Greencore Malt has begun contacting its malting barley suppliers to announce the 25pc cut in malting contracts for the coming harvest.
It is understood that Greencore is contacting suppliers in order of size and offering them renewed contracts, provided they meet the criteria for credit risk, viability, location and quality.
If a supplier meets them they can agree to renew their full contract tonnage, without being affected by the 25pc cut.
It is understood that a significant number of suppliers run the risk of failing the quality criteria because it is based on last year's harvest, when the Quench variety performed badly in many areas.
IFA grain chairman Noel Delaney insisted Greencore should treat all of its customers equally and urged the company not to use a blunt instrument like the proposed straight cut-off.