Producers of barley malt in P.E.I.,have been getting calls from brewers scrambling for supply following a poor growing season in Western Canada and the U.S. Midwest, which included a hot and dry spring.
“Some clients of ours who buy from Europe have logistic issues already,” said Redmer Renkema of Island Malt House.
Both Renkema and John Webster of Shoreline Malting in PEI, have been getting calls from current customers, looking for more supply, as well as calls from potential new ones.
But there is only so much they can do to help – both have sufficient supplies for their current customers with little room for growth.
“We are looking at expansion plans for the malting. Our priority is our existing customers and making sure we have them covered and we’re getting increased asks from them,” said Webster.
“As a rule Western Canada will be cheaper than what we are.”
“We’re looking to grow in a sustainable way with brewers that appreciate that there is a local supply for them.”
Prices could go up this year, but that would mostly be about the increases in the cost of growing barley. As for the price of beer, Webster said it will be up to the brewers whether to raise the price and risk losing market share, or to just absorb the cost themselves.
Photo courtesy of Shoreline Malting