The Irish Farmers’ Association (IFA) and Boortmalt are due to meet tomorrow to discuss the pricing structure for malting barley and a premium payment for distilling barley, AgriLand has learned.
A new pricing arrangement was announced in March. At this time, the distilling price was still being worked on. However, a commitment was given – by Boortmalt – that a distilling barley premium would be given. This would bring the distilling barley price above the malting barley price.
The distilling barley price will be one of the main topics up for discussion, while the IFA will also be hoping to negotiate on the pricing arrangement for malting barley.
Malting barley price
The pricing arrangement for malting barley was agreed between Boortmalt and the IFA in March. However, growers have not been given the opportunity to hedge or fix a price for their barley since April 24.
There wasn’t a massive appetite among farmers to hedge or fix when prices began to climb. However, the opportunity was not given to fix or hedge.
In the meantime, prices for feed barley have increased significantly. Harvest prices for feed barley are expected to reach the €160/t mark, if nor surpass it. Last week, Glanbia offered €158/t for green barley.
Meanwhile, the MATIF wheat price peaked at €188.75/t on May 29, €186/t on June 7 and hit €187/t on June 12. Using the current system in place, this would bring these prices to €173.75/t, €171/t and €172/t respectively.
A recap of the pricing structure
According to the present pricing structure, the malting barley price will be based on the December MATIF wheat price. Deductions will be taken from this price (which result in the malting barley price) and are outlined below.
- At €170/t or below – no deduction from the Matif December price;
- At €171-175/t – €5/t will be deducted from the Matif December price;
- At €176-180/t – €12.50/t will be deducted from the Matif December price;
- At €181/t or more – €15/t will be deducted from the Matif December price.