Diageo move to Dublin welcomed

Dublin: The announcement by Diageo that it is to move its production capacity from Park Royal, London, to its St James’ Gate Brewery in Dublin has been welcomed by grain growers.

IFA Grain Committee chairman Paddy Harrington said that malting barley is a very important crop in Ireland as it accounts for 25% to 30% of total barley production.

A 50% increase in production in St James’ Gate Brewery means into an increased requirement of 40,000 to 50,000 tonnes of malting barley.

Mr Harrington said this is a vote of confidence in Irish malting barley by a major world player.

Irish farmers have consistently supplied quality malting barley for the production of world class malt. This malt has been used to manufacture a range of world-renowned drinks such as Guinness, Jameson and Powers for the last 200 to 300 years.

“Irish malting barley is produced to an extremely high standard.

However, the premium offered to Irish farmers over the last number of years has failed to reflect the increased costs of production.

“Farmers, unlike malt and drinks manufacturers, do not have the opportunity to pass back or forward increased costs of production but must absorb them.

“This is a situation that cannot continue as any industry that does not generate sufficient profits to reinvest in its business is destined to fail.”

Mr Harrington said a minimum premium of e20 to e25/tonne should be paid for quality barley.