Great Falls Malting plant to be built in spring

Grins are guaranteed to be part of today’s announcement that construction will start on Montana’s first malting plant this spring in Great Falls.

By JO DEE BLACK
Tribune Staff Writer

Local and state government officials will gather with representatives of the developer, Milwaukee-based International Malting Co., at 11 a.m. today in the City Commission Chambers at the Civic Center to provide details about the project.

"I’m absolutely delighted," said Montana’s Secretary of Agriculture, Ralph Peck. "It’s a dream of mine that Montana will become the malt capital of the world."

Malt, made from barley, is a key ingredient in beer that helps determine color and flavor. It’s also used to add flavor to other food, such as chocolate-covered malt ball candy.

Local officials say the plant will be an anchor in what will become a new industrial park poised to attract other businesses that make products from Montana’s agriculture products.

Great Falls Mayor Randy Gray declined to preview details about commitments various government entities made to create the park, saying those agreements will be outlined today.

The land is outside the city limits, so sewer and water lines will have to be extended to the area. It will most likely be annexed into the city, Gray said. Existing rail lines will also be extended to the area so malt can be shipped out of the new plant.

Today’s announcement should clear up uncertainty about the deal.

Talk of a malt plant in Great Falls started a year and a half ago when officials from International Malting Co.’s Froedtert Malt division said this was one of several sites being considered for a new facility.

Gov. Judy Martz said the project was a go in a statewide address in January. The next day local officials said the comments were premature — that IMC was only one of three companies looking at building a malt plant in Great Falls.

Great Falls Development Authority President John Kramer said the final commitment from IMC came after it inked a deal with Anheuser-Busch, the maker of Budweiser and Michelob beers.

Anheuser-Busch already buys a substantial amount of barley in Fairfield, but it isn’t processed locally.

However, IMC’s Great Falls plant will produce enough malt to serve other customers as well, he said.

Peck said of the three companies looking at Great Falls, IMC planned to build the largest plant.

"They will bring their other customer base with them," he said.

Spokespeople from Anheuser-Busch and IMC were unavailable Monday afternoon when the Tribune tried to contact the companies for comment on their agreement.

Peck said crop disease problems in the Red River Valley area of North Dakota mean companies are increasingly looking to Montana’s farmers for malt barley.

Anheuser-Busch recently announced it will buy 10 to 12 million bushels of malt barley in the Sidney area this year, he said.

"It’s another opportunity for farmers to diversify their operations," Peck said. "Each one will make their own decision, but it’s another choice."

The malt barley market is a regional one, so local prices farmers get for the crop aren’t likely to jump because the plant is coming to the area, Peck said.

"I would say with good, quality malt, local producers will have a slight freight advantage instead of a disadvantage," Peck said, referring to Montana’s traditionally high rail rates. "And if the market is short, I could see local prices moving, but overall you have to look at the prices regionally."

There’s plenty of upside to the plant, he added.

"This is excellent news for Montana producers, for the economy and for transportation because there’ll be a continuous volume of malt to ship out," Peck said. "There is no downside.

"A lot of people worked really hard and this shows Montana is competitive and can succeed to adding value to our ag products."

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