malt australia

[malleefarmer]

My limited understanding of malt barley last year is.

Malt barley has certain specs it must meet for Malt 1 Malt 2 and 3.
Also there are some varietal malt segregations as some different varitieties have different characteristics and are for different markets.

Last year with the record wet harvest alot of barley had all the specs for malt but was either stained or lower test weight than normal.
This off grade malt could have either been just downgraded to feed or a new segregation opened hopefully with returns between malt and feed.

Astute buyer went and found markets and then started buying the barley.

Hence the sales were nothing sinister, and the reputation of australian malt 1 and 2 is still intact, it would have been easy for bulk handlers to lower specs and blend the two malts together but they chose not to.

I do not grow malt but thats my understanding, with deregulated market its possible to change harvest segregations on the go easier and markets to be found.

And another obvious point is australia has a huge frieght rate advantage to south east asia which makes it hard for canadians to compete in such a situation.

[malleefarmer]

I know you guys cant anwser this question but what would have happened if CWB had exactly the same scenario and if you guys get a wet harvest could be faced with it as well.

Would they open new segs to improve grower returns?

And also there were about 5 buyers actiove for this off grade malt here so there were markets

[Hopperbin]

Would be interesting how your assie system works, sometimes we ship this borderline malt only to have it rejected after delivery and after the barley is long gone somewhere and the farmer is left with a feed price. Is your barley quality and price guaranteed on delivery??

[silverback]

Hmmm, where does that rejected malt go instead of back to the original grower?

If I was a conspiracy theorist...

[charliep]

I will have to admit to not knowing the answer to your question.
My tongue in cheek answer would be the CWB will offer China
whatever western Canada quality is available. My sense is they are
not willing to negotiate on price or have multiple offers each with a
different quality profile/intrinsic value. From a price signal
standpoint, there is only one type of malt barley - one that has the
characturistics to be selected by a maltster/other selector. The
grade is select although there has been a category of special select
and sample select. A farmer can negitiate premiums, trucking
allowances, etc. for better quality stuff or customer specific stuff.
Have never really heard of lower priced/minimum specification
stuff. Also have not heard of low specification barley specifications
being used in cashplus contracts.

An issue in western Canada is with the domestic maltsters are
trying to do business into south east asia. Their models are better
malt barley for better beer. China has been known to take lower
cost/lower specification barley and sell the malt to other countries
in Asia at a discount (cheaper than Canadian malt). Doesn't
necessarily make that good a beer but with enzymes, adjuncts and
other brewing processes, the brewers and malt houses are learning
how to get reasonable results from lower specification barley.

[hedgehog]

a merchant was trying to buy my feed barley for malt last year. proves they can malt anything.

[malleefarmer]

on the face of it apears we have possibly more grades for wheat and barley here.

once grain is graded and in cenral selling system its either sold on the day either pool or cash, or warehoused as a specific grade and sold later when growers sees fit.

none of this off grade is returned to grower, if its way off grade malt its feed

and hedgehog is right particularly some of the se asain countries poddibly make malt out of anything they just extract less malt out out of poorer quality malt or blend it

[wmoebis]

Does/can anyone sell directly to malt companies? Or does/can only grain Co's export/sell to end users?

I was also thinking of your sea can buissness. Does/can anyone load Sea cans and sell staight into export markets.

And yes you can malt anything it is just a process. It is the end use and price, that determines the quality that is used.

[charliep]

You are highlighting export business but 60 % plus of domestic maltster business in Alberta is direct from farmers.

Need an asian equivalent of Reinheitsgebot. Good beer starts with good barley.

<a href="http://en.wikipedia.org/wiki/Reinheitsgebot">German Beer Purity Law<?a>

[charliep]

For what it is worth, Canadian consumption of malt/malt barley is decreasing. Used to be close to 300,000 tonnes a year but now down to 150,000 tonnes. More use of adjuncts, etc as well as more imported beer. Domestic maltsters in Canada have also learned how to crappy malt barley (sorry guys) and deal with issues in the their houses. Same comments brewers. Not what they like/lots of challenges but they have been able to do it.

Don't know about Australia and Europe but the real growth market in North America is micro breweries/craft beers. Targeted at us old guys with money who enjoy one good beer versus a dozen bad ones (realizing they all taste the same after 3 glasses). The maltsters and breweries who are in this market are very persnickity about quality and attributes - very high quality product. The craft beers will provide opportunity for small volume (even down to container) business.

[malleefarmer]

wmoebis very little is done direct to malsters.
sea can?? presume you mean containers yep there is some wheat and barley done into niche markets here and there
vitterra actually own most of the malt houses here in australia.