Briess Malt & Ingredients Co. has asked to pull out of their contracts with malt barley growers given an expected sharp decline in orders in 2020 due to the covid-19 crisis.
Briess is targeting up to 50% reductions in malt barley needs according to an article in the Gillette News Record.
“At this time, some of you have seeded acres, and some of you have not seeded your barley acres,” the article quoted Ryan O’Toole, Briess president and COO as saying. “We understand that you have other options currently available to you such as growing sugar beets, dry edible beans, wheat, corn, etc., instead of our barley. We want to be upfront and notify you now that we will guarantee taking 50% of your contracted quantity. We will re-evaluate our needs on a monthly basis, and if our needs are greater than that, the remaining bushels will be accepted on a percentage basis.”
Growers were offered options of: 1) terminating the contract; 2) agreeing to reduced acres in an amended contract; or 3) leaving the current contract in place with the baseline guarantee that 50% of contracted quantity would be taken.
