Prices of pig rights are steadily rising

Prices of pig rights are steadily rising. In a week's time, several euros could be added to the price. It fuels anger at the abolition of the POR scheme. 

In a week's time, the price of pig rights has risen at least fifteen euros to 70 euros and more in the East and South areas. There is plenty of speculation. This means that amounts of 100 euros and more are even mentioned. It is therefore not surprising that the State Secretary has incurred the anger of pig and poultry farmers by abolishing the POR scheme.  

If the Fertilizers Act exemption from production rights has expired in 2018, there will be no other option than to change animal numbers and/or animal categories or to invest in much more expensive rights, concludes DLV Advice.

But it is not yet 2018. In a favorable scenario, a new cabinet can create preconditions that reduce the cost price of allowances and fertilizer disposal. Not only the costs of rights are putting pressure on the profit margin, but also the costs of disposal of manure. The costs for fertilizer disposal continue to rise. If the derogation for dairy farming lapses, the price of manure sales could increase further by 5 to 10 euros per cubic meter, the LEI has calculated.

There is still a chance that the derogation for fertilizer application standards will disappear. The phosphate reduction plan for dairy farming has indeed been laid down in ministerial terms and the first round of remediation of the so-called LU livestock density scheme is in sight. The question is whether milk production will actually decrease and if so, by how much?

There is also a chance that livestock farmers who have invested a lot in barn space will take FrieslandCampina's fines for granted. The European Union only grants a derogation if the Netherlands has convinced Brussels policymakers that phosphate production does not exceed the ceiling. A voluntary phosphate reduction scheme is currently being prepared for pig farming.

In the meantime, the pig sector and the animal feed industry are developing a private incentive scheme to be on the safe side, in which a participating pig farmer receives a premium for every kilogram of phosphate reduction. The additional costs of the more expensive low-phosphorus may be reimbursed. Exactly what that arrangement will look like is currently under discussion.

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