The Irish Grain Growers’ Group (IGGG) has called on Boortmalt to scrap its newly introduced drying charge to its farmer suppliers.
The group has said that the spring barley harvest has started for those who sowed very early in the spring.
The IGGG has argued that the most obvious reason for dropping the charge 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.
The group said that the prohibitive cost of growing spring barley in 2023 must also be highlighted referencing the recent Teagasc figures which expressed real concern for spring barley profit margins.
The majority of the crop was sown late with unkind growing conditions to follow, according to the IGGG.
Challenges for grain growers
Other challenges facing grain growers, according to the IGGG are: Reduced support from the new Common Agricultural Policy (CAP) for the majority of tillage farmers; land availability being driven out of the hands of tillage farmers due to nitrates legislation requirement; and lower profit margins (17,500ha less cereals in 2023).
“We recently had the announcement by Diageo of another price rise, approximately 5c for a pint of beer, due to costs,” the IGGG statement continued.
“Diageo insists on as much Irish grain usage as possible in production as far as we are aware. One reason is sustainability / carbon footprint, which they now promote.
“Surely Diageo must be worried by the decline of the Irish cereals area which we predict, in current circumstances, will fall further in 2024 and 2025.
“All tillage farmer suppliers know what a tremendous difference even 1c of the price rise of the pint directed towards them would make to their bottom line.”
Grain for drinks
According to the IGGG, the Irish spirits industry is experiencing record growth in sales of late.
“Their confidence in the sector is reflected in the structural investment they are currently making which we appreciate as farmers,” the statement added.
“Again we ask – do they consider the loss of cereals land that grows part of the essential raw material they require as a worry to them?
“We are calling on Boortmalt’s customers to support us to drop this drying charge in what is proving to be a very difficult season for Irish tillage farmers.”
Tillage experts currently walking spring barley crops in regions, predict yields as low as 2t/ac in instances.
“What we need now is support from our buyers not new charges,” grain growers have said.
“As farmers, should we tell Boortmalt that we will do likewise and insist on a surcharge of €20-30/t to cover a fraction of the increases in machinery costs, fertiliser, inputs, fuel, labour, transport, weather losses etc… what would their reaction be to such demands?” the IGGG concluded.