Barley growers reject latest IFA/Boortmalt price offer
The Irish Grain Growers Group (IGGG) has rejected the revised pricing structure for malting barley which was announced by the IFA and Boortmalt.
Bobby Miller of the IGGG said the current offer of €190/t for green barley would not be enough to secure grain supplies given the heightened demand this harvest.
The improved pricing structure announced by IFA and Boortmalt includes an additional €10/t on the MATIFDec18 price. At current MATIF levels this equates to €190/t for green barley. If the MATIFDec18 exceeds €190/t then the delivered green price to Boortmalt will track the increases.
However, the IGGG said the current price offer did not represent an adequate return for grain growers and failed to reflect recent grain market improvements.
"This is a move Boortmalt had to make to secure grain supplies and they haven't gone far enough," Mr Miller said. "Merchants are hunting for grain at the moment. European harvests have not been as good as forecast and there is a real possibility of prices shooting up," he added.
"By the spring harvest, Boortmalt could have to move the goalposts again to secure grain, which would make a complete laugh out of the contract situation," the IGGG representative commented.
The IGGG has called for farmers to be given the option to agree a price for grain on the day of delivery.
The growers' body also wants a change to specifications at delivery. It has called for the brewing protein cut-off level to be increased to 12pc, and the distilling protein cut-off level to be increased to 10.2pc.