IFA Warn Diageo - Farming | farming news | cattle prices | ifa

IFA Warn Diageo

Written by Cian MacSweeny
Thursday, 28 August 2008
Padraig Walshe, President of the IFA, has requested that Diageo engage in realistic and meaningful negotiations with regard to the price for this season’s malting barley. Mr. Walshe said the company must not continue to shun the legitimate claims of barley growers for a price around the same as last year. Mr. Walshe warned Diageo that failure to take part in negotiations could lead to further action by barley growers. “Growers are angry at the flat refusal by Diageo to intervene. The mood is militant and direct action cannot be ruled out.” He continued, saying; “Growers’ costs have increased by €35/t, and the offer of €180/t is unacceptable as growers cannot cover their production costs. The brewer is in a position to pass on cost increases, and has already done so once this year. Yet growers are facing steep increases in their costs and the price to them is €25 less than last year." The IFA President said until the mid-nineties, Guinness had face-to-face talks with growers and up to two years ago, the company were involved through the Irish Brewers Association. Mr. Walshe said it was time for Diageo to revert back to negotiations on the price paid to barley growers. The IFA President said: “growers are having a difficult harvest because of poor weather conditions. Many will find themselves re-assessing their plans for next year because of negative returns from lower prices and increased costs. The prospects for the coming season are that fertiliser will rise significantly. Growers will simply opt not to sow when there is no margin for them.”

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