Farmers are furious with the €12.50/t energy charge imposed by Boortmalt and say they have not been officially notified of the charge.

In fact, many first heard of the penalty from this publication.

This is despite the fact that most of the malting barley has now been harvested and the vast majority of this has now been delivered.

The charge, which was agreed by the IFA, was introduced last week.

The fact that so much spring malting barley was cut at record low moisture levels this year is a further kick in the teeth to farmers. A significant proportion of grain was delivered between 11% and 15%, which means farmers suffered a weight loss on the weighbridge. This grain must still go through a dryer for a minimal time and costs are incurred, but the energy penalty is still imposed.

The charge will not apply to barley for which the price was fixed.

Assuming the price was fixed at 40% of the estimated 180,000t intake, the charge will bring in €1.35m for Boortmalt.

However, it is that suggested less than 40% of barley has been fixed at a price, so it is at least this amount.

Brewing v distilling

Many farmers are frustrated at the requirement for them to provide 30% of their barley for distilling and 70% as brewing.

A farmer with a 100t contract whose barley is all below 8.8% protein can only supply 30t of barley to Boortmalt for distilling.

If they had fixed the price for 40% of their barley at €260/t, then they would only be paid €260/t (plus a €10/t distilling bonus) on the 30t.

The price for feeding barley currently is likely to be €280/t to €290/t.