Introduction of ‘phosphate rights’ may force Dutch dairy farmers to reduce herds

Some Dutch farmers fear they may have to get rid of one third of their cattle, after the introduction of so called ‘phosphate rights’ by the Dutch government has created turmoil.

In 2006 the Dutch government agreed with Brussels on a phosphate ceiling of 172.9 million kilograms per year, which was the country’s phosphate production of 2002.

While the EU milk quota system was in place, there was never a threat of exceeding this ceiling. But since the abolition of the milk quota system, the Netherlands has exceeded this ceiling at a rapid pace, endangering extension of the derogation.

The measures put a fixed limit to the amount of phosphate per hectare that can be produced across all agricultural sectors — and dairy is close to that limit.

Due to this, Dutch dairy farmers looking to expand their herds are likely to need more land in order to meet the restrictions. As land prices are as high as €80,000 per hectare, increasing milk production is a difficult challenge.

The Netherlands is the fourth largest milk producing state in the EU and some farmers had been investing, in infrastructure and cows, in preparation for the end of milk quotas. Production for the first half of 2015 has been about 6% higher than the previous year.

Dutch farmers say that they are unfairly blamed for high phosphate concentrations in surface water. They say it didn’t come from over-fertilised soils, but from phosphate-rich seepage water from a Pleistocene marine deposit.

They also maintain that sewage treatment plants discharge more phosphates into surface water than the government assumes.