Germany: Maltsters facing increasing competition from import
Germanys malt industry is facing increasing pressure from rising import competition and structural cost disadvantages, as new data for 2024 shows a continuing trend of declining domestic malt production. According to the latest figures, German malt output fell to 1.885 million tonnes in 2024, a year-on-year drop of over 102,000 tonnes compared to 2023. This marks one of the lowest production levels in more than a decade, Inside.Beer reported on March 17.
At the same time, malt imports surged by 68,000 tonnes to 272,599 tonnes the highest level recorded since 2010. Market insiders suggest that imported malt from countries like the Czech Republic, France, and Belgium has become significantly more competitive despite higher transport costs. The main reason appears to be lower production costs abroad this year, putting German maltsters at a disadvantage.
Unconfirmed reports indicate that major German breweries have significantly increased their share of imported malt in 2024. This shift in procurement strategy comes amid rising energy, labor, and raw material costs in Germany, which have been squeezing margins for local malt producers.
As a result of these market dynamics, concerns about the viability of German malt houses are growing. In addition to the already confirmed closure of the Durst/Soufflet malting plant in Castrop-Rauxel, industry insiders suggest that two more German maltings both owned by foreign corporations could be at risk of shutting down operations in the near future. Still, Germany remains one of the leading global malt producers and a major supplier to breweries worldwide.
Although malt exports from Germany also declined by nearly 47,000 tonnes in 2024, the overall domestic malt consumption slightly increased to 1.541 million tonnes, up 12,488 tonnes from the previous year. However, this marginal recovery in internal demand is unlikely to compensate for the overall downward trend in production and the rising dominance of imported malt.
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