DCA Market Intelligence publishes a weekly benchmark price for the lease Phosphate rights in The Netherlands. The specifications of this benchmark price are described below.
A phosphate right stands, as defined by the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland), for 1 kilo of phosphate produced by:
| Dairy cows: these are cows (bos taurus) that have calved at least once and which are being kept for milk production or breeding, including cows that have been dried off (cat.100) |
| Cows which are fattened and milked during the fattening period (cat 100) |
| Calves younger than 1 year for dairy farming and female rearing calves younger than 1 year for beef farming (cat.101) |
| Calves older than 1 year; this are all cattle aged 1 year and over, including other beef cattle except red meat bulls (cat.122) and breeding bulls (cat.104) |
At least 100 kilograms of phosphate rights
The price a buyer has paid to lease phosphate rights for the running year or the price a seller has received from Wednesday 16:00 CET in the previous week to Wednesday 16:00 in the current week. Prices exclude VAT.
Delivery takes place via standard RVO form
Price in euros per 1 kilogram
Price input is collected over a week until Wednesday 16:00 CET. DCA Market Intelligence approaches contributors who are active in the market and in the area as specified in this document. Both a low (from) and a high (to) price are requested. If a contributor only enters one price level (single price), then this is regarded as both the low and high price. The price reporters of DCA Market Intelligence enters their prices into the Price Reporting System with their possible market comments.
The Price Reporting System calculates an average price from the price input of the contributors. This is done according to the following method:
An average price is calculated from the lowest (the ‘low price’) and the highest (the ‘high price’) price of all contributors. If the ‘low price’ of the contributor deviates more than 2% from the average ‘low price’, then this price will be eliminated from the range and will not be included in further calculations. After this, a new average ‘low price’ will be calculated with the remaining ‘low prices’. The ‘high prices’ are calculated in the same manner. The average ‘low price’ and the average ‘high price’ are averaged to one ‘average contributor price’. Here, the ‘single prices’, weighted by number, are added provided they do not deviate more than 2% of the average contributor price. ‘Single prices’ are prices where no ‘low price’ or ‘high price’ is specified but only one price.
The average, after elimination and weighted by number, of the added single prices and the ‘average contributors price’ form the final contributor price. The range of the input prices (the highest and lowest price) is determined after the application of the elimination principles described above.
Hence, after the elimination of the prices that deviate more than 2% within the range of the ‘low price’ and ‘high price’ and the elimination of the ‘single prices’ that deviate more than 2% from the ‘average contributor price’. No volume is weighted, and the contributors also do not enter volumes. The final benchmark price is published on Wednesday at 16:30 CET per email and published on the website of Boerenbusiness.nl. This online platform is also part of DCA Market Intelligence.
This, together with a short explanation, the range of the contributor price of that week, and the corresponding number of observations. If the described procedure cannot be applied for any reason, the management of DCA Market Intelligence decides how the final benchmark of that week should be determined or it decides not to calculate a benchmark price for that week and publishes this with a substantiation
Version: February 2024