UK: Malting barley premiums dwindle with prices under pressure

Margins for malting barley have dwindled in recent years and are now roughly £15/t above feed barley prices, Farmers Weekly reported on June 4.

This marks a sharp decline from previous seasons, where premiums exceeded £60/t in 2023 and stood at about £26/t during last year’s harvest.

Spring barley often attracts a slightly larger premium in the market, fetching a premium of up to £20/t over feed barley, compared with the typical £15/t seen for winter barley.

While spring barley generally produces slightly lower yields, for many growers the higher market value offsets some of the difference.

However, growers are facing a loss based on current prices and average yields.

UK ex-farm premium malting barley has remained below the £180/t mark so far during 2025 and is down roughly £50/t on the same month last year.

Independent grain adviser Richard Whitlock says feed barley has also tracked downwards, with malting barley premiums now virtually non-existent.

Ex-farm prices collected by Farmers Weekly put feed barley at £151/t on 30 May, down £20/t on year-earlier levels.

Dry conditions added some support to prices in May as crop quality concerns started to mount. However, recent rainfall has alleviated some of this pressure.

As of late May, 48% of winter barley crops were rated in good to excellent condition, while 54% of spring barley crops met the same benchmark.

Traders at ADM say good rainfall across the UK has brought some relief to the malting market following the prolonged spring drought.

Volumes being sold on farm remain limited, given current low prices and the potential for a poorer quality crop this harvest, which could support prices later in the year.

UK maltsters are expected to buy about 1.9m tonnes of malting barley from the 2025 harvest, according to the Maltsters Association of Great Britain.

The forecast is broadly in line with last year’s intake of 1.88m tonnes, which included 206,000t of winter barley and 1.68m tonnes of spring barley.

Scottish growers supplied the majority, accounting for 53.1% of the total, while English barley made up the remaining 46.9%.

AHDB data shows that brewers, maltsters, and distillers used 1.32m tonnes of barley between July 2024 and March 2025, an 8% decline compared with the same period a year earlier.