EU: Chinese demand breaks traditional supplies of malting barley to Belgium, the Netherlands, and Germany

In the core malt production region of the EU, Belgium, the Netherlands, and Germany usually have a total malting barley deficit of minimum 2.5 mln tonnes. It used to consist of 2rs and 6rw barley, but the present premium situation of malting vs. feed barley reduces the input of winter barley decisively, H. M. Gauger GmbH said in their February report.

Denmark, Sweden, and the U.K. together normally supply 1.5 mln tonnes. France used to have a surplus of minimum 2.0 mln tonnes of spring malting barley, enough to cover the centre plus any demand from other EU countries. The Chinese demand has broken that simple system, in all probability also for the coming crop year. It reduces the French surplus, it draws malting barley into the attractive feed sector and creates a price difference between French and other EU barleys. Most likely it will also increase the price level of all malting barley in the EU, the Gauger analysts said.

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