Grain growers may be next to go on the gates in search of better prices. A group of Boortmalt barley growers want an improvement in the contracted harvest price for 2014, and will take direct action from next Monday unless they see progress.

Eighty farmers, which would represent almost one in five growers, attended a meeting in Athy on Tuesday, the majority of them from the area. They called for €170/t as a price necessary. Growers called on IFA to negotiate for that price. If such negotiations were not in train by Friday lunchtime, they said direct action would start on Monday.

The late changes to specifications, with maximum protein reduced from 11.6 to 10.8, are at the heart of the problem. Farmers felt unable to trade forward with confidence, resulting in most grain receiving the final payment of €147.20/t, almost €5 lower than the €152/t received for surplus to contract grain. This was described by more than one speaker as an effective breach of contract by Boortmalt.

It was stated that a lowering of the French milling wheat spec, which farmers said prevented a spike in the MATIF wheat price, was the basis for the Boortmalt barley price.

The fact that Boortmalt is openly canvassing for new growers and for extra contracted tonnage from existing growers for next year before this year’s “huge outstanding issues” are resolved was criticised.

Farmers want the Boortmalt malt barley negotiation team to be directly elected by the growers. They want the forward pricing mechanism simplified, and for a minimum price over feed to be established.

They are also insistent that negotiations never run into the growing season again, and that next year’s agreement be in place before any seed is delivered for spring planting.

Downey to meet Diageo

The malt barley committee itself met on Tuesday evening. Speaking to the Irish Farmers Journal on Wednesday, committee chair Mark Browne said that growers should hold off on signing new contracts until the 2014 issues were finalised.

Browne said IFA president Eddie Downey and CEO Pat Smith flew to Antwerp to meet Boortmalt CEO Yvan Schaepman to discuss the 2014 price.

They have sought a meeting with Diageo and will return to growers with any progress made.

Browne highlighted that this is the second of a two-year deal, and deals entered into cannot be easily torn up without long-term implications. In terms of the MATIF price, he said it is an over-simplification of the French system to describe events this summer as a lowering of the specification.

Effectively, much MATIF trading is for paper product, not real product. When milling wheat is delivered, it is paid for according to quality of load as tested.

Browne said that extra contracted tonnage should be offered to existing growers, who did receive a 10% contract increase in 2013, first. He said he and the committee were available to discuss any issue with Boortmalt growers.