Brewers and maltsters need to 'keep their side of the bargain'

Irish Farmers' Association (IFA) deputy president Alice Doyle brought some harsh reality to the speeches at the Guinness and Boortmalt malting barley awards on Thursday 27 February.

The awards shone a light on Ireland’s excellence in barley production, but ignored recent cuts to contracts by Boortmalt.

The IFA deputy president said a forward price offer of €230/t was not sustainable for malting barley and that it was frustrating to see the poor premium over feed barley when the price of a pint of Guinness is going up in the pub.

Doyle said: “Disappointingly, price sentiments for the 2025 season are not positive. The announcement to date of a sole forward price of €230/t for malting barley is not a viable price for Irish growers in 2025. Feed barley quotes are just €20/t below this offer.

“A price premium of this level is not a sufficient reward for the strict quality assurance and sustainability standards that our growers are required to meet on an annual basis.

“Farmers are also frustrated with this price offer in the context of repeated increases in the price of a pint in their local pub.”

Economic sustainability

Doyle said: “Ireland’s grain sector has hugely impressive environmental sustainability credentials, hosting the lowest carbon footprint of all agricultural enterprises.

"Tillage farmers want to play their part in further improving sustainability and we acknowledge there is always room for improvement at farm level, but we are up for the challenge.

“However, to do this, we need to be economically sustainable, which is not the case for many of Ireland’s grain growers today.

“Growers need end users such as brewers to make a proper, tangible commitment to the economic sustainability of farmers in 2025. We would urge end users like Diageo to assist maltsters and to provide an improved price offer for malting barley growers in 2025.”

She said that the tillage sector has never been so vulnerable, with incomes in 2023 and 2024 dropping to between €23,000 and €30,000 per year for a typical tillage farm.

In the meantime, IFA figures describe a “shocking” increase in costs of 106% from 2017 to 2023.

Doyle noted the risk associated with planting malting barley, particularly in a late year like 2024.

Pricing

The IFA deputy president commented that the FOB Creil price mechanism delivered a positive outcome for growers in 2024.

She said: “It’s absolutely critical that this mechanism is protected. Without it, malting barley growers will struggle for viability.”

She closed her speech with the following: “We look forward as an organisation to working with farmers and with you Diageo and Boortmalt going forward to get the best we can from what is one of the best growing countries for malt barley.

“We will do our best to keep our side of the bargain, but it is very important that all sides keep their side of the bargain.”

To this, Diageo’s director of beer operations Aidan Crowe replied: “Some very clear messages received.”

The IFA's grain committee met with Boortmalt on Thursday morning before the awards and are planning a growers meeting in the coming weeks.