IFA Deputy President Richard Kennedy has said that negotiations regarding the 2017 malting barley contract are ongoing, with all parties focused on concluding a deal as soon as possible and committed to the process.
Mr Kennedy said, “IFA wants to reassure all those involved that we remain fully committed to working with the current pricing model developed jointly by IFA, Boortmalt and Diageo. Our position is clear on this and we will not be deflected by comments that were made earlier this week. The model was specifically designed to insulate the price paid to growers when world grain prices come under extreme downward pressure. The malting price is now linked to the MATIF milling wheat futures and not to local feeding barley prices (which historically was the case)”.
“The new pricing system has given Diageo the confidence to source 100% of its malt and barley supplies on the island of Ireland. This, coupled with the expansion of Irish drinks manufacturing capacity, has seen a significant increase in the demand for quality Irish malting barley and roasting barley.”
“Ongoing research, funded jointly by growers and Boortmalt to the order of €1m per annum, is playing a crucial part in delivering high quality malt and improved margins to growers. The current Irish malting barley supply chain, which is direct from seed to field to the maltings and onto the brewery, is fully supported by Diageo and is unique to Ireland”.