Evidence of meeting #73 for Agriculture and Agri-Food in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was different.
A recording is available from Parliament.
11:40 a.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
Okay, so where along the chain...? We have the barley. It goes to the brewer, or the...?
As well, how does the process take place for the hops?
11:40 a.m.
President, Brewers Association of Canada
When do the hops get put into the beer?
11:40 a.m.
President, Brewers Association of Canada
It's not something I've ever been shown, because it's a secret. For every brand it will be very different.
11:40 a.m.
President, Brewers Association of Canada
It's when it's in the kettle. After they've brewed the wort, which is that sugary solution they put in the kettle and boil, that's when they would put the hops in.
11:45 a.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
You mentioned maltsters and brewers. Would they be at the same physical location?
11:45 a.m.
President, Brewers Association of Canada
No. We have several malting facilities across the country. The maltster is the one who deals primarily one on one with the producer in selecting the malt. They'll call it, and then it comes into their malting facility.
11:45 a.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
So the barley comes to the malting facility.
11:45 a.m.
President, Brewers Association of Canada
That's right, and then they malt it. In the malting process, basically they bring it to life to a certain point and then they shut it down by kilning the malt. Once it gets down to a certain moisture level, they put it on a train or a truck and they ship it to the brewer.
11:45 a.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
That's where the hops would come into the chain. Is that correct?
11:45 a.m.
President, Brewers Association of Canada
No. The malt comes into the brewery, it gets augered into the mill, and then the mash is done. They add water and steep it. Then they would bring it into the kettle. It's in the kettle that they would put the hops in.
11:45 a.m.
NDP
Alex Atamanenko NDP British Columbia Southern Interior, BC
Okay.
What role do you see for government when it comes to malt barley? In other words, what can we do to assist?
11:45 a.m.
President, Brewers Association of Canada
Canada put its place on the global map when it comes to malt barley with a variety called Harrington back in the 1960s and 1970s. For the brewing industry and for the malting industry, it was the gold star of malt varieties.
Over time, the variety starts to weaken. It doesn't necessarily produce at the same rate it did in the past because it's more susceptible to pests or whatnot. That investment needs to continue to be made.
Canada came back out with Copeland varieties, and Metcalfe. We just need to make sure there—with industry, not just government on its own, and with growers working together—that investments are going in for those varieties that will continue to keep Canada on the global stage when it comes to malt barley.
April 16th, 2013 / 11:45 a.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Thank you, Chair.
Thanks for coming, Luke.
I have a few different questions.
First, just to touch on what Alex was talking about with regard to malt barley, you talked about a number of varieties, and I'm just curious, are any of these GM varieties?
11:45 a.m.
President, Brewers Association of Canada
No, there are no GM varieties grown in Canada.
11:45 a.m.
President, Brewers Association of Canada
I'm not sure. Maybe in China or other countries they have some, I don't know, but not in Canada.
11:45 a.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Okay. Good.
When you first started out with your talk, Luke, you spoke about the excise tax on beer. How does that compare to, say, wine or other spirits?
11:45 a.m.
President, Brewers Association of Canada
That's a great question.
Several years ago, in the 2006 budget, there was a progressive excise schedule brought into place for beer. Prior to that, it was a one-size-fits-all excise duty rate.
By bringing in a progressive schedule, it recognized that those smaller players, without the economies of scale, needed to have a lower excise burden in order to get into the business of brewing. It has been successful. We've gone from having around 35 to 40 microbreweries in the country to 200 of them now. So in terms of attracting investment into the category, it has been effective.
How does that compare against wine? In the 2006 budget there was an excise exemption on wines made with 100% Canadian agricultural product. That was very good for their industry, but in terms of discrepancy, brewers pay excise on the very first litre of beer they produce, whereas a vintner would pay no excise on any of the wine they produce as long as it's made with 100% Canadian agricultural product. Brewers in Canada would use 99% Canadian agricultural product—water, malt barley, and then some with locally grown hops as well.
11:50 a.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
I wanted to touch on the hops as well. You talked about the early 1990s and pests and pricing and so on. Do you know offhand what percentage of the Canadian market suppliers had at that point?
