EU: Malt industry working at full capacity and must ration call-offs in some parts of the EU

The EU malt industry is working at full capacity and must ration call-offs in some parts of the EU, H. M. Gauger GmbH reported earlier this month.

In the main exporting countries of Western Europe, capacities are fully sold till the end of 2023. But it has become extremely difficult for the industry to balance cost vs. sales prices. Not only barley markets saw record highs, the cost of energy and transport increased even more. In many cases sales and long-term agreements had to be renegotiated, and some smaller maltsters (3 cases in Germany) stopped production and deliveries against their sales contracts. Their failures are immediately felt in the market, requiring cover of hardly available malt for prompt delivery.

Lower production during last winter and the failure to build up sufficient stocks for the summer business puts many maltsters and their customers into difficulties now, the analysts reported.

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