The state of Baja California, along with the Autonomous University of Baja California and craft beer producers had invested 6.4 million peso for the construction of a new malt plant here.

State Secretary of Sustainable Economy and Tourism Mario Escobedo said one of the goals of this project is to help wheat producers and increase their benefits.

The 1980 square feet plant will be constructed in Ejido Nuevo Leon rural town and will be able to process a ton of wheat per day.

Wheat has become an issue for state authorities and producers due to the decline in prices. Also, producers have been unable to pay back credit loans and purchase equipment to make production more efficient.

The Department of Sustainable Economy said agro-industrial development will be stimulated with the new plant while promoting technology innovation and substitution of importation.

Sec. Escobedo said the state leads in Latin America beer consumption.

The state also leads in craft beer companies nationwide with 195. These businesses produce about 7 percent of Mexico’s craft beer.

Sec. Escobedo said that while wheat leaves net gains of about $100 per ton, barley producers obtain up to four times that amount.