Anheuser-Busch and MillerCoors cancelling Montana malt barley contracts.

[skip]

I saw this online, brewers claiming lots of malt barley inventory in Montana.


GREAT FALLS – Montana’s struggling agricultural economy has taken another hit following the decision by two of the state’s largest buyers of barley to reduce the number of contracts they offer to growers by as much as 60 percent.

The Great Falls Tribune reported Wednesday that Anheuser-Busch and MillerCoors informed barley growers this year that they will only be purchasing a fraction of the malt barley they have in recent years.

The two brewing giants say the decision was brought on by an abundance of barley harvested in recent years.

The companies account for the purchase of nearly two-thirds of the barley grown in northcentral Montana.

Officials from the Montana Wheat and Barley Committee expect bid reductions to drop between 20 and 60 percent, resulting in a possible loss of more than $65 million in revenue.

[Braveheart]

Bids here (southern MB and central and eastern ND) have dropped 20-25%. AB InBev has not even got a bid. Rahr, Canada Malt, are still looking for new crop. Everyone reporting a big carryover. We need that supposedly wealthy middle class to up their beer consumption.

[bucket]

A perfect opportunity for farmers to grow it, store it, and force the price up......when they are out ....then what....use wheat?

[malleefarmer]

We grow fair bit of malt barley and currently spread between feed and malt is a paltry $25.

Problem is almost 2 years supply of malt in Australia and the world and so so much unsold was at a peak of $230 mid October now $160 and guys hanging on for a price rise.

Rule in Australia sell malt of combine do not store once demand is met it collapses and if malt gets to expensive in aust they just import it, ah a global market eh

[SASKFARMER3]

Malt is a dead horse!

Crash and Burn!


And they will switch to whatever if it gets to expensive!

[farmaholic]

The problem with malt barley is its a specialty crop and Producer's think they can grow it like an abundant wholesale commodity...good luck with that model! As long as there's X times more available than they need, expect the sodomy to continue....at all levels!

[mcfarms]

Yes its awful do not grow any, leave it to the stupid farmers who do not know any better.
(like me)

[farmaholic]

But it does work for some guys who can consistently grow good quality. I can't so I don't bother....when mine will be "the second or third resort". Also too many horror stories of malt magically loosing germ "after" it was delivered "and probably mixed in with other malt and shipped"....my assumption.

[ajl]

So they are not really cancelling contracts. Just not offering new ones. Big difference.

[mcfarms]

[URL="http://flatheadbeacon.com/2017/01/26/anheuser-busch-miller-coors-cut-montana-barley-contracts/"]http://flatheadbeacon.com/2017/01/26/anheuser-busch-miller-coors-cut-montana-barley-contracts/[/URL]

Here is a link to a article talking about the contracts being scaled back. They are in Alberta as well in some instances. There was a lot of high quality malt barley grown in the world last year.