Boortmalt must remove handling & drying charge with 'immediate effect' - tillage group

The Irish Grain Growers Group (IGGG) is calling on Boortmalt to remove its handling and drying charge of €10/t on malting barley with "immediate effect".

A spokesperson for the tillage lobby group added: “The charge was introduced at a time when the price being offered for malting barley was €385/t, now we are down at €209.

“There is no justification for the additional charge, given current circumstances."

IGGG has confirmed that there is deep anger amongst malting barley growers over the final price offering from Boortmalt for the 2025 season.

Looking ahead, the lobby group wants both Boortmalt and Diageo to come forward with a strong forward price offering on malting barley for 2026 over the coming weeks.

The IGGG representative said: “The principle of confirming a forward price for spring barley during the autumn period is not new. Both Boortmalt and Diageo have used this approach before.

“Note has been taken of the brewer’s intention to expand the scope of its new brewery at Newbridge.

“But the new plant will need sufficient grain tonnage to maintain envisaged throughput levels. And the only way of achieving this is to ensure the required level of confidence at grower levels.”

If the malting sector does not come forward with sufficient assurances regarding farmer prices for 2026 over the coming weeks, the IGGG representative said the group will be advising farmers to maximise their winter cereal acreages in 2025/2026.

Previously, the Irish drinks’ sector has used on-farm malting barley prices as a yardstick to justify increases in the retail cost of a pint.

This begs the question: with malting barley prices having almost halved within a period of three years, will the price of beer in Irish pubs come down accordingly?

The coming fortnight will see IGGG doubling down on its efforts to communicate the need for the inclusion of an effective support package for tillage within Budget 2026.

“This is a make or break issue,” the organisation’s spokesperson stressed.

“The government must make a genuine commitment to support tillage farming if the sector is to have a long-term future.”

Commenting on the announcement by Boortmalt of the final malting barley prices, Irish Farmers’ Association (IFA) grain chairperson Kieran McEvoy said it is a very disappointing outcome for growers who are desperately low in confidence at the moment.

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He said: “Linking the malting barley price to the FOB Creil market has delivered significant malting premiums for growers in recent years.

“However, it has not been immune to the dramatic drop that has occurred in all European grain markets over the last three months.”

“The fixed prices of €230 and €240/t offered to growers for up to 40% of contracted volumes earlier in the season may mitigate the situation for some farmers who took those options.

“However, the base price of €209/t for brewing barley is the worst since 2020, and significantly lower than the €247.69/t paid last year.”

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