Growers eye Boortmalt deals
Published 08/03/2011 | 05:00
Malting barley growers are still pushing Boortmalt to offer forward contracts for up to 50pc of their crop and increase the premium for malting barley.
A meeting between an IFA-led delegation and the malting giant failed to reach a conclusion last week as both sides argued their case.
Barley growers are looking to secure a forward price for their crop, based on a formula that has yet to be agreed.
However, it is understood that the formula would involve taking the average price of feed barley at four times of the year, February, April, June and August.
The February, April and June prices would be given a weighting equivalent to 20pc of the barley price, while the August price would be given a higher rating of 40pc of the price.
The pricing formula would also include a premium above the feed barley price. It is understood that Boortmalt wants this premium to be agreed at €15/t while the growers are demanding €25/t.
Growers are also seeking a lock-in forward price option for up to 50pc of their crop but Boortmalt is currently only offering a lock-in price for 25pc of grain supplies.