Just like in the Netherlands, manure sales are not running smoothly in Germany. The conditions are even worse than skeptics had estimated. This results in sky-high collection contributions, while solutions are not readily available.
Although the weather has been reasonable in recent weeks, this has not provided the desired relief on the German fertilizer market. The problem is that there is almost no space available for installation, because German arable farmers purchase considerably less manure. The situation has to do with the so-called 'Düngeverordnung', which was tightened last year.
The manure problems are greatest in the northwest of Germany (North Rhine-Westphalia and Lower Saxony). This is because the cattle concentration is densest in these areas.
Arable farmers are hardly decreasing
Spring is the most important period for spreading manure in Germany. The aim to empty the manure pits before the summer is in danger of failure for many German pig farmers. It creates a dire situation. This is because serious volumes can only be distributed again from next spring. Due to the new manure legislation, German arable farmers are hardly allowed to use manure in the autumn.
Dutch manure exporters are also experiencing significant headwinds on the German sales market. This is also evident from the manure export figures, which have fallen sharply this year.
Sky-high collection contributions
The collection contributions that German livestock farmers have to pay have therefore risen sharply to a maximum of €30 per cubic meter for pig manure. Manure disposal costs have already increased by about €15 per fattening pig place this year. It puts pressure on the incomes of German pig farmers; once again because the pig prices in 2018 significantly lower than in the past 2 years. It is expected that collection contributions will remain high until the end of the year.
Reducing manure production is reportedly the only way to prevent the manure pits from flooding. Since the demand for fattening pigs often declines from the autumn onwards, it is expected that German fattening pig farmers will anticipate this by stocking fewer piglets. Propagators do not have that flexibility. This means they are likely to be hit the hardest.
Driving illegally
Pig farmers should not expect any support from German politics. Barbara Otte-Kinast, the Minister of Agriculture of Lower Saxony, recently indicated that limiting (manure) production on pig farms could be a solution. Meanwhile, it is being suggested in the corridors that mixed farms in Germany (arable farming in combination with fattening pigs) may use more manure on their own land than is legally permitted. This is because the situation is too dire.
Additional manure processing
In the medium term, politicians are committed to additional manure processing. A factory is under construction in Cloppenberg (Lower Saxony) where 1 million cubic meters of manure can be processed annually, Agrarzeitung reports. A manure processing location with a capacity of 200.000 tons of manure will open this summer in North Rhine-Westphalia. Experts of the German fertilizer market say that the new processing capacity is just a drop in the bucket.