Slurry processing: learning lessons from the past

The new manure policy proposes to process all (surplus) manure from pigs, chickens and veal calves in due course. Manure processing must be an indispensable link on the road to a future-proof, low-emission (recycled) livestock farming. But in practice, complete processing of slurry turns out to be an unruly matter with plenty of technical, financial and market risks. 

About 30 years ago, the pressure on livestock farming was also great to process a lot of slurry. Before 1995, 6 million tons of processing capacity had to be available, rising to 20 million tons in 2000. The threat of a reduction in livestock numbers was a big sticking point. In this immense task, the biggest bottlenecks turned out to be financing, the supply of manure and the lengthy permit procedures. With a rock-solid confidence in their own abilities and the necessary subsidies, the large-scale fertilizer factory Promest (capacity 600.000 tons) in Helmond was built from the ground. Unfortunately, the factory proved unprofitable on its own and went bankrupt.

High demand market
The current situation shows similarities with 30 years ago. The bottlenecks from then are still important stumbling blocks when processing slurry. With a very big difference: today there is a large demand market for various fertilization products in the Netherlands and abroad. These sales chains, with and without processing and processing, are a reliable basis for the current manure sales.

With a shrinking herd, the manure supply decreases and at the same time the manure disposal costs for livestock farmers decrease. This development has already started. As a result, the difference in costs between the complete processing of slurry and the conventional distribution of slurry increases further. In a free manure market, manure processing does not win the competition on costs from manure distribution. In addition, with manure distribution, prices can be quickly adjusted to changes in the relationship between the manure supply and the demand for manure. Manure processing does not have this flexibility.

Lower disposal costs
The pig farming sector hopes for lower disposal costs in its advocated approach with more manure processing. Without evidence of lower disposal costs, wishful thinking can damage confidence in manure processing. A striking example from the past. In 1990, experts predicted 10 to 15 guilders per tonne in net costs for large-scale manure processing. In the longer term, it could even be cost neutral (From: Evaluation of manure policy, LNV). The end of Promest a few years later showed that the reality was different. That should not happen again.

Nothing is more risky and paralyzing than uncertainty. For manure processing, clarity must be provided quickly about the intended transition from less slurry to more processed and processed fertilization products for a period of 20 years. The existing manure processors are desperate for clarity.

Expensive lessons
An integrated and coherent approach with (certified) manure distribution and export provides more certainty for, among other things, long-term investments, innovations and the development of new product-market combinations. The expensive lessons of the past still apply today. Livestock farmers want future prospects. With a positive perspective, they certainly want to meet the many wishes of society. This can only be done with more certainty about a feasible and affordable manure disposal.

Jaap Uenk

Jaap Uenk is the owner of consultancy Mestem and has more than 40 years of experience in various positions in the Dutch fertilizer sector.

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