reacting in a wait-and-see manner.
The DCA listing for phosphate rights increases this week by €9 to €119 per right. This is the highest level in over a year and a half.