Redress sought for farmers hit by Malt sale

AGRICULTURE Minister Brendan Smith has expressed support for farmers whose contracts have been terminated by Greencore Malt.

“I hope there will be redress for farmers whose contacts have been terminated. I understand consideration is being given to the establishment of an appeals mechanism,” he said.

Grain growers recently lost 600 malt contracts when Greencore sold its malting division to French company Boortmalt.

Mr Smith said he and his junior minister Seán Connick spoke to Greencore chief executive officer Patrick Coveney regarding his company’s termination of its interest in the malt business in Ireland.

“Greencore is still in negotiations with the IFA regarding redress for farmers whose contracts have been terminated, and an appeals mechanism is being established.”

“One of the issues brought to my attention by farmers at one stage in regard to pricing is the disagreements between the farming organisations and Greencore Malt about the price paid for the crop over a number of years. Apart from considering the price to be too low, the fact that Greencore Malt only set the price at harvest time placed the farmer in a more vulnerable position than usual as well. Deputy Connick and I spoke to the chief executive officer of Greencore about the issue and the company has been in contact with the IFA.”

Mr Smith said malting barley is an important product for an important Irish brand.

IFA president John Bryan has called on the management and shareholders of Greencore to deal equitably and fairly with affected farm families, and to ensure that their concerns are addressed. “Loyal barley growers who have been the bedrock of a very profitable malting operation have a legitimate expectation to be treated fairly in the restructuring of the business in advance of it transferring to the new owners,” said Bryan.

IFA grain committee chairman Noel Delany said: “The company’s failure to communicate with or return calls directly to growers who are losing contracts is an unacceptable way to deal with dedicated suppliers.”

Axéréal is the French co-operative group which acquired Greencore Malt through its malting business, Boortmalt Group.