Grainswest - Spring 2026

Spring 2026 Grains West 16 THE FARMGATE FOR YEARS THE NORTH AMERICAN beer industry has contended with a gradual downturn. Since 2019, beer sales have dropped 11 per cent. According to Beer Canada, 2025 domestic beer sales were down 2.4 per cent compared to 2024. For imported beer, the decline was noticeably steeper, as Canadians drank 8.6 per cent less such beers in 2025 ver- sus a year prior. The decline is due to many factors, said Luke Chapman, vice-president of federal affairs for Beer Canada, the industry’s trade association, which is composed of brewers that together produce more than 90 per cent of the domestic beer sold in the country. Among them, consumer disposable income has declined in recent years. This means consumers go out less frequently, and when they do, they often limit themselves to one beverage or even none. Beer is a social beverage, so when people don’t socialize, they drink less of it. Consumer behaviour has changed in additional ways. The adoption of health- ier lifestyles has seen greater consump- tion of non-beer drinks such as pre-mixed cocktails and hard seltzers. This includes non-alcoholic beverages, but despite en- thusiastic news coverage, non-alcoholic beer makes up just approximately one per cent of North American beer sales. EFFECTS AND RESPONSE “If the market keeps slowing, maltsters will be more cautious about how much to contract,” said Darren Smith, president of RahrBSG, which operates malthouses in Alix and Shakopee, Minn. RahrBSG is one of the largest buyers of malting barley in Canada and is acutely aware of the decline in global beer demand. “We think there’s going to be a bottom or stabilization to this, but we don’t see the bottom yet.” Pressure on malting barley due to reduced beer consumption is exacerbated by the incredible 2025 crop. “We had such a huge yield,” said Ryan Dodd, director of grain for Canada Malting, the other largest buyer of Canadian malting barley, with malthouses in Calgary, Thunder Bay, ON, and Montreal, QC. “We’re seeing a lot of barley and wondering what we’re going to do with it. We are seeing a ton more pressure on barley acres.” The Hilton family has farmed in southern Alberta for five generations. In 2017, they founded Origin Malting and Brewing in Strathmore. The Hiltons have a unique perspective on malting barley. They sell most of their harvest to one of the big maltsters. They also malt it for use by Origin and to supply approximate- ly 40 additional craft breweries through- out Alberta. Origin beer is available for sale across the Prairies. “Malting barley is one of the most rela- tionship-based commodities we grow on our farm,” said Sterling Hilton, president of Origin. While the sale of wheat and canola is more transactional, said Hilton, with malting barley being such a fickle crop, it is important to maintain a good relationship with a buyer. By demonstrat- ing a high rate of success year over year, buyers will work with farmers in tough crop years, either altering or deferring tonnage requirements, softening quality metrics or otherwise ensuring the barley has a home. To this end, both Smith at RahrBSG and Dodd at Canada Malting advise farmers to contract their malting barley. “Farmers under contract have more flexi- bility,” said Smith. “Outside of contracts, purchasers in the spot market will be much more selective.” And in years such as 2025, when everyone experienced a high quality bumper crop, maltsters hold the bargaining chips. Of course, with market uncertainty, the maltsters may contract for smaller individual quantities of barley. Nonetheless, Smith suggests farmers can negotiate to sign a longer- term contract. Dodd agrees and adds that it is even possible to negotiate a contract for tonnage without locking in a price. “The contract just ensures your malt barley has a home,” he said. In response to possible impact from the downturn in beer sales, farmers may Industryaddresses consumptiondip Decline in beer sales has implications for malting barley farmers “We’re seeing a lot of barley and wondering what we’re going to do with it. We are seeing a ton more pressure on barley acres.” —Ryan Dodd