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Malt Barley Imports CAUSED by CWB

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    Malt Barley Imports CAUSED by CWB

    Charlie;

    I see Denmark is Canada's newest grain trading partner on Malt Barley!

    I wonder, how exactly was the CWB involved...

    "ODJ Canadian Malting Barley Seen In Short Supply, Imports Seen


    Winnipeg, Sep 26, 2002 (ODJ via COMTEX) -- (OsterDowJones) - Canada's malting barley supply could be as much as 55% below average, prompting imports for the domestic market and limiting export availability, industry sources said.

    Canada's barley crop suffered numerous problems during the growing season, including drought, rains during the harvest and to some extent frost, Peter Watts, a grains analyst with the Canadian Wheat Board confirmed. "We were already looking at a barley crop that would be say 60% of average in western Canada because of the drought. However, when you add in the impact rains have had on the quality and resulting harvest delays, you have a very sharp reduction in malting quality barley."

    Canadian barley production during the 2001/02 year, which ended July 31, 2002, was pegged at 10.846 million metric tons by Statistics Canada. Of that amount, roughly 2.1 million to 2.2 million tons of the barley harvested was selected for its malting qualities, Watts said.

    In terms of the 2002/03 season, the amount of barley that will be of malting quality will be "down sharply," Watts said.

    Benson Quinn-GMS this week pegged western Canada's 2002/03 barley output at 6.519 million tons, in a survey conducted Sept. 16-18. This was down from Statistics Canada's most recent western Canadian barley production estimate of 6.750 million and compares with the year-ago level of 9.737 million.

    "There is no doubt the shortage of high-quality barley will create problems for the domestic malting industry," Watts said.

    Malting companies in Canada have commitments to the domestic market, he said. "We certainly expect them to be able to fulfill their domestic commitments to the Canadian breweries, but the lack of high-quality malting barley to process will hurt them in their export program.

    "The quantities of available malting barley in Canada will be significantly reduced," said Phil De Kemp, president of the Malting Industry Association of Canada. "In a normal year there could be 2.2 to 2.4 million tons of malting barley that goes into the CWB Pool, of which our industry takes over half to use for both domestic and export requirements."

    However, because of the shortage, the malting industry is going to mainly focus on its brewing customers. Brewing companies include outlets such as Labatt's and Molson's who are located in Canada, as well as customers in the U.S., Mexico and Japan.

    He acknowledged certain brewing customers may have specific barley needs. "But because of scarcity of supply, the malting companies may have to look elsewhere for those particular qualities of malt to fill the existing contract."

    De Kemp would not comment on rumors that a Canadian company was in the process of bringing in high-quality Danish malting barley to accommodate the shortage of high-quality Canadian barley.

    ODJ reported earlier this week that Canada bought 25,000 metric tons of first-class Danish malting barley for October shipment.

    West Coast Canadian export sources, meanwhile, confirmed the import of Danish malting barley. "A Canadian grain company was said to have made the purchase on behalf of a Canadian malting company as a test purchase," a source said. "It's believed that if the logistics of bringing the Danish barley through Vancouver can be worked out, that the door could be opened for some additional imports."

    No word was available on which malting company was testing the Danish barley. Canada Malt does have plants located in Calgary, Alberta, Thunder Bay, Ontario, and in Montreal, Quebec. WestCan Malting, meanwhile, has a facility located near Red Deer, Alberta, while Prairie Malt has a plant in Biggar, Saskatchewan. Dominion Malting has facilities in Winnipeg, Manitoba.

    --- Dwayne Klassen, (204) 947-1700 resnews@compuserve.com

    THIS ABOUT TOPS IT ALL...

    WE IMPORT MALT BARLEY, SO WE CAN FEED OUR PERFECTLY GOOD MALT BARLEY TO LIVESTOCK, SIMPLY BECAUSE THE CWB REFUSES TO PAY FARMERS A DECENT PRICE FOR MALT BARLEY...

    ONLY IN CANADA.... ? .....

    NO ONE ELSE ON THE PLANET WOULD BE THIS .........

    #2
    That barley was sold FOB Vancouver at USD$190.00. Using today’s exchange rate, that equates to a $5.51 freight and handling backed off to Saskatchewan, a full $1.47 ahead of the PRO’s released or CAD$67.51 a metric tonne. If the vessel was a 25,000 tonner, it equates to CAD1.68 million dollars.

    Statistics and information are a wonderful thing.

    Comment


      #3
      LarryWeber;

      Thankyou.

      I told my nieghbour his Malt seed carry over from last year SHOULD be worth $5.50/bu as malt, and I got a chuckle...

      Simply amazing, and the maltsters can afford to pay more as well...

      What a deal!

      Comment

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