Opposition to Boortmalt’s decision to reduce its tonnage intake of malting barley this harvest is gaining momentum on the ground.
Last week, in a text message to growers, the company explained that the drinks sector has been severely impacted by current government policy in relation to controlling the spread of Covid-19 – with malt demand taking a direct hit.
However, the Irish Grain Growers’ Group (IGGG) is calling on farmers, Irish Distillers and Guinness Ireland to resist such a move for “a number of reasons” – including issues related to the importation of grain.
In a statement, the IGGG said: “Before contracts are cut Boortmalt need to come clean on how much imported grain they have in stock or purchased that is displacing Irish grain.
Growers should not be taking contract cuts because of Boortmalt importing barley. Farmers will not tolerate grain being imported when they are being told their grain is not wanted.
“This is where Guinness Ireland and Irish Distillers must step in. They must insist on Irish grain first and foremost in these difficult times.
“They must support their Irish suppliers or it will reflect poorly on the Irish brewing and distilling industry in these difficult times,” the statement outlines.
Contracts
And while restaurants, hotels, pubs and other social and food outlets remain closed, the IGGG highlights how consumer demand for alcoholic beverages remains high in supermarkets and off-licenses.
“Contracts must not be cut when the crop is in the ground. All contracted grain, determined by seed supply, must be taken in 2020 or this would belittle the contracts and the relationship between farmers and Boortmalt.
“The timing of this announcement will play in to grain buyers hands, information suggests that barley prices are under pressure at present.
“All tillage farmers must resist Boortmalt’s actions. It potentially will put more pressure on their bottom line this year,” the statement concludes.