20 September, 2006

EU: Maltsters will produce less malt than needed

The failure of the EU malting barley crop changed markets and the state of the malting industry once more. Lack of barley supplies and sky-high barley prices require a great skill to be covered against the risks on the raw material side, experts worried September 01. It is therefore not surprising to see that a number of maltsters have withdrawn from selling malt in general or in special cases.

The cost of malting barley will be the highest in South and East Germany, Czech, Poland, possibly other Central European countries, where the crops were the worst and the cost of acquisition of French or Danish barley is much higher than for malting factories along the coast or along large waterways.

It is there, where one expects a lower malt production in the season 2006/07. As per experts’ calculation it means that the industry may produce again 850.000 tons less than capacity. Adding this to the former factory closures, the EU malting industry will produce less malt than needed.

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