Maltster Taps Into Organic Beer Trend

By Sean Pratt
Saskatoon newsroom, Western Producer
WP Vol. 83, No. 51, December 22, 2005.

A Saskatchewan maltster is attempting to tap into the growing market for organic beer.

Prairie Malt Ltd. has received two international designations enabling the company to start buying organic wheat and barley and processing it for markets around the world.

Chantelle Donahue, the company’s barley supply merchant, said the new venture will provide a small but important outlet for organic sector.

“In that industry searching out the markets is sometimes a challenge. Here’s a market right on their back door,” she said.

A local organic farmer who recently toured the Biggar, Sask., plant was thrilled with the news.

“He was absolutely ecstatic to hear that we were organically certified and that his grain may be able to come here again,” said Donahue.

What volumes of organic grain the company will require has yet to be determined. But its not like they’ll be meeting the needs of a brewing giant like Molson’s or Labatt’s. Organic beer is very much a niche market serviced by small craft breweries.

“They’re just a little bigger than a home operation,” said Donahue.

Prairie Malt has been in talks with two Saskatoon companies, Growers International Organic Sales and Sunrise Foods International, that will supply the processor with locally grown organic wheat and barley.

Glen Neufeld, president of Sunrise Foods, said the maltster is adding to an already expanding market for organic malt. He knows of four North American companies producing the product.

While the demand from the Prairie Malt plant might be small, it will enhance what has become a steady market for organic feed barley.

“If you are growing a barley and you happen to luck out with the quality — boom, you can get a premium for the malt now, which is nice,” said Neufeld.

Donahue said it took about three months to get certified to the Organic Crop Improvement Association International’s program and to the U.S. National Organic Program. The process was expedited by the plant recently attaining its Hazard Analysis and Critical Control Point designation.

The company now has systems in place to flush out processing equipment and to store the organic product separately from conventional malt in cleaned bins.

Prairie Malt said the certifications will eventually pave the way to international markets in South America and Asia, but to start with the company will be meeting the needs of craft brewers in the United States.

Donahue likened organic malt to two other niche products the company produces — white and red wheat malt. It may not set the world on fire but it is another way to diversify and meet customer needs.

Prairie Malt plans to run its first 180-tonne batch of organic barley through the plant during the first quarter of 2006. The malt will be marketed in conjunction with Cargill Specialty Malt Group.

Cargill owns 58 percent of the Biggar maltster. Saskatchewan Wheat Pool owns the remainder.

The OACC gratefully acknowledges Westen Producer for permission to post this article.