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The Irish Farmers Association (IFA) has criticised the plans by Boortmalt to cut distilling/malting barley contracts in the middle of the growing season, describing the proposed move as “totally unacceptable”.
It is understood that the French company is making its second cut this year and does not want any distilling barley this season due to the uncertainty in the market.
IFA grain chair Kieran McEvoy said that this is a further blow to a sector already on its knees.
“Malting barley growers have already taken pain earlier this spring with the implementation of contract cuts. After this, farmers entered into agreements with merchants and planted specific quantities of distilling/malting barley in good faith,” he said.
“Now Boortmalt want to ignore their contract with merchants and farmers after they have planted the crops.”
Contracts
IFA called for Boortmalt to revisit this decision, saying that this proposed unilateral action is also in breach of the unfair trading practices legislation.
“Distilling/malting barley has to be grown to very exacting specs which adds to production costs. In return, growers expect a premium price for their product but now Boortmalt want to unilaterally ignore their own contracts,” added McEvoy.
“IFA will strongly resist this development and use all means available at its disposal to ensure that Boortmalt honours all existing agreements and contracts in full.”
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