Malting barley farmers were made a fixed-price offer of €188/t yesterday (Monday, June 25) – by Boortmalt – for their grain. The increase looks to be a positive sign amidst talks between the Irish Farmers’ Association (IFA) and Boortmalt.
The price offered yesterday of €188/t was €10/t above the MATIF price for December. On Monday afternoon, the MATIF stood at €178/t.
The increase in price, and increase on the MATIF price, moves away from the current pricing structure. It also seems to be reflective of the new agreement that may be coming down the tracks.
Fixed price
Boortmalt growers can fix a price for a maximum of 20% of their total barley – 5%, 10% or 15% can be fixed at any one time.
Farmers can also hedge barley throughout the year. However, offers to hedge barley have not been made to farmers in the past number of months. At the same time, an appetite has not been there to sell – as prices moved upwards.
Agreement and growers’ meetings
The IFA met with Boortmalt on Tuesday of last week (June 19) and a further meeting is scheduled to take place next Monday (July 2).
Chairperson of the IFA’s Malting Barley Committee Mark Browne told AgriLand: “We won’t be agreeing anything until we go back to the growers.”
Growers’ meetings are expected to take place after the IFA meets with Boortmalt on Monday, July 2.
Browne added that the malting barley committee is eager to wrap up talks and reach an agreement in the coming weeks.
Also Read: To read about the current pricing structure in place click here