Context / Background

We aim to ensure that all raw materials used in the production of our beverages are obtained from sustainable sources, placing a high importance on the purchase of national raw materials, key points of our Sustainability agenda. At the same time, we also seek to actively contribute to the economic and social development of the different communities. Central de Cervejas reinforces the focus on local sourcing by promoting the production of national barley to reduce the volume of the imported barley quota, which results from the unavailability in the national market of acquiring all the needs of the sector for the production of its beers. The existence of our own malteria, requires constant monitoring of the barley campaigns and harvests, as well as a close relationship with the Farmers and Cooperatives. We also support the development of the barley value chain through the Barley and Malt Committee of the Portuguese Brewers Association. In this context is released an annual Bulletin with the barley varieties approved and under study by this Committee, thus defining the varieties with the highest productivity and beer quality, contributing to the profitability of farmers. Fulfilling this purpose, we have developed two initiatives, which are concrete examples of how we seek to promote local economic development by stimulating the production and acquisition of raw materials by nationals, promoting and supporting the development of the barley value chain in Portugal.

What you've done

Fulfilling this purpose, we have developed two initiatives, which are concrete examples of how we seek to promote local economic development by stimulating the production and acquisition of raw materials by nationals, promoting and supporting the development of the barley value chain in Portugal. Cereal production has declined and Portugal is today a country with a deficit in these agricultural products. In homage and encouragement to the production of barley in Alentejo, a region known as “the breadbasket of Portugal”, Cerveja Bohemia launched its variant Pilsener Cevada do Alentejo. The process as well as the use of 100% of Alentejo barley in this beer was audited and certified by the National Association of Producers of Protein, Oilseeds and Cereals (ANPOC), through the brand "Cereais do Alentejo", evidenced on the labels through a seal. The barley used in the production of this beer is supplied by certified regional producers and associates of the Southern Cereal Producers Group (CERSUL). For the launch of the new Bohemia beer, 700 tons of barley were purchased from CERSUL equivalent to about 10% of this group's annual sales. Twelve of the association's farmers are focused on the production of the main raw material for beer malt. The cooperative has a barley cultivation area - between irrigated and rainfed - that is around two thousand hectares. In this way, we seek to foster in Alentejo the tradition of cereal cultivation through partners who observe the efficiency and sustainability of agricultural production methods (soil mobilization; rational fertilization; plant protection, irrigation plans and water balance preparation.) The production of cereals is important for farmers in this region, but it also contributes, for example, to the cattle raising sector, as the stubble left by the crops serves as pasture. It also contributes to biodiversity and the existence of not only monocultures. "Bohemia Pilsener Cevada do Alentejo" beer is an evidence of how brands are inspired to align their purpose with an approach to the focus of the Sustainability agenda, supporting the local economy and regional producers. Another partnership initiative for the promotion of national agriculture is the pilot project to create a new row of production of barley in Alcácer do Sal, a region in the south of Portugal known for the rice fields. Central de Cervejas and Agri Marketplace, a Portuguese start-up that is dedicated to digitizing the market for the purchase and sale of agricultural products and whose focus is on cereal crops, have established a partnership to promote the creation of a new row of agriculture of barley in Alcácer do Sal. This project began to be designed in 2019 which aims to enhance innovation in the value chain and promote National Agriculture. This partnership resulted in a project for the cultivation of barley by rice producers in the Vale do Sado region, with the guarantee of acquisition of this production by the Central de Cervejas. This initiative emerges in response to the water scarcity problem that the Sado Valley region has suffered in recent years, added to the constraints of access to water in 2020, as a result of works taking place in the irrigation channels, which has negatively affected rice production. The creation of this new row of barley in Alcácer do Sal is also an opportunity for agricultural producers in this region to mitigate the effects of the crisis situation of recent years, through this alternative income and, simultaneously, a long-term agricultural diversification, through the implementation of a rainfed culture. It was also possible to boost other entities in the region, such as APARROZ - Association of Rice Producers from Vale do Sado, through its services for cereal processing and storage. This initiative represents an agricultural innovation that resulted in a total area of 100 hectares of barley production in Alcácer do Sal, distributed by 3 agricultural producers with an estimated annual production of 300 tons of barley. The expectation is to repeat this initiative  next year and expand it geographically so that more producers have access to this opportunity for income and the exploration of a new agricultural culture.

Results

These two actions are concrete examples of how we try to close the cycle at all stages of the value chain. The acquisition of national barley which will be transformed into malt in Central de Cervejas Brewery, the main ingredient in beer production, plays a key role in the circular economy, boosting innovation in the value chain, while impacting on the environmental, economic and social pillars, promoting national agriculture as well as the local economy and regional farmers and agricultural cooperatives. Through these projects we also seek to reduce the volume of the imported barley quota.

Critical success factors and learnings

Partnering with farmers cooperatives its important to boost the barley culture in Portugal. Working close to the farmers gives us the best results in barley quality and on the environment impacts. Think outside the box and seek for new fields where barley can be cultivate, motivating farmers to explore other cultures. Its a win-win relationship impacting economy an environment.