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Malting barley growers will meet with Boortmalt this Wednesday with renewed determination. They were given a clear mandate to push for a price deal that offers genuine security for the coming season at a growers' meeting on Monday night.
A large attendance at the Carlow meeting hosted by the IFA rejected the proposals negotiated with Boortmalt.
There was anger that advanced negotiations in the autumn were scuppered.
The blame was being laid not at the door of Boortmalt, but rather its customers for brewing and distilling malt. Boortmalt was accused of failing to back the package largely agreed between malster and growers.
A minimum price of €200/t was repeatedly called for. It was pointed out that this price is not unreasonable when Boortmalt's 2019 fixed price offer of €230/t is considered. This offer was made last September, and is for 20% of contracted tonnage for the coming harvest.
Haulage allowances
Boortmalt's removal of existing haulage allowances for regions where depots were closed was heavily criticised, particularly as new growers in locations as far apart as Donegal, Cork, Tipperary and Louth are reportedly being offered haulage allowances.
The decision to scrap the MATIF milling wheat as the basis for the malt barley price was welcomed. However, there was scepticism for the proposal to replace it with another French grain index, the Creil malting barley price.
The option to sell forward is being removed, with the price determined by 20 price dates, taken weekly from April to September.
Farmers expressed the fear that this mechanism would fail to reflect a buoyant market. As one described the MATIF model, "when milling wheat got scarce, the specifications were relaxed and the price dropped".
Diageo
The elephant in the room was Diageo. The maker of Guinness is Boortmalt Ireland's biggest customer. Farmers had a two-pronged message for Diageo.
Firstly, they will not accept low prices being forced back on growers through Boortmalt. Secondly, Diageo or Boortmalt will not be allowed to import malting barley for premium Irish brands.
A campaign to highlight Diageo's indifference to the viability of growers was called for, and the prospect of direct action against Diageo was floated.
As one grower put it, "we produce a premium product for premium brands and we should be properly paid for that".
Time pressure
The need to secure a deal for 2019 is pressing. Spring barley will be planted next month, and seed and fertiliser orders and deliveries need to take place soon.
There were proposals from the floor to accept no seed until negotiations are completed, but instead it was agreed to gather again following Wednesday's meeting.
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