North America: Malting barley deficit now a well-known fact in Canada and the US
The barley crop situation in Canada and the USA is well known at this stage, with a deficit malting barley, RMI Analytics said in their February report.
Imports are underway to repair the situation, with at least six malting barley cargoes reported from various origins (Europe – Denmark and France; Argentina; Australia) to help ensure critical barley supply.
Canada’s crop 2021 production at 6.8 mln tonnes of barley results in a very low ending stocks level at 0.4 mln tonnes, despite a sizeable drop in feed barley demand as US corn is imported to displace barley. The crop 2022 forecast shows a rebound in production to 10.2 mln tonnes based upon average yields, and despite a 4% reduction in planted area. Crop 2022 exports are to increase dramatically as an empty pipeline for Canadian malting barley is refilled in off-shore markets and the US as well.
Dry conditions remain in key barley regions across Canada and the US. On top of strong competition from other crops, malting barley faces pressure in terms of farmers shifting to feed barley due to dryness and high input costs.
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