The Irish Farmers’ Association (IFA) has said that the link between the malting barley price paid to growers by Boortmalt and one of the key exchange markets for the product is “crucial” and must be maintained.
Kieran McEvoy, the chairperson of the IFA’s Malting Barley Committee, emphasised the importance of retaining the link between the Boortmalt price and the Free On Board (FOB) Creil market.
Speaking this morning, McEvoy said: “It is crucial that this link be maintained. It looks like it will ensure a significant premium for malting barley over feed barley in 2023 which will be badly needed.
“However, we are not happy with Boortmalt’s decision to impose a €10/t drying charge for 2023.
“We spoke with Boortmalt representatives last week. Given the income and weather challenges tillage farmers face this year, imposing a drying charge is very much a retrograde step,” McEvoy added.
The IFA malting barley chairperson said that representatives from the committee will be meeting with Boortmalt shortly to raise the issue again.
According to McEvoy, the FOB Creil market looks like it will deliver a “very significant premium” for Irish malting barley growers.
“At current prices it will be €60-65/t over feed. It is frustrating that the €10/t dying charge is eroding this. However, it is essential that we retain the FOB Creil as the price reference for malting barely for this year and future years.”
According to McEvoy, reports from early malting barley crops are positive, with proteins reported between 8.5% and 9.5%. However, he also said that growers with later-planted spring barley crops are concerned about meeting the malting quality specifications.
“This harvest, it is critically important for growers that the amount of barley that passes for malting is maximised. We have requested a meeting with Boortmalt representatives to discuss ways to ensure this is achieved,” McEvoy added.
Boortmalt drying charge
The IFA’s concern over Boortmalt’s newly introduced drying charge follows on from similar concerns from the Irish Grain Growers Group (IGGG) last week.
The group called on the malting company to scrap the charge, saying that the “most obvious reason” for doing so is the difference in current gas prices compared to when Irish Boortmalt management decided to introduce the charge for drying grain.
“What’s illogical to us is the way Boortmalt is imposing this charge. It only applies to grain delivered that has not been forward sold by the farmer. All grain delivered usually has to be dried for storage,” the IGGG stated.