0.00

2.00

4.00

6.00

8.00

10.00

12.00

1985 1988 1991 1994 1997 2000 2003 2006 2009 2012

US Barley AcreageMillion Acres

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0Canadian Barley Acreage

0

100

200

300

400

500

600

1986 2012

US Barley Use

MaltingFeedExportsSeedFood

21.8% Malting 57.3%51.1% Feed 30.7%22.7% Exports 4.6%3.1% Seed 3.8%1.3% Food 3.6%

0

50

100

150

200

250

300

350

400

450

1986 2012

US Barley Production & Use for MaltCO, ID, MN, MT, ND, WY

TotalMaltingUse

> 50,000

20,000-50,000

10,000-20,000

5,000-10,000

2,000-5,000

1,000-2,000

500-1,000

200-500

100-200

1-100

Undisclosed*

2012 Harvested Barley Acres By County

South Central US2012 USDA Census of Agriculture

*Data not disclosed to avoid identifying an individual operation.  Typically means only a single barley farm in the county.

Future = New Growing Areas

Current major growing areas will continue as primary sourceIdaho, Montana, North Dakota = 70% US barley production (2012 & 2013)

Increased demand for beer & whiskey made with “Local” barley

Serviced by existing large malting companies if logistically feasibleFor some states, not economical to ship barley to plant and malt back     

Growing craft malting industry to supply craft brewers & distillers

Increase in craft brewers & distillers doing in‐house malting

Future = New Growing AreasRoadblocks

Varieties adapted to new growing areas = needed quality & agronomics

Climatic ConditionsHigh moisture, rainfall = more disease (e.g. Fusarium head blight aka Scab) = EastHot, dry conditions = Southwest (e.g. Texas)

Solutions being pursued by AMBA & collaborating research programs

Variety Trials 

Development of best management practices

Breeding to develop adapted varieties

Why Has Barley Acreage Declined?

Static domestic malt use, limited barley & malt exports

Decline in use for feed = primary secondary useCompetition from abundant supplies of corn and dried distillers grain (DDGs)  

Static & limited food use – although has FDA Healthy Heart ClaimUSDA Barley Health Benefits Project – AMBA/NBIC lobbying

High risk crop – many chances for failure in making malting gradeGood return as malting, low or no return as feedRisks: ‐ Fusarium head blight (scab), other diseases, drought & heat stress, qualityrequirements

Competition with other crops – GROWERS HAVE OTHER OPTIONSCorn, soybeans, canola = large and growing markets Substantial investment by biotech seed companies, including GM variety development, inthese crops and now wheat

Expenditures:  Crop Protection and Seeds and Traits 1990‐2008 

0

2

4

6

8

10

12

14

16

BayerCropScience

Dow DuPont Monsanto Syngenta

Seeds and traits

Crop protection

Bayer, Syngenta, BASF, DOW and DuPont were the firms that spent the most on Crop Protection R&D.  

Monsanto dominates the  “seeds and traits” sector

Comparative R&D Expenditures  Wheat—about 

70c/acre/year GM Row crops:  

$10/acre/year

Slide courtesy Dr. Bill Wilson, NDSU

Expe

nditu

res in billions

Why Has Barley Acreage Declined?

Barley research & variety development primarily in public sectorState and provincial universities; USDA‐ARS and Agriculture & Agri‐Food Canada

Limited and declining public sector investment

Limited variety development by companiesUS = Two brewers, one maltster, one private sector company – all traditional breeding

‐minor part of their business, driven to meet needs, not profit‐ depend on public sector for other research needs     

Little or no interest by biotech seed companies in barleyLow acreage compared to other major cropsSubstantial cost to commercialize a GM variety

Biotech Crops with improved traits, including GM, have pushed barley out of higher rainfall areas into more marginal, dry ones

What happens to barley when it faces competition from GM drought tolerant corn, wheat and other crops that are being developed ?

Discovery, Development and Deregulation Costs of a GM Trait

CategoryCost

($ million)Number of responses

DiscoveryEarly discovery 17.6 5

Late discovery 13.4 5

Total cost 31.0 5

Construct optimization 28.3 5

Commercial event production & selection

13.6 6

Introgression breeding and wide‐areatesting

28.0 6

Regulatory science 17.9 6

Deregulation and regulatory affairs 17.2 6

Total $136.0 $105 w/oDiscovery

Phillips McDougall, September 2011

GM Barley?Current Status & Considerations

Experimental GM barley lines have been developedLines with various genes for resistance to Fusarium head blight (scab)

USDA-ARS US Wheat & Barley Scab Initiative funded researchersHigh beta-glucanase lines to improve chicken feed

Washington State UniversityNone commercialized

GM lines grown in hydroponic cultivation in geothermal greenhouses in Iceland for commercial production of pure proteins for research (Cell Sciences)

No commercial field production of GM barley

Strong support for development of GM barley by barley grower organizations - Growers are experienced in growing GM crops and feel GM barley is needed to keep barley competitive with other crops

GM Barley?Current Status & Considerations

Growing consumer resistance and concerns about GM

Mixed views of malting, brewing, distilling, and food end-usersStrongly opposed - to neutral - to supportiveThus no clear signal to biotech seed companies to pursue

Developmental costs of GM barley too high to recover investmentLow acreage compared to major crops and thus limited seed sale potential

A unique trait, with exclusive IP rights, and substantial economic benefits (e.g. drought tolerance, major disease resistance) that could be used worldwide, may provide viable market

American Malting Barley Association, Inc.Biotechnology Policy Statement

June, 2008

The American Malting Barley Association, Inc. (AMBA) provides funding for basic barley research in plant physiology, biochemistry and fundamental genomics as well as for more applied research in barley variety development. In addition, AMBA is involved in various federal programs funding barley biotechnology research to ensure access to current science and to keep barley competitive with other crops.  At this time, there are no commercially available GM barley varieties in North America.  AMBA is opposed to the commercial release of GM barley varieties.

JUNE, 2009

The American Malting Barley Association, Inc. (AMBA) provides funding for basic barley research in plant physiology, biochemistry and fundamental genomics as well as for more applied research in barley variety development. In addition, AMBA is supportive of various federal and state programs funding barley biotechnology research to ensure scientific advancement and to keep barley competitive with other crops. 

GM Barley Conclusions

No commercial GM barley expected in foreseeable future

Cost of commercialization precludes public sector university or federal research agency commercialization

Would require Biotech seed company to commercialize – none appear interested at this time

If work was initiated now, and gene discovery & construction, gene transfer, and utility already demonstrated, it would still take an estimated 10 years+ to complete the process to a commercially approved GM barley

GM WHEATStrong grower support combined with change of view of many end-users (e.g. millers, bakers, food companies) from opposition to support due to concerns about declining wheat acreage and competition with GM crops

Accordingly, biotech seed companies are now working on wheat, often in collaboration with the public sector universities that have the varieties needed for gene trait introgression

Current estimate for first commercial GM wheat = 6 Years

Considerations for malting, brewing, and distilling industriesProduction of wheat products if you want to be non-GMComingling of GM wheat with non-GM barley

Most barley farmers also grown wheatWheat & barley grown in same area move through same elevator &

transportation systems

Barley Biotechnology Tool Box

X - No GM variety development

Targeted genetic improvements without being transgenic (GM)Induce base pair gene changes by the plant not through gene

transformation technologyRapid Trait Development system (RTDS) - Cibus

(considered mutagenesis technology by USDA)

Doubled Haploid (DH) Barley Line DevelopmentRapid development of genetically homozygous varieties

Barley Biotechnology Toolbox

Gene tracking Technology (genotyping)Initial methodology = one gene Current technology = tens of thousands of genes at one time

Current major genotyping technologyBased on Single Nucletotide Polymorphisms (SNPs)Illumina BeadXpress system (old) – Illumina iSelect system (new)Exome capture sequencing

Next generation technology for genotypingGenotyping by Sequencing (GBS)

Gene tracking applicationsMarker Assisted Selection (MAS)

Track introgression of one or a few genesGenomic Selection (GS)

Track thousands of genes to develop lines with desired agronomic & quality traits

Barley Biotechnology Challenge

$$$ - Most all funding from limited public sector sourcesvs billions being invested by biotech seed companies in other crops

State universities & USDA-ARS research locations

USDA-ARS Small Grains Genotyping Laboratories (4) Fargo, ND; Manhattan, KS; Raleigh, NC; Pullman, WACreated through earmarks – AMBA/NBIC & wheat stakeholder lobbying

USDA-ARS US Wheat & Barley Scab Initiative grant programCreated through earmarks – AMBA/NBIC & wheat stakeholder lobbying

USDA-NIFA Agriculture & Food Research Initiative (AFRI) Competitive Grant Program

Grants to individual scientistsLarge grants to multi-researcher, discipline, and institution coordinated projects

Triticeae (barley & wheat) Agricultural Coordinated Project (TCAP)$25 million ($5M/year): 2011-2015

Keeping Barley Competitive With Other Crops

Barley biotechnology research in of itself is not enough to keep barley competitive with biotech seed crops

Coordinated research in many disciples is neededBreeding, genetics, molecular biology, biochemistry, physiology, pathology, management

Adequate & effective national public sector barley research infrastructure

Stakeholder funding, direction, and collaborationAmerican Malting Barley Association (AMBA)Brewing & Malting Barley Research Institute (BMBRI, Canada)Brewers Association (BA)Individual malting & brewing companiesState barley grower organizations

Adequate & Effective NationalPublic Sector

Barley Research Infrastructure

Facilities

DirectionFundingAMBA, BAFederal, State,Growers, Brewers,Maltsters

Personnel

AMBANational Coordinator of US Malting Barley Research

AMBA lobbies Congress, Federal Agencies, and State Universities to positively impact all these research infrastructure components

AMBA also lobbies with barley growers for favorable federal farm program provisions (e.g. crop insurance)

MISSION: The primary purpose of AMBA is to encourage and support an adequate supply of high quality malting barley for the malting, brewing, distilling and food industries and increase our understanding of malting barley.

PRIMARY OBJECTIVE: Develop six-row and two-row malting barley varieties broadly adapted for the barley production areas of North America with suitable agronomic, malting, and brewing performance.

American Malting Barley Association, Inc.(Founded in 1938 as the Malt Research Institute)

VISION: To be the leader in improvement, development, and understanding of malting barley in the US.

US Malting Barley Variety Development Programs(breeding, genetics, supporting and other research)

Montana State University AB-InBevNorth Dakota State University MalteuropOregon State University MillerCoorsUniversity of California – Davis LimagrainUniversity of MinnesotaUniversity of NebraskaUSDA-ARS, Aberdeen, IDUSDA-ARS, Raleigh, NCUtah State University Virginia Polytech & State UniversityWashington State University

AMBA memberFunded by AMBA

Other US Malting Barley ResearchBiochemistry, Genomics, Molecular Biology, PhysiologyDiseases, Insects, Quality, Management, Variety Trials

Programs listed for malting barley variety development plus:

Colorado State University University of VermontCornell University (NY) University of WisconsinMichigan State University University of WyomingNorth Carolina State University USDA‐ARS, Fargo, NDOhio State University USDA‐ARS, Madison, WIPennsylvania State University USDA‐ARS, Manhattan, KSTexas A&M University USDA‐ARS, Pullman, WAUniversity of Idaho USDA‐ARS, Stillwater, OKUniversity of Maryland USDA‐ARS, St. Paul, MN

AMBA funding

Canadian Malting Barley Variety Development Programs

PrimaryAAFC, Brandon, MBUniversity of SaskatchewanAlberta Agriculture and Rural Development

SecondarySapporo Breweries Ltd.Syngenta

US Varieties are entered into Canadian testing system for potential registration and production

Brewing & Malting Barley Research Institute (BMBRI) – AMBA’s Canadian Counterpart

AMBA Quality Evaluation Program  

Step 3 – AMBA Plant Scale Evaluation Program

VARIETY/LINE PROGRAM BREWER TESTINGWestern Winter Two-RowEndeavor USDA-ARS, ID AB-InBev, MillerCoors02Ab669 USDA-ARS, ID AB-InBev, New Glarus

Western Spring Two-Row2Ab04-X01084-27 USDA-ARS, ID New Belgium, Sierra Nevada2Ab17271 USDA-ARS, ID Briess, New Glarus

Midwest Spring Two-Row2ND25276 ND State University AB-InBev, Bell’s, MillerCoors

Midwest Spring Six-RowND22421 ND State University MillerCoorsND26891 ND State University AB-InBev, MillerCoors

Step 2 ‐ AMBA pilot scale malting evaluations by collaborating members ‐Average of 35+ lines/year

Step 1 ‐Micro malting evaluations @ USDA‐ARS Cereal Crops Research Unit,Madison, WI – 5,000 to 6,000 lines/year – AMBA provides supporting funds 

AMBA 2014 Recommended Varieties  Two‐Row

ABI Voyager (2014) AB-InBevAC Metcalfe (2005) Agriculture & Agrifood Canada CDC Copeland (2007) University of SaskatchewanCDC Meredith (2013) University of SaskatchewanCharles* (2009) USDA ARS, Aberdeen, ID Conlon (2000) North Dakota State UniversityConrad (2007) AB-InBevExpedition (2013) MalteuropHarrington (1989) University of SaskatchewanHockett (2010) Montana State UniversityMerit (2000) AB-InBevMerit 57 (2010) AB-InBevMoravian 37 (2010) MillerCoorsMoravian 69 (2010) MillerCoorsPinnacle (2011) North Dakota State UniversityScarlett (2008) Saatzucht Joseph Breun GdbH, Germany

Wintmalt* (2013) KWS Lochow, Germany* Winter barley (year added)

AMBA 2014 Recommended Varieties  Six‐Row

Celebration (2011) AB-InBevInnovation (2014) AB-InBevLacey (2000) University of MinnesotaLegacy (2001) AB-InBevQuest (2011) University of MinnesotaRobust (1984) University of MinnesotaStellar-ND (2006) North Dakota State UniversityTradition (2004) AB-InBev

American Malting Barley Association, Inc.Malting Variety Development Funding Allocation Goals* AMBA 2014April, 2014 Funding

1994 2004 2012 2014* 2014 Variety & Supporting

% % % % Regional % Research

MIDWEST $194,4187.1 10.2 14.0 32.7 Spring 2-Row 59.8%

59.5 49.6 34.3 14.3 Spring 6-Row 26.1%6.9 7.1 Winter 2-Row 13.0%1.4 0.6 Winter 6-Row 1.1%

66.6 59.8 56.6 54.7 Subtotal 100.0% 54.9%

WEST $152,00013.1 26.7 26.3 26.9 Spring 2-Row 63.7%14.3 7.8 2.1 0.1 Spring 6-Row 0.2%

11.2 15.1 Winter 2-Row 35.8%3.8 0.1 Winter 6-Row 0.2%

6.0 5.7 Winter (2&6)33.4 40.2 43.4 42.2 Subtotal 100.0% 42.9%

East $7,5002.3 Winter 2-Row 74.2%0.8 Winter 6-Row 25.8%

0.0 0.0 0.0 3.1 Subtotal 100.0% 2.1%

100.0 100.0 100.0 100.0 TOTAL $353,918 Variety * 96.8% Weighted dues reported $139,932 National/Other

$493,850 Total Funding

Barley Factors Two-Row Barley Six-Row Barley

Plump Kernels (on 6/64) > 90% > 80% Thin Kernels (thru 5/64) < 3% < 3% Germination (4ml 72 hr. GE) > 98% > 98% Protein 13.0% 13.5% Skinned & Broken Kernels < 5% < 5%

Malt Factors Total Protein 12.8% 13.3% on 7/64 screen > 70% > 60%

Measures of Malt Modification Beta-Glucan (ppm) < 100 < 120 F/C Difference* < 1.2 < 1.2 Soluble/Total Protein* 40-47% 42-47% Turbidity (NTU) < 10 < 10 Viscosity (absolute cp) < 1.50 < 1.50

Congress Wort Soluble Protein 4.4-5.6% 5.2-5.7% Extract (FG db) > 81.0% > 79.0% Color (°ASBC) 1.6-2.5 1.8-2.5 FAN > 190 > 200

Malt Enzymes Diastatic Power (°ASBC)* > 120 > 140 Alpha Amylase (DU)* > 50 > 50

MALTING BARLEY BREEDING GUIDELINESIDEAL COMMERCIAL MALT CRITERIA

American Malting Barley Association, Inc.November, 2010

General Comments

*There is a demand for lower protein (soluble protein and FAN), and lower enzymes within the Craft Brewing industry.

Barley should mature rapidly, break dormancy quickly without pregermination and germinate uniformly. The hull should be thin, bright and adhere tightly during harvesting, cleaning and malting. Malted barley should exhibit a well-balanced, modification in a conventional malting schedule with four day germination.

Malted barley must provide desired beer flavor.

November, 2010

Six-Row Adjunct Two-Row All Malt Two-Row

AMBA Member Interest* 20% 55% 25%

Barley FactorsPlump Kernels (on 6/64) > 80% > 90% > 90%Thin Kernels (thru 5/64) < 3% < 3% < 3%Germination (4ml 72 hr. GE) > 98% > 98% > 98%Protein 13.0% 13.0% 12.0%Skinned & Broken Kernels < 5% < 5% < 5%

Malt FactorsTotal Protein 12.8% 12.8% 11.8%on 7/64 screen > 60% > 70% > 75%

MALTING BARLEY BREEDING GUIDELINESIDEAL COMMERCIAL MALT CRITERIA

* Based on a survey of AMBA’s Regular Members.JUNE, 2014

Six-Row Adjunct Two-Row All Malt Two-Row

Measures of Malt Modification Beta-Glucan (ppm) < 120 < 100 < 100F/C Difference < 1.2 < 1.2 < 1.2Soluble/Total Protein 42-47% 40-47% 38-45%Turbidity (NTU) < 10 < 10 < 10Viscosity (absolute cp) < 1.50 < 1.50 < 1.50

Congress WortSoluble Protein 5.2-5.7% 4.8-5.6% < 5.3%Extract (FG db) > 79.0% > 81.0% > 81.0%Color (°ASBC) 1.8-2.5 1.6-2.5 1.6-2.8FAN > 210 > 210 140-190

Malt EnzymesDiastatic Power (°ASBC) > 150 > 120 110-150Alpha Amylase (DU) > 50 > 50 40-70

MALTING BARLEY BREEDING GUIDELINESIDEAL COMMERCIAL MALT CRITERIA

General Comments• Barley should mature rapidly, break dormancy quickly without pregermination and germinate uniformly.• The hull should be thin, bright and adhere tightly during harvesting, cleaning and malting.• Malted barley should exhibit a well-balanced, modification in a conventional malting schedule with four

day germination.• Malted barley must provide desired beer flavor.

National  Barley Research Program  AMBA Strategic Goals

• Technology to accelerate variety development•e.g. latest DNA tracking technology•NOT GM

• Management practices • Increased Yields• Winter Varieties• Resistance to Abiotic Stress

o drought, heat, cold• Lodging resistance• High Test Weight •Improved Quality

•Quality evaluation for breeding programs•Preharvest sprouting•Fermentability prediction•Glucanase assays•Flavor screening of barley 

National  Barley Research Program  AMBA Strategic Goals

•Food Safety•Increased secondary uses

o Food, Feed, Straw for biofuels• Insects (RWA, Bird cherry oat aphid) •Disease Resistance

o Ug99 Stem Rusto Fusarium head blight (scab)o Barley yellow dwarf viruso Cereal yellow dwarf viruso Bacterial leaf streako Stripe rusto Root diseaseso Net blotcho Septoria speckled leaf blotcho Spot blotcho Powdery mildew (winter barley)

Fusarium Head Blightaka Scab = DON (vomitoxin)

Ug99 (African) Stem Rust

AB-InBev (MO)Bell’s Brewery (MI)Boston Beer (MA)Briess Malt & Ingredients (WI)Brooklyn Brewery (NY)Brown-Forman (KY)Cargill Malt (MN)Craft Brew Alliance (OR)Deschutes Brewery (OR)Dogfish Head Craft Brewery (MD)

American Malting Barley Association, Inc.

Gambrinus Company (TX)Great Western Malting (WA)InteGrow Malt (ID)Malteurop (WI) MillerCoors (IL)New Belgium Brewing (CO)New Glarus Brewing (WI)Rahr Malting (MN)Schell’s Brewing (MN)Sierra Nevada Brewing (CA)Summit Brewing (MN)

REGULAR MEMBERS (21)

Abita Brewing (LA)Alaskan Brewing (AK)Allagash Brewing (ME)Anchor Brewing (CA)Avery Brewing (CO)Bear Republic Brewing (CA)Blacklands Malt (TX)Blue Ox Malthouse (ME)Boulevard Brewing (MO)Cold Spring Brewing (MN)Colorado Malting (CO)Corsair Artisan Distillery (TN)

Deer Creek Malthouse (PA)Farm Boy Farms (NC)Firestone Walker Brewing (CA)Flying Dog Brewery (MD)Founders Brewing (MI)Full Sail Brewing (OR)Gold Rush Malt (OR)Harpoon Brewery (MA)Langunitas Brewing (CA)Lakefront Brewery (WI)Left Hand Brewing (CO)Leopold Bros Distillery (CO)

American Malting Barley Association, Inc.ASSOCIATE MEMBERS (48)

Long Trail Brewing (VT)Lost Coast Brewery (CA)Malterie Frontenac (QC)Matt Brewing (NY)Odell Brewing (CO)Oran Station (NY) Oskar Blues Brewery (CO)Pilot Malt House (MI)Rahr & Sons Brewing (TX)Real Ale Brewing (TX)Riverbend Malt House (NC)Rogue Ales (OR)Russian River Brewing (CA)

Saint Arnold Brewing (TX)Schlafly Beer (MO)Smuttynose Brewing (NH)Storz Brewing (NE)Stone Brewing (CA)Straub Brewery (PA)Troegs Brewing (PA)Urban Chestnut Brewing (MO)Valley Malt (MA)Victory Brewing (PA)Wachusett Brewing (MA)

American Malting Barley Association, Inc.ASSOCIATE MEMBERS (48)