Pop-up editorial reports

Six tips for manure disposal in Germany

June 2, 2017 - Wouter Baan

The pop-up editors of Boerenbusiness reports this week from the state of Saxony-Anhalt (East Germany). There she is investigating the export possibilities of Dutch manure to that agricultural region. This time about doing business in Germany. How different is that than in the Netherlands? Six tips.

The Netherlands has a beautiful backyard for manure in Germany. What is too much for us, the East German arable farmers have too little. Six tips to properly dispose of the manure. 

1. Quality
Maybe a buyer, but a German goes for quality. In the case of fertilizer sales, quality means: the desired fertilizer product with the right contents at the right price. If a German asks for a lot of nitrogen, supply a lot of nitrogen. Quality goes further than just the fertilizer product. 

Quality goes beyond the product

The customer approach, transport and handling are also of great importance to a German. Each cargo must be re-enforced. Anyone who thinks of only dropping off a few residual loads in Germany will probably not do it. 

2. Flexibility
Delivery on time is crucial for a good trade relationship. With flexibility, a Dutch trader can make a difference compared to a German supplier. A German fertilizer trader is usually less flexible with urgent deliveries. Operators of biodigesters expect a guaranteed and continuous supply. Also in spring and summer, when there is less fertilizer on the market. Neither a German arable farmer nor the biodigesters change the planning. A deal is a deal. 

3. Speak the language
A German likes to be addressed in his own language and prefers not to get confused about technical terms. A Dutch exporter is expected to be aware of German laws and regulations. There are German arable farmers who prefer to work with an intermediary. Others value personal contact. Saying 'yes' in Germany is different from getting yes. At least, that is the experience of Dutch manure exporters.

Oral agreements don't count

4. Put everything on paper
When the manure accounting is not correct, a German becomes very nervous. In the event of calamities or uncertainties, Germans usually immediately turn to the papers. Oral agreements do not count here. Germans are quick to show their disapproval of the levels in the manure. It is therefore better to supply fertilizer products based on the agreed levels. Uncertainties are punished. 

5. The price is not disputed
Hand clapping is not included in Germany. A German usually bids once and that's it. If the actual price deviates by 0,50 euros per tonne of manure, it is already a lot. The payment ethic is fine, by the way. The money is usually in the account within 2 to 3 months.

In the winter months, when the exit season is closed, the price pressure increases considerably. Then the German fertilizer market is also flooded by bargain hunters. A German decides on ratio, whereby the price-quality ratio for the fertilizer product is important.

Finding a return freight is quite a challenge

6. Return freight crucial
The economic picture of manure disposal in Germany stands or falls with the logistics. Especially when transport is done in-house. Finding a profitable return freight is crucial, but often quite a challenge. Driving back empty is actually impossible. Straw and biogas are products that are often returned. Old paper can also be an option. Food and feed products are often not allowed to be returned. Or only with a strict hygiene protocol. There are also carriers that carry out various partial transports within Germany. 

Pop-up editors
The 'pop-up editors' visit German arable farmers and follow Dutch manure processors and exporters. Does the local market in this agricultural-intensive region offer opportunities for the export of Dutch fertilizer products? And what fertilizer products are German arable farmers waiting for and what conditions must they meet? 

All articles about this trade mission can be found here.

Do you have a tip, suggestion or comment regarding this article? Let us know

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

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