Mexico Program Looks for New Opportunities In Beer Industry

U.S. Grains Council (USGC) Marketing Specialist in Mexico Javier Chavez along with Dr. Paul Schwarz from North Dakota State University and Steven Edwardson, North Dakota Barley Council executive administrator, hosted a seminar this week to provide technical and market information about U.S. barley malt to Garjales, the largest malting plant for CUAMOC-Heineken in Mexico.

The workshop’s main focus was to examine beer industry and recent grain market trends, including past barley production experiences and future options.

“It is important for the procurement managers at these major malting plants to understand the U.S. production system, how the procurement process works and about the market conditions,� Edwardson said. “We had some great discussions about variety development; procurement, market and production trends; and risk management.

“This was a significant first step towards creating new demand and was a really unique opportunity to interact with many facets of the supply chain that we normally can’t hold discussions with.�

Bringing U.S. producers and farmers together with CUAMOC and other industry leaders allowed for direct involvement and interaction that will simulate and expand demand in Mexico’s malting industry for U.S. barley malt.

The malting industry in Mexico cannot keep up with demand from the brewing plants, so the country annually imports 200,000 to 350,000 metric tons (9.2 to 16.0 million bushels) of barley malt each year. 

“It’s easier to bring barley from the United States than from Europe,� said CUAMOC Procurement and Logistics Manager Marco Guzman. “Also, thanks to the North American Free Trade Agreement (NAFTA), there is less paperwork and no duties when we purchase grain from the United States.�

Click here to read past Global Update articles about Mexico’s interest in U.S. barley. Click here to view more photos of the seminar.