Barley Report Europe

The European harvest of spring barley 2012/13 has been comfortable. Thanks to a vast acreage and a high yield the result of this year’s harvest is good, although regional quality problems could reduce the result. Nevertheless there will be a surplus in the EU 27. Depending on the quality it is expected to be between 0.75 and 1.4 Mio. t.

The growing conditions for spring barley were favorable in many regions of Europe.

Assumingly 57 percent of the spring barley harvest in France can be sold as malting barley. In the qualitatively very difficult year 2011 there were only 38 percent.

Denmark reports a relatively low protein content. Otherwise, the quality can be described as very good and healthy. In both countries a significant surplus is to be expected. Denmark can apparently export 1.0 Mio. t of barley, France about 1.8 Mio. t, although barley from France sometimes has problems with low protein and gushing.

Similar problems exist in Germany. Nevertheless, imports will be much lower this year because of the good harvest. Instead of 0.8 Mio. t, only 0.5 Mio. t will be expected for import this year. About 50 percent of the crop is rated as malting barley.

Southern Sweden also reports excellent quality. There are problems in other regions of the country with low protein and germination though.

However, there have been some problems with this year´s spring barley in the UK. At the time of harvesting, there was heavy rain, which delayed the completion time into autumn, which facilitated the occurrence of Fusarium. Some fields in Scotland could not be harvested at all. So this year there is demand for imports in the North of the kingdom, which normally is covered by Denmark.

In Eastern Europe market participants are not satisfied with the harvest as well, although for a different reason: The heavy drought has left its traces in the main growing areas in Austria. The harvest is far below average and of very poor quality. Only a small portion of the crop meets the standard quality criteria. There is the talk of undersupply. In the Czech Republic and Slovakia, the protein values are higher than in the past two years, but maintain an acceptable level in the Czech Republic. Low yields characterise the harvest in some regions of these countries. Slovakia has an import requirement of about 40,000 – 50,000 t. In the Czech Republic, the supply and demand is mostly balanced. Hungary reports poor quality due to high protein and poor screening. The harvest in Poland is described as quite good in the South, but suboptimal in the North of the country.

Despite the large harvest in Europe, prices for malting barley are stable. Wheat and corn on the international stock exchanges set the tone. In addition, demand for feed barley determines the market. The price difference to malting barley is not very large. This way established brewing barley gets into the feeding trough. The extent of this sales behavior is difficult to quantify at the moment and can jeopardize the balance. Problems with Fusarium and gushing should not be underestimated.

The malthouses are currently nearly at full capacity. Brewers still have to buy for the calendar year 2013. Farmers in Germany can currently take out letters of intent for the 2013 harvest to a level from EUR 230.00 to 245.00 / t free carrier. Nevertheless market participants expect the acreage to be significantly smaller in Germany next year due to contract settlement with the high quality criteria and the small price distance to feed barley. The level of 2011 is possible. In Denmark and France the acreage will be reduced as well, while a higher acreage is probable in the UK. The wet autumn did not allow an optimal seeding of winter seed. Up to 40 percent more spring barley than last year is expected.