Courtesy of Budweiser APAC

Budweiser APAC,one of the best loved beer brewers in China as well as in the world,  is reinforcing its cooperation with local growers in East China's Jiangsu Province with its latest project to help them provide better quality barley for the brand, providing support in breeding, crop management, agronomical technology innovation and barley management platform. 

Begun in 2016, the project has ensured high quality supply for Budweiser as well as the betterment of local farmers' lives. A series of in-depth collaborations have been confirmed and, since 2016, the quality of barley has improved, with a traceable food safety record. 

Moreover, the interconnectivity of the beer industry chain has also been strengthened over the years. 

This year, local grower representatives are included for the first time as contract signatories, promoting the development of the local beer barley industry and proactively exploring new approaches that benefit local growers. The partnership will further unleash the local industry's strong potential as it effectively mobilizes enthusiastic local farmers.

As a brand that sees the Chinese market as one of its paramount priorities for development, Budweiser has a long history of very close cooperation with Jiangsu Nongken, which become the very first premium rice supplier back in 1996, according to Jan Clysner, Vice President of Procurement & Sustainability, Bud APAC

"Jiangsu Nongken is definitely one of our key strategic suppliers at this moment," Clysner said, adding that "Jiangsu Nongken shares the same values and the same goals as we do. That is achieving a better and smarter agriculture and bringing more benefits to the farmers, their families, and the communities they live in."

According to Clysner, Jiangsu province stands out in terms of climate and soil conditions for cultivating the barley needed for brewing beer. Jiangsu, especially northern Jiangsu, is the most suitable region for the growth of malting barley. At the same time, many Budweiser breweries are located in the east, central and southeast of China, positioning the province at the very heart of logistics.

Known as an international brand that values product quality as well as sustainability, Budweiser has been providing important development opportunities for local communities and growers. According to company statistics, Nongken estimates that economic benefits of more than 20 million yuan will be generated by reusing the idle land as part of the project, and local farmers will receive rent via the land transfer agreement this year. At the same time, farmers can also increase their income by being employed by Nongken during busy periods.

 

Courtesy of Budweiser APAC

"In this partnership, we'll buy, on an annual basis, 25,000 metric tons of barley from Jiangsu Nongken, which comes from more or less 50,000 mu of land and involves 4,000-5,000 farmers and their families," Clysner predicts. "All parties will enjoy the economies of scale and improve the efficiencies that we will be able to bring through this partnership."

Apart from the direct economic benefits from supplying the brand, the local farmers are also getting technological support from the company. Since 2016, Budweiser has always maintained technical communication with Nongken on barley breeding, field management and barley production technology. Technical support has been continuously given by both the global barley team and the local agronomic team.

Notably, this year farmers are more closely engaged in and can be employed by Nongken so that they can be shown growing and management techniques to help increase productivity and sustainability.

"This change will not only be good for all of us. This change, I believe, will be good for the whole barley industry," Clysner said. 

China is the world's largest beer producer, but for a long time, Chinese beer was highly dependent on imported malting barley. Coupled with the market uncertainty in recent years, it is challenging for local brewers but also presents Budweiser with an important opportunity to expand its presence in China. 

As the world's leading beer brewer that not only attaches great importance to the layout of the entire industry chain, but also attempts to guarantee high-quality and stable supply, Budweiser pays a lot of attention to promoting a long-term virtuous cycle of the entire industry chain.

"We want to take this opportunity to drive change across the whole beer value chain within China, so that we can finally bring farmers together and create value for them," Clysner said.

Global Times