United Kingdom: A fall in malting barley production is forecast throughout Scotland

A fall in malting barley production throughout Scotland is being forecast. The Scottish general manager of Whiterashes-based Grainfarmers, said there was a realisation among many that as long as supply and demand remained imbalanced there would be problems with the price.

He commented: "They realise that, at the end of the day, there is an oversupply in the market." Mr Ferguson said many farmers were now also accepting the pressures maltsters were facing in a highly competitive world market. Those issues have been blamed for the closure of maltings in Carnoustie and the impending shutdown of the plant in Kirkcaldy.

Between them they processed 90,000 tonnes of malting barley, Aberdeen Press and Journal posted on May 3. Worries remain about where the grain traditionally bought by these plants will now go. Mr Ferguson said farmers had to make up their own minds ultimately about whether to grow what was once a high-value product, or to look at alternatives in their cropping rotations.

"People on marginal land cannot continue (growing malting barley) at these prices, though," he added. A cut in production might help prices, although global pressures would remain. Mr Ferguson urged growers to ensure they grew the correct varieties, adding that Scotland appeared to be moving back to a distilling grain market.

In recent years, malting barley has found homes in both the distilling and brewing markets. Mr Ferguson was speaking as Grainfarmers said it had exported 63,000 tonnes of barley this season from Aberdeen, Dundee and Peterhead.

The firm, which moved into Scotland two years ago, is thought to account for more than half the grain exported from Scottish ports.

Mr Ferguson put the success down to the alliance Grainfarmers has with Louis Dreyfus, one of the world's leading shippers and long-term supply contracts with continental maltsters.

Robert Munro, the barley trader with Grainfarmers, said: "Despite the tight market, there is growing confidence in Scottish barley among overseas buyers. "Over the past few seasons, Grainfarmers has become a market leader in terms of supplying malting barley to Baltic ports and former Soviet Union countries. We are also developing new demand in several new feed markets…. The fact that we have excellent Forth Ports and Aberdeen Harbour Board facilities on our doorstep is a real help and the strategic support we get from these and other agencies is fundamental to this success." The firm is cautiously optimistic that the overseas demand for grain will continue.

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