USA: Cargill prefigures a more secure barley marketing option for North Dakota barley growers

Representatives from Cargill Malt in North Dakota are meeting barley farmers across the state to discuss the benefits of grower contracts, Food navigator released November 08.

The first two grower meetings, held in Jamestown on November 08, are designed to provide farmers with the opportunity to obtain information on contract prices and varieties. The company said that farmers looking to maximize the value of their crop for malting-quality barley for the 2007 season should attend.

“Cargill has moved forward with construction to significantly expand its processing capacity at the malting plant in Spiritwood, located in the heart of the nation's top barley-producing state,” said John Zietz, barley supply chain manager, Cargill Malt.
"This project will enhance Cargill's competitive position in the North American malting industry and provides a more secure barley marketing option for North Dakota producers."

For this reason, Cargill Malt plans to increase both the number of grower participants and the amount of acreage in its 2007 program. Grower contracts may be limited and future contract price offerings are subject to change.

“Cargill has the only malting facility in the state; we're right there locally on the ground in North Dakota, which offers a competitive advantage to North Dakota barley farmers,” said Zietz. According to Zietz, advantages include transportation, local staff, further processing and adding value to North Dakota malting barley.

According to Cargill Malt agronomist Ray Albrecht, supplies of high quality, certified barley seed stocks may be limited on some malting barley varieties, so growers should consider sourcing their seed early. “Malting barley is expected to provide growers competitive profit margins compared to other competing crops in the upcoming growing season,” he said.

Cargill Malt's program offers production contracts directly to farmers and also through certain third party elevators for specific malting barley varieties and complements its existing elevator origination programs. Cargill accepts many different varieties and variable qualities, offering producers flexibility.

The grower contract program aims to assist farmers in managing their economic risks while encouraging expansion of malting barley production in the Upper Midwest area of the United States.

“We believe that by offering these malting barley contracts earlier than is typical will help growers compare this opportunity to other crops, so they can make the best decision possible regarding their 2007 crop options,” said Zietz.

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