USA: Cargill Malt offers 2006 North Dakota barley grower contracts

Cargill Malt announced on November 14 that representatives from Cargill Malt in Spiritwood, N.D., will discuss the benefits of grower contracting for interested barley farmers in upcoming meetings across the state. Farmers who want to maximize the value of their crop for malting-quality barley for the 2006 season should contact Cargill Malt.

“We believe our grower contracting program will show producers significantly better prices in 2006 than in 2005,” said Cargill Malt’s Barley Supply Chain Manager John Zietz. “We think farmers will find barley significantly more attractive in 2006 relative to the prices of other grains. Plus, fertilizer and other input costs are lower for malting barley than for other crops.”

Cargill Malt would like to increase both the number of participants and the amount of acreage in its 2006 program. Farmers can obtain contract prices and varieties to be offered by attending a grower meeting or calling the Spiritwood office. Dates and locations for additional meetings will be scheduled soon, and will be available by calling the Spiritwood office. Grower contracts are limited and future contract price offerings are subject to change.

Ernie Hoffert, Carrington, N.D., attended the first grower meeting in Jamestown on Nov 9. “I appreciate the fact that Cargill is being very proactive,” Hoffert said, “and offering information about their contracts earlier than ever before. I will be participating in their 2006 grower contracting program.”

Cargill Malt Agronomist Ray Albrecht noted that there should be a good supply of high quality, certified barley seed stocks available at planting time for most varieties. “Barley should provide growers competitive profit margins compared to most competing crops in the upcoming growing season, he added.

Cargill Malt’s program offers production contracts directly to farmers for specific malting barley varieties and complements its existing elevator origination programs. The grower contracting 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 grower contracting not only encourages higher-quality malting barley production, but it gives producers a more direct feedback loop with brewers, provides producers with certain force majeure (“Act of God”) protections, and helps them become eligible for crop insurance, in the event that the barley doesn’t make malting quality,” said Zietz.

Cargill Malt is a business unit of Cargill, Incorporated, an international provider of food, agricultural and risk management products and solutions. With 124,000 employees in 59 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.

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