Analysts: Malt industries are expanding elsewhere

Smaller exports are the consequence of expanding malt industries elsewhere, only in few countries (Japan) of lower consumption: Russian industries have grown from a capacity of ½ Million to 1 Million tonnes in a few year’s time, and the figure will reach 1.4 million tonnes by 2006.

In the Ukraine 240,000 tonnes are produced now, plans are to add another 100,000 tonnes. These markets will be lost or at least strongly reduced for EU exports.

In the Mercosur, where Brazil used to be a great customer, import taxes protect internal markets, local industries work at 100 % of their capacities, and one new malthouse for 100,000 tonnes will be built in Argentina.

Australia does extremely well because of its proximity to growing markets in Southeast and Far East Asia, and because of its government’s liberal trade policies. A Free Trade Agreement with Thailand is in force, others are being negotiated, giving Australian malt duty-free access to large markets.

By comparison, the EU has failed to work out an FTA with Mercosur and now relies on WTO to come to worldwide better trade rules in the future. Meantime Australia constructs new factories for an added production of 150,000 tonnes.