Diageo clashes with Irish Farmers Association

300 Irish farmers protested in Dublin yesterday, complaining that the price they are paid for Barley has decreased by 20% at a time when production costs are increasing dramatically. However the Guinness producer has countered by pointing out that it buys barley from malting companies, not directly from the growers.

According to IFA president Pádraig Walshe farmers are being paid €165 per tonne for barley this year, down from €205 last year. "Unless we get the same price as last year," he warned, "farmers will not grow the crop next year. The price on offer to growers of €165 per tonne is jeapordising future supplies. Given the scale of the increase of their input costs, growers must maintain a margin or they will not produce a crop."

However, Diageo Ireland has rejected the claims, pointing out that it does not deal directly with the farmers, so is not responsible for the prices that they receive. The company buys malted barley from Greencore Malt. Diageo issued a statement saying: "Diageo does not buy malting barley from growers but purchases finished malt from malting companies. It has no role whatsoever in negotiations regarding the price of malting barley – these are a matter for growers and malting companies."

Ben Grant, 13.08.08