Malting Company of Ireland to cut contracts by as much as 10pc
Published 16/02/2010 | 05:00
Speculation is mounting that the Malting Company of Ireland (MCI) will announce that it is cutting contracts for the coming season.
The company, jointly owned by Dairygold, Glanbia and IAWS, is this week set to announce a cut of 5-10pc on all malting barley contracts.
Although there were rumours of a 20pc cut, an industry insider is certain the cut would be closer to 5pc.
It is understood that meetings on the scale of the cuts were to take place yesterday and today. The final decision will be calculated on the basis of demand for malt and intake, and carry-over figures from both Dairygold and Glanbia.
Demand for malt from the brewing industry has fallen by some 20-25pc in recent times.
MCI has a total annual capacity of around 30,000t of malt and buys malting barley from several hundred growers in each co-op.
The move comes in the wake of the Greencore Malt cut of 25pc in malting barley contracts.
However, MCI is expected to implement the cut on all growers in equal measure, instead of the top-down approach favoured by Greencore Malt, which favoured larger growers.