GUINNESS OWNER Diageo repeated yesterday that it "cannot and will not" get involved in negotiations with farmers over the prices paid for malting barley, despite unspecified threats of direct action against the company.
Those were made by the president of the Irish Farmers' Association Padraig Walshe who has already led a protest outside the St James's Gate brewery in Dublin over the prices being paid by maltsters for barley.
In a statement yesterday he said the company cannot continue to ignore the legitimate claims of barley growers for a price similar to last year.
Growers have been offered €180 per tonne this year, €25 per tonne less than last year, by the maltsters.
In a statement, Mr Walshe said failure by Diageo to engage in negotiations could lead to further action by barley growers.
He said: "Growers are angry at the flat refusal by Diageo to intervene. The mood is militant and direct action cannot be ruled out."
Asked to elaborate on what form of action that might take, a press office spokesman at the IFA said he was not at liberty to say.
The IFA president said until the mid-1990s, 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.
Mr Walshe added that it was time for the company to resume direct negotiations on the price paid to barley growers.
However, Mr Michael Patton of Diageo said it had been 12 years since the company had dealt directly with growers, who now had contracts with maltsters.
"We have not been involved, but we believe that it would be preferable if the maltsters and farmers came up with a pricing structure which would prevent the annual spats we have been having," he said.
He added that while the company had a policy to use Irish-produced malt, it was the international market which set the price here, not his company.
Last year, he said, the price being paid for malt had increased by 70 per cent, but this year the global market was in greater balance and prices had fallen back, but were still higher than two years ago.
Put to him that Diageo might have a role as mediator in the dispute, Mr Patton said it was highly unlikely that the farmers who wanted to bring his company into direct negotiations, and the maltsters who sold most of their product to the company, could see the company as being independent.