Malting Barley (and other cereals) Sourcing and Supply Management
About 65% of the final malt costs are composed of raw materials. It is therefore essential to optimize all the components of the malting barley supply chain:
- Select the most adapted varieties with regards to the local (soil and weather) conditions.
- Connect with seed-breeders in view of improving the barley strains considering the local conditions (longer term objectives).
- Organize a production organization in the closest agricultural environment of the malting site (reduce as much as possible the transport costs to the processing plant), with a strong quality orientation and control (production inputs, storage conditions, transport means).
- Educate the farming community to the demands of the industry, in terms of:
- Phytosanitary and quality requirements
- Competitive pricing (price risk management, hedging tools)
- Create with the farming community a trustful environment, as both parties have a mutual and long term interests in securing a crop with renewed access to the market.
- Involve all other participants of the Supply Chain in the discussion, and transform this Supply Chain into a Regional Value Chain, where all the participants have great value to extract out of it (trucking companies, grain traders or merchants, storage companies, surveyors, laboratories, etc).
- Convert the concept of malting barley from a commodity into an Ingredient.