There should be "substantial opportunities" for Irish farmers growing malting barley as a result of the transfer to Ireland of the brewing of Guinness for the British market, a top tillage expert predicted yesterday.
Dr Jimmy Burke, head of Teagasc Tillage Research at Oak Park, Co Carlow, described the transfer as good news for the tillage sector here.
He explained that barley-growers here already produce 250,000 tonnes of barley for the malting trade in Ireland.
"This is good news because it should mean that an additional 100,000 tonnes of malting barley will be required in Ireland," he said.
He explained that the growing of malting barley was more or less concentrated in the tillage belt of the midlands and south east. These are areas in which substantial acreage of barley was grown.
"Irish growers produce not only a quality grain, but it is also low in protein which the malsters and brewers want," he said.
He said that in recent years, barley-growing on the European mainland had become a winter-produced crop, whereas Ireland had kept barley as a spring crop which is more suitable for the trade. This had opened up export opportunities for Irish barley-growers and maltsters.
They have found markets for Irish product in markets as far away as Japan because of Ireland's reputation as a producer.
There was a welcome too for the move from An Bord Bia, the Irish Food Board which promotes Irish food and drink exports.
Bord Bia's marketing director, Mr John McGrath, said the transfer to Dublin was a strong vote of confidence in the Dublin-based brewing business.
He said the move had also underlined the Irish connection to Guinness. This was something he welcomed from a marketing point of view. "It will also be good from an export point of view.
"Last year, for the first time, the value of drinks exports climbed over the €1 billion mark," he said.
"This is very good news for the economy and very good news for the food and drinks industry," he said. The Irish Farmers' Association's National Grain Committee chairman, Mr Paddy Harrington, also welcomed the Diageo announcement.
"The malting barley crop is a very important crop in Ireland as it accounts for 25 per cent to 30 per cent of total barley production.
"A 50 per cent increase in production in St James's Gate Brewery should translate into an increased requirement of 40,000 to 50,000 tonnes of malting barley," he said.
However, Mr Harrington also said that the premium offered to Irish farmers over the last number of years has failed to reflect the increased costs of production.
He said this situation could not continue "as any industry that does not generate sufficient profits to reinvest in its business is destined to fail". He added that the minimum malting barley premium of €20 to €25 per tonne should be paid for quality malting barley.
