Diageo rejects IFA criticism on barley

Diageo Ireland has strongly refuted claims by the Irish Farmers Association (IFA) that it has abused its position in the market and has endangered the future of the malting barley sector.

IFA President, Padraig Walshe accused the Guinness manufacturer this morning of planning an eight cent increase in the price of a pint while barley growers "are being asked to take twenty per cent less for their barley."

Mr Walshe made his comments as an estimated 400 farmers protested outside St James's Gate brewery in Dublin this morning.

Speaking to the media at the Dublin Horse Show today, Mr Walshe said, “The justification used by Diageo for increasing the price of a pint is due to higher raw material costs. Yet their main supplier Greencore Malt is cutting the price paid to malting barley growers by over 20 per cent."

"Twelve months ago growers saw the first substantial recovery in grain prices after three decades of falling prices. However the honeymoon has been short lived as two of the major expenditure items - energy and fertiliser costs - increased by over 66 per cent in the last year and grain prices have fallen.”

However, in a statement released this morning, Diageo Ireland refuted the claims. Saying it does not buy barley from individual growers but from malting companies, the company insisted it has "no role whatsoever" in negotiations regarding the price of malting barley, which it said was "a matter for growers and malting companies."

Suggesting Diageo was the wrong focus of the IFA's ire, the brewer said: "We suggest malting barley growers continue dialogue with the malting companies at the appropriate forum for pricing issues and cease making ill-considered allegations against parties who are not involved in the pricing discussions."

While denying an eight cent increase in the price of a pint was planned, Diageo confirmed it was considering a two per cent increase in wholesale prices which it said is "substantially below the current rate of food inflation in Ireland."