News Insights
Manure costs for dairy farmers doubled in two years
Dutch dairy and pig farms have seen the manure disposal costs increase significantly in recent months. For example, pig farms have already paid on average 70 to 75% more this year to get rid of liquid manure than the average in 2022. The manure disposal costs of dairy farms have more than doubled (+101%) in this period compared to the 2022 average. This is reported by DCA Market Intelligence, which compiles the manure prices weekly. In recent weeks, these prices have reached record levels.
DCA Market Intelligence, as a Price Reporting Agency (PRA), provides the food and agribusiness with independent benchmark prices, market data, and market information. DCA has been recording the so-called manure collection contributions from cows, pigs, and chickens in the Netherlands since 2010. The costs for pig and dairy farmers have increased significantly since the summer of 2023.
For a pig farm, the DCA collection contribution for this year up to week 40 averages €32.99 per cubic meter of manure. For comparison, the average collection contribution in 2022 was €19.13 per cubic meter. For cattle liquid manure, the DCA collection contribution for this year up to week 40 averages €30.55, compared to €15.07 per cubic meter in 2022. For a pig and dairy farm with an average size in the Netherlands (approximately 2,200 pigs and about 100 dairy cows) without manure disposal space, this means a total cost that can reach around €70,000 to €80,000 per year this year. For many dairy farms, this amount is significantly lower in practice because they can apply liquid manure to their own or leased grassland.
Derogation reduction
Due to the reduction of derogation, the manure disposal space is smaller this year than last year, as the nitrogen standard on grassland has been lowered and the so-called buffer strips on plots have been increased. The abundant rainfall last spring increased pressure on the manure market, as less manure could be applied to grass or arable land than usual. This backlog has only been partially caught up.
In addition, it is likely that the manure regulations will be further tightened next year, making the disposal space even tighter. In a debate in the Dutch House of Representatives, NSC MP Harm Holman stated that from 2025, farmers will not be able to dispose of 600,000 trucks of manure annually. Calculated with a capacity of 35 cubic meters per truck and an average manure price of €31.67 per cubic meter for pig and cattle liquid manure this year, this amounts to a manure surplus worth over €665 million.
No specific expectation
Statistically, DCA prices for pig and cattle liquid manure always rise slightly in the autumn after the spreading season is over. Therefore, the collection contributions could potentially increase further. Given the particular course of prices this year, DCA Market Intelligence does not dare to make a specific prediction.
DCA Market Intelligence also tracks chicken manure collection fees. In contrast, chicken manure collection fees have decreased in recent years, with DCA prices ranging from €4 to €6.50 per cubic meter in week 40 of this year. This is partly due to the unique composition of chicken manure and the fact that much of the poultry sector processes its manure into renewable energy or converts it into products such as fertilizer pellets.
