Most read

THIRSTY FOR CANADIAN QUALITY

CMBTC PURSUES EXPANDED TRADE IN CHINESE BARLEY MARKET

BY PETER WATTS

Canadian feed and malting barley enjoy a global reputation for superior quality, with the latter well known for its excellent performance in processing and positive contribution to sensory properties in beer such as flavour. With prohibitive Chinese tariffs on Australian barley imports from the spring of 2020 to the summer of 2023, China’s demand for Canadian barley rose significantly during that time. This was followed by a drop in purchases once these duties were lifted last August. Still, China is Canada’s No. 1 barley market, and we must enhance our relationships with Chinese buyers and end-users.

On June 19-20, the Canadian Malting Barley Technical Centre (CMBTC) hosted the Canada-China Barley Seminar in Qingdao, China. The seminar brought together 100 attendees from China’s 35 leading malting, brewing and exporting companies, which represent 90 per cent of the country’s brewing industry and 40 per cent of its feed industry. This marks the first time Canada’s barley industry has held such an event with the CMBTC leading an 11-person delegation of value chain members that included Canadian barley breeder Aaron Beattie, four farmers and three grain company representatives.

The seminar offered comprehensive insights into Canadian barley production, quality standards and performance. Beattie conducted a presentation on advancements in Canadian plant breeding and CMBTC director of malting and brewing operations Yueshu Li discussed new barley varieties.

The event was supported by Tsingtao Brewery Group, China’s second-largest brewery. Tsingtao representatives discussed the Chinese supply chain. Yuan Yue, secretary general of China’s Alcoholic Beverage Association, also provided an overview of industry trends. According to Yue, the Chinese beer industry is entering an era of quality and diversification. Despite expected market volatility, the beer market will likely stabilize and grow, with production projected to reach 38 million kilolitres by 2025. A rise in mid- to high-end beer consumption will increase demand for high quality malting barley.

Strategic alliances formed at events such as the Barley Seminar lay a solid foundation for Canada to secure its market presence and meet evolving industry demand. By leveraging these partnerships and focusing on quality and innovation, Canada can strengthen its leadership in the Chinese barley market and support the needs of China’s brewing industry. During a visit to Canada in the summer of 2016, Chinese malting and brewing industry representatives toured malting barley fields in Alberta at harvest.

One conversation that stood out was with Nancy Xu, vice-president of Tsingtao. Asked why China prefers Canadian barley, she simply replied: “flavour.” At the latest Barley Seminar, attendees echoed the sentiment that Canadian malting barley is recognized for its high quality and positive flavour profile. They are also keen to explore new barley varieties but emphasized the exceptional processing and end-product characteristics of Canadian barley must be preserved.

Despite efforts to boost domestic production, China remains dependent on imported barley. Australia holds the largest market share in China’s barley market, followed by Argentina while Canada is ranked third. Canada’s success in this market hinges on product quality and the cultivation of trusted relationships. Supported by partners such as Tsingtao, the ongoing efforts of the CMBTC are pivotal to achieve these goals.

The CMBTC remains committed to nurture these relationships and work with its Chinese members and customers to maximize the value they derive from Canadian barley. By prioritizing quality, innovation and relationship building, Canada is poised for continued leadership and growth in the global barley market.

This summer, we hosted the New Crop Tour in Saskatoon, SK, with our partners at SaskBarley and welcomed delegations from multiple countries, including Brazil, China and Japan. This fall, we will host a New Crop Seminar in Winnipeg, MB, Oct. 15-17, to review barley production, supply and harvest quality. By fostering these connections Canada can maintain and expand its presence in the global barley market.

Peter Watts is the CMBTC managing director.

Comments

Be the first to comment on this article

Leave a Reply

Go to TOP