IFA malting barley committee chair Mark Browne announced a new price agreement with Boortmalt based on MATIF December futures.Under the agreement, the green malting barley price is to be calculated as follows:
IFA malting barley committee chair Mark Browne announced a new price agreement with Boortmalt based on MATIF December futures.
Under the agreement, the green malting barley price is to be calculated as follows:
If the MATIF price is €180/t or below, €10 is added.If the MATIF price is between €180/t and €190/t, the malting barley price is €190.If the MATIF price is above €190/t, the malting barley price is the same as MATIF.A previous price structure announced in March included deductions to the MATIF price if it was above €170/t.
This was sharply criticised by some farmers, including members of the Irish Grain Growers group, who said the spring agreement between the IFA and Boortmalt was less attractive than offers from other merchants.
By contrast, the new price structure guarantees that the malting barley price is always equivalent or superior to the MATIF price.
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For example, up until last week, the latest MATIF December price of €181/t would have resulted in a Boortmalt malting barley price of €166/t, offering little premium over feed barley prices. Monday's agreement changes the picture by increasing this to €190/t.
An Irish Farmers Journal comparison of the March and July agreement shows that the new price is higher at any MATIF level.
The IFA will hold a growers' meeting at the Dolmen Hotel in Carlow next Monday 9 July at 8.30pm to explain the new price structure.
Additional reporting by Andy Doyle
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Malting price alterations - a move in the right direction
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