Malting barley production has become unsustainable, warns IFA

THE production of malting barley, which is used for brewing and whiskey- making, cannot continue in Ireland as there is no profit for growers, the Irish Farmers’ Association has warned.

Its president Padraig Walshe said he has written to Paul Walsh, the London- based chief executive of Diageo, seeking an urgent meeting.

He said he wants to discuss the concerns for malting production in Ireland and find acceptable solutions to the challenges facing growers.

Mr Walshe said at €120/t growers face an unprecedented income crisis, as these prices are €25/t to €30/t below the cost of production.

“The value of the malting barley crop this season will not cover the maltster’s and contractor’s input bill, never mind meeting farm family living expenses,” he said,

The IFA leader said farmers carry considerable financial risks growing crops and have to deal with factors outside their control.

“Growers do and have always adapted to changing circumstances provided that they are allowed to make informed decisions.

“In the case of malting barley this is being denied to them, as no price is set months after the crop is sown, just at the point of harvest,” he said.

Mr Walshe said after 250 years of supplying Guinness with quality malting barley, the IFA believes a fair and equitable solution to growers’ problems must be found.

However, Diageo pointed out in August that it does not buy malting barley from growers but purchases finished malt from malting companies.

It said it has no role whatsoever in negotiations regarding the price of malting barley, which is a matter for growers and malting companies.

Movements in malting barley prices in Ireland tend to reflect trends in Europe, the company said.

Diageo said it offers a critical outlet for Irish malt. Expanded operations in recent years had substantially increased volumes of malt purchased.

“Over 70% of Diageo Ireland’s brewing production is for the export market and therefore it is vital to be competitive with European brewers in order to grow our business and continue to provide sustainable demand for our suppliers,” it said.