Boortmalt deal completed for 2018

Boortmalt’s malting barley package for 2018 has been agreed. The Irish Farmers’ Association’s (IFA’s) deputy president, Richard Kennedy, described the malting barley package negotiated with Boortmalt for next year as positive.

Growers were offered an initial fixed price of €167.50/t (exclusive of VAT) for contract green brewing malting barley.

This means that farmers had the option of fixing 0%, 5%, 10% or 15% of the price for their malting barley contract this week. The fixed price offer is made a number of times during the year. The offer lasts for 24 hours and occurred this week on Wednesday and Thursday (December 13-14).

Throughout the year growers are allowed to fix the price of a total of 20% of their contract, but no more than 15% at one time.

As talks took place early in the year between the IFA, Boortmalt and Diageo, a fixed price could be offered on an earlier date for this season.

The fixed price offer is based on the Matif wheat price and follow-on negotiations. The Matif wheat price was moving around €167.50 on the day of the fixed price offer.

Seed price has been reduced significantly from last season to €520/t (delivered) and is standard across all varieties.

Kennedy, who is acting as the chairperson of the malting barley committee at present, stated that: “The delivered farm seed price of €520/t across all varieties is significantly reduced on last season and is interest free until harvest.

A free lorry collection service will be provided by the company to growers where branches were closed in recent years and where growers purchase, from Boortmalt, plant protection products to the value of €50/ac or greater (excluding VAT) during the season.

The free haulage is only available where grain is transported by lorry and to farmers who delivered barley to intake points which have been closed in recent years – Emo, Stradbally, Portlaoise, Monasterevin, Carlow and Bagenalstown.

Farmers’ contracts will remain split between malting and distilling. There will be an opportunity for growers to be awarded additional contracts for the 2018 crop. It was also stated that all barley purchased by Boortmalt for crop 2018 will be under contract.

In summary:
  • Seed price is the same across all varieties;
  • Haulage position is clear from the start of the season;
  • Malting/distilling split remains the same;
  • Additional contracts will be available to growers in 2018.

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