The Irish cereal sector is facing into a range of new opportunities due to the recent growth in niche and premium markets for our grains. Such opportunities include the gluten-free and porridge oat markets and the growth in craft malt for distilling and brewing.

The attraction to the cereal grower is that the development of these products and markets delivers a premium price to the grower which is higher than is available for feed crops. However, the production of such crops demands higher standards from growers and the industry as a whole, which can only happen on the back of fully traceable and sustainable standards.

In this feature, we report on a number of farmers who are producing crops to supply these niche markets and also speak with a plant breeder who is developing new varieties to meet the evolving demands of the malting markets.

We carry an interview with Mark Reynier from Waterford Distillery, who talks about his requirement for quality traceable Irish seed and why this is central to his business.

Fully traceable pure crops

Certified seed is now recognised as fundamental to producing top-quality, fully traceable pure crops. The production of certified seed involves a number of control processes whereby it is guaranteed to provide minimum germination and varietal purity standards and the seed lot is fully traceable from field to bag.

Along with the Department of Agriculture and the Marine (DAFM), the Irish Seed Trade Association (ISTA) helps to ensure the high quality of the certified seed grown and used by Irish farmers.

The standards enforced in the production of certified seed in Ireland conform to a higher voluntary standard than official EU standards and this puts certified seed produced in Ireland in a strong marketing position.

Purity of variety and crop is an increasing requirement for many markets. Individual varieties have their own appearance characteristics, but they also have their own individual use characteristics, whether that be specific barley traits for the brewing and distilling industries or indeed individual feed varieties suiting specific market requirements.

From the perspective of a malt producer, the failure to comply with purity standards could have a devastating effect on the product produced.

As well as supporting all of the quality parameters of certified seed through its members, ISTA actively supports research and development in the selection of new varieties. This remains a critical activity for the benefit of farmers, as the provision of improved varieties has delivered a 14% yield improvement per acre over the past 20 years. The same process supports the further pursuit of varieties that are even more closely aligned to niche market opportunities and requirements. It is this work that provides the Irish tillage industry with a firm foundation to fulfil market potential for premium products.

While the demand in Ireland for niche cereal products has increased, the real benefit for growers is the market potential outside of Ireland. The ever-increasing international demand for craft brewing and distilling malt has increased the demand for these products from Ireland and other opportunities continue to become evident.

We currently produce approximately 130,000t of malt annually in Ireland, between the two plants at Boortmalt and the Malting Company of Ireland. However, to get a slice of the international market potential, we need to sell the unique value that can be delivered by Irish growers.

Craft market

The craft market in the USA has potential to be in the region of 447,000t of malt annually. We produce 2.5 million tonnes of cereals in Ireland annually, of which less than 10% is malting barley. Therefore, there is ongoing potential for growers to produce cereals for these more niche and less mainstream markets.

The role of Bord Bia is to market and promote Irish food and drink products internationally. While its activities are mostly associated with the dairy and beef industries, the international craft beer and whiskey market has been growing significantly in recent years. Beverage exports were valued at €1.26bn in 2015, with much of this coming from products where grain is a key ingredient.

Bord Bia’s Origin Green sustainability programme aims to help demonstrate the sustainability credentials of Irish farmers and food companies and their commitment to produce in a sustainable manner.

This reflects the growing demand from customers internationally for products and ingredients that help them improve the sustainability of their supply chain. Over 85% of Ireland’s food and drink exports now come from companies that are verified members of the programme.

Bord Bia has worked with a number of grain companies on pilot sustainability programmes to help them demonstrate their commitment to sustainable practices. Further work is planned over the coming year.

Speaking at the recent global sustainability forum, which took place at the National Convention Centre on 9-10 November, Bord Bia CEO Aidan Cotter said: “Ireland’s commitment to Origin Green is based around Ireland producing food and drink products that are fully traceable and sustainable.”

According to ISTA president John Dalton, “without the production of Irish certified seed, which makes our seed fully traceable, such market opportunities would not be open to us.

“When we work together as an entire industry, which is inclusive of growers, processors and end users, this means we can deliver the highest-possible quality products, which ensures we further enhance Ireland’s reputation for high-quality fully traceable, sustainable products. This will also help ensure that our members and our producers have a more sustainable business into the future, both economically and environmentally,” he said.

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To read the full Certified Seed Focus Supplement click here.