Long-term contracts needed to secure brewers’ malt supplies?
By: JimOldfield
July 31st, 0201
Long-term contracts between winter barley malt growers and the brewing industry may be the way to ensure its continued supply, at a time when world production of all forms of barley is falling.
Brewers’ concern over how to underpin supplies was explored at a recent “meet the grower” day when they visited three barley producers across East Anglia.
The growers explained why they grow winter malting barley, the varieties they prefer to plant and how the competition from other crops is increasing the pressure on the crop for its place in the rotation.
Openfield hosted the event and malting barley marketing manager Adrian Fisher said: “Malting barley is struggling to retain its competitiveness given the rising world price for oilseed rape and wheat. To secure supplies, there is a need to develop a long term contract with suppliers.
“The growers were generally supportive of the suggestion and were encouraged by the proposal of a contract that gave them a local market.”
He added: “Prior to the visit, the end users hadn’t appreciated the complex interaction of factors that lead to growers planting the crop, or the skills needed to achieve the desirable quality.
“The day promoted a deeper understanding of the market and raised awareness of challenges facing the crop if it is to retain its place in a farmer’s rotation.
“There remains strong brewer interest for older varieties such as Maris Otter, but little understanding of why growers would prefer to grow newer varieties which have greater productivity. This was a chance for the grower to explain the difference in economic output between competing crops and older varieties.”
