IFA target Diageo over barley prices
More than 400 Irish farmers today protested outside the historic Dublin headquarters of Guinness over prices they are receiving for malting barley.
The Irish Farmers’ Association claims growers are being paid 20% less this year for their crop despite spiralling costs but the producer of the famous stout, Diageo, says it has no role in setting the price.
Today’s protest caused traffic disruption for a while outside the St James’ Gate brewery, where Guinness has been brewed since 1769 and where more than four million pints are produced each day.
Farmers held placards mocking the famous slogan of the famous drinks brand: Guinness is Good For You – Unless You are a Barley Grower!
IFA president Padraig Walshe said growers were paid a little over one cent of the consumer price of a pint of Guinness from Diageo’s malting barley supplier, Greencore Malt.
Diageo described the protest as unwarranted and unnecessary and said it had no role in negotiating the price of malting barley, which was a matter for growers and malting companies.
The St James’ Gate brewery and Guinness Storehouse in the heart of Dublin attracts about one million visitors a year.
“We suggest that malting barley growers continue dialogue with the malting companies as the appropriate forum for pricing issues and cease making ill-considered allegations against parties who are not involved in the pricing discussions,” a Diageo spokeswoman added.
Mr Walshe said Diageo would have to pay a fair price to Irish malting barley growers if Guinness wanted to keep the traditional Irish harp on its bottles, cans and glasses.
He added: “Growers here produce 250,000 tonnes of quality malting barley every year, but find themselves at the mercy of large corporations which control the market.
“Both Diageo and Greencore Malt have agreed contracts that guarantee their margins and growers are entitled to the same conditions.
“Based on the current price, the growers’ share of the consumer price of the pint is a paltry 1.1 cent.”
But Diageo claimed malting barley prices in Ireland reflected market trends in Europe.
The firm said it offered a major outlet for Irish malting barley and had purchased more in recent years to match increasing production demands.
“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,” the spokeswoman added.
Diageo said last month that it was considering a 2% increase in wholesale prices due to a rise in energy and labour costs.
