Forward Offer on Malting Barley Very Late & Very Disappointing

Commenting on the first forward offer for 2025 of €230/t for malting barley from Boortmalt, IFA Grain Chair Kieran McEvoy described it as ‘very late and very disappointing’ particularly in the context of the recently increase in the price a pint of Guinness by Diageo.

“Farmers will be very frustrated when they see this price as they are getting no benefit from the price increase to the consumer. Once again, farmers are at the bottom of the barrel,” he said. 

For the past number of years, there have been two forward price offers issued before widespread planting of the spring barley crop takes place. In 2024, offers of €270/t and €240/t were made prior to the crop being planted.

“We are also concerned about cuts to the contracts allocated to merchants. These cuts will have impacts on farmers, and it does not make sense in the context of the planned expansion of the sector. Earlier this week, IFA asked Boortmalt to attend a growers’ meeting to clarify their plans for this year and beyond. We hope they agree to this so the meeting can take place urgently,” he said

Kieran McEvoy said incomes on tillage farms have been decimated in the last two years, dropping to between €21,000 and €30,000.

Additionally, costs on tillage farms look set to increase again in 2025 for fuel, fertiliser and contracting. IFA analysis shows that tillage farms incurred the largest sectoral cost increases of 106% in the period between 2017-2023. Access to rented land is also proving to be a major challenge for the sector.

“A forward price offer of €230/t for a portion of malting barley contracts in 2025 is just not enough given the precarious financial situation the tillage sector finds itself in,” Kieran McEvoy said.