16 June, 2006

EU: Oilseed grains to take acreage from barley

Among other oilseeds grains, barley yields less oil than other grains do, analysts say. Nevertheless, it will be used as oilseed grain in regions, where crop alternatives are not available, e.g. in Finland. Only recently EU industries began to construct ethanol plants, which use grains as their raw material, first of all maize, but also rye and wheat.

In the other countries of Europe oilseeds and the a.m. grains will take acreage away from barley. Farmers have never been happy with their earnings on malting barley in past years. Therefore brewers and maltsters will be obliged to increase their barley and malt bids, if they want to safeguard their raw material basis.

The barley campaign 2005/06 has been disappointing for the EU. Export licence bookings to-date are 2.785 million t vs. 3.158 a year ago. Intervention stocks have risen from 1.5 to 2.1 million t. Most traditional export destinations are served by Black Sea barley.

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