Fears have been growing among farmers about the impact of the coronavirus on their malting barley contracts.
Speculation has been mounting of a potential cut to farmers’ contracted tonnage due to the collapse in the drinks industry.
The Irish Farmers Journal understands that a cut to growers’ malting barley contract of up to 30% is being proposed by Boortmalt, targeted towards the brewing proportion of the contract.
The tonnages of barley which would be cut from contracts would likely end up on the feed market.
When contacted by the Irish Farmers Journal, Boortmalt declined to comment, stating that it is still engaging with its customers on the matter.
Boortmalt is the biggest buyer of malting barley in the country.
Although an increase in alcohol sales in shops and off-licences has been recorded over the past month, the closure of bars and restaurants, as well as the cancellation of major events, is expected to significantly affect the demand for malt.
Impact on market
The move could have a serious impact on the Irish feed grain market, as, in the event of a cut, the remainder of growers’ contracts will be destined for feed.
This would add further downward pressure on what could be a depressed feed market this season.
Furthermore, this reduction could result in the loss of malting barley premiums to growers, resulting in a drop in growers' incomes.
The Irish Farmers Journal has also asked Diageo for a comment on its buying policy this year.
Diageo is Ireland’s largest alcoholic drinks manufacturer and used approximately 10% of Ireland’s barley crop in 2019, equating to roughly 144,000t.
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Fears have been growing among farmers about the impact of the coronavirus on their malting barley contracts.
Speculation has been mounting of a potential cut to farmers’ contracted tonnage due to the collapse in the drinks industry.
The Irish Farmers Journal understands that a cut to growers’ malting barley contract of up to 30% is being proposed by Boortmalt, targeted towards the brewing proportion of the contract.
The tonnages of barley which would be cut from contracts would likely end up on the feed market.
When contacted by the Irish Farmers Journal, Boortmalt declined to comment, stating that it is still engaging with its customers on the matter.
Boortmalt is the biggest buyer of malting barley in the country.
Although an increase in alcohol sales in shops and off-licences has been recorded over the past month, the closure of bars and restaurants, as well as the cancellation of major events, is expected to significantly affect the demand for malt.
Impact on market
The move could have a serious impact on the Irish feed grain market, as, in the event of a cut, the remainder of growers’ contracts will be destined for feed.
This would add further downward pressure on what could be a depressed feed market this season.
Furthermore, this reduction could result in the loss of malting barley premiums to growers, resulting in a drop in growers' incomes.
The Irish Farmers Journal has also asked Diageo for a comment on its buying policy this year.
Diageo is Ireland’s largest alcoholic drinks manufacturer and used approximately 10% of Ireland’s barley crop in 2019, equating to roughly 144,000t.
Read more
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Government 'hadn’t envisioned' hundreds of seasonal workers - Taoiseach
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