Scarce supply of malting barley in Europe

The supply of spring malting barley in Europe will be significantly smaller this year than in other years. In certain regions the acreage was reduced. Overall, qualities do not meet the expectations.

Particularly affected by weak yields and qualities is France. In principle, all parameters have turned out unsatisfactory. The winter malting barley was only able to show very weak results with protein values from 12 to 13 percent, too. Screening was only 50 %, the yield at just 6.0 t / ha. An exceptionally bad year is expected for winter malting barley. The total of malting barley seems to be at 2.5 Mio. t. The export surplus could be lower by one third compared to other years. UK, however, reported good qualities. The selection rate is projected to be at 54 percent. Barley has already been traded to the Upper Rhine, where it has set prices temporarily under pressure. The farmers from the island will have to compensate parts of the losses in France.

In Denmark, there is also talk of good qualities and additionally of an increased acreage compared to the previous year. Protein and screening are satisfying. Only the yield leaves something to be desired. The selection rate in the market is projected to be at 60 to 65 percent. The average value in recent years has been about 50 percent. The market is expecting a surplus of 1.0 million t. The amount could be even greater if the premium for malting barley as compared to feed barley remains high. At the moment it is at least at 40 EUR/t. In this case, the Danish farmers sell their barley as malting barley and buy feed barley for example from Germany. Around 400,000 tonnes Danish barley have already been sold. The yields in Sweden are at 4.8 t / ha and therefore lower than the previous year. The qualities are largely fine. Only a few results are reported from Finland. At the end of August, only 15 to 20 percent of the harvest had been brought in. Rain had hampered the work in August.

In addition to France, mixed results were also reported from Germany. There have been regionally weak yields and screenings in the Southwest as well as good qualities in northern and central Germany. But the better results cannot compensate for the significantly lower acreage, according to the Braugerstengemeinschaft e.V. . The selection rate could be reduced with the start of processing and further insights into health issues and the possibility of gushing. The estimated import demand for Germany is 1.1 mio. t. The average in the past years was 800,000 to 900,000 t. In the Netherlands, yields were slightly below the previous year. Good qualities in a much smaller acreage were reported from Austria. For the upcoming year, market participants expect a further reduced area. Above average yields have led to a low protein content in Hungary. The screening was good. In Slovakia and the Czech Republic, the area has been cut back considerably. However the good yields could not offset this decline. Nevertheless, the Czechs could satisfy some of the demand from Poland. In the neighbouring country a very heterogeneous crop with large regional differences was reported. Yields and qualities are below those of the previous year. Especially the North of the country is affected.

The surplus of spring malting barley in the EU could fall back to approximately 500,000 tonnes. UK and Denmark have to make up for the shortfall from France within the EU. It can also not be ruled out that in the upcoming year barley will have to be imported into the EU if there will still be problems with the germination with local barley. Maltsters have already started to prove their ability to compromise. After the processors could go with a large surplus in the new campaign from the harvest 2015, the supply of this year's harvest is scarce. Prices for barley fob Denmark are currently at 183.00 to 184.00 EUR/t (base October). Fob UK move at 182.00 to 183.00 EUR/t. Franco Upper Rhine are at 208.00 to 209.00 EUR/t (base October). The harvest in 2017 is at 215.00 to 216.00 EUR/t. In the meantime a brisk business had already started for the harvest of 2017. This led to a certain increase in the prices. Meanwhile, the purchasing behaviour has calmed down again.

Spring barley in Europe (status: end of August 2016)

(Progress, protein and screening: First harvest results; yield and total: Estimates)

*MB = Malting Barley