BALGONIE, Sask. – Population growth in the Asian Pacific region is
fueling a demand for malt that Canada wants to fill.
Kyle Jeworski, malting barley merchandiser at Saskatchewan Wheat Pool,
told producers attending a market outlook meeting that China is
expected to increase imports by 125 percent, or 2.1 million tonnes, by
2008.
“That’s definitely an area Canada is focusing on, and should,” he said.
China and the United States alternate as Canada’s top malt customer.
Competition for the Chinese market comes mainly from Australia.
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Jeworski said Australia produces about six million tonnes of malting
barley a year. Most of it is exported, and the Australians are
aggressive in seeking customers.
Australia harvested a large crop this year, but Jeworski said protein
is low, at less than 10.5 percent.
“We’re pushing the envelope on the high side,” he said.
That’s because last year’s drought pushed protein levels higher.
Canada harvested just over 11 million tonnes of barley, down about two
million tonnes from the year before. Of that, 2.3 million tonnes were
selected for malt.
Jeworski said producers may have found that barley they wouldn’t
normally expect to be selected was chosen this year. Selectors have to
take the best of what is available, he said, which changes from year to
year.
American customers will accept higher protein content, he added. They
mix adjuncts such as corn and rice into malt and need protein to break
them down.
Jeworski said the U.S. is a net importer of malting barley, and not a
competitor in the world market.
Harrington continues to be the variety most in demand.
Demand for the two-row variety AC Metcalfe showed a dramatic increase
in the last couple of years and is gaining acceptance in China.
Jeworski cautioned producers not to jump on the bandwagon.
“There is the potential for oversupply,” he said. “Maltsters and buyers
know what’s out there and they will take the top (quality).”
Other two-row varieties like CDC Kendall and CDC Stratus are expanding
domestic markets and showing promise for export. Demand for Stein is
declining as new varieties enter the picture.
Merit, the top- yielding two-row is showing promise, while Manley has
been removed from the recommended list for this year. The B1202 variety
has limited markets.
