Concerns have been voiced today (Wednesday, June 18) that Boortmalt plans to "cut distilling/malting barley contracts in the middle of the growing season".

The Irish Farmers' Association (IFA) has said any move of this nature would be "totally unacceptable".

Boortmalt today told Agriland that it was "aware of the decline in distilling volumes which is bringing volatility to that segment".

The global malting company also stated that it is "assessing the impact that this will have on malting barley demand".

However Kieran McEvoy, IFA grain chair said that malting barley growers "have already taken pain earlier this spring with the implementation of contract cuts".

He added that farmers had already "entered into agreements with merchants and planted specific quantities of distilling/malting barley in good faith".

According to McEvoy it appears that "Boortmalt want to ignore their contract with merchants and farmers after they have planted the crops".

"In return, growers expect a premium price for their product but now Boortmalt want to unilaterally ignore their own contracts,” he said. 

McEvoy has said that there were already "very low-income prospects for tillage in 2025" and any plan by Boortmalt to ignore contracts would be "a further blow to a sector already on its knees.”

He added: "IFA will strongly resist this development and use all means available at its disposal to ensure that Boortmalt honours all existing agreements and contracts in full.

Earlier this month the Irish Grain Growers’ Group (IGGG) co-secretary, Bobby Miller, had told Agriland that the economic outlook for Irish tillage farmers was exceptionally challenging.

He had warned that the "market outlook for the coming harvest is extremely bleak.”

The IGGG had also previously highlighted that with beer and other beverage prices continuing to strengthen at retail level in Ireland, it was important "that a proportion of this increase makes its way back down the chain to cereal growers,”