A “no-deal” scenario between Boortmalt and growers is still a possibility. On Monday, hours before the IFA negotiating committee updated growers, Boortmalt issued a price offer of €190/t to farmers by text message.

This was a hedged price, meaning delivery is required, and was based on the FOB (free on board) Creil price. The offer was on a first come, first served basis, with a transport bonus restored to growers who had it previously.

If the intention was to divide growers, it seemed to have the opposite effect. Every speaker at the meeting that evening rejected that offer. It was seen as negotiating over the heads of the committee.

Farmers fear that the integrity of the system of contracted malting barley is being undermined. Not only is Boortmalt seeking new customers within the traditional supply region across south Leinster, it is offering contracts to growers as far afield as Donegal, Louth and Cork. A group of prospective growers from Northern Ireland visited the Boortmalt plant in Athy last week.

The threat of imported barley permanently replacing Irish contracted barley is also felt by growers.

Boortmalt, for its part, will point to the fact that it has kept its word to farmers that it would grow the business and invest in it.

Price

Ultimately, it comes down to price. There is the sense that a deal is within reach.

Farmers want €200/t as a minimum price, to compensate them for lower yield expectations, the extra management and traceability requirements, and the constant risk of load rejection due to high specification requirements.

The €230/t on 20% of grain forward price already availed of by most growers last autumn makes €200/t an attainable average price. This might rebuild trust between Boortmalt and growers. The two sides will meet again in the days ahead.