News pork rights
'ROK is especially interesting in the South region'
The second phase of the Environmental Quality Regulation (ROK) will be opened on 15 September. Under the scheme, pig farmers with a development perspective can purchase production rights at a discount of €45,40. The financial benefit depends on the rights price at that time.
The ROK is part of the Coalition Vital Pig Farming and is intended to transfer the rights of the cessation of pig farmers to companies with a development perspective. In the first phase, 27 companies participated in a responsible manner wanted to stop† The Development Company for Pig Farming has purchased a total of 43.222 pig rights from these companies.
Stepping up to top 25 companies
In the second phase of the ROK, the purchased rights are put on the market at a reduced rate. The intention is to transfer the rights to companies with a development perspective. According to Paul Jansen, director of the Development Company Pig Farming, eligible locations are those that invest in source-oriented, emission-reducing measures and companies that do not cause odor nuisance, for example. This includes manure cooling, daily fertilization and manure separation. The companies must also comply with the Sustainable Livestock Farming Standard 2018.
According to Jansen, the scheme will then provide benefits for citizens, farmers and pigs. Jansen sees considerable improvement potential in Dutch pig farming in the field of source-oriented emission reduction, referring to the top 25 best companies. "If other companies move up to the top 25, then pig farming takes a big step forward."
Discount of €45,40 per right
A maximum of 3.000 pig rights will be allocated per location. Companies that invest €250.000 or more will have priority in the issuance. According to Jansen, this was chosen to encourage larger projects, although the amount is not necessarily high for an average investment on a fattening pig farm. "The larger companies are not favored by this."
A discount of €45,40 will be granted for the relevant rights on the purchase price paid by the Pig Farm Development Company in phase 1. For the South region, this means that the rights will be put on the market for €82,60 per right, excluding VAT. In the East region, the price is €45,10 per right, while the rights in the Other region are offered for €44,75 per right.
Referring to the current market value According to Jansen, the discount amount is particularly attractive in the South region. This is because the rights in the East and Other regions have fallen in value considerably since the moment of purchase. Jansen therefore speaks of a modest discount for these regions.
No impact on the market
Jansen does expect the price to rise again later this year, as is historically usual. "Then the discount amount in East and Other may be larger." Jansen does not expect the ROK to have a price-increasing effect on the rights market."43.222 pig rights less, is less than 1% of the total; therefore the effect is probably peanuts," Jansen says.
The registration period is from September 15 to December 15. In that period the rights are released and then the ROK comes to an end. The available budget of €8 million has thus also been used up. "Hopefully the ROK has done its job by then," said Jansen.
Wouter Job
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