EU: Export flow of 2.2 million tons of malt to be maintained with difficulty

EU malt export restitutions for 147,000 tons were booked in July, a very low figure, which would not be sufficient to maintain the export flow of 2.2 million tons on a year basis. However, the figure must be misleading, as export business has been very good, not only for shipments in 2007, but also for the later months of this year, analyst commented August 01.

Malt markets are active, prices are firm and have probably not reached their highest levels yet. One obvious reason is the scarcity of good quality malting barley from this year's crop and the high and still rising barley price levels. Another reason is the precarious P/L situation of the whole malting industry, which is obliged to show profitable balance sheets after two years of horrendous losses.

The increase of the cost of energy and transport is a further factor. The dry and hot summer, which has damaged the barley fields, has also dried up river beds, so that the usually cheapest means of mass transport by barges has become extremely expensive on and around the Rhine, and even impossible on Elbe and Oder.