USA: AB InBev commits to using Montana malting barley within a long-term partnership

In a move to assure Montana malting barley growers that their crop is valued, Anheuser-Busch InBev, the world’s largest brewer, pledged a long-term partnership on October, 12, Independent Record reports.

Meeting in Belgium with Sen. Max Baucus, D-Mont., AB InBev Global Vice President Tom Admantis committed the company to using Montana malting barley in its beer products. AB InBev’s commitment to Montana had been in doubt since Belgium-based InBev merged with Anheuser-Busch in 2008.

Farmers were used to long-term contracts with Anheuser-Busch, which preferred a consistent flow of malting barley and purchased a quarter of its supply from Montana producers. AB InBev agreements were more short term.

“It’s a difference in philosophy, from the grower’s perspective,” said Lola Raska, of the Montana Grain Growers Association. “Anheuser-Busch wanted to keep their pipeline full. They contracted with all their growers. Whereas, with AB Inbev which runs a much tighter machine, it was, ‘we’ll purchase as needed.’”

Canadian competition also has been a concern, Raska said. Recently, the Canadian Wheat Board’s monopoly on grain sales ended, freeing up Canadian farmers to sell grain into the United States. Montana malting barley producers feared losing some of their market to Canada.

"Anheuser-Busch InBev is pleased to continue a strong partnership with Montana barley growers,” Adamitis said in a press release. "This allows us to deliver our high-quality, iconic beers to customers throughout the world and brings jobs and economic benefit to Montana. We thank Sen. Baucus for continuing his hard work to help secure this pro-growth partnership."

Baucus said the agreement means Montana’s malting barley sales are secure for years to come.

17 October, 2012