22 June, 2007

EU: The tight or rather insufficient S/D situation of malt will last at least till 2009

For 2008 market analysts expect a larger malt production, 8.6 million tonnes that is 98 % of present capacity plus some initial production of new factories. The export surplus would rise to 1.7 million tonnes, however, the export demand will be far above two million tonnes, close to the figures of former years.

The tight or rather insufficient S/D situation will therefore last at least till 2009. Maltsters will be in a position to defend the present malting margins, unless they become needlessly frightened by the appearance of new malt capacities.

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