Sam Anderson, our market development director, and I represented Montana barley producers recently in an October mission visit to Mexico. The delegation was hosted by the U.S. Grains Council and was my first international travel as a newly appointed MWBC director. Mexico imported an enormous 64 million bushels of barley and malt in 2022 from the United States and will continue to be an important buyer for Montana barley. It was definitely an eye opener!
We traveled to Monterrey and Mexico City and met with procurement teams of two large users of Montana barley. This informative stop proved opportune. Their government requires them to first use their own production of Mexican-raised barley, however their irrigation water is limited resulting in poor crop production and crop quality. They both praised Montana’s high quality barley. We visited at length about building our relationships further as Mexico needs continued barley supplies to meet demand levels.
We spent quite a bit of dialogue focused on contracts, helping them understand how Montana producers use contracts in their business model and how farmers plan for spring planting. We discussed how those intentions begin, and how other crops might compete with barley acres (durum, pulse crops, spring wheat, etc.). We felt it was important that they should know they are competing with other companies who also contract barley, and when they come into the U.S. marketplace, early communication with growers is key.
While visiting closely with one procurement team, they are using and researching the variety, Buzz, a Montana State University-developed variety. They are interested in Buzz to take the place of the MSU variety, Hockett. They have found Buzz to be reliable for its clarity of color as the end result, and the processing time from start to finish seems to be faster than other varieties. It is positive to know that the work and research MSU does yields positive results for the customer. It also is good to know that our invested funds are being spent wisely developing and researching new and improved barley varieties.
We also met with many craft breweries who buy U.S. and Montana malt. While their use percentages are just beginning to grow, Mexican consumption of craft adult beverages is a big part of their heritage for the flavor, taste and refreshment qualities of the product. Because their temperatures are higher, consumers demand a different taste in their beer.
Montana Wheat & Barley Committee goals were met to continue relations with Mexico, including purchasing Montana-raised barley. Our conversations covering the progress of research and development at Montana State University were met with great enthusiasm by these buyers. As a point to ponder: when you sip, drink or guzzle an adult beverage, there is a very high chance that the barley was raised in Montana for that beverage, even when it is a Mexican brand.
Until next time,
Lee Dahlman, Area 4 Director MWBC