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USA: Finding success in the export market will be a key to expansion of the International Malting Co. plant, a top official of the Milwaukee-based company said Thursday, September 16. While the beer market in the U.S. and Canada is growing slowly, markets in Russia, China, Mexico and Japan are expanding 5 to 10 percent annually. IMC's Great Falls plant, now under construction north of town, will play a big role in serving those markets, said Dale West, chief operating officer for IMC's North American operations, The Great Falls Tribune revealed.

"We can grow from 12 million bushels to 16 million bushels very easily," West said, referring to the plant's projected production. An expanded plant could mean more jobs and, more importantly, added demand for malt barley grown in Montana, West noted. Employment at the $70 million plant is projected to peak at about 35 workers.

West spoke to more than 100 people at a Great Falls Area Chamber of Commerce luncheon at the Heritage Inn. The gathering appeared to include a mix of area business people and agricultural producers. The IMC facility will be the first plant built by the company, which is part of the France-based Lesaffre Group. Being new should help the plant compete in world markets. "This will be the most efficient plant in the world; there is no question about it," West said. The IMC official said his company hopes to link Montana farmers with new customers, including brewers, distillers and food product makers.

The company sells malt to Anheuser Busch, which also contracts with area barley growers. However, SAB Miller, another very large brewer, will become more involved in the Montana barley marketplace, West noted. "With a facility out here, you will meet the Miller people," West said. "We supply about 60 percent of their malt needs."

IMC hopes, he said, to be able to buy all of the barley it needs to operate the plant in Montana. The plant will require about 11 million bushels of barley each year and will produce about 12 million bushels of malt. Responding to a question, West said if the plant has to resort to bringing barley from southern Idaho to Great Falls "that means we've got a big problem at the plant. The intent is to use North Dakota only as a secondary supply."

While West said IMC has purchased barley in Canada over the years, the Great Falls plant should be price competitive with barley from up north. "It's not inconceivable that you well see barley moving into Canada in the future," he said.

Along with brewers, the plant will also sell malt to distillers such as Jim Beam, Jack Daniels and Seagram's and food producers such as Kraft, Malt-O-Meal and Kellogg. Malt for those customers may not need to be as high in quality as that demanded by brewers. "It's a very important segment to us because we can use a larger percentage of the barley that comes through our doors," West said.

During an introduction for West, Richard Owen, executive vice president of the Montana Grain Growers, said the IMC operation provides a great opportunity for area farmers to add value to what they raise. But producing high-quality malt barley will be critical in reaping benefit. "That's our challenge and we accept that challenge," Owen said.


18 September, 2004