In the current season, we can expect a rise in prices for malting barley. The reason for it is increased competition for raw materials. This opinion was expressed at the conference by Alexander Ivashina, regional director of supply for Malteurop Ukraine, latifundist reports.
According to his expectations, the price may rise by 15-20%.
“This growth will support higher prices for feed barley, as well as a global decline in barley production in the Black Sea region,” says Ivashina.
By the way, malting barley belongs to premium products. Refiners often offer a surcharge for high-quality raw materials of about $15/t.
But, market participants point out that small-scale barley is often sown by small farmers under forward contracts with malt producers. Large companies practically do not introduce this crop into the crop rotation.
Elena Neroba, head of analytics and data at MarcoPolo Commodities, says that the price of barley has increased by 30%. The balance was unexpectedly low, but demand remained.
But as for the brewing barley, in Europe it grows better and is of higher quality.
“There is a demand there. Our demand is only formed due to the craft breweries. I would say: if it were profitable, “Obolon” would grow it, not sell the lands,” added Neroba.
By the way, brewing barley is grown in Ukraine in 13 regions, mainly in western and central parts, partially in the north. Its production requires certain climatic conditions and agrotechnologies that differ from those used for feed barley.
The largest plantations of brewing barley are located in Kyiv, Ternopil and Khmelnitsky regions.