EU: Barley imports surge in 2022/23 due to negative impact of heat and dry weather in some member states

The negative impact of heat and dry weather in some European Union (EU) Member States, notably Spain, has caused substantial production losses and a subsequent surge in barley imports, USDA said in its first Grain: World Markets and Trade of this year.

EU Customs Surveillance data reports barley imports for the first half of marketing year (MY) 2022/23 (July-June) at 1.3 million tons, with over half of that amount going to Spain. While corn remains the dominant feed grain in Spain, barley maintains a price advantage over wheat and is forecast to have higher feed utilization in on farm applications in country.

Given the heightened volume of imports during this period and projected needs for the remaining marketing year, USDA has revised the EU import forecast for 2022/23 to 1.8 million tons, up 38 percent over the previous month forecast and 82 percent higher than last year�s level.

Most EU barley imports are being supplied by Ukraine (51 percent) and the United Kingdom (46 percent) and will be primarily allocated for feed. As a previous member state of the EU, the UK was an integral provider of barley for intra-EU trade. With the onset of Brexit, the UK has maintained a significant market presence as an external supplier.

EU 2022/23 barley feed and residual has been revised up to 34.6 million tons this month. The steep decline in EU corn production1 year over year provides some room for the increased use of alternative feeds where possible. With larger global barley production, downward price pressure on barley in the region has encouraged more feed barley usage in the EU for the time being.

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