Farmers call for the price of Guinness pint to be cut by 10c
Malting barley growers are calling for the price of a pint of Guiness to be reduced by 10c, as they say the malting barley they grow has fallen.
The Irish Grain Growers Group is holding a demonstration outside the main malting barley buyer, Boortmalt, tomorrow to highlight issues they say are putting Irish malting barley growers out of business.
"We are immediately calling on Diageo/Guinness to drop the price of the pint of Guinness by at least 10c due to the fact that malting barley is so cheap to buy."
Malting barley farmers, they say, are being offered €155/t for this year's harvest - down from €250/t they received in 2012.
Group Chairman Bobby Miller said this year's price barely covers the cost of production.
"The economic cost of production at target yields is €282 and €244 for distilling (6.5t/ha) and brewing (7.5t/ha) malting barley respectively; compared with €205 for winter feed barley.
"The most recent harvest price of malting barley, €154.80, barely covers cost of production excluding land rental and labour; so malting barley growers are working for nothing and would be better off from an income prospective leasing out their land, particulars since this can be earned tax free."
According to the farmers, the deal negotiated by IFA does not compensate for the higher cost of production of distilling malting barley versus brewing as no additional premium for distilling malting barley is paid and is calling on IFA to step away from negotiating on behalf of growers.