‘Restrictive’: Irish Grain Growers Group lambastes Boortmalt/IFA deal
The Irish Grain Growers’ Group (IGGG) has stated that the future of malting barley growing is at risk due to the alleged “poor deal” presented to farmers by IFA and Boortmalt.
The IGGG has claimed that growers have begun to return seed or inform Boortmalt that they will not be growing for them this season.
The group adds that growers see the IFA’s two-year deal with Boortmalt as “restrictive and not capable of delivering the price margin needed”.Also Read: New Boortmalt/IFA malting barley price arrangement announced
There is good demand for Irish grown GMO-free feed crops and the price for malting/distilling barley is simply too low, it says.
IGGG has stressed that the pricing structure currently on offer to growers has no minimum price; this sees the price effectively capped at €170 and the MATIF-led system would have to reach €185 or more to see any further increase over €170.
A spokesperson for the IGGG said: “Because malting barley is used as a benchmark by merchants for the setting of feed grain prices, this deal affects all tillage farmers.
“Why is the IFA agreeing to a deal that effectively puts a ceiling on the price of all Irish grown grain? This would not be tolerated in any other sector.
‘Not good enough’
“Growers are being told they will get a bonus for distilling. But as farmers decide to grow or not, the vague promise of a bonus is simply not good enough.”
IGGG has said that growers want to be able to carry out their own dealings without IFA’s involvement.
“The current deal – which includes a Memorandum of Agreement that no grower has seen – must be scrapped before long-term damage is done to the malting barley / distilling sector.”
“It’s time for the malting and distilling sectors to pass on some of the recent benefits in the sector to their growers and to ensure the supply of Irish grain into the future and pay proper prices to growers.
“This deal does not guarantee Boortmalt a supply of barley next harvest because more attractive offers for barley may be available from other merchants,” the spokesperson concluded.