October 23，Budweiser APAC and Jiangsu Nongken, the eastern province’s forerunner of modern agriculture, successfully hosted the MOU signing ceremony at Xinyang Farm in Sheyang County, Jiangsu. By involving local farmer representatives as contract signatories, the two sides are going to co-drive a new round of development for China’s malting barley industry. Guests from Sheyang government, China Alcoholic Drinks Association, academic institutions, JSNK, Bud APAC as well as several local farmer representatives attended the ceremony. In addition, a deeply-insightful Bud Class was presented, inviting experts to provide professional interpretation on policy, agriculture and beer brewing.

Farm on Love – Driving Deep-Level Development of China’s Malting Barley Industry

n terms of the cooperation, Jan Clysner, VP Procurement & Sustainability, Bud APAC noted at the ceremony: “This year, Bud APAC is again teaming up with JSNK. But what makes our upgraded partnership different is that we are more closely binding the interests of local growers and the business, so that they can access the results of sound industrial development. With barley growers now among the key contracted parties, they will not only receive support in terms of technology and platform, but also truly become financially-empowered beneficiaries. Through the new tri-party partnership model, we hope to co-drive further development of the domestic malting barley industry. And the high-quality local barley thus harvested will be used to produce our local brands like BBOSS Beer, as we entertain local consumers with good beer brewed with locally-sourced water and raw materials of premium quality.”

Since the first MOU in 2016 we aimed at creating a benchmark for China’s malting barley industrialization. Bud APAC and JSNK have collaborated on various fronts such as breeding & planting, farm management and management optimization system, and advanced explorations from contract farming to integrated industry development. Liu Yaowu, Vice GM of JSNK, said: “Thanks to our partnership over the years, we’ve witnessed the enormous contribution to local economic growth from Budweiser. In terms of this year’s cooperation, it is pioneering in the beer industry. In the future, Budweiser plans to acquire 25,000 tons of barley on an annual basis, covering more than 3,000 hectares of farmland and benefiting 4,000-5,000 local smallholder farmers.”

Taking advantage of the rural land circulation policy, the partnership involves local farmers as one of contracting parties. On the one hand, this new model will increase local farmers’ incomes by offering them steady lease incomes and labor compensation, promoting sustainable development of local economy as the promise of “Farm on Love”. On the other hand, as the farm lands being transferred for unified management, the cooperation will further drive the standardized and scalized planting of local malting barley, maximizing the efficiency of local barley growing and land value, and releasing the vitality of domestic malting barley industry.

Brew with Heart – Connecting Whole Industry Chain to Brew the Best Beer

Diane Wauters, Bud APAC’s Director of Sustainability and Agricultural Development said, “Budweiser’s continuous efforts and attempts in the barley planting regions bear significant meanings, for strengthening the quality, competitiveness and raw barley self-sufficiency of local malting barley. Meanwhile, our ‘farm-to-table’ commitment has not only lowered risks with raw material supplies, but also provides our dearest consumers with solid protection from the source, so that they can shop and enjoy our brands with full assurance.”

Success with recognition – Cohering to recreate the industry legend

The cooperation has been highly recognized by guests from Sheyang government and China Alcoholic Drinks Association. Wu Gangyu, Governor of the Sheyang County People’s Government, commented: “The collaboration will benefit multiple stakeholders including Nongken and local barley growers, and more importantly, drive the booming development of our local industry and economy. We’re very delighted that Sheyang has embraced such a tri-party partnership that will benefit not only the business, but the local community as well.”

The cooperation has been highly recognized by guests from Sheyang government and China Alcoholic Drinks Association. Wu Gangyu, Governor of the Sheyang County People’s Government, commented: “The collaboration will benefit multiple stakeholders including Nongken and local barley growers, and more importantly, drive the booming development of our local industry and economy. We’re very delighted that Sheyang has embraced such a tri-party partnership that will benefit not only the business, but the local community as well.”

Zhang Wujiu, Chairman of the China Alcoholic Drinks Association Beer Raw Materials Committee and Chief Advisor of the China National Research Institute of Food & Fermentation Industries, concluded: “Barley is the most important raw material for brewing beer, and quality barley is highly relevant to brewing quality beer. But since our beer industry still heavily relies on raw material imports, the booming market hasn’t been able to deliver whole value chain effects of increased production, improved harvest and heightened efficiency. Since 2016, Bud APAC and JSNK’s strategic partnership has been building on the brewer’s global barley resources and strong agricultural guarantees to co-drive the productivity and innovativity of China’s own malting barley industry.”

The successful implementation of this win-win cooperation is due to the strong support of all parties and the unremitting efforts of our colleagues, especially those in supply chain and raw material procurement. Facing the future, let's continue to pool our internal strength, drive more external partners in the industrial chain, and work together to promote the development of China’s malting barley, so as to create more achievements and legends!