Dutch pub/cafes evades anti-smoking ban by ingenious reading of the law. Government stumped.

Reactions to smoking bans in public places have generally worked very smoothly.

Not in Holland.Many cafes have allowed their customers to light up, risking fines that start at 300 euros and can run up to 2,400 euros.

Cafe De Balk in Groningen has developed an ingenious and vaguely legal way around the ban imposed in the Netherlands last July. The bar and serving staff have been moved to to a small storeroom, designating what was its main bar area as the smoking zone.As they say on their website

Café de Balk is a traditional dutch pub.
We're special because you can smoke in our pub legally. Our front door is not in the front in of the building but at the side. The bar in the front is not our real bar, in other words everything is different. Let yourself be surprised.

Aethne McGhie

They serve - On tap; Dommelsch, la Chouffé, and the 3rd bier is per season a surprise. Guinness, Murphy's red, Grolsch and Strongbow cider as normal.Smokecafé de Balk E.T.A. Thuessinklaan 7 9713 J.P. Groningen (well it's near the hospital and behind the church.....)Tel: 050-3135621

Minister of Health, Welfare and Sport (since feb 2007) Ab Klink said on Thursday he is unable to take action against cafe De Balk and its novel solution.


The government prohibited smoking in cafes,bars and restaurants to "protect employees from the dangers of passive smoking" - their claimed principal motives. Under this law Cafes are allowed to create a sealed of smoking area, as long it is seperated from the bar, and staff work in a smoke free area.

So Cafe De Balk seperated the staff from the smokers rather than the other way around.

There is (naturally) a catch - probably number 22 - the regulations only specify that the area where drinks are served has to be larger than 35 square metres and the Groningen pub's storeroom meets this criterion.So says Klink ther is nothing he can do.

The Victoria in Breda wins their case in court

The Telegraaf reports today that a small cafe in Breda , the Victoria, is also not guilty breaking the ban on smoking. ( Prins Hendrikstraat 83,4835 PL Breda, Tel 076 5654024 - Koos & Ria Struijer)

The court in Breda said the smoking ban treated the owners of cafes with and without additional personnel differently.

1. Cafe owners with additional staff had to ensure that workers had a smoke-free working environment, the judges said. This could be achieved, for example, by a ventilation system, the Telegraaf quoted the judges as saying.

2. By contrast, cafes without staff have to completely ban smoking on the premises, the judges said.

The public prosecution office had demanded the owner of the Victoria cafe be fined €12,000 for allowing smoking on the premises.

Global cartels force Potash and Phosphate fertiliser prices to record levels

The Webb-Pomerene Act 40 Stat. 517 (1918), 15 U.S.C. 62 enacted in 1918 was a litle known result of WW1 that exempts associations of U.S. firms engaged in export trade from U.S.antitrust laws, so long as they do not restrain any U.S. competitor of the association . The stated intentions were to, "to aid and encourage our manufacturers and producers to extend our foreign trade," without significantly injuring American consumers - No act done by the export association could be "in restraint of trade within the United States." Congress anticipated in the post war world an eager American business community taking advantage of the opportunity to pool its facilities, resources, and expertise in launching an ambitious joint exporting program.

In a fascinating insight into the legislators minds of the time promoters of the bill Senator Atlee Pomerene (Ohio) said bluntly, "[W]e have not reached that high plane of business morals which will permit us to extend the same privileges to the peoples of the earth outside of the United States that we extend to those within the United States." 55 Cong. Rec. 2787 (1917). Congressman Webb declared, "I would be willing that there should be a combination between anybody or anything for the purpose of capturing the trade of the world, if they do not punish the people of the United States in doing it." 55 Cong. Rec. 3580 (1917).

This Act lay undisturbed by the Courts until 1968 when the US Government claimed that the Phosphate Association in exporting products to South Korea , payed for by The Agency for International Development (AID) (Now USAID) and sued them for contravention of the Anti-Trust Sherman Act and sought relief. They won their case but then lost on Appeal in the Supreme Court U.S. v. Phosphate Export Assn., 393 U.S. 199 (1968). The Phosphate manufacturers operate in world markets, so their prices are dictated by world markets and they may operate in those markets as they wish. And they do.

This curious and arcane piece of legislation is now the focus of some attention as the price of fertiliser for US farmers ( never mind those lesser breeds peoples of the earth outside of the United States who also buy fertilisers) has soared, yielding margins for suppliers "beyond the dreams of avarice".

There are two principal mineral components of modern agricultural fertilisers ( we have dealt the urea based fertilisers produced from natural gas here previously Wednesday, June 20, 2007
US swapping oil security for fertiliser insecurity and higher farm and food costs ) phosphate and potash. Phosphate sold at some US$365 a ton last year and this year around US$1,000, and Potash is selling at similiar prices. demand is growing rapidly for example the IFA and Fertecon have estimated that within the next 6-8 years the demand for potash fertilizer will be growing 3-4% by the year, while certain states, including China, India and Brazil may see it grow by as much as 5%. This is on top of growth 1999 - 2006 of global demand for Potassium chloride rise 24.8%.

The price rises are not accidental, there is an effective international cartel comprising the US based Phosphate Chemical Association , the Canadian Canpotex (protected by an exemption in Canadas Competition Law) and the Russian Belarus Potash Company (BPC).

US based companies such as Minnesota based Mosaic (Cargill has a controlling take) , the Canadian company Agrium, the Potash Company of Saskatchewan happily operate within this cosy marketing arrangement, see also post on Thursday, January 10, 2008 In the fertiliser

The way they operate is none too subtle , On the BPC website there is a notice ..

"April 22, 2008 Minsk Belarusian Potash Company (BPC), a leading world potash supplier and
the sole exporter of potash fertilizers produced by RUE PA Belaruskali (Soligorsk, Belarus) and JSC Uralkali (Berezniki, Russia), informs of the new price increase up to US$1000 per tone (pt) of MOP (potassium chloride ) in spot markets. The price for Belarus- and Russian-made potash fertilizers will be raised to US$ 1000 pt in the South Asian market. This price comes into effect from July 1, 2008. The price for the Brazilian market is effective from July 1, 2008, as well, and will amount to USD 1000 and USD 1010 pt for major and minor importers respectively. "

For example Consultants Fertecon maintain an index of fertliser prices

It was only on the 20th of May that President Thorleif Enger addressed the 76th Annual Conference of the International Fertilizer Industry Association (IFA) , besides stressing the importance of the fertiliser manufacturers to world agriculture and feeding the poor he replied to those , "Observers of the industry ... questioning the current high level of fertilizer prices. They want to know why prices have increased so rapidly and if they are justified". He had a ready answer, “Current fertilizer prices are an illustration of the basic principles of supply and demand. They reflect a properly functioning, but very tight, global market.”

It is interesting therefore to note that the Potash Corporation of Saskatchewan (incorporating Sinofert Holdings Limited ("Sinofert") ,Arab Potash Company Limited ("APC") and Sociedad Quimica y Minera de Chile ("SQM") )reported sales in Q1 08 at C$1.89 Bn compared with Q1 07 of C$1.1 Bn, a rise of 70% providing a fully diluted income per share up from C$62 cents last year to C$1.74 this year as the Chairman was happy to point out a rise of 181%.

Production of Potash was 2.5 million tonnes compared to 2.3 million tonnes (up 8%) in first-quarter 2007 and the gross margin on sales was triple that of Q1 '07.

Offshore prices doubled as price increases in major markets were announced through 2007 and first-quarter 2008. Canpotex Limited ("Canpotex"), the offshore marketing company for Saskatchewan potash producers, implemented price increases in Brazil that totaled $150 per tonne, and effective June 1, 2008 the price will increase to $750 per tonne. In India, etc., etc., ...



Mosaic were happy to announce on April 16th under the name of Jim Prokopanko, their President and Chief Executive Officer that Canpotex Limited, had agreed a potash supply agreement with Sinofert in China for the remainder of calendar 2008. The new contract calls for shipment of one million tonnes of potash, FOB Vancouver, at a US$400 per tonne increase over the price in 2007.

This followed an announcement on March 27 that Canpotex Limited, agreed to supply 1.3 million metric tonnes of potash to its key Indian customers at $625 per metric tonne CFR. This represents a volume increase of 350,000 metric tonnes and a price increase of US$355 per metric tonne from the prior year contract (ie a rise of 76%) . Shipments will occur during the period between May 2008 and March 2009.

On 4th April Mosaic reported record results and significantly an average diammonium phosphate (DAP) price of US$487 per tonne, a US$241 per tonne increase compared with a year ago and a US$70 per tonne increase compared with the second quarter of fiscal 2008. (qv prices above to China and India).For the nine months ended February 29, 2008, net sales were US$6.3 billion, an increase of 55% compared with the previous year.

Net sales in the third quarter of fiscal 2008 were $2.1 billion, an increase of US$868.5 million, or 68% compared with the same period a year ago. Mosaic's gross margin for the fiscal 2008 third quarter was US$727.9 million, or 33.9% of net sales, compared with US$113.1 million, or 8.8% of net sales, a year ago - up a staggering 650%. Value of Phosphate sales was up 80% and Potash 60%.

Mosaic's realized DAP price, FOB plant, for the fourth quarter of fiscal 2008 is estimated to be $710 to $730 per tonne.

As Senator Pomerane said 90 years ago ...""[W]e have not reached that high plane of business morals which will permit us to extend the same privileges to the peoples of the earth outside of the United States that we extend to those within the United States."