Maltster taps into organic beer trend

Reading Time: 2 minutes

Published: December 22, 2005

A Saskatchewan maltster is attempting to tap into the growing market for organic beer.

Prairie Malt Ltd. has received two international designations enabling the company to start buying organic wheat and barley and processing it for markets around the world.

Chantelle Donahue, the company’s barley supply merchant, said the new venture will provide a small but important outlet for the organic sector.

“In that industry, searching out the markets is sometimes a challenge. Here’s a market right on their back door,” she said.

Read Also

Robert Andjelic, who owns 248,000 acres of cropland in Canada, stands in a massive field of canola south of Whitewood, Sask. Andjelic doesn't believe that technical analysis is a useful tool for predicting farmland values | Robert Arnason photo

Land crash warning rejected

A technical analyst believes that Saskatchewan land values could be due for a correction, but land owners and FCC say supply/demand fundamentals drive land prices – not mathematical models

A local organic farmer who recently toured the Biggar, Sask., plant was thrilled with the news.

“He was absolutely ecstatic to hear that we were organically certified and that his grain may be able to come here again,” said Donahue.

What volumes of organic grain the company will require have yet to be determined, but it’s not as though they’ll be meeting the needs of a brewing giant like Molson’s or Labatt’s. Organic beer is a niche market serviced by small craft breweries.

“They’re just a little bigger than a home operation,” said Donahue.

Prairie Malt has been in talks with two Saskatoon companies, Growers International Organic Sales and Sunrise Foods International, which will supply the processor with locally grown organic wheat and barley.

Glen Neufeld, president of Sunrise Foods, said the maltster is adding to an already expanding market for organic malt. He knows of four North American companies producing the product.

While the demand from the Prairie Malt plant might be small, it will enhance what has become a steady market for organic feed barley.

“If you are growing a barley and you happen to luck out with the quality – boom, you can get a premium for the malt now, which is nice,” said Neufeld.

Donahue said it took about three months to get certified to the Organic Crop Improvement Association International’s program and to the U.S. National Organic Program. The process was expedited because the plant recently attained its Hazard Analysis and Critical Control Points designation. The company now has systems in place to flush out processing equipment and to store the organic product separately from conventional malt in cleaned bins.

Prairie Malt said the certifications will eventually pave the way to international markets in South America and Asia, but to start with, the company will meet the needs of craft brewers in the United States.

Donahue likened organic malt to two other niche products the company produces – white and red wheat malt. It may not set the world on fire but it is another way to diversify and meet customer needs.

Prairie Malt plans to run its first 180-tonne batch of organic barley through the plant during the first quarter of 2006. The malt will be marketed in conjunction with Cargill Specialty Malt Group.

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

explore

Stories from our other publications