The Canadian Wheat Board will pay protein premiums to farmers who deliver two-row malting barley to participating elevators and maltsters this year.
“Designated barley protein payments will more clearly communicate market signals to farmers,” said Earl Geddes, CWB vice-president of farmer relations and operations. “This program will reward farmers who manage their crops to produce the protein levels valued by the malting and brewing industries.”
The premiums will range from $5.40 per tonne for protein levels of 10.9 percent and lower to 60 cents for barley with 12.5 per cent protein, reflecting the relative value of these protein levels to brewers and maltsters. Protein levels that are too high or low can affect malting and brewing quality.
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The board said access to a larger pool of malting barley in the premium protein range will help it expand malting barley sales opportunities for western Canadian barley growers.
Consultations with farmers had identified protein payments as an important issue, the board said. The CWB also consulted with the grain and malting industries to formulate the program. It will be a pilot program for the 2005-06 crop year and will be evaluated after a year of operation.
The program is limited to two-row malting barley because its market has the most clearly defined relationship between protein levels and prices paid by customers.
Premium payments will be based on protein tests of delivery samples, as verified by a third party. Payments will be made within 30 days of delivery.
The CWB and participating industry partners will jointly administer the malting barley protein payment program.
It has been made available to all grain handling agents and malting companies for the 2005-06 crop year.
Those who have chosen to participate are: Canada Malting Co., Delmar Commodities, Fill-More Seeds, Gambrinus Malting Corp., Great Northern Grain Terminals, Prairie Malt, Rahr Malting Canada, Seed-Ex Inc., Westlock Terminals (NGC) and Westmore Terminals.
Grain companies and maltsters that wish to join the program in the coming weeks remain eligible to participate.
