Greencore Malt denies IFA claims it is preparing to exit malting scene

GREENCORE Malt insisted yesterday that it remains committed to a viable and sustainable malt production industry in Ireland.

The comment followed a claim by the Irish Farmers’ Association (IFA) that it is only a matter of time before the company exits the Irish malting scene.

A spokesperson for Greencore Malt said changes to the intake arrangements for this year reflect market conditions.

“These do not in any way change Greencore Malt’s commitment to a viable and sustainable malt production industry in Ireland. In fact, these arrangements are design-ed to protect it,” she said.

IFA Grain Committee chairman, Colum McDonnell, said recent events, not least the closure of grain intake depots, point to a planned exit by Greencore Malt from the Irish, if not the complete, malt business.

“Ireland has a unique system as regards malting barley assembly. The grain is delivered direct from the field off the combines to the intake depots, eliminating the risk of any accidental contamination.

“This ensures a delivery and traceability system that is the envy of other European maltsters. It has given Greencore Malt a considerable marketing advantage over their competitors. Yet, they are abandoning the system,” he said.

Mr McDonnell said Greencore Malt’s failure in recent years to upgrade many of its drying and handling facilities has reduced its ability to efficiently handle a harvest. While the harvest of 2008 was very difficult for both merchants and farmers, failure by Greencore Malt to match drying capacity to farm combining capacity has aggravated its woes.

“The proposed closure of a further three branches will only add to the problems and limit the malt house’s output.

“Even by the company’s own admission, reducing output at the malt plant is not a viable medium to long-term option.

“Achieving maximum throughput of malt is critical in minimising production costs,” he said.

Mr McDonnell said the downturn in malt is likely to accelerate the phased withdrawal from the Irish malting business.

“We are only two to three weeks away from the first of the spring barley harvest and nobody, including branch managers, has been told what’s happening.

“Clearly senior management is out of touch with growers.”