Grain trade accused of cartel
Grain Committee chairman Paddy Harrington made the claim when speaking at a protest beside the Malting Company of Ireland in Cork.
Growers had assembled to protest outside a meeting which, the IFA said, was being held by three of the major industry players, Glanbia, IAWS Co-op and Dairygold.
Each has a 33.3% stake in the Malting Company of Ireland. Industry sources explained the company was set up to provide a market outlet for malting barley growers, is not involved in animal feed production and does not set grain prices.
Asked if the IFA had formally complained to the Competition Authority about the allegation, a spokesman said: “We are examining all options.”
Mr Harrington said Glanbia, who purchase about 20% of the total traded grain tonnage annually, have come with an official on-account price of €95 and €97 per tonne for barley and wheat, respectively, at 20% moisture, exclusive of VAT.
“Whether this is an effort to appease the trade or an attempt to control the market it does not tie in with what is happening on the ground. They are freely paying from €102-€106 per tonne for barley, with €1-€2 per tonne over for wheat to many of their customers.”
Mr Harrington called on the trade to pay the going market rate to all their customers. Even at price levels above €100 per tonne, growers will see €75 million knocked off their bottom line this harvest.
Rapidly escalating costs for fertiliser and fuel have seen the costs of producing an acre of barley going over €300 per acre and for wheat over €420. Many growers will end up losing €50-€70 an acre this harvest and this clearly is not sustainable, he said.
Glanbia announced VAT inclusive 2005 green grain prices per tonne of €99.56 (feed barley), €101.66 (feed wheat) and €110.04 (contract oats), and €15/t for malting feed barley.
It said feed barley and feed wheat prices are subject to a market-based review, which ends in December. It will strive to pass on any lift in market prices to its growers.
