Updated: Boortmalt makes an offer to farmers

Earlier today Boortmalt made an offer to growers. However, in the last few minutes a new offer has been made.

This is despite the fact that the Irish Farmers’ Association’s (IFA) malting committee understood that negotiations were not complete.

AgriLand spoke to a member of the IFA’s malting barley committee, who understood that talks were still open.

The IFA did not accept the deal put before the committee last Wednesday (February 6) and is meeting growers tonight to discuss future plans.

AgriLand understands the IFA left talks last Wednesday (February 6) and were open to alternative proposals.

New offer

The new offer – which is an opportunity to hedge barley – is outlined below. Growers are now confused ahead of the meeting tonight.

The new offer to growers is as follows:
  • €190/t;
  • 20% moisture content;
  • Historical haulage allowance on top;
  • Limited tonnage available on a first come first served basis.

The message also stated that where growers fail to deliver contracted fixed price tonnes, Boortmalt reserves the right to apply a penalty for the difference between the “fixed price” and the “harvest market price” for replacement malting tonnes. Boortmalt advised farmers not to fix all of their tonnes.

Earlier offer

The offer to growers earlier today – by Boortmalt – was sent out via text message.

New offer today:
  • Contract up to 80% of expected tonnes;
  • At the average of the Wednesday two-row varieties FOB (Free on board) Creil settlement prices;
  • Average will be calculated from weeks 15 to 38;
  • Price at 20% moisture content;
  • Historical haulage allowance included.

Included on the message from Boortmalt was a note that limited tonnage is available and the offer was on a first come, first served basis.

It should be noted that the FOB Creil price is understood to be based on the average of prices for three varieties – Irina, Sebastian and Planet. This was outlined at last week’s meeting.

Last week’s proposed deal

Last week the IFA revealed a proposed deal to growers. At this meeting growers rejected the deal, explaining that they wanted a minimum price of €200/t for their barley.

Many growers expressed anger at the fact that many ‘Irish’ drinks brands were being made from imported product.

Yesterday, AgriLand asked readers to take part in a poll on the subject. The poll is still available online. Just click on the link below.

Also Read: Poll: Do you care what ‘Irish’ whiskey or beer is made from?

The IFA growers’ meeting will go ahead tonight at 8:00pm. Chairperson of the malting barley committee, Mark Browne, asked growers to attend tonight.

“We’re urging growers to attend. This is a very serious meeting,” Browne told AgriLand.

Also Read: Malting barley meeting Monday to discuss progress