EU: For 2004-05, barley production in the EU- 25 is estimated by the USDA to reach afive- year high of 61.8 Mt, 13% higher than last year and 8% larger than the average of last 5 years. A milder winter and adequate soil moisture boosted yields significantly in France, Germany, Spain and other member states, despite a slight decrease in area harvested. Meanwhile, with the substitution of feed wheat and corn for barley, domestic feed use is forecast to return to a more normal level of 38.0 Mt from last year’s 41.0 Mt, although domestic food and industrial use remains unchanged at 15.9 Mt. EU barley exports are forecast to partially recover from last year’s 1.0 M to 3.3 Mt, but are still short of the historical average of about 6.6 Mt. As a result, EU carry-out stocks are projected to recover robustly, from 4.0 Mt in 2003-04 to 8.9 Mt, compared to the historical average of 9.6 Mt.

Larger surplus supplies of malting barley in the EU, less competition from both Australia and Canada, and stronger import demand are expected to raise EU malting barley exports in 2004-05. Malting barley exports for the EU are forecast to increase from 1.1 Mt in 2003-04 to 1.3 Mt in 2004-05

The EU is the second largest exporter of malting barley and the world’s largest exporter of barley malt. France is the leading EU exporter of malting barley, followed by Denmark and the new members, the Czech Republic and Hungary. The EU also enjoys the most diversified markets among the major exporters. China, Russia, Brazil, Colombia and Peru are among its major markets.

EU malting barley is dominated by two-row spring varieties. However, some two-row and six-row winter barley is grown in northwest Europe. The EU also has a relatively low select rate, of malting barley from the whole barley crop, at 20-25%. Although higher than the average of 16% for Canada, this is much lower than in Australia. The EU is also different from the other major exporters in that more of its malting barley production, 60-65%, is processed domestically, rather than exported unprocessed as grain, while that ratio is only 45% for Canada and one third for Australia.

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