Boortmalt to cut malting barley contracts

Ireland’s largest buyer of malting barley, Boortmalt, has confirmed it is reducing its required tonnages of malting barley for harvest 2020.

In a text message sent to growers this week, Boortmalt stated that as a consequence of COVID-19 restrictions, malt demand has been directly affected and the tonnage of malting barley required will be reduced.

There is also believed to be an amount of carryover stock from last season as well as continued reduced capacity at their Athy facility.

The Irish Farmers Journal understands a cut to growers’ malting barley contracts of up to 40% is being considered by Boortmalt, targeted towards the brewing proportion of their contract. Based on 2020 projected use, the move could push up to 74,000t of additional barley on to the feed market, although this still represents a small portion of Ireland’s total concentrate feed use.

In a statement to the Irish Farmers Journal, a Diageo spokesperson said it is actively managing supply chains to balance production capacity and inventory in line with the current global demand. Diageo is Ireland’s largest alcoholic drinks manufacturer and used approximately 10% of Ireland’s barley crop in 2019, equating to roughly 144,000t.

‘Vehemently opposed’

The IFA malting barley committee has been engaging with Boortmalt. Speaking to the Irish Farmers Journal, IFA national grain committee chair Mark Browne said: “We are talking to Boortmalt and are trying to limit the effect on the farmers.”

Bobby Millar, chair of the Irish Grain Growers said: “All tillage farmers should be vehemently opposed to this. Production may be back to capacity by harvest but the damage on all grain prices could already be done by then with this move”.

It remains unclear if Ireland’s other malting and roasting barley purchasers will follow suit.