0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

1990 1993 1996 1999 2002 2005 2008 2011 2014

US Barley Acreage Million Acres

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Canadian Barley Acreage

0

100

200

300

400

500

600

1986 2012

US Barley Use

Malting

Feed

Exports

Seed

Food

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 Malt CO, ID, MN, MT, ND, WY

Total

Malting

Use

> 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*

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

BARLEY HARVESTED ACREAGE – 2012 CENSUS OF AGRICULTURE

> 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 US

2012 USDA Census of Agriculture

*Data not disclosed to avoid identifying an individual operation.

Typically means only a single barley farm in the county.

CANADIAN BARLEY GROWING AREAS

ALBERTA SASKATCHEWAN

MANITOBA

Future = New Growing Areas

Current major growing areas will continue as primary source Idaho, Montana, North Dakota = 70% US barley production (2012 - 2014)

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

Serviced by existing large malting companies if logistically feasible For 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 Areas Roadblocks Varieties adapted to new growing areas - needed quality & agronomics may be lacking Climatic Conditions High moisture, rainfall = more disease (e.g. Fusarium head blight aka Scab) = East Hot, dry conditions = West (e.g. Colorado)

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, until recently, but now growing with increased consumption of all malt beers

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

Static & limited food use – although has FDA Healthy Heart Claim Shown by USDA Barley Health Benefits Project – AMBA lobbying brought about funding

High risk crop – many chances for failure in making malting grade Good return as malting, low or no return as feed Risks: - Fusarium head blight (scab), other diseases, drought & heat stress, quality requirements

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

Substantial decline in barley and malt exports

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

Exp

end

itu

res

in b

illio

ns

Why Has Barley Acreage Declined?

Barley research & variety development primarily in public sector State and provincial universities; USDA-ARS and Agriculture & Agri-Food Canada

Limited and declining public sector investment

Limited variety development by companies US = 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 barley Low acreage compared to other major crops

Substantial 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

Category

Cost ($ million)

Number of responses

Discovery

Early 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-area testing

28.0 6

Regulatory science 17.9 6

Deregulation and regulatory affairs 17.2 6

Total $136.0 $105 w/o Discovery

Phillips McDougall, September 2011

GM Barley?

Current Status & Considerations

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

USDA-ARS US Wheat & Barley Scab Initiative funded researchers

High beta-glucanase lines to improve chicken feed

Washington State University

None 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-users Strongly opposed - to neutral - to supportive

Thus no clear signal to biotech seed companies to pursue

Developmental costs of GM barley too high to recover investment Low 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 for GM barley

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 WHEAT

Strong 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 industries

Production of your wheat products if you want to be non-GM

Comingling of GM wheat with non-GM barley

Most barley farmers also grown wheat

Wheat & barley grown in same area move through same elevator &

transportation systems

Barley Biotechnology Tool Box

X - No GM variety development But useful tool for research to elucidate gene function

e.g. Genome editing – convert 6-row to 2-row/scab resistance

Targeted genetic improvements without being transgenic (GM)

Induce base pair gene changes by the plant not through gene

transformation technology

Rapid Trait Development system (RTDS) - Cibus

(considered mutagenesis technology by USDA)

Doubled Haploid (DH) Barley Line Development

Rapid 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 technology Based on Single Nucletotide Polymorphisms (SNPs)

Illumina BeadXpress system (old) – Illumina iSelect system (new)

Exome capture sequencing

Being replaced by next generation technology for genotyping Genotyping by Sequencing (GBS)

Gene tracking applications Marker Assisted Selection (MAS)

Track introgression of one or a few genes

Genomic Selection (GS)

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

Barley Biotechnology Challenge $$$ - Most all funding is from limited public sector sources

vs billions being invested by biotech seed companies in other crops

State universities & USDA-ARS research locations

and USDA Grant Programs

What do we have for barley biotech research?

Includes Four USDA-ARS Small Grains Genotyping Laboratories Fargo, ND; Manhattan, KS; Raleigh, NC; Pullman, WA

Created through AMBA & wheat stakeholder lobbying

USDA-ARS US Wheat & Barley Scab Initiative grant program Created through AMBA & wheat stakeholder lobbying

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

Grants to individual scientists

Large grants to multi-researcher, discipline, and institution coordinated projects

Barley Agricultural Coordinated Project (Barley CAP 1) 2005-2010 ($1M/year)

Triticeae (barley & wheat) CAP (TCAP) 2011-2015 ($5 M/year)

Barley CAP 2?? Barley research community has applied for new grant

Keeping Barley Competitive With Other Crops

Barley biotechnology research in of itself is not enough to keep barley

competitive with biotech seed company crops

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

Need an adequate & effective national public sector barley research

infrastructure

Stakeholder funding, direction, and collaboration American Malting Barley Association (AMBA)

Brewing & Malting Barley Research Institute (BMBRI, Canada)

Brewers Association (BA)

Individual malting & brewing companies

State barley grower organizations

Adequate & Effective National Public Sector

Barley Research Infrastructure

Facilities

Direction Funding AMBA, BA Federal, State, Growers, Brewers, Maltsters

Personnel

AMBA National 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.

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.

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

Enhance barley competitiveness with other crops.

AMBA OBJECTIVES

Foster and support research that helps develop higher yielding

public sector malting barley varieties with characteristics that

mitigate production risk factors to increase acceptance rates.

Foster and support research that helps develop traits for public and private sector (member) malting barley varieties that mitigate production risk factors to increase acceptance rates.

Favorable federal farm programs, including crop insurance,

that mitigate production risks to growers and that do not favor

other crops over barley.

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

Cornell University, NY (new)

Montana State University AB-InBev

North Dakota State University Malteurop

Oregon State University MillerCoors

University of California – Davis Limagrain

University of Minnesota

University of Nebraska

USDA-ARS, Aberdeen, ID

USDA-ARS, Raleigh, NC

Utah State University

Virginia Polytech & State University

Washington State University

AMBA member

Funded by AMBA

Other US Malting Barley Research Biochemistry, Genomics, Molecular Biology, Physiology Diseases, Insects, Quality, Management, Variety Trials

Programs listed for malting barley variety development plus:

Colorado State University University of Vermont Michigan State University University of Wisconsin North Carolina State University University of Wyoming Ohio State University USDA-ARS, Fargo, ND Pennsylvania State University USDA-ARS, Madison, WI Texas A&M University USDA-ARS, Manhattan, KS University of Idaho USDA-ARS, Pullman, WA University of Maryland USDA-ARS, Stillwater, OK USDA-ARS, St. Paul, MN AMBA funding

2015/2016 AMBA Research Grant Program

(July 1, 2015 to June 30, 2016)

AMBA Funding (collective from all members)

$493,860 Twenty four projects (let me know if you want a list of projects)

Additional Member or Sponsor Funding

$20,000 Rahr Malting Two-Row spring variety development, ND State Univ

$17,250 Rahr Malting Two-Row spring variety development, Univ of MN

$ 500 MI Brewers Guild Barley production in Michigan, MI State Univ

$ 1,000 MBAA Mid-Atlantic Winter varieties for Southeastern US, Virginia Tech

$ 2,000 MBAA Mid-Atlantic Winter varieties for Southeastern US, USDA-ARS, NC

$ 2,000 MBAA Mid-Atlantic Malting & Brewing Quality Research Lab, Virginia Tech

$12,000 Sierra Nevada Two-Row winter variety development, OR State Univ

$ 3,000 Sierra Nevada Doubled Haploids for US breeders, OR State Univ

$15,000 Sierra Nevada Spring & Winter Variety Development, USDA-ARS, ID

$ 7,000 Sierra Nevada Disease Resistance, Univ CA-Davis

$ 3,000 Sierra Nevada Winter varieties for Southeastern US, USDA-ARS, NC

$82,750

$576,619 GRAND TOTAL – ALL AMBA ADMINSTERED GRANTS

Canadian Malting Barley Variety Development Programs

Primary (public sector)

AAFC, Brandon, MB

University of Saskatchewan

Alberta Agriculture and Rural Development

Secondary

Sapporo Breweries Ltd.

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 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 Quality Evaluation Program

Step 3 – AMBA Plant Scale Evaluation Program (Maltster) 10 Lines in Testing

VARIETY/LINE PROGRAM BREWER(S) TESTING

Western Winter Two-Row

Aberdeen-W1, -W2, -W3 USDA-ARS, ID AB-InBev, Boston, New Belgium,

(Briess) New Glarus, Sierra Nevada

OR-W1, -W2 OR State Univ AB-InBev, Boston, Deschutes, Sierra Nevada

(Great Western)

Western Spring Two-Row

Aberdeen-S1 USDA-ARS, ID New Belgium, Sierra Nevada

Aberdeen-S2 USDA-ARS, ID Boston

(Briess)

Midwest Spring Two-Row

ND-Genesis (2ND25276) ND State Univ AB-InBev, Bell’s, MillerCoors, Schell’s

(Rahr)

2ND28065 ND State Univ Boston, MillerCoors, New Belgium,

(Rahr) Oskar Blues

Midwest Spring Six-Row

ND26891 ND State Univ AB-InBev, MillerCoors

(Rahr)

AMBA 2015 Recommended Varieties

AAC Syngery (2015) Agriculture & Agrifood Canada

ABI Voyager (2014) AB-InBev

AC Metcalfe (2005) Agriculture & Agrifood Canada

CDC Copeland (2007) University of Saskatchewan

CDC Meredith (2013) University of Saskatchewan

Charles* (2009) USDA ARS, Aberdeen, ID

Conlon (2000) North Dakota State University

Conrad (2007) AB-InBev

Expedition (2013) Malteurop

Harrington (1989) University of Saskatchewan

Hockett (2010) Montana State University

Merit (2000) AB-InBev

Merit 57 (2010) AB-InBev

Moravian 37 (2010) MillerCoors

Moravian 69 (2010) MillerCoors

Pinnacle (2011) North Dakota State University

Scarlett (2008) Saatzucht Joseph Breun GdbH, Germany

Wintmalt* (2013) KWS Lochow, Germany

* Winter barley (year added)

Two-Row

AMBA 2015 Recommended Varieties Six-Row

Celebration (2011) AB-InBev

Innovation (2014) AB-InBev

Lacey (2000) University of Minnesota

Legacy (2001) AB-InBev

Quest (2011) University of Minnesota

Robust (1984) University of Minnesota

Stellar-ND (2006) North Dakota State University

Thoroughbred (2015) Virginia Tech

Tradition (2004) AB-InBev

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Six-Row

Two-Row

US Malting Barley Variety Types Malting as a Percentage of Total Acreage

2015 MIDWEST CONTRACTED BARLEY VARIETIES (Minnesota, North Dakota, South Dakota & Wisconsin)

Lacey

20.7%

Other

4.2%

Pinnacle

7.2%

CDC Meredith

4.3%

Quest

1.9%

Tradition

59.5%

Innovation

1.5%

CDC Copeland

1.9%

2015 WESTERN CONTRACTED BARLEY VARIETIES

(Colorado, Idaho, Montana, Washington & Wyoming)

AC Metcalfe

14.8%

ABI Voyager

7.4%

CDC Copeland

3.6%

Hockett

9.8%

Other

8.1%

Moravian 69

8.1%

Conrad

7.0%

Moravian 115

5.0%

Merit 57

4.5%

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 GUIDELINES IDEAL COMMERCIAL MALT CRITERIA

American Malting Barley Association, Inc.

November, 2010

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

AMBA Member Interest* 20% 55% 25%

Barley Factors

Plump 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 Factors

Total Protein 12.8% 12.8% 11.8%

on 7/64 screen > 60% > 70% > 75%

MALTING BARLEY BREEDING GUIDELINES

IDEAL 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 < 100

F/C Difference < 1.2 < 1.2 < 1.2

Soluble/Total Protein 42-47% 40-47% 38-45%

Turbidity (NTU) < 10 < 10 < 10

Viscosity (absolute cp) < 1.50 < 1.50 < 1.50

Congress Wort

Soluble 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 1.6-2.8

FAN > 210 > 210 140-190

Malt Enzymes

Diastatic Power (°ASBC) > 150 > 120 110-150

Alpha Amylase (DU) > 50 > 50 40-70

MALTING BARLEY BREEDING GUIDELINES

IDEAL 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 Rust o Fusarium head blight (scab) o Barley yellow dwarf virus o Cereal yellow dwarf virus o Bacterial leaf streak o Stripe rust o Root diseases o Net blotch o Septoria speckled leaf blotch o Spot blotch o Powdery mildew (winter barley)

Fusarium Head Blight

aka Scab = DON (vomitoxin) Ug99 (African) Stem Rust

American Malting Barley Association, Inc.

2003 Anheuser-Busch, Inc.

Miller Brewing Company

Sierra Nevada Brewing Company

Briess Malting Company

Froedtert Malt

Great Western Malting Company

Cargill Malt

Rahr Malting Company

AB-InBev

Bell’s Brewery

Boston Beer

Briess Malt & Ingredients

Brooklyn Brewery

Brown-Forman

Cargill Malt

Craft Brew Alliance

Deschutes Brewery

Dogfish Head Craft Brewery

Gambrinus Company

Great Western Malting

Heineken Mexico

InteGrow Malt

Malteurop North America

MillerCoors

New Belgium Brewing

New Glarus Brewing

Oskar Blues Brewery

Rahr Malting

Schell’s Brewing

Sierra Nevada Brewing

Stone Brewing

Summit Brewing

REGULAR MEMBERS (24)

American Malting Barley Association, Inc.

Abita Brewing

Alaskan Brewing

Allagash Brewing

Anchor Brewing

Ballast Point Brewery & Spirits

Bear Republic Brewing

Big Sky Malts

Blacklands Malt

Blue Ox Malthouse

Boulevard Brewing

Cigar City Brewing

C’N’C Malting Company

Cold Spring Brewing

Colorado Malting

Deer Creek Malthouse

Epiphany Craft Malt

Farm Boy Farms

Firestone Walker Brewing

Flying Dog Brewery

Founders Brewing

Full Sail Brewing

Georgetown Brewing

Gold Rush Malt

Harpoon Brewery

Langunitas Brewing

Lakefront Brewery

Left Hand Brewing

Leopold Bros Distillery

American Malting Barley Association, Inc.

ASSOCIATE MEMBERS (56)

Long Trail Brewing

Lost Coast Brewery

Malterie Frontenac

Matt Brewing

New Holland Brewing

Odell Brewing

Oran Station Brewing Supplies

Penns Mault

Pilot Malt House

Rahr & Sons Brewing

Real Ale Brewing

Riverbend Malt House

Rogue Ales

Russian River Brewing

Saint Arnold Brewing

Schlafly Beer

Smuttynose Brewing

Southern Tier Brewing

Sprecher Brewing

Straub Brewery

Sun King Brewing

Troegs Brewing

Uinta Brewing

Urban Chestnut Brewing Utah Brewers Cooperative

Valley Malt

Victory Brewing

Wachusett Brewing

American Malting Barley Association, Inc. ASSOCIATE MEMBERS (56)

Challenging, but promising!

As long as we all work together to make that happen.

Thank You