Calgary Distiller Looking for Good Rye Grain

[melvill]

There are two large distillers in Alberta - Black Velvet Distilling, Lethbridge and Alberta Distillers, Calgary - and one small one - Highwood Distillers, High River. Alberta Distillers is interesting because it uses 40,000 to 50,000 tonnes of rye grain a year. Alberta Distillers used to use Agricore to source their rye but now they have changed to sourcing directly from farmers. Their rye buyer, Jeff Kozak, says it's hard to find enough rye because acreages are shrinking. Their minimum specs are No. 2CW, 56 lb./bushel and 14% moisture or less. Their offering price today (August 14) is $3.45/bushel delivered Calgary. They will also have a FOB farm price.

Black Velvet also uses rye but they buy only from grain companies or brokers. Highwood uses very little rye.

[melvill]

Just talked to Jeff @ Alberta Distillers again this morning. He is offering Deferred Delivery Contracts for September 2002 delivery with grade specs #2CW, 56 lb./bu. & 14% or less moisture The price they are offering today is $3.50/bu delivered Calgary September, 2002. The great thing about these contacts is that they specify a number of tonnes but the contract also specifies that the grower can deliver 20% over or 20% under the specified tonnage with no penalty. Wow!