EU: Malt prices at unbelievably high levels due to expensive malting barley but also other factors

EU malt prices are at unbelievably high levels. They follow EU malting barley markets, but include also tax increases, higher gas prices, higher freight cost in an overburdened logistics market, H. M. Gauger GmbH said in their December report.

The EU malting barley is approaching the status “sold out”. Of course, barley producers and traders may hold back some lots, but a real relief of the supply situation is not expected.

Quality problems add to the lack of quantities. Brewers and maltsters have to accept smaller full barley contents and higher protein levels. The industry produces less malt per batch and a lower extract. The condition of many barley lots is weakish, maltsters are afraid of germination problems later in the season.

Reports from France, Germany and the U.K. agree that maltsters on average still have about 10% unsold capacities; they will only sell malt on the back of barley cover, otherwise they risk contract defaults. It seems possible that some malting capacities will not be used in full because of a short of old crop barley, the Gauger analysts said.

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