Inside: Manure Market

Stoppers regulation leaves the price of manure still cold

23 February 2017 - Redactie Boerenbusiness

The weather forecasts for this period were not promising, but now that the rain is coming down in buckets in places, it is blocking the spreading of manure. There was also a run on the stopper scheme for manure this week. What this does to fertilizer prices is apparent from the analysis for insiders of Boerenbusiness.

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A number of contractors continued to work as long as possible on Thursday night, but eventually came to a standstill during the night. As the week progressed, the conditions under which it was possible to complete the ride deteriorated day by day.

Continue filling manure silos

The majority of the manure was spread on grass plots and to a limited extent on arable land, including grass seed plots, beet plots and a single winter wheat plot. For intermediaries, this rainy period is used to further fill the manure silos. After the last winter period, there appeared to be more space in the manure silos on average than last year.

This means that the rain not only puts a stop to the spreading of manure, but also puts a brake on a further decline in collection contributions. Insiders indicate that the fertilizer market is stuck and that this is not expected to change in the coming week.

Now that the stopper scheme for dairy farmers has been put into effect, the cattle herd will shrink in the relatively short term. The first shift is more than 4 times oversubscribed, so livestock farmers are told by drawing lots who is or is not eligible for this scheme. Authorities will set aside time for this over the next 4 weeks. Dairy farmers then have 6 weeks to 'clean up' the herd. There is only more time for pregnant cows.

It is unclear whether the collection contributions for cattle slurry will decline more quickly, partly as a result of the stopper scheme. In any case, this week's changes do not indicate that. 

 

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