Boortmalt has told growers that the company will not be making any additional payments for 2026 Irish malting barley crops.

The point was made by the company’s representative Stuart Sands while attending a malting barley crisis meeting, hosted by the Irish Farmers’ Association (IFA) in Carlow last night (Monday, October 12).

When asked directly by Agriland, if Boortmalt would be prepared to make an additional price gesture to growers this year, Sands said that “the money just isn’t there.”

The meeting was attended by very large numbers of malting barley growers from the south Leinster and Cork areas.

The event was marked by a heated discussion on the application by Boortmalt of a €10/t charge, introduced in 2022.

Attending growers referred to the reduction as a form of ‘drying charge’ which they never agreed to.

For their part, those in attendance from Boortmalt referred to the reduction as a form of parity charge.

Courtesy of his presentation to the Carlow meeting, Stuart Sands said that the international malting sector is under immense economic pressure at the present time with many maltsters having to either close operations or recue their level of activity.

He attributed this situation to the flat lining of international beer sales and very large volumes of distilled alcohol over-hanging the market.

Sands added: “But the green shoots of recovery are now visible. The prospects of demand for malting barley increasing are very real.

Sands also referenced the ongoing investment by Boortmalt at its Athy operation. This is said to be part of an ongoing commitment to Ireland’s malting sector.

Grower anger

There was a large grower turnout at the event with many in attendance expressing deep anger and frustration at the 2026 price on offer from Boortmalt.

They found a scenario which saw producer prices for malting barley dipping below the feed market as totally unsuitable.

Repeated reference was made to the additional costs incurred by malting growers and the fact that the varieties specified for that market are delivering up to half a tonne per acre relative to feed barley options.

In response to this, the Boortmalt representatives in attendance indicated that the present pricing structures had delivered a significant premium over feed for malting barley over recent years.

Many of the attending growers indicated in the strongest possible terms that they will not grow malting barley for Boortmalt in 2027.

Meanwhile, the search to find improved varieties of malting barley continues apace.

A possible way forward

IFA president, Francie Gorman, chaired the Carlow meeting. He made it clear that ways must be found to deliver sustainable prices for malting barley growers in 2027.

Stuart Sands acceded to this point, indicating that IFA and Boortmalt would meet over the coming weeks to discuss an updated pricing structure for 2027.

Significantly, this aims to recognise the costs incurred by growers.

There was also agreement to the effect that forward prices would be published as early as possible in the season from 2027 onwards.

Malting barley industry

Francie Gorman told the meeting that malting barley production in Ireland was at a tipping point.

And if sustainable prices were not delivered at grower level the sector will disappear.

Should this happen, it brings the entire viability of Ireland’s drinks’ sector into question.

Guinness is Boortmalt’s largest single customer with a requirement to use Irish malt.

Given this scenario, many of the growers attending the Carlow meeting asked the question: should Diageo, the owner of the Guinness operation, become directly involved in the malting barley debate?