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Thinking, Did InBev buy into malt?
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They could be working with Monsanto. Point being I don't think they do growing directly...
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yeah, it wouldn't surprise me if they tried getting the sole barley patent....but Genetic moding stuff isn't much harder then some enzymes, and some viruses/vectors they call them, at least from my memory when i was looking into doing myself at home, i ended up thinking "i could do this"....monsanto isn't Dr. (only) Mega Evil
You rang?
AB has contracted with barley growers in a particular region of MT, specifically the high plains just East of the Rocky Mountain front, for decades. I haven’t heard any reports this year, but in the last 2 years, the number of contracted acres was cut 25% in each year. So, they’re only buying half of what they were a couple of years ago, at least on a contract basis. Supposedly they’re using more extract (rice syrup) and less barley. Whether related to InBev’s reduction in acres, or not, the price of barley has gone into the toilet in the last 2 years. This spring there were no malt contracts being offered by any of the grain merchandisers and the spot (uncontracted) market price for malting barley is the same as feed barley, about $4.50 per cwt (hundred pounds). That’s about half of what would make growing malt barley an attractive alternative to other crops.
As noted above, barley is a minor crop, but that’s only part of the story. The production numbers are for all barley, not just malt barley. It’s hard to determine just how much barley makes it‘s way into beer because the number of contracted acres is proprietary and the brewers and maltsters don’t generally release that info. The numbers which are available come from the planted acreage and production reports which producers who participate in farm programs submit to USDA each year. On those reports, barley is barley; there is no info on usage. I’ll attach a couple of maps, courtesy of the American Malting Barley Association, one which shows the distribution of all barley production, and one which shows the percentage of contracted production of the various varieties in the region which produces the bulk of the barley in the US. It’s pretty obvious that most of the barley is grown in just a few states.
Of course, there are a lot of other fermentables besides barley, and several of those are used liberally in the commercial brewing processes. Total beer production in the US last year was reported, by the Brewers Association, as just over 186MM barrels or about 5.7 billion gallons. Using a rough number of 2lbs of fermentables per gallon of 1.050 beer that would require about 11.5 billion lbs of fermentables. All barley production, in pounds, would be a bit under 8 billion lbs, so that gives some idea of how much corn, rice, extract, etc, gets used in the beer business.
As far as InBev trying to corner the barley market-well, enjoy the conspiracy theories. Monsanto? They don’t exist any more; sold to Bayer AG in 2018. When they did exist, they discovered that, unlike corn, soybeans, alfalfa, and the various other crops which were genetically modified to be glyphosate resistant, cereals like wheat and barley are much more complex, genetically, and attempts to create GMO varieties of those crops were not successful. InBev just wants to make lots of beer, as cheaply as possible, with as much margin as possible. The apparent move towards more adjuncts and extracts indicates, to me, that they’ve figured out how to make cheap swill even more cheaply, and to hell with the barley growers who depended on those contract acres for the last 3 generations.
Aren’t you glad @MaxStout asked?
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wait... they grow 2000 acres of barley in my state/county?
You really do live in Southern Arizona!
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madscientist451
Well-Known Member
At least some of their malting occurs in Idaho:
https://www.agron.iastate.edu/tags/anheuser-busch
A little more hunting reveals that they have two malting facilities and even their own hop farm:
Anheuser-Busch builds lasting relationships with American farmers
Anheuser-Busch has direct relationships with more than 1,000 farmers, many of whom have been our partners for many generations. We have 23 agricultural and packaging facilities throughout the country, including our own malthouses in Idaho Falls, Idaho, and Moorhead, Minnesota – both critical parts of our regional agribusiness supply chain.
Here's the full article, which is actually kind of interesting if you want to geek out on Mega-brewery vertical integration:
https://www.anheuser-busch.com/community/initiative/our-farmers.html
According to the above, AB spends $5.5 billion growing their own hops and buying grain directly from farmers and then spends about $300 million buying from third party suppliers.
I used to be in an industry where large companies tried to screw their suppliers in every way possible to make a few bucks, so its interesting that a gigantic business actually works with suppliers and has relationships that have lasted over several generations.
Dave Taylor
US Chief Supply Officer for Anheuser-Busch
“We are committed to protecting peoples’ livelihoods across our entire supply chain – from farmers and bartenders to truck drivers and team members in our own facilities,” said Dave Taylor, U.S. Chief Supply Officer at Anheuser-Busch. “As the only brewer and alcohol manufacturer that can make an impact of this magnitude, we take this responsibility seriously. We know that when our communities get stronger, our country gets stronger, and that’s a step towards recovery. By investing in these communities and their capabilities, we’re ensuring that together, with all of our partners, we can brew and deliver great beer for many years to come.”
So after all this, now I'm thinking I'll stop on the way home from work and load up on Michelob Bock and Bud Light Clam-a Rita. Perhaps I can find some dusty bottles of Goose Island "Sofie" (AB owns Goose Island these days?)
I've got all day to talk myself out of it.....
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ABInbev…part of the every growing Beer Mafia…
Dude needs a monocle...
Dave Taylor
US Chief Supply Officer for Anheuser-Busch
Didn't read the whole thread closely beyond a scan. But I recall MaltEurop being a big barley supplier for the macro brewers, but only recently (last few years) being available to even craft brewers. Dunno if they've even hit the homebrew market at all. Presuming that's the case, your homebrew shop probably isn't competing with big guys so probably not related.
Rather, I also recall the last couple years the North American malting barley crops underperformed. That is more likely the issue and that negatively affects everyone.
Rather, I also recall the last couple years the North American malting barley crops underperformed. That is more likely the issue and that negatively affects everyone.
Best start to grow your own barley and do it Bracc-style but turned up to 11.
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I think it's barley market driving prices. Drought in the plains states and plains provinces, as well as storms that lay the stalks down at inopportune times have impacted the North American crop which in turn impacts the global market.
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$1.99 a pound for 'cheap' base malt now!
i don't think a foil hat's enough, going to need something more sturdy!
i don't think a foil hat's enough, going to need something more sturdy!
Find someone with a BSG account!
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