12 August 2008 – Brewing giant Diageo denied claims by the Irish Farmers Association (IFA) that it is abusing its dominant position and endangering the future of Ireland's malting barley growing, local media report.
Around 400 farmers demonstrated outside a Guiness brewery in Dublin today over low prices being paid to them for their barley.
The IFA has accused Diageo, maker of Guiness, and Greencore Malt, the brewer’s main barley supplier, of taking advantage of their position and strength as multinationals to cut prices paid to barley growers whilst passing on increased raw material costs to customers.
Greencore Malt is paying 20% less for malting barley this year, whilst growers have seen energy and fertiliser costs soar by over 66% in the last year, the IFA said in its statement.
The IFA is accusing Diageo and Greencore Malt of “achieving full cost recovery and increased margins” at the expense of both growers and customers. Diageo is planning to increase the cost of a pint by 8 cent, the IFA added, a claim Diageo denied, though the group confirmed that it is considering a 2% increase on wholesale prices because of increased energy and labour costs.
Diageo pointed out that it does not buy malting barley direct from growers but purchases malt from malting companies and so encouraged growers to discuss price matters with those.