Malting barley growers meet on contract cuts

By Andy Doyle

Malting barley growers have reacted angrily to cuts in contracts imposed by Minch Malt. The level of cuts applied to growers seems to be generally in the 2 to 9% range but the manner in which the cuts were applied and the later than usual confirmation of tonnages are sources of major dissatisfaction.

Some growers have been told that the cuts related to the amount of inputs purchased.

Growers met in Portlaoise last night and a second IFA meeting is due to be held next Tuesday in the Farm Centre, Enniscorthy. Paddy Harrington, IFA grain committee chairman called on Minch Malt to restore the full contract tonnage to growers immediately and urged growers not to sign contracts for reduced tonnages.

Transparency needed in grain market

The wheat market continues to strengthen as dire reports of devastating droughts spread across Europe. The UK price for feed wheat in October is now up to £80stg. or €115 a tonne. This is up £8stg. on a month ago and almost £20 up on a year ago.

Prices have not risen like this since 1996, but at that stage prices were around £120 (pounds) a tonne - this was before the Agenda 2000 reduction. Where prices for wheat and barley will end up this year is much more difficult to assess. Dairygold have already informed people that they will pay the going rate but will not set the pace on grain prices as they have done in the past.

We need a transparent system that lets growers know clearly what their grain is worth. This can only be sensibly based on the price of imported grain taking into account the costs of shipping, port handling charges and transport costs. At this stage the IFA is not yet giving harvest indicative prices, as the prices continue to harden but deals for dried feed wheat collected ex store have been done for €130 a ton over the last few days. It also seems that some new traders have come into the market and are buying directly on a spot or forward basis from the bigger growers. This is bringing badly needed competition and is making some of the most established players realise that the cosy cartel price fixing days may be over for the moment.

The Open Day at the UCD farm at Lyons in Newcastle confirmed that the role of strobilurins in Irish cereal production will have to be reassessed. We would hope that the various company trials as well as the Department and research centre's results would all be correlated and findings interpreted as soon as possible, so that the place of these valuable chemicals might be clarified for next year.