Canada: Barley acreage may decrease this spring over price discontent and high 2008 crop

Malting barley producers say Canada Malting Co. with its big mating plant in Calgary is not living up to signed contracts now that the value of malting barley has dropped, The Star Phoenix reported on January, 14.

This is giving the whole industry a black eye and may contribute to fewer barley acres being seeded this spring, experts comment.

Another source of frustration is the size of the '08 crop. Western Canada produced a high-quality barley crop with much of it eligible for the malting grade. Unfortunately, there's more than the market can use and some producers with a high-quality product will be forced to sell into the feed market at much lower prices.

There are opportunities for profit in 2009, but the right cropping and pricing decisions will be critical, analysts note.