Never Bet More Than You Can Afford: Latin American Barley Contracting

By: Cesar Diaz, U.S. Grains Council marketing specialist for the Americas

As global supplies of malt barley continue to tighten, many Latin American breweries are searching for ways to manage price risks. Take SABMiller for example, one of the world’s leading brewers with brewing interests in seven Latin American countries. While it currently purchases malting barley from Argentina and Canada, it recognizes the volatility of the market and is open to diversifying suppliers in order to ensure long-term competitively.

Enter the U.S. Grains Council.

Active in the market for more than 25 years, the Council has been promoting direct contracting of U.S. malt in Latin America. To encourage SABMiller to purchase U.S. barley malt for their supply chain needs, the Council this week met with SABMiller representatives and conducted a two-day seminar on barley origination options.

From this visit the brewer will gain the establishment of U.S. malting barley contacts and will have sufficient information to consider contracting U.S. production of desired barley varieties.

The Council is dedicated to continuing to develop markets in Latin America for U.S. malt and malting barley.