The Irish Farmers’ Association (IFA) has said that a €12.50/t drying surcharge imposed on malting barley growers by Boortmalt has been dropped.
In a statement, the IFA Grain Committee chair Kieran McEvoy said that the decision to scrap the charge for the 2022 harvest followed further negotiations between the association and the company.
McEvoy said that due to early crop maturity and the warm weather conditions for much of the harvest campaign, grain moisture contents were considerably lower than typical this season.
“As a result, and following a review of drying costs in the period following this harvest, it has been agreed that the charge will be dropped,” he said.
The IFA Grain chair said that Boortmalt have confirmed that the final average malting barley price in 2022 for the Free-On-Board (FOB) Creil contract is €398.38/t.
“‘It’s a record price for malting barley in Ireland and a very positive outcome for growers. Last year’s price was €237.67/t and the price for 2020 was €173.73,” McEvoy said.
However, McEvoy noted that inputs are also at record levels and tillage farmers will be concerned about their margins for next year.
It is understood that Boortmalt had previously agreed to pay a moisture bonus of €3/t per point under 19.5% to all barley supplied. However, this has now decreased.
“A payment of €2 per moisture point and a new 50c per point above 63 kilogramme per hectolitre (KPH) will also be paid this season.”
The IFA negotiates annually with the country’s largest producer of malt on behalf of farmers.
McEvoy added that discussions for the 2023 malting barley crop are set to begin between Boortmalt and the IFA Malting Barley Committee
He said that it is aimed to conclude the talks by mid-October “at the latest”.