20 March, 2005

EU: Reports from Australia indicate a reduce supply of malting barley for China. Normally they supply over 1.0Mmt but are likely to be well under that amount this campaign, AgriNews posted on March 16. Canada also has limited supplies due to the poor crop. “So where will China find the barley, EU is the only real other source but based a ˆzero export refund and very high freight rates the levels to China are very high. China is more likely to switch to other cheaper commodities, rice, tea, maize, wheat, which has an alcohol content.” Some EU barley has been shipped in containers as cheapest freight. Should Brussels not look at this market as a chance to sell perhaps as much as 500kt "low quality malting barley". It would not upset the maltsters and need not change the malt export refund from ˆzero. “Act quickly otherwise the campaign is over!”

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