16 February, 2017

World: Malt market showing good growth over the past two years

The malt market has shown a surprisingly good growth over the past two years. Maltsters in all continents report good sales and more or less full employment of their capacities. This includes the usually troubled regions of Northeast Germany, Bavaria and Central Europe. Exceptions are Russia, Ukraine and inland China, where capacities had been expanded in the past far beyond present needs, H. M. Gauger GmbH said in their latest report.

North and South America, however, commenced and partly finished construction of large new maltings of up to half a mln tonnes, China several 100,000 tonnes factories along the coast line, Vietnam initially 110,000 tonnes, Africa a few smaller factories. Australia is recovering from a bad crop year and will return to full employment of its industries. In Europe, a number of smaller expansions have been and are being done. The major constructions are taking place in and near North Sea ports, Holland Malt 110,000 tonnes in Eemshaven and Boortmalt 110,000 tonnes in Antwerp.

The increased malt demand is due to several factors: larger beer sales, particularly in Africa and Asia; the great success of craft beer, which needs up to three times more malt than industrial beer; a larger share of premium beer sales, e.g. in China, demanding a higher malt input; the fast growing malt needs for the whisky and food industries, the analysts said.

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