E-Malt. E-Malt.com News article: 2133

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E-Malt.com News article: 2133

Canada: Domestic malting capacity (the process of converting malting barley to malt for use in brewing) has also grown in the west. As one of the world's major malt barley exporting countries, Canada has experienced the world's greatest increase in malt capacity over the last 15 years, adding over 350 000 tonnes of capacity for an annual total of 1.2 million tonnes. In contrast, U.S. malting capacity has actually declined over the same period, CWB has recently posted.

Canada malts four times more barley per capita than the United States. The malting industry in Western Canada has shown tremendous growth in the face of free trade. In 1980 only 55 % of total Canadian malting capacity was located in the west. Now in 2003, 75 % of domestic malting capacity is located on the Prairies, a result of increased demand from international markets that have nearly doubled to 700 000 tonnes (in barley equivalent) annually; a demand that western Canadian maltsters are helping to meet through increased exports.

Increased exports of malting barley and market diversification by the CWB and its Accredited Exporters have been an ongoing trend. CWB exports of malting barley have gone from 335 000 tonnes in 1991-92 to an expected 1.3 million tonnes in 2003-2004. The CWB Long-Term Plan calls for malting selections to increase to 3.4 million tonnes, a million tonnes more than current selections, according to The Canadian Wheat Board presentation to The Standing Senate Committee on Agriculture and Forestry

The area of greatest success for the Canadian malting barley industry is the growth and development of the value-added malting industry in Western Canada. Malt exports from Canada have increased steadily from 140 000 tonnes in 1985-86 to exports of approximately 700 000 tonnes (barley equivalent) in 2000-2001. Exports of malt were 500 000 in 2002-03 primarily because of a poor crop, but this is expected to recover in 2003-04. Canada's position in world malt markets has strengthened and Canadian malt export growth occurred over a period of intense global competition due to malting overcapacity.

The malt industry in Canada has increased its capacity to produce malt, rising from 810 000 tonnes in 1985 to 1 220 000 tonnes (barley equivalent) to date. The increase in malting capacity requires an additional 410 000 tonnes of malting barley per year to supply malt houses. Throughout the 1990s, the cooperative relationship between the CWB and Canadian maltsters has expanded the volume of malting barley selected in Western Canada and increased revenue from malting barley. This in turn has led to an expansion of plant capacity, virtually all of which took place in Western Canada. The industry accomplished all of this in the face of aggressive subsidized competition, particularly from the EU.


04 February, 2004

   
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