Rahr Malting Co., a prominent player in the malting industry, is set to take over the production capacity of Anheuser-Busch’s Moorhead malt plant, marking a pivotal shift in the region’s malting operations. As part of the agreement, Anheuser-Busch will close its Moorhead facility and sell grain elevators in West Fargo and Sutton, North Dakota, redirecting barley supplies from North Dakota and Minnesota to Rahr’s advanced malting plant in Shakopee, Minnesota.
Built in 1978 on 150 acres in Moorhead’s industrial park, Anheuser-Busch’s malting plant had long been an economic mainstay. At its peak, the facility shipped malt via 1,651 rail cars and 170 trucks annually to supply four of Anheuser-Busch’s 12 U.S. breweries. However, as early as 2012, discussions arose about the plant's future due to high production costs, mirroring the closure of Anheuser-Busch’s Manitowoc, Wisconsin, malting plant in 2011. In 2016, the company warned that rising utility costs could lead to further closures. Additionally, the Moorhead plant, processing about 7 million bushels (approximately 152,000 tons) of barley annually, was already one of the smallest malting facilities in the region.
Founded in 1847, Rahr Malting Co. remains family-owned and is a leader in the North American malting industry. Rahr’s Shakopee facility, which expanded in 2016 to become one of the largest single-site malting plants globally with a capacity of 460,000 tons annually (inside.beer, 9.10.2016), will now absorb production previously managed by the Moorhead plant. This transition aims to ensure uninterrupted malt supply to breweries while maintaining Rahr’s commitment to quality and innovation.
Under the new agreement, Rahr will source barley from Anheuser-Busch’s network of over 250 growers across North Dakota, Minnesota, and the Midwest. This commitment reinforces Rahr’s reputation as a reliable partner for farmers and brewers. Nicole Zaharadka, Director of Agronomy for Anheuser-Busch, highlighted the partnership’s significance: “As we continue to build toward a strong future, we’re updating our malting operations and expanding our decades-long relationship with Rahr, a trusted partner and leading malting company. Anheuser-Busch purchases, on average, more than USD 50 million annually in barley from our 250+ grower partners across the Midwest, including North Dakota and Minnesota. This will not change.”
This collaboration comes as the beer industry contends with evolving consumer preferences, shifting from traditional beers to seltzers, cocktails, and other beverages. By consolidating malting operations with Rahr, Anheuser-Busch seeks to optimize efficiency while leveraging Rahr’s expertise to meet changing market demands. Rahr’s Shakopee facility, with its expanded capacity, will process barley into malt for a diverse range of beers, ensuring a stable supply chain for the brewing industry.
The closure of the Moorhead facility also reflects broader challenges in the malting market. Overproduction in 2022 and 2023, combined with declining beer consumption, has reduced demand for malting barley. U.S. barley acreage in 2024 dropped to its lowest level since 1878, with North Dakota experiencing a sharp decline, according to the U.S. Department of Agriculture.
The closure coincides with a significant development for Moorhead: the announcement of a $5 billion sustainable aviation fuel (SAF) production facility by DG Fuels. Scheduled to begin operations in 2030, the facility will convert agricultural and timber waste into 193 million gallons of low-carbon aviation fuel annually. This project positions Moorhead as a future hub for biofuel innovation, providing a promising economic alternative to industries impacted by the malt plant closure.
