Expanding Chinese Malt Industry

[charliep]

After a day of presenting good news to canola growers, always hate to get dragged back into the politics of agri-ville. Lots of very positive news out there in the market.

Saw the following part of an article in E-Malt.

China: Barley supply a problem on increasing beer market
The world beer output in 2006 rose by 6 % to 1,699 Mill. hl (as per Barth), composed of 15 % in China and 4 % in the rest of the world. China may well repeat its performance and increase beer sales to 400 Mill. hl this year, according to analysts, December 3.

At the end of 2006 China’s malting capacity was reported to be 4,070 Mill. tons. New malthouses are being constructed everywhere in the country, by the end of 2008 the total malt capacity may reach 5.0 to 5.5 Mill. tons. If China‘s beer output rises to 450 Mill. HL in 2008 and brewers are using only 9 kilos of malt per hl, the country will need about 4 Mill. tons of malt. In theory China could become a very large exporter of malt. However, geography and logistics make it unlikely that China can export more than a few hundred thousand tons per year. In 2007 exports are estimated to reach 200,000, next year 300,000 tons, from modern factories near the seaboard.

The biggest problem, however, will be barley supplies. Where can China procure 6 or 7 Mill. tons of malting barley?

[wd9]

And Charlie, A big thankyou goes out to you and of course Lee. Not only for presenting Market updates and seminars that are timely, current and useful at farmer meetings all over AB this time of year, but also the time you give to keeping this site from blowing up with your careful moderation.

So a big thankyou to you Charlie and Lee for being moderators and your patience on this site and a special Merry Christmas to the both of you. Your work is noticed and appreciated by many.

[wd9]

If the Chinese continue to increase the beer consumption like Japan and other countries in Asia with money, Canada will have an endless vortex to fill in terms of Malt.

An interesting culture esp in Japan where the business people work from about 10AM till 9 PM at night, then consistently off to the bar for a couple hours of drinks, hop on the train fairly tipsy for a couple hour commute, sleeping all the way, then the next morning, they start all over.

Huge consumption potential if this begins to occur all over China. No reason to suggest it won't go that way if the standard of living continues to increase.

Was flying home from Pudong airport (by Shanghai) and sat next to an older chinese lady who spoke fairly good engrish . She told me of how poor it used to be and how much better it is now with some disposable income. Beer is an inexpensive drink in the bars. Easy to brew and only a couple yuan to a bottle, makes it a drink of choice.

And they like their beer..... a lot. Sheer volume of people equates to a lot of beer equates to a big pile of malt. I am not sure of malt acres in China, maybe someone could shed some light on how much china does grow? But am sure like all the oilseeds data, the first thing they ask is what do you want to hear??? All the rains they get it may be difficult to grow malt too. Don't know.

Anyone?? Barley guys in the know?? JD4?

[parsley]

India has trememdous potential, too.

Parsley

[agstar77]

There is one slight problem in China, it is estimated that about 300 million live on about a dollar a day. Whether the other Billion can keep sucking up the beer and starving others is the question. If this imbalance is not addressed China could be in for turbulent times. I would put Chinese demand in perspective. On the other hand their demand for meat is growing even faster, but their ability to grow feed is not.

[parsley]

Grass doen't grow in China?

[agstar77]

Chickens don't eat grass. L.O.L.

[parsley]

Grass is, perhaps er, not grass.


LOL

Parsley

[cottonpicken]

Cant remember if i posted this here but,

At some big convention a few years back a bunch of thinkers got together and the question was asked:

"What is the most important thing that has happened in the last century?"

After many answers and debate a woman stood up and said "the average chinese wage going to 3000 dollars a year"-everybody agreed.

I always think of this story(sorry for being so vague on specifics).

[cottonpicken]

Actually pars,i meant to ask you about those chinemen and the organic industry,are they not flooding the market?

[parsley]

Would one of "$3,000.00 richer consumers" buy organics? (Couldn't afford it when they were poorer!)


Last I heard, organics was still a growing industry. But maybe this week, though, it's gone to hell in a handbasket.

Parsley

[kamichel]

Grass in China????
When I was in china there was no such thing a lawn mower. Every patch of dirt was producing a higher value crop.

[parsley]

Grass can be mowed or smoked.

[Burbert]

Hey Duds, Here is another problem to consider. If the Chinese start to drink to much beer, get too mouthy, or not show up for work. The Chinese gov't will impose, prohibition, and guess what, they CAN/WILL ENFORCE it. They have simply shot/starved people who don't pay attention to the gov't will,in the past, remember T. Square. Also the Chinese don't need the best quality barley, they'll simply blend, blend, blend, and that solves the problem, yucky lager anyone.... Eg. look at the stuff they are selling in the world markets right now! Qualitity it ain't.

[kamichel]

Hey Burbert maybe someone should check the chemical make up of that exported beer also. Could just be another way for the Chinese to export their poisonous pollution.