07/21/08 U.S. barley industry reacts to "Bud" buyout

Farm and Ranch July 21, 2008 Belgian-Brazilian brewer InBev's takeover of Anheuser Busch is not really all that surprising to Kelly Olson, administrator of the Idaho Barley Commission. Olson: "It is not surprising. I think it is pretty consistent with the consolidation we see in the global brewing industry." Anheuser Busch is the largest purchaser of Idaho barley but Olson doesn't foresee any immediate impact from ImBev's takeover. Olson: "They are not going to back from brewing Budweiser and Bud-Lite in the American market. In fact, just the opposite, all the press materials that have been released related to this merger talk about those two beers remaining the flagship beers of the new merged company. That means they are going to be brewed here in the United States and they need barley, malting barley as a key raw material to make those beer products." Olson says Anheuser Busch is making plans right now for their 2009 malting barley contracts which may be rolled out in September and from what she has heard there is not a lot of change. North Dakota grower and Barley Council member Jim Brotan says growers are worried about the potential of different contracts but he says they are also cautiously optimistic about ImBev's takeover. That's the opinion from the Montana Wheat and Barley Committee as well. The 52-billion dollar takeover must still be approved by Busch shareholders and also regulators. ImBev's acquisition of the American brewer will make it the largest brewer in the world. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.