E-Malt.com News article: Canada: The Canadian Wheat Board announces malting barley quality payments for 2006/07

The Canadian Wheat Board (CWB) announced August 10 that three new companies have joined the CWB program that pays protein premiums to farmers who deliver two-row malting barley to participating elevators and maltsters in the 2006-07 crop year.

New participants are Agricore United, Prairie West Terminal Ltd. and South West Terminal Ltd.

"We're very pleased that Agricore United, Prairie West Terminal and South West Terminal have joined the program and that they've recognized its value to their malting barley grower suppliers," said Ward Weisensel, CWB Chief Operating Officer.

The premiums will range from CA$5 per tonne for protein levels of 11 per cent and lower to CA$1 per tonne for barley with 12.5 per cent protein, reflecting the relative value of these protein levels to brewers and maltsters.

Protein levels of 12.6 and higher will not receive any premium, but are still eligible for selection and delivery under the normal CGC grades. Protein levels are one indicator of malting characteristics. Levels that are too high can affect malting and brewing quality.

Protein premium payments will be based on protein test results of delivery samples, as verified by a third party. Payments will be made within 30 days of delivery. The program is limited to two-row malting barley because its market has the most clearly defined relationship between protein levels and prices paid by end-use customers.

"Paying farmers for protein levels rewards farmers for adopting crop management practices that result in end use functionality that industry values," Weisensel said. "We hope that this program will ultimately result in a larger malt barley pool within desired customer specifications."

Having access to a larger pool of malting barley in the premium protein range will aid the CWB in expanding malting barley sales opportunities for western Canadian barley growers.

The CWB and participating industry partners will continue to jointly administer the malting barley protein payment program. It has again been made available to all grain handling agents and malting companies for the 2006-07 crop year.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.


11 August, 2006