EU: Market analysts raise their estimate of domestic EU malt demand in 2007 and 2008

Since 2005 EU malting capacities have been reduced by 300,000 tons, mostly inefficient units of large malting groups. Apart from two bankruptcies in Germany, the small and medium size maltsters have survived the cruel price war of the years 2004 till 2006.

The present malting capacity is 8,7 Mill. tons, production during the present crop year was no more than 8,3 Mill. tons. The beer output in the whole world, and also in the EU (Germany, Poland, Czech and Slovakia report excellent results) is surprisingly good and Scottish distillers are increasing their whisky production.

Market analysts raise their estimate of domestic EU malt demand to 6.8 million tonnes in 2007 and to 6.9 million tonnes in 2008. That leaves a theoretical export surplus of 1.5 million tonnes this year. No wonder that supplies are very tight in spite of sharply reduced exports. In most cases malt is leaving the malting plants straight from the kiln, requirements of a minimum storage time of malt before delivery, as well as specifications of barley varieties and quality parameters could not always be fully respected since the crop failure of 2006.