Barley Business Grows with Trusted Contacts

Malting barley producers in Montana’s Golden Triangle increased their contracted acres with a Mexican brewery seven-fold this past week, entering the fourth year of a business relationship begun from simple introductions. This continuing, open-ended arrangement will be formally renewed during the brewer’s spring visit to the growers’ fields about 100 miles north of Great Falls, Mont.

The distance from buyer to seller was bridged through Montana Wheat & Barley Committee’s introduction of malt barley growers to the brewer in the fall of 2007. The business potential was then realized with the first pilot contract a few months after the U.S. Grains Council conference in Panama hosted seven U.S. grower associations and maltsters with over 40 brewer representatives. It was amid talk of sourcing barley from the United States that the future partners made contact.

“First and foremost, it takes developing a personal relationship across borders and trust to make any supply contract work,� said Herb Karst, who farms near Sunburst, Mont. “It’s the result of patience, meeting face-to-face and credibility. You build on the contract by gaining confidence in the supply chain and the people you’re dealing with.�

Karst noted that the small size of the brewers and the growers make them like-minded in the need for dependable arrangements. The group of 15 growers needed the mechanism of Montana Wheat & Barley and the Council for the opportunity to demonstrate that barley’s quality could satisfy brewer’s needs.

“The positive relationship between growers and brewers keeps the malt barley industry going in Montana from year to year. These good relationships are critical to maintaining the current barley production in the state of Montana,� said Kim Falcon, executive vice president of Montana Wheat & Barley Committee.