Ireland: Tillage farmers protest at Greencore demanding doubling barley premiums

About 150 farmers, who staged a protest outside Minch Malt — part of the Greencore Group, in Athy, Co Kildare — said the company had offered a derisory premium of €15 per tonne for a quality product while at the same time consumers were being asked to pay more for their pint, Irish Examiner reported March 14.

Grain growers warned they will not guarantee a supply of malting barley for use in the brewing of drinks including Guinness unless they get a fair price for the crop.

However, Minch Malt said it had offered growers the option of a guaranteed fixed price of €140 per tonne at 20% moisture.

“This guaranteed price will suit growers who prefer certainty and wish to minimise price risk and is an alternative to the €15 premium on average feeding barley price at 2007 harvest,” said Pat Murphy, Minch Malt purchasing director.

“Minch Malt is also giving growers the option to mix the fixed and variable options as it suits the grower.”

But IFA Grain Committee chairman Colum McDonnell said market conditions justify a doubling of the malting premium paid to growers. He said publicans, Government, brewers and maltsters account for 99.8% of the price of a pint, leaving only 0.2% for the grower (less than 1 cent).

“Greencore Malt and Guinness are in a position to pass on or back increased costs to their customers and suppliers. Farmers do not have this option so they must absorb the increased costs,” he said.

Mr McDonnell said once again farmers are being denied their right to recoup legitimate cost increases from the market at a time when the main players are passing on a price increase of 8c on the price of a pint. If growers got the equivalent of 1c more from the price of a pint, it would more than double the price they receive for malting barley.

“Growers should seriously consider alternative markets and crops given much of the current premium on offer will be eroded through higher seed costs, lesser yields from malting varieties, lost market opportunity and the fact official average price paid for feed barley at harvest is not a true reflection of the actual prices paid for barley by the trade,” he said.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .