It still says "subject to change", but as things stand now, the Senate will discuss the introduction of the system of phosphate rights on 16 May. Although dairy farmers and surrounding players are still uncertain about retaining the derogation, it appears that they are already anticipating the phosphate rights. More demand is therefore seen in April and prices are rising.
Maintaining the derogation has been made a condition for the system of phosphate rights, but the proposals still have to pass the First room. An important part will probably be the minimum emergency regulations. It was one of the reasons why dairy farmers recently the summary proceedings around the Phosphate Reduction Regulation 2017.
Lively trading in rights
In the meantime, time is ticking. Time is running out for dairy farmers to prepare for the possible introduction of the rights. It resulted in a lively trade in phosphate rights. The price started the month at 120 euros per right, but prices increased during the month. At the beginning of May the spread is 128 to 140 euros per right. Which corresponds to prices of 5.376 to 5.880 euros per dairy cow.
Things are taking place with reservations, but it makes it clear that dairy farmers want to continue. At the same time, it helps that the milk price gives dairy farmers confidence in the market again. Demand exceeds supply. The offer often has to come from stoppers, who usually still watch the situation. More supply will be provided in the first 2 months of 2018 if the rights are granted.
Financing difficult
Not only supply is a limiting factor, financing is also difficult. This is because the banks do not yet finance rights. It means that the money must be obtained in other ways or must already be available. This is by no means the case with all dairy farmers, which means that sometimes it is not possible to proceed with business. On average, the transactions involve between 5 and 10 dairy cows.