12/31/07 Growing demand for barley in Japan

The Japanese buy US barley for animal feed, especially for Wagu beef. Now the Japanese are looking to buy feed barley as a way to improve their overall diet. Idaho Barley Commissioner Dan Mader of Genesee went to Japan this fall to see first hand how they were processing that feed barley. Mader says the Japanese have contracted to buy Salute, a variety that is high in beta glucans. The demand for American barley has grown five to six percent annually and with a shipment due to leave the US next month Mader is hopeful that it will lead to more contracts for Idaho growers. MADER "We think there's a lot of potential there. They seemed quite pleased with the cooperating elevator in the US that wrote this contract, with the servicing of it. I think we're on a pretty good track." When the contracts were signed growers got a 25 to 30 dollar per ton premium over other feed varieties. But that was before the price of barley shot even higher. All of those locked in contract prices were honored but Mader says this high value niche market would give growers a better price than malt barley. He says in the future the new contracts will have to be negotiated to reflect the rise in American commodity pricing. Voice of Idaho Agriculture Bill Scott