Barley and Malt Barley Global Industry Outlook

Global supply of barley has been rising at a CAGR of 3.05 percent over a period of four years. The key factors driving the  growth include demand for feed barley from Middle Eastern countries and global demand for malt barley to be used in brewing industries 

  •  Production is expected to witness minimum growth in the upcoming years due to the increase in consumption of soy and corn in feed and bio-fuel industries

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Barley and Malt Barley Global Supply – Demand Analysis 

The total global production of barley in over the last four years has increased by 12 percent, while consumption for the same period has climbed by 12.4 percent, driven mainly by feed and beer industries

  • Europe and Russia along with Ukraine remain the largest producers of barley accounting for 62 percent of the total share
  • Barley is majorly used for feed purpose, however a moderate but crucial portion of it goes into beer manufacturing. Europe and Russia tops the barley producing and consumption charts due to its high domestic and export demand 
  • The bulk of the global demand comes from feed sector, however this might change in the next coming years due to decline in acreage of barley cultivation due to cheaper alternative feed such as Soy and Corn
  • The effect is more pronounced in the overall production of barley since feed accounts to 72% of barley usage
  • Meanwhile the demand for malt barley, which is used in manufacturing beer is growing significantly

The consumption from Europe and Russia involve for both feed and food while countries, such as Saudi Arabia use only for feed purpose. China also uses majorly for beer manufacturing purpose, as their primary feed come from corn, which is much cheaper

 Market Outlook - 2016/2017

  • Post 2016, the production of barley specifically for feed is expected to have a downfall trend due to cheaper alternatives, such as corn and soy
  • In 2016, the world production of barley is estimated at ~147,932 Thd MT, whereas the consumption is estimated at ~120,935 Thd MT
  • Europe dominates in the global production of barley at 42 percent, which is closely followed by Russia and Ukraine together at 20 percent
  • Germany and France are the largest producers for Europe 
     

Global Barley and Malt Barley Trade Dynamics 

Europe is the largest producer and consumer of barley. However, their major export variety is feed and they domestically consume 80–90 percent of the malt barley, which is used to produce beer. Russia and Ukraine together account majorly for feed-type barley, which is primarily exported to Saudi Arabia and China.

  • Post 2015, the trade volumes witnessed a slight drop due to the fact that China had abundance of corn and it was considered as a cheaper alternative to barley for feed industries
  • Since 2013, the global trade volumes of barley was growing, however, has recently started to fall slightly. This is due to the fall of barley stocks globally