Latin American Craft Brews Create Opportunities for U.S. Barley

By: Luis Bustamante, U.S. Grains Council Marketing Specialist for the Western Hemisphere

The U.S. Grains Council (USGC) hosted a team of Latin American barley purchasers and craft brew production managers to Mexico this week to learn more about the global market for barley, long-term purchasing strategies and the Council’s work to help buyers source U.S. barley.

There is potential for the United States to participate in these markets. However, due to many changes in the industry, including consolidation and a heavy reliance on imports of barley from the European Union and Canada, usage and exports of U.S. barley to this part of the world have been almost non-existent until now.

As global supplies of malt are tightening and many breweries are searching for ways to manage their price risks when purchasing malt, there is an opportunity for U.S. barley in this market. To this end, the Council is promoting a change in existing business models that would enhance overall brewery profitability and increase U.S. malt exports to the region.

This team is a stepping stone towards that goal, with team members touring Primus Craft Brewery, which uses U.S. barley in their brews, and meeting with Mexican craft brewers who have experience with the U.S. product. The tour will continue with a visit to the beer expo in Mexico in part to hear from Baja Brewing Company, which has a successful track record of direct contracting U.S. barley for their brew needs.

The Council ensured that a U.S. barley farmer and a North American distributor were able to travel with the team to provide the U.S. perspective and directly answer team members’ questions. These representatives of the U.S. barley industry brought firsthand knowledge of U.S. barley’s quality and supply, increasing the team’s confidence in U.S. sourcing, and were also available at the Council’s booth at the beer expo to meet a wider audience of Mexican beer makers.

The team will leave Mexico on Sunday with a renewed confidence in U.S. barley and malt and with new contacts who are equipped to answer questions about purchasing U.S. barley in the future – which will hopefully help them decide to procure their malting barley and barley needs from the United States in the future.

Click here to view more photos of this group’s travel.