United Kingdom: Greencore breaks off relations with more than 50 barley growers already

More than 50 barley farmers in Kildare have been told by post over the past month that their contracts with Greencore have been ended, Leinster Leader reported on March, 18.

Greencore Malt began contacting its malting barley suppliers in February to announce the 25pc cut in malting contracts for the coming harvest.

It is understood Greencore contacted suppliers in order of size and offered them renewed contracts, provided they met the criteria for credit risk, viability, location and quality. If a supplier met them they agreed to renew their full contract tonnage, without being affected by the 25pc cut.

According to the IFA, more than 600 barley farmers in Carlow, Kildare and Laois have been told their contracts with Greencore have been ended.

Meanwhile, more than 100 farmers picketed the EGM of Greencore last week where shareholders voted to sell the company's malt business. They were objecting to Greencore's decision to end contracts with certain farmers rather than applying an across-the-board reduction.

At the EGM Greencore's shareholders voted to sell the company's malt business to French Agricultural co-op Axereal.

19 March, 2010