Australia: Growers disappointed by decision to downgrade their malting barley to feed

Barley growers caught with stocks of last season’s malting barley in CBH warehousing are asking questions about the treatment of their grain, The Farm Weekly reported on January, 14.

Australian grain business CBH wrote to the growers last November, informing them that their stocks would be downgraded to feed barley on January 1, 2010.

The downgrade was due to the reluctance of buyers to acquire old season malting barley, because of possible deterioration in germination capacity.

CBH warned the growers they would be liable for any variation in grain quality resulting from its natural deterioration over time.

The situation was exacerbated by an increase in warehoused grain following changes to barley export marketing arrangements in Western Australia last year, through the removal of the Grain Licensing Authority.

However, Lake Grace grower Greg Argent said once the letter was sent to growers, malting barley buyers caught wind of it.

They then refused to buy any old season malting barley stocks, knowing it would be downgraded to feed barley on January 1.

Mr Argent said he had a small volume of malting barley in warehousing and was disappointed the letter was sent.

He said he eventually sold his barley to Grain Pool, who offered to buy it for $204/tonne as a way of making amends for the situation.

However, he said the price was, “a long way off the pace”.

“As soon as the letter came out no-one wanted to buy any more malt barley,” he said.

15 January, 2010