Graincorp is expanding its malt production in the US north west to capitalise on a craft beer boom.
The capacity of the company's Great Western Malting facility in Idaho will be increased by 120,000 tonnes to an annual output of 220,000 tonnes by mid-2017, at a cost of $US75 million ($A93.86 million).
A major part of the new capacity will serve long term supply agreements with major customers, while the rest will allow Graincorp to increase its exposure to the US craft beer industry, which is growing at up to 15 per cent each year, the company said.
Craft beer will make up one fifth of the US beer market in the next five years.
"We are very excited about the opportunities for GrainCorp Malt arising from the ongoing growth in demand for malt, particularly from craft brewers," chief executive Mark Palmquist said.
"We are very excited about the opportunities for GrainCorp Malt arising from the ongoing growth in demand for malt, particularly from craft brewers."
Graincorp recently reported a 40 per cent drop in half year profit, despite increased earnings from its malt and oils businesses.
Malt made up more than half the company's $136 million in earnings in the six months to March.
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