Publish date:

Cargill closes down malting factory – because of the craft beer boom

The agriculture giant says one of its North Dakota malt factories will shut in October.
Author:

The closure of a massive Cargill malting facility in North Dakota is a result of the demand for craft beer.

Carhill confirmed to BMTN that it will close its Spiritwood malt facility this October, and it's the result of falling demand for the kind of barley it malts.

The Minnetonka-based firm, the largest privately-owned company in the U.S., says that barley growers in the local area produce "six-row" crops.

But 2-row barley is currently the most popular choice for malting beer among the craft brewing industry at a time when national beer consumption is seeing a major shift to local breweries.

With North Dakotan and Minnesota weather not conducive to 2-row barley growing, Cargill is losing out to crops grown in other parts of the country, forcing to closure of its factory.

Related:

– Lift Bridge buys land for its $10M new Stillwater home.

– Sign up for our daily newsletters.

"The decision to close a plant is never easy, but reduced demand for 6-row crops, a ND climate not conducive to the more in-demand 2-row crop and low utilization of the plant made the closure necessary," a spokesperson told BMTN.

"Growers were notified that Cargill would not continue its Contract growing program prior to the 2018 season so they could make alternate contracting and growing choices. I can also confirm that Cargill Malt will honor all existing contracts, supplying malt out of Spiritwood until the end of September 2018."

The closure will result in 55 workers losing their jobs, all of whom will receive severance, as well as the opportunity to apply for jobs at other open positions within the company.

Cargill has two other malting plants in North Dakota, one of which is near Fargo.

Next Up

Yia Vang - media photo - crop 2

Union Hmong Kitchen will move into Mpls. food hall

Chef Yia Vang said they're "so excited to settle in and have a home."

ISSAboveYou - Duluth North Shore - Oct 18 2021

Watch: Mille Lacs, Duluth captured in stunning video from ISS

The space station provides a vantage point 260 miles above the Earth's surface.

2048px-The_Weeknd_with_hand_in_the_air_performing_live_in_Hong_Kong_in_November_2018

Ladies and gentlemen, The Weeknd has canceled his St. Paul show

He's made changes to his 2022 tour that involves scrapping his Xcel Energy Center gig.

Pixabay - police lights, tape

Man released from custody after admitting to fatal shooting in ND

Authorities said there is no threat to the public.

rochester-water-tower

MN water tower in the running for Tank of the Year

It was the only water tank to receive more than 5,000 votes.

first snow

Any sign of snow in the forecast for Minnesota?

The stars could align for some flurries in northern Minnesota this week, but that's about it.

Flickr - 14 year old vaccine shot - Navy Medicine

Walz announces $200 reward for kids 12-17 who get COVID shots

Those ages have the lowest vaccination rates among all eligible age groups.

Related

Beer drinker's lawsuit says Walmart's craft beer isn't actually craft beer

The lawsuit says Walmart's Trouble Brewing craft beer isn't legit.

Cargill to boost biodiesel production in Missouri

Cargill Inc. plans to increase the production capacity of its joint-venture Paseo Biofuels LLC biodiesel plant in Kansas City by 40 percent, Reuters reports. The Minnetonka-based agriculture giant expects the expansion to be complete by March 2013.

4 numbers that show how the craft beer industry is growing

The industry is still growing, though not quite as fast as before.

Microplastics found in beer made with Lake Superior water

A U of M study has identified how pervasive the tiny particles are.

Screen Shot 2019-02-15 at 11.42.13 AM

6 MN breweries win medals at Best of Craft Beer Awards

The big winner on the night was the Spilled Grain Brewhouse.