A new malting plant may be on tap for Western Canada.
Dominion Malting of Winnipeg is looking at expanding westward into Saskatchewan or Alberta.
The desire to expand comes when the outlook for Western Canada’s malt trade looks bright.
“We’re very positive about the future growth of our malt trade and malting barley trade,” said Bob Cuthbert, the Canadian Wheat Board’s senior marketing manager for barley products.
The president of Dominion Malting declined requests for an interview.
However, officials at Kindersley, Sask., and Camrose, Alta., confirmed that their communities are vying for the Dominion Malting plant.
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“It would be such a boost to our economy,” said Pauline Cowen, Kindersley’s economic development officer.
“With the malt barley plant would come other things as well.”
A challenge for the communities is assuring Dominion Malting that there would be an adequate water supply for its plant.
Kindersley, with a population of a little more than 5,000 people, is in a prime growing region for malting barley.
The region is also gripped by drought this year.
“We look forward to the dew on the grass in the morning,” quipped Dan Gunnlaugson, the town’s engineering superintendent.
The Dominion Malting plant would need almost as much water as the town’s residents and businesses use every year.
Gunnlaugson believes his community can rise to the challenge. A consultant is working on various options for bringing more water to the town.
“Anything that’s going to bring value added to agriculture is something we have to push for,” Gunnlaugson said.
Cuthbert calls Canada’s malting industry a “success story.”
In the past two decades, the industry has shifted to Western Canada and expanded.
Much of the expansion has been driven by the export demand for Canadian malt.
“We went through a bit of a tough time in recent years, but it’s looking better now,” Cuthbert said.
Mexico is among the countries buoying demand for Canadian malt and malt barley. The country’s economy is growing, and beer consumption in Mexico is rising five percent a year.
Asia is also expected to buy more Canadian malt and malt barley.
As well, the European Union no longer directly subsidizes malt and malt barley exported out of Europe.
However, Europe and Australia remain Canada’s toughest rivals.
“The competition is still pretty fierce out there,” Cuthbert said.
