North America: United Malt expects significant improvement in North American barley crop this year

United Malt has declared a “positive” crop outlook in each of its growing regions. “A significant improvement is expected in the volume and quality of the North American barley crop compared to last year,” the Financial Review reported on September 7.

United Malt forecast Canadian barley production 47 per cent higher than in 2021, at 10.2 million tonnes. England and Scotland recorded good quality and yields with the barley harvest complete or nearly complete.

“In Australia, rain across all major growing regions and moderate temperatures are creating favourable barley growing conditions.”

Separately, United Malt will not need to raise capital.

It has agreed with its lenders to extend debt covenants that allow for additional inventory funding. It intends to reduce net debt to EBITDA by September 30, 2023, to 2 times to 2½ times.

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