Europe: Drop in barley crop 2021 and strong exports leaving region’s ending stocks at very low levels

Europe’s drop in barley crop 2021 production to 59.7 mln tonnes (for the combined EU-27 + the UK) and strong exports leave ending stocks at very low levels, RMI Analytics said in their early February report.

Higher winter wheat plantings and good farmer returns for rapeseed/canola are a challenge for spring barley planted area. Higher input costs may be unfavourable for malting barley due to the related quality risks, making feed barley preferred.

According to local sources, variety Planet is expected to retain area in France but will be reduced in the UK and Denmark.

The tight Russian supply & demand has not prevented China and Russia from clearing restrictions for the shipment of wheat and barley from all regions within Russia to China.

During this crop year, Ukraine has exported 5.5 mln tonnes and Russia 2.4 mln tonnes of barley, leaving room for Russian volumes to increase in the future once the restrictions are fully lifted (there is an approval process required by China which could take several months).

Demand from China and other markets leaves Europe with an emptying inventory situation, as evidenced by imports into western Europe to address the tight stock situation, the RMI analysts said. Maintaining farmer interest in malting barley is critical for planted area and the analysts expect crop 2022 changeover to be very rapid.

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