Brewing industry representatives from Costa Rica and Guatemala participated in a U.S. Grains Council-sponsored barley quality tour recently in North Dakota and Montana.

As part of the tour, the brewing industry representatives learned about opportunities to contract their barley needs directly with U.S. growers – similar to a successful arrangement demonstrated by a brewer in Mexico that has contracted with U.S. barley growers for the last two growing seasons.

“The brewing company in Mexico was concerned about having a reliable supply of malting barley to meet their needs, and the brewery representatives from Central America have similar concerns,� said Jim Broten, a farmer from Dazy, N.D., and member of the North Dakota Barley Council.

Broten explained that barley has to battle corn, soybeans and canola for acres, and, over the years, barley acres have declined.

“Some brewers, especially smaller brewers, then have to take what the market has to offer. Contracting directly with farmers takes some of that uncertainty away,� he said.

Council estimates show that Costa Rican and Guatemalan breweries typically import approximately 40,000 metric tons (1.8 million bushels) per year of two-row barley from the European or Canadian suppliers.

“We believe by working with these breweries they will begin procuring more of their malt needs out of the United States,� said Kurt Shultz, USGC director in Latin America and the Caribbean Region. “The grain quality tour helped demonstrate to the participants that U.S. barley producers can provide the quality and quantity of malt they need for their operations.�

Representatives from another brewer in the region – Cerveceria National Dominicana (CND) in the Dominican Republic – previously came to the United States to explore contracting options. CND was already buying U.S. barley, so the Council focused on building relationships between the brewer and farmers and explained how direct contracting could help ensure adequate supplies and control costs.

CND since has entered into contracts with growers, Shultz said, and the hope is brewers from Costa Rica and Guatemala will follow suit.

“In 2008, the Costa Rican brewery Florida Bebidas y Alimentos imported 4,000 tons of U.S. malt with good results, so they have had prior experience using U.S. malt. We just need to give them the market information and contacts that will keep them working with U.S. producers,� said Steve Edwardson, executive administrator for the North Dakota Barley Council.

Broten said his experience in working with the brewery from Mexico has been positive.

“I grow and care for the barley the brewer prefers, and then harvest and deliver it,� he said. “Both sides win – farmers have a more certain market and brewers have a reliable supply of quality U.S. barley.�