Company Overview. Our malting barley supply chain. Our Agri team. Founded on current site location by Mathew Minch in 1847.
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1 Company Overview Founded on current site location by Mathew Minch in Minch Malt acquired by Boortmalt in 2010 Currently producing circa 98K MT of malt per year Our malting barley supply chain Our malting barley supply chain is fully traceability from seed to glass 1:1 contract & 1:1 contact with each of our 600+ growers via our Agronomy Team Boortmalt supply superior certified seed & chemicals to our growers Our Agri team Our agricultural operations and agronomy for malting barley are wholly managed by Boortmalt team of dedicated Agronomists & Branch Managers.
2 We believe effective communication is the key to ongoing success IFA
3 Our malting plant in Athy The What = The How = Convert barley into malt, a suitable raw material for the production of beer and whiskey Controlled germination results in modification of the structure of the barley to produce a brewing raw material rich in starch, with sufficient enzyme activity for fermentable sugar production in the brewery or distillery Process Flow Overview: 1. barley reception 2. barley storage 3. steeping 4. germination 5. kilning 6. malt storage/blending 7. malt delivery
4 Customer Service is paramount We offer our Customers a holistic solution: Proudly supplying:
5 Sustainability is the only way Our vision is to move towards a more sustainable and carbon neutral business We are active members in Irelands Origin Green sustainability program, which is run by Bord Bia With the assistance of Bord Bia, Boortmalt Ireland have created our very own sustainability scheme tailored specifically for our dedicated malting barley growers (world first) At a farm level, our sustainability scheme has been certified by audit as Silver Status (based on the SAI platform) is designed to improve the social, environmental and economic sustainability of our >600 farm families suppliers
6 For discussion: The potential for growth in cereal production and supply to the malting industry o The current malt production in Ireland is approximately 130k MT of malt or 175k MT of malting barley per annum (assuming full capacity utilisation). The future potential for growth in cereal production in relation to malt produced in Ireland will depend on a number of factors: the future sustained growth in sales of Irish beer and whiskey production which, based on current figures, could be up to +30% in absolute terms by 2027 the increase of current malt production facilities to supply at competitive prices the brewers and distillers the future capacity/capability to produce malting barley in Ireland to meet that growth at a sustainable level for growers the ongoing commitment of all the key stakeholders to ensure that the appropriate quantity of quality Irish malting barley is used to produce quality Irish malt which is then used in the production of Irish beer and Irish whiskey. The market for organic cereal production and price premium (if any) for the malting industry o The market for Organic Malting barley in Ireland is currently at a very early stage as organic malting barley is still very much a niche product. The reality is that it is likely to remain a niche product. At present, Boortmalt IRL has only a couple of customers that are willing to purchase a limited quantity of organic and/or biodynamic malt. The production of organic/biodynamic malting barley is fraught with difficulty and full of challenges. The crop tends to be more open and short which allows the weeds to compete vigorously with the emerging barley crop. The agronomy which must be applied to the organic/biodynamic crops is very different to our standard malting barley and we, Boortmalt, are continuously developing the best practices which are required to successfully grow the organic/biodynamic malting barley. o There is a significant price premium for this crop and what is currently paid by Boortmalt for organic/biodynamic malting barley is based on achieving the same the margin per hectare as a standard malting barley crop (the calculation used to determine this is the Teagasc crop costings (which are published annually). The difference of Irish versus imported cereal output for the malting industry. o Malting barley is Malting barley i.e. it is produced to a quality specification but the Irish supply chain team ensure only the very best seed is provided to the very best malting barley growers which combined with a fully dedicated agronomy program ensure the quality and quantity of Irish malting barley is industry leading. The malting plant in Athy is able to adapt its process conditions and capability to fully optimise the performance of Irish malt in our customers brewhouse and distilleries. The sustainability of current cereal prices for Irish producers o The sustainability of current cereal prices for Irish producers is something that I cannot comment on as this may vary greatly from grower to grower. In relation to the price paid for Boortmalt for Irish malting barley, the current pricing model that has been in place for a number of years (Boortmalt/IFA/Diageo) is open, transparent and market leading. Every growers has the same opportunity to hedge part of their contract tonnage during the year and they also have the opportunity to take a number of fix price offers at regular intervals. This model protects the grower from the sometimes unpredictable fluctuations of global grain markets. Since introducing the
7 pricing model in 2012, we have seen a steady, year on year increase in take up by growers and now over 50% of the growers are currently utilising this process. We are also actively engaging with and encouraging all our customers to support this pricing methodology. To outline the potential impact of GM/Genetically engineered cereal production on the Irish malting industry. o GM/Genetically engineered (GE) malting barley varieties will result from the application of new scientific technologies to the development programmes being applied by cereal breeders globally. Such new GM/GE varieties will have specific traits that can potentially benefit global brewers and distillers, malting companies and the growers in achieving (1) the quality and (2) the quantity of their products. It is the appropriate authorities within the EU and globally that will scientifically validate and authorise the use of GM/GE technologies as a means of enhancing varieties in the future. Finally, the use of GM/GE malt, derived from GM/GE malting barley, by the global brewers and distillers will ultimately depend on the acceptance of such technologies by the consumer and approval of their use by the global brewers and distillers.
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