World: Barley balance sheet remains tight

The world barley balance sheet remains tight with the production drop to 147.4 mln tonnes in crop 2021, RMI Analytics said in their latest report earlier in February.

China’s demand has been well documented, but the implications are severe and widespread. For example, there are large volumes of barley moving in non-traditional routes including Europe, Argentina, and Australia shipping to North and South America.

As China pulls heavily from Europe, there are reports of two cargos moving back to Europenfrom Argentina and rumoured from Australia as well. Australia exported nearly 1 mln tonnes in December (mostly feed), as the large crop there is providing much needed security of supply.

Forecasts for crop 2022 are being developed with the biggest question being the competitiveness of malting barley versus other crops. Farmers have many crop options, all with attractive prices but also with high input costs. Final planting decisions take into account several factors, a challenge for malting barley with its associated quality risks.

Maintaining an ample barley supply until crop 2022 harvest remains a major question, as peak brewing season is expected to be strong during the pandemic reopening. Malting capacity impacts due to barley quality include thin barley with high proteins which results in lower brewing extracts.

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