ALIX, Alta. — The invitation of federal agriculture minister Gerry Ritz to the sod turning of an Alberta malt plant attracted more than just well-wishers.
About 16 Canadian Wheat Board supporters held signs and walked in front of the entrance of the Rahr Malting Canada plant at Alix Nov. 1. to publicize their concerns over the dismantling of the board’s monopoly powers.
“We think the Canadian Wheat Board adds value to our grain,” said Ken Eshpeter, a farmer from Daysland, Alta., and chief executive officer of Battle River Railway.
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Inside the fenced Rahr Malting plant compound, Ritz said ending the wheat board’s single desk will encourage more value added expansion, such as the $6 million barley storage facility that Rahr is planning.
“More storage capacity here at Rahr means more business for our farmers,” said Ritz.
No federal money was announced for the plant.
After his appearance in Alix, Ritz met with Alberta grain industry representatives in Leduc about marketing options.
Rahr Malting president William Rahr said increasing storage capacity for malting barley from 400,000 bushels to 1.2 million bu. won’t increase production, but it is a necessary step to ensure a steady supply of malt throughout the year.
Bob Sutton, vice-president of sales and logistics, said the additional storage is the first step needed for an expansion if there is a greater call for malting barley.
“This is a step that will allow that to happen when markets turn around,” he said.
“We’re not planning any malt house expansion just yet. We need the entire economy to turn around and more beer consumption first.”
Western Barley Growers Association president Brian Otto said removing the wheat board filter will allow farmers to receive clear signals from malting companies on what to grow. It may also reverse the decline in barley production.
“I see the barley industry growing,” he said. “This is good for western Canadian agriculture, it’s good for the western Canadian processing industry and good for the western Canadian economy and at the end of the day it’s good for Canada.”
Seed grower and malting barley grower Mark Koun of Penhold, Alta., said the storage facility expansion will allow barley producers to supply Rahr in the off season rather than having to deliver during the busy harvest season.
“It’s a local facility so my freight costs are low,” he said. “I can get my cheques here at the door. I don’t have to wait.”
