No industry on this planet knows how to put up its prices like the drinks sector.
Over the years, it has shown itself to be inflation-proof and, when required, fully able to pass on its increased costs to the public at large. All of this has been achieved on the back of the industry’s commitment to make branding work so well on its behalf. And good luck to all involved.
But blame must be apportioned in equal measure to these very same people for trying to pull the price of malt back this year. According to the IFA, Diageo is in the firing line for this move, which – if successful – will end up with farmers carrying the can. And this is wholly unfair.
Also Read: Diageo seeks €1m worth of cuts in malt pricesMalting barley producers are already facing into a season of increased seed and fertiliser prices. These, by the way, are costs which growers have no control over. If they want to grow the crop, they have no option but to pay for the inputs. Diageo knows this, which makes it all the more surprising that it would want to squeeze malt prices under such circumstances.
The response to all of this from Diageo might well be along the lines that it does not deal directly with growers; the malting company Boortmalt is ultimately its supplier. But this doesn’t stack up, as Boortmalt will have no option but to pass the pain down the line to its farmer-suppliers.
But let’s even forget – just for a second or two – the reality that seed and fertiliser prices have taken off this year. The fundamental principle underlying the development of the malting barley sector in Ireland is the expertise and unique skill base of the growers involved.
And, of course, without these very same people, there would be no whiskey industry in Ireland. Imagine what that would do for the country’s export sales!
I am not a great believer in bringing farmers onto the streets. But I think that, in this case, a very good argument could be made for the IFA – and other grower organisations – to hold a protest outside the headquarters of Diageo. From memory, the building is down at Saint James’ Gate.
That would certainly give the tourists visiting the nearby Guinness brewery something else to talk about and even photograph on the day in question.