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E-Malt.com Newsletter 35a
August 24 - August 26, 2015
Quote of the Week
A glass of bitter or pale ale, taken with the principal meal of the day, does more good and less harm than any medicine the physician can prescribe.
Dr. S. Carpenter, England, 1750
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Currency Rates
Base Currency: US Dollar
on August 26, 2015 |
Base Currency: Canadian Dollar
on August 26, 2015 |
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1 USD = 0.8684 EUR
1 USD = 0.6348 GBP
1 USD = 1.3263 CAD
1 USD = 1.3912 AUD
1 USD = 119.4800 JPY
1 USD = 3.5493 BRL
1 USD = 69.3973 RUB
1 USD = 6.4029 CNY
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1 CAD = 0.7538 USD
1 CAD = 0.4786 GBP
1 CAD = 0.6546 EUR
1 CAD = 1.0487 AUD
1 CAD = 90.0700 JPY
1 CAD = 2.6755 BRL
1 CAD = 52.3133 RUB
1 CAD = 4.8266 CNY
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Currency Rates Chart
Equities of the Largest Breweries
Canada & USA: Molson Coors Brewing expected to report earnings of $1.33 for the current fiscal year
...Click here
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USA: Barley harvesting conditions good this year but cash prices offered do not meet growers’ expectations so far
...Click here
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USA, OR: 10 Barrel Brewing undertakes a $13 million expansion project
...Click here
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Canada, NS: Alcohol sales are slightly down in Nova Scotia tihs spring
...Click here
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USA, NY: Empire Brewing Company to launch new brewery in Cazenovia the end of the year
...Click here
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USA, CA: Black Hammer Brewing unofficially opens in San Francisco
...Click here
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USA, AZ & CO: Fate Brewing Company opens second brewhouse in Scottsdale
...Click here
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Canada, ON: Elora Brewing opens in downtown Elora on August 12
...Click here
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USA, NE: Bottle Rocket Brewing Company ready to launch in Seward County on October 23
...Click here
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USA, MI: CJ’s Brewing Company expands operation by two 15-barrel fermenters
...Click here
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USA, OR: Medford Brewing Company to establish contract brewery relationship later this year
...Click here
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USA, RI: Narragansett Beer continuing efforts to move beer production to Rhode Island
...Click here
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USA, AL: Red Hills Brewing Company to open in Homewood this fall
...Click here
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USA, FL: Khoffner Brewery USA to launch in Fort Lauderdale
...Click here
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USA, TN: East Nashville Brewing Co. to open in Nashville
...Click here
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USA, WI: Leatherhead Brewing to open in Green Bay by mid-September
...Click here
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USA, OH: Royal Docks Brewing set to open in Canton on September 5
...Click here
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USA, SD: WoodGrain Brewing Company to open in Sioux Falls on September 3
...Click here
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Japan: Kirin Holdings plans to grow operating profit by 20% in three years
...Click here
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Malaysia: Carlsberg Brewery Malaysia’s net profit dips 20.8% in Q2
...Click here
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The Netherlands & India: United Breweries say “not aware” of any negotiations on Heineken stake increase
...Click here
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India: Carlsberg India toasts nearly doubled market share in the quarter to June 2015
...Click here
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EU: Latest barley crop forecasts are between 56.5 and 58 mln tons vs. last year’s 60.4 mln
...Click here
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China: China’s 2014/15 barley import totals 8.35 mln tons
...Click here
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Japan: Moody's Japan K.K. affirms Kirin’s A3 issuer rating and says ratings outlook is stable
...Click here
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France: Malting barley prices decline under the pressure from other cereals
...Click here
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Ireland: Spring barley growers set for another loss-making year
...Click here
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Graph of the Week
Table of the Week
Brewing Industry in Belgium
Barley Prices
Canadian Malting and Feed Barley Prices
US Malting and Feed Barley Prices
French Malting and Feed Barley Prices
Theoretical Malt Prices
Canadian Malt Prices
US Malt Prices
Theoretical EU Malt Prices
These Days in Business History
24 August
1853 - 1st potato chips prepared by Chef George Crum (Saratoga Springs, NY)
1869 - Cornelius Swarthout patents waffle iron
1995 - Windows 95 debuts
25 August
1609 - Galileo demonstrates his 1st telescope to Venetian lawmakers
1900 - Friedrich Nietzsche philosopher, dies in Weimar, Germany
1956 - 1st non-stop transcontinental helicopter flight arrived Washington D.C.
26 August
1541 - Turkish sultan Suleiman occupies Budapest and annexes Hungary
1843 - Charles Thurber patents a typewriter
1880 - Guillaume Apollinaire was born, poet/movie critic (Alcoola)
Agenda
August 2015:
07-09: 19th International Berlin Beer Festival (Berlin, Germany)
11-15: The Great British Beer Festival 2015 (London, UK)
14-15: Beervana 2015 (Wellington, New Zealand)
19-23: Belgrade Beer Fest 2015 (Belgrade, Serbia)
September 2015:
06: Craft Bier Festival 2015 (Rapperswil, Switzerland)
06-08: Belgian Brewing Conference 2015 (Leuven, Belgium)
19 September - 14 October: Oktoberfest 2015 (Munich, Germany)
24-26: Great American Beer Festival 2015 (Denver, USA)
24-26: Stockholm Beer & Whisky Festival 2015 (Stockholm, Sweden)
October 2015:
01-03: Stockholm Beer & Whisky Festival 2015 (Stockholm, Sweden)
06-08: Beviale Moscow 2015 (Moscow, Russia)
17-19: BrouwPlus 2015 (Antwerp, Belgium)
November 2015:
10-12: Brau Beviale 2015 (Nuremberg, Germany)
19-22: Mondial de la Biere - Rio 2015 (Rio de Janeiro, Brazil)
More events are available on site www.e-malt.com
News Articles
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Canada & USA: Molson Coors Brewing expected to report earnings of $1.33 for the current fiscal year
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Wall Street sell-side analysts are expecting Molson Coors Brewing Company to report earnings of $1.33 for the current fiscal quarter. This is the consensus
...More info on site
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USA: Barley harvesting conditions good this year but cash prices offered do not meet growers’ expectations so far
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After a rain-delayed barley harvest last year, growers are seeing much better conditions this year, which has everyone smiling at the harvesting conditions, but
...More info on site
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USA, OR: 10 Barrel Brewing undertakes a $13 million expansion project
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10 Barrel Brewing’s affiliation with Anheuser-Busch InBev is paying off, Bend Bulletin reported on August 22.
“The Bend-based brewery is undertaking a $13 million expansion project at its facility on NE 18th Street, and possibly elsewhere in town,” co-founder Chris Cox said on August 21. He said the project will double beer production by June to 124,000 barrels. “Demand for its products and expansion into California and Colorado is driving the expansion,” Cox said.
“I think it’s incredibly exciting that we’re able to grow this much in Bend,” Cox said. “We’re super proud that the business is growing fast.”
The brewery, seventh-largest in the state, produced 12,627 taxable barrels of beer for sale in Oregon in the first half of the year, according to the Oregon Liquor Control Commission. 10 Barrel Brewing, purchased last year by the U.S. arm of international brewing giant Anheuser-Busch InBev for an undisclosed sum, this year expanded distribution to Northern California and in Colorado to Denver and Boulder. It also opened a new brewpub in Portland, adding a third pub to its properties in Bend and Boise, Idaho. 10 Barrel Brewing beers are also sold in Washington.
“The beer’s selling really well, better than we expected,” Cox said. “We’re
...More info on site
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Canada, NS: Alcohol sales are slightly down in Nova Scotia tihs spring
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New financial results show that alcohol sales were down slightly in Nova Scotia this past spring, Globalnews.ca reported on August 25.
The Nova Scotia Liquor Corporation released its first quarter results for April 1 to June 28.
They show that net income was C$56.3 million, up C$1.3 million, while total sales were down C$0.9 million to C$143.5 million.
The corporation says the total volume of alcohol sold was down 2.3 per cent.
Nova Scotia wine sales were down 6.5 per cent, while all other Nova Scotia product categories experienced growth.
Craft beer sales grew 17.4 per cent to C$1.7 million.
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USA, NY: Empire Brewing Company to launch new brewery in Cazenovia the end of the year
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Construction is moving right along on with Empire Brewing Company's huge expansion, the Farmstead Brewery in Cazenovia, WSYR reported on August 24.
The Armory Square brew pub says it should be ready to make beer at the new brewery by the end of the year.
It probably won’t be until early spring that it will be open to the public.
"I'm anxious to get it built and get it done but I'm also really enjoying every day watching it get built," Empire Brewing Company’s owner, David Katleski said.
Katleski says the motivation for the expansion is in part to be a more socially conscious business by the way they’ll operate it, but also to challenge themselves by taking the next step.
"By going into packing, going into distribution, going into the agritourism component of this particular business and really expanding the workforce that we have and allowing for them to have greater opportunity within our organization," Katleski said.
The brewery will be twice as big as what Empire Brewing needs right now but Katleski says that gives them plenty of room to grow.
Katleski says, "We would like to spread the word on what we're doing and how we do it and how we interact with local
...More info on site
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USA, CA: Black Hammer Brewing unofficially opens in San Francisco
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Black Hammer Brewing, a new brewery from former chemical engineer and award-winning home brewer Jim Furman and Bryan Hermannsson (Pacific Brewing Laboratory), has unofficially opened its doors. Inside Scoop confirms the SoMa brewery is now serving up pints and pitchers in the cozy space on Bryant Streetin San Francisco, Eater SF reported on August 24.
Beer enthusiasts will be excited to try German-made brewhaus to craft barrels of Kölsch, Oktoberfest, Squid Ink IPA, Sacre Bleu Blueberry Wit, Jaded Raver English Ale, Nautilus Hibiscus Saison, and Houston, We Have a Porter. Though Hermannsson has the title of Head Brewer, he tells Inside Scoop that he and partner Jim Furman collaborate on the beers together. "Jim has all his own recipes; I have my own Pac recipes. But we are maintaining our separate brands for offsite sales and to maintain our identities."
Until the brewing equipment is installed, the space will function as a tasting room.
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USA, AZ & CO: Fate Brewing Company opens second brewhouse in Scottsdale
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Fate Brewing Company opened a second location of the popular brewhouse over the August 22-23 period, this time in South Scottsdale. The original brewery opened two and a half years ago in North Scottsdale, Phoenix New Times reported on August 24.
The new location stems from what founder Steve McFate refers to as “a great problem to have” — a need to keep up with demand. The new location will have the ability to produce 3,500 to 4,000 barrels of craft brews annually, as compared to the 511 produced at the North Scottsdale location last year. Fate South, as McFate's dubbed the new brewery, comes in at 11,000-square-feet, which includes an 800-square-foot barrel room designed for making those increasingly popular barrel-aged beers. In taking full advantage of the new space, Fate South will house 14 on-site tanks, or three and a half times more than the brewery has been using.
The increase in space and equipment will also give the brewery the ability to have six to eight core brews on tap at all times, including local favorites such as the American Pale Ale, Double Oatmeal IPA, Hatch Chili Cream Ale, McFate Irish Red, and a Milk Stout series.
With help from
...More info on site
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Canada, ON: Elora Brewing opens in downtown Elora on August 12
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Six months after soft-launching with contract brewed versions of its Three Fields Lager and Ladyfriend IPA brands, Elora Brewing has opened its bricks and mortar location, and has also announced details of an exclusive members club, Canadian Beer news reported on August 24.
The brewpub at 107 Geddes Street in downtown Elora officially opened on August 12, and is offering a selection of Elora beers alongside brands from other local breweries, and beer-friendly comfort food by chef Ben Sachse.
The brewery has also launched a Founding Friendship Members Club which has a somewhat high membership cost of C$1000, but offers a good return on investment including a custom made and numbered growler by local potter Barbara Murphy, a growler fill each week for a year, a 15% discount on other retail store purchases, first access to all beer releases, exclusive members tastings and events, and much more. Club enrolment will be limited to 100 members, with memberships being sold starting on September 1.
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Canada, NB: Shiretown Beer shuts down
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Northern New Brunswick brewery Shiretown Beer has shut down after four years in business, Canadian Beer News reported on August 24.
Opened by owner and brewer Derek Leslie in the small town of Dalhousie in 2011, and relocated to nearby village of Charlo in 2013, Shiretown Beer had been producing three year round beers – Blonde du Quai, Big Brown Ale, and Siren’s t’Ale – and occasional seasonals, with bottles of several beers available at ANBL locations throughout the province.
The post notes that Leslie is planning to stay working in the beer industry. Most recently, he assisted in the launch of Savoie’s Brewhouse, a newly opened brewery in Charlo.
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USA, NE: Bottle Rocket Brewing Company ready to launch in Seward County on October 23
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A new business in Seward is about to open. Bottle Rocket Brewing Company is the first local craft beer joint in Seward County, 1011now reported on August 24.
The company is restoring a building built in the 1940s. It's gone from a grain mill, to a floral show and now a brewery. The owners happen to be making beer out of the same type of seeds and grains that were originally stored in the building, embracing Seward's history while also creating its own.
The "Bottle Rocket Boys" said it was love at first beer. The idea for the brewery started in January 2014, when President Gerald Homp left the corporate world for the hoppy one.
Homp and his business partner, Jason Berry, make up the brains of the operation, but they needed a master brewer. Together, they've spent more than a year trying to revive the history of the old grain mill while incorporating their new machines and brewery needs.
"You literally have come full circle from [the grain mill], Master Brewer Ryan Koch said.”You know, we've still got the storage bins. Most people have these big silos outside their building. You know, we've got old, wooden, historical structures that could potentially be used."
"We
...More info on site
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USA, MI: CJ’s Brewing Company expands operation by two 15-barrel fermenters
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CJ’s Brewing Company of Commerce Township has expanded its brewing operation with the addition of two 15-barrel fermenters to keep up with customer demand, The Oakland Press reported on August 24.
The new equipment will enable a nearly 40 percent increase in production.
“The extra barrels will bolster our brewing operation and allow for significantly larger brewing capacities,” CJ’s brewmaster JT Ross said. “I look forward to continuing to serve the local community with our hand-crafted, signature CJ Brewing’s beers.”
“We’ve reached capacity several times in the past few months,” said General Manager Bill Shikwana. “The new installation will create a more seamless operation for our staff and loyal CJ Brewing’s guests.”
CJ Brewing’s is at 8115 Richardson Road in Commerce Township in addition to a location in Plymouth at 14900 Beck Road.
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USA, OR: Medford Brewing Company to establish contract brewery relationship later this year
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Medford could be the next local city to get its own craft beer: Medford Brewing Company is seeking a contract brewery relationship so its brews can hit the market later this year, Eater Boston reported on August 21.
Founders Nick Bolitho and Max Heinegg "are very early on in the stages," Bolitho told the publication. "Right now we’re finalizing the flagship recipe, but also in the middle of trying to secure a contract brewery somewhere where we can actually brew the beer."
Heinegg, "a seasoned homebrewer," is currently working on the recipe in his basement. “Expect something for both hop heads and the average beer drinker,” Bolitho said.
"There’s a lot of ‘extreme beers’ out there, and that’s not what I’m going for. What I want to achieve is good beer that’s got a bit more of a universal appeal," Bolitho said.
"Craft beer with universal appeal" is the motto on Medford Brewing Company's bare-bones, under-construction website.
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USA, RI: Narragansett Beer continuing efforts to move beer production to Rhode Island
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A Providence-based brewing company is continuing efforts to move its production to Rhode Island, The Republic reported on August 26.
Narragansett Beer’s CEO Mark Hellendrung said in March that the company and the Isle Brewers Guild had been eyeing a vacant mill building in Providence, but it was destroyed by a fire. Narragansett Beer currently makes most of its beer at a Rochester, New York brewery.
Hellendrung tells they are still moving forward with plans for a Rhode Island location. He says the company should have some "pretty big news" in October or November.
Hellendrung also confirmed that Narragansett and Allie's Donuts are teaming up to create a Double Chocolate Porter that is set to be out next month.
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USA, AL: Red Hills Brewing Company to open in Homewood this fall
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The city of Homewood is jumping into the craft brewing industry by building a brewery of its own - Red Hills Brewing, WIAT 42 reported on August 24.
The Red Hills Brewing Company is currently under construction. The building is located on Central Avenue, next door to Steel City Pops.
From construction to crafting the right flavours of beer, a lot of work has yet to be done. The brewery is projected to open sometime in the fall.
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USA, FL: Khoffner Brewery USA to launch in Fort Lauderdale
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Khoffner Brewery USA’s co-founders Rauf Vagifoglu-Khoffner and Evan Kagan are planning to revolutionize the craft beer scene in Florida, New Times Broward-Palm Beach reported on August 24.
As chief brewmaster for Khoffner Brewery USA, Vagifoglu-Khoffner says his mission is to amass the area's largest selection of German-style craft ales, and he's doing it in Fort Lauderdale.
"Here in the U.S. there are a lot of breweries doing amazing things, but the brewing scene in Florida is still evolving and maturing. I came here to start a revolution," said Vagifoglu-Khoffner. "I'm bringing my family knowledge and experience, and my goal is to make some of the best European and craft American beer around."
The son of esteemed German brewer Karl Hoffner, brewing beer is in Vagifoglu-Khoffner's blood — a family tradition that spans three generations, beginning with his grandfather. The family name earned notoriety when his father left Germany in 1933 to brew for the Turkish government's Bomonti beer factory. With the permission of the German Brewers' Guild, Hoffner moved his family to Turkey and began production of German beer, a position he held for over four decades.
Now, Vagifoglu-Khoffner — who named his original Turkey-based brewery after his family's German surname spelling — is
...More info on site
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USA, TN: East Nashville Brewing Co. to open in Nashville
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According to permits filed recently with Metro, East Nashville Brewing Co. is in the works at 320 E. Trinity Lane in Nashville, a roughly 4,000-square-foot warehouse a few miles from Five Points, Nashville Business Journal reported on August 27.
The owner of the proposed brewery is a familiar face — Metro councilman Anthony Davis, who represents East Nashville's 7th District. Davis, who said he considers craft beer a passion, is not an actual brewer himself. As head brewmaster, he's enlisted Sean Jewett, who apprenticed at Cool Springs Brewery and worked a stint at Honky Tonk Brewing Co.
Davis said he is looking for one or two more capital partners for the brewery, which he described as "taproom-centered."
"Our goal is to have a variety of beer on tap, with good food," said Davis.
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USA, CO: Tivoli Brewing Co to reopen in Denver
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One of Denver's oldest breweries was resurrected on August 22 with an eye on serving as a catalyst for the future of the Denver's craft beer industry, Colorado Springs Gazette reported on August 23.
Nearly 50 years after ceasing operations, the Tivoli Brewing Co. is up-and-running in the historic Tivoli building where the Rocky Mountain Brewing Co. and successor Tivoli Brewery churned out beer for more than a century.
The revamped Tivoli encompasses a 9,000-square-foot slice of the Auraria Higher Education Center student union and consists of a brewpub with more than 50 tap lines, a brewery capable of producing up to 15,000 barrels of beer a year and space for a future fermentation and quality assurance facility.
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USA, WI: Leatherhead Brewing to open in Green Bay by mid-September
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Green Bay’s fifth craft brewery will open next month in the former Marty’s Boston Crab building, 875 Lombardi Ave., Green Bay Press Gazette reported on August 25.
Leatherhead Brewing Co. founders Amanda and Chad Sharon and Sheila and Ian Perks will make their brewing operation the center of everything by putting it in the middle of the dining room.
“People will be able to sit here and drink the beer while they’re watching it being made,” Chad Sharon said. “We want it to be part of the whole experience.”
Leatherhead Brewing will start off small with a production capacity of seven barrels, but the Sharons said increasing capacity will happen once everyone settles into the new operation after their targeted mid-September opening.
The Sharons, both of whom have ties to the Green Bay area, said they’ve been talking about the idea of opening a brewery with the Perks for three years. The idea started to become a reality when the Sharons tasted a homebrewed stout Chad’s cousin Jacob Sutrick made in Milwaukee.
“I was a light beer drinker, and his stout changed me,” Chad Sharon said. “It was all over but the crying.”
Sutrick plans to brew five or six staple beers and introduce seasonal and
...More info on site
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USA, OH: Royal Docks Brewing set to open in Canton on September 5
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Stark County’s newest brewpub is ready to open its doors, Akron Beacon Journal reported on August 25.
Royal Docks Brewing Co., located in the Marketplace at Nobles Pond development in Jackson Township, will hold a ribbon cutting and ceremonial keg tapping on September 5.
“It’s great to deal with the beer side instead of the build-out and construction,” co-owner John Bikis said.
“The goal is to help put Stark County on Ohio’s beer map,” Bikis added.
Royal Docks Brewing, named after the Docklands area of London, will launch with five and possibly six beers on draft. They include Prodigal Sun American IPA, Docklands Coffee Porter, Docklands Porter, Sezon Farmhouse Ale and 67 Alaska Kolsch.
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USA, SD: WoodGrain Brewing Company to open in Sioux Falls on September 3
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WoodGrain Brewing Company will open its doors in downtown Sioux Falls in South Dakota on September 3, KSFY reported on August 26.
Owners Jason Currie-Olson, Steve Hartman and Ryan Van Tol describe WoodGrain as a "local micro-brewery specializing in quality craft-made beers served in a warm, inviting, and comfortable tap house location."
Recently moving in to The Plaza building, on the corner of Phillips and 9th avenue in downtown Sioux Falls, WoodGrain Brewing will take center stage in a town that has fallen in love with craft beer.
Opening the first week of September, the owners of WoodGrain Brewing have already released four 'All Year Beers' (Wheat, Pale Ale, India Pale Ale and Milk Stout) and two more Seasonal and Specialty brews (Rhubarb Wheat and Coffee Porter).
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Japan: Kirin Holdings plans to grow operating profit by 20% in three years
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Japan's Kirin Holdings plans to grow operating profit to 20% above this year's figure by 2018, pulling growth back on track by boosting profitability
...More info on site
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Malaysia: Carlsberg Brewery Malaysia’s net profit dips 20.8% in Q2
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Carlsberg Brewery Malaysia Bhd saw its net profit dip 20.8% to RM31.71 million for the second quarter on impairment loss of the disposal of
...More info on site
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The Netherlands & India: United Breweries say “not aware” of any negotiations on Heineken stake increase
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India’s United Breweries said on August 25 it was “not aware of any such negotiation or any kind of potential deal with regard to
...More info on site
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India: Carlsberg India toasts nearly doubled market share in the quarter to June 2015
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In less than a decade of its entry, Danish brewer Carlsberg has nearly doubled its market share to 15% in the Indian beer market
...More info on site
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EU: Latest barley crop forecasts are between 56.5 and 58 mln tons vs. last year’s 60.4 mln
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Latest barley crop forecasts for the EU are between 56.5 (EU Commission) and 58 mln tons, of which 21 vs. 23 mln tons of
...More info on site
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China: China’s 2014/15 barley import totals 8.35 mln tons
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In the crop year July/June 2014/15, China imported 8.35 mln tons of barley, of which 4.9 mln tons from Australia, 2.2 mln tons from
...More info on site
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Japan: Moody's Japan K.K. affirms Kirin’s A3 issuer rating and says ratings outlook is stable
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Moody's Japan K.K. has affirmed Kirin Holdings Company, Limited's A3 issuer rating and senior unsecured debt ratings, as well as (P)A3 senior unsecured shelf registration, the rating agency said on August 21.
The ratings outlook is stable.
The rating affirmation follows the announcement on August 19, 2015 that Kirin has acquired a 55% stake in Myanmar Brewery Limited (unrated) from Fraser and Neave, Limited (unrated) - a Singapore food and beverage conglomerate - for about JPY69.7 billion (US$560 million). The transaction was financed with debt.
"While the acquisition will increase Kirin's total debt, Moody's also expects that its financial leverage will be mitigated by the additional profit derived from Myanmar Brewery as well as Kirin's continued focus on lowering its own debt," says Motoki Yanase, a Moody's Vice President and Senior Analyst.
"For the 12 months to June 2015, Kirin's adjusted debt/EBITDA stood at 3.2x. Furthermore, pro forma the acquisition, leverage could rise to 3.4x, after considering Kirin's EBITDA for the 12 months to June 2015, Myanmar Brewery's EBITDA for the 12 month to September 2014 and the additional debt. However, Moody's expects that the effects of such a level of leverage will be further mitigated by Kirin's debt-reduction efforts over the next 12
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France: Malting barley prices decline under the pressure from other cereals
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French malting barley prices are being influenced by the other cereals and are declining, La Depeche reported on August 25.
The demand is not overwhelming neither for export, nor for domestic sales.
According to a report by FranceAgriMer, the protein content in winter barley in the northern regions of France is between 9.5 and 10% with good to very good grain size. For spring barley, the grain calibration is rather good, it is reported.
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Ireland: Spring barley growers set for another loss-making year
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Ireland’s spring feeding barley growers are set for another loss-making year, Teagasc Tillage Specialist John Pettit was quoted as saying by AgriLand on August 21.
At current prices, spring feed barley producers are set to lose €2/t providing crops yield 3t/ac on owned land.
This will be the second year in a row where growers may will make losses that will erode into their Basic Payment, he said.
According to Pettit, spring feed barley is Ireland’s largest tillage crop and, at the prices farmers are currently being quoted, they look set to make a loss for the second consecutive year.
Last year’s feed barley price was €130/t while early indications from the market suggests that current prices are in the region of €130-135/t, so the market remains similar to last year.
The expected €5 increase in price will only have a marginal effect on farm profitability, he said, with many farmers still making a loss with production costs in the region of €137/t with a 3t/ac crop on owned land.
According to Pettit, it costs in the region of €450/ac inclusive of fixed costs to produce spring feed barley when all work is carried out by a contractor, he said. This figure compromises of €390/ac in
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