USA, ID: Malt barley drives economic growth in Idaho

According to the Idaho Farm Bureau Association, Idaho ranks first nationally in barley production. Alan Slater, director of Anheuser-Busch’s North American barley operations, estimated that half of the company’s U.S. malting barley comes from Idaho, Rexburg Standard Journal reported on July 18.

Many of Idaho’s barley growers attended Anheuser-Busch’s Barley Grower Day on July 14, where growers were invited to enjoy a free lunch, tour the malt facility and learn about new technology.

“The reason we’re all here is because of quality,” Slater said.

Director of Global Barley Research Gary Hanning said there is a large yield benefit in Idaho.

Between eastern and southern Idaho, Slater guessed there are around 400-450 Anheuser-Busch’s barley growers.

“We have a big investment in this region,” said Lee Keathley, Anheuser-Busch’s Vice President of Procurement.

Keathley said about 40 percent of the company’s barley needs come out of this region.

Adam Griffith, Anheuser-Busch’s global director of raw materials, emphasized this area’s importance for the company.

“This area is so key to us, not just in the U.S.,” Griffith said. “This region is just born to breed barley.”

“While there are some farmers who choose not to grow barley for the beer industry, they are a small minority,” Slater said.

Sixty-seven percent of barley in Idaho is used for malting/beer, according to http://barley.idaho.gov, with about 30 percent used for feed and 2-3 percent used for human foods.

“The main key there is that malting barley has a premium over the feed market,” Slater said.

Growers can currently make about 2-2.5 times more on malt barley than on feed barley.

Idaho malting barley prices for May 2015 were $6 a bushel, and prices for feed barley were only $2.30-3 per bushel.

Slater said while there is a demand for feed barley in some areas of Idaho, particularly for feeding dairy cattle, “the goal for most Idaho growers is malt barley.”

Jon Hogge, a Jefferson County Agriculture Extension Educator, said barley is one of the biggest crops in Southeastern Idaho.

“It’s huge,” Hogge said. “Economically it’s probably one of the biggest drivers.”

“Madison County and Fremont County each have over 25,000 acres of barley,” Hogge said, “with Madison producing 2-4 million bushels in 2014 and Fremont producing 4 million.”

“Fremont, Madison, Bonneville and Jefferson Counties are the largest malt barley producers in the country, and east Idaho produced 16 million bushels of barley in 2004,” Hogge said.

“East Idaho has also produced $177 million in a one-year period from barley,” Hogge said, “and the soil and water properties of the region produce the best malt barley.”

“Southeast Idaho is the very best of what barley buyers want,” Hogge said. “No other place in the world has the soil and water like Idaho.”

Also according to Hogge, East Idaho creates 2,700 jobs in the barley industry.

And that doesn’t include the many other economic impacts, from fuel purchases to restaurants to farm equipment dealers.

“The Barley Grower Day event took place at the malt plant south of Idaho Falls, which is the largest malt plant in North America,” Slater said.

“We’re excited about it,” Slater said.

22 July, 2015