Farmers 'cannot be expected' to grow malting barley without margin
The Irish Grain Growers' Group (IGGG) has said that tillage farmers "cannot be expected" to take on the risk of producing malting barley "without meaningful financial reward".
According to the IGGG, malting barley growers are potentially facing "an extraordinary situation this harvest".
"Malting barley, regarded as a premium crop, is being discussed at prices that could leave growers worse off than if they had grown spring feed barley," the group said.
"That must concern everyone involved in Ireland’s malting, brewing and distilling industries.
"Those cheering Donald Trump's announcement at the 18th hole of the Irish open a couple of weeks ago about tariffs; would they actually have cheered if they knew what was facing tillage farmers," the IGGG asked.
The group noted that growing malting barley comes with additional risk and, in many cases, additional cost.
"Farmers are required to grow specific varieties, meet stringent quality specifications and accept the risk that a crop can fail to make malting grade, and end up being paid for as feed even though it was managed as a malting barley crop," the organisation said.
"For taking on that risk, farmers have always expected a premium.
"But when the gap between malting and feed barley disappears or, what’s being spoken about, where it actually goes into negative territory, the fundamental economics of the crop have to be questioned," the IGGG said.
The group has reiterated its call for Boortmalt to scrap its €10/t handling charge, claiming that this charge is "laying the foundation" for feed barley to outstrip malting barley in terms of margins for tillage farmers.
"A farmer cannot be expected to take on the additional risk of producing a premium-quality raw material while receiving no meaningful financial reward for doing so," the group said.
"This is particularly important when Irish-produced barley and wheat is an essential ingredient in some of the country's most valuable drink exports," the IGGG added.
"If Irish malting barley is valuable enough to be an essential ingredient in premium Irish products, why is the farmer producing it currently facing a return that will be below feed barley in 2026?" the association asked.
"A premium product requires a premium margin per hectare.
"There is a narrow window for malting barley buyers, and those who buy from them, to respond to the current position developing when deciding malting prices for 2026. They must act and they need to act now," the IGGG stated.
