Farmers today warned of more protests over barley prices after Guinness producer Diageo refused to step-in and help resolve the bitter row.
The Irish Farmers Association (IFA) claims growers are being paid 20 per cent less this year for their crop despite spiralling costs but the drinks giant said it has no role in setting the price.
Around 400 farmers protested outside the Dublin headquarters at St James's Gate earlier this month and have threatened further action if the company does not negotiate on the charge for this season’s malting barley.
But Diageo said it had no place in price discussions which was a matter for growers and malting companies.
Michael Patten, Diageo group corporate relations director, said: “It is not an issue for us.
“We have a contractual relationship with the malting companies to supply malt.
“They have a relationship with the farmers and that is were the situation lies.”
The current price on offer to growers is €180 a tonne and farmers are looking to get last year’s price of €205 per tonne.
Mr Patten said efforts should be made by malting bosses and farmers to come up with a fair pricing mechanism that works for all parties.
“In terms of the current issue, they are locked in a negotiation, and we don’t see it as being right or our business to start interfering in that,” he said.
The IFA said Diageo cannot continue to ignore the claims of barley growers for a price similar to last year, with the body’s chairman Padraig Walshe claiming failure to intervene could lead to further action.
But the IFA refused to comment on what form that would take.
The body said until the mid-nineties Guinness was involved in face-to-face negotiations with growers and up to two years ago the company had a role through the Irish Brewers Association.
“If there is no improvement in price there will be something else happening,” an IFA spokesman said.
“This is coming from growers around the country.
“We feel it’s time for them (Diageo) to get into direct talks to resolve this pricing issue.”
Meanwhile Diageo is in negotiations with the owners of a site for its new brewery near Dublin but would not reveal its location.
Mr Patten said an announcement on the site, which is in the region of 75 acres, is expected to be made by the end of next month.
“We are at an advanced stage. We have identified our preferred site. We are in current negotiations with the current site owners,” Mr Patten said.
“Clearly, everything is dependent on the successful outcome of that negotiation.
“We’d like to be in a position to announce it within the next couple of weeks.”
Diageo revealed last May it was closing two of its breweries in Dundalk and Kilkenny as well as scaling back its operations in St James’s Gate.
The new brewery will produce Harp, Smithwicks, Carlsberg, Budweiser as well as Guinness for the international market.
St James’s Gate will continue to brew the famous stout for Ireland and the UK.
PA