The 2024 malting barley harvest across Europe exceeded initial expectations in terms of yield; however, it was marked by regional variability in quality and protein levels, as reported by Dagmar Hofnagel in Der Weihenstephaner.
This dynamic is shaping the market as producers and buyers navigate challenges posed by weather, changing export demands, and domestic consumption patterns.
Harvest Highlights Across Europe:
- Higher-than-Expected Yields: Many European countries reported better-than-expected barley yields despite a challenging growing season.
- Protein Variability: Protein levels, critical for brewing, ranged widely across Europe, adding complexity to market negotiations.
- Weather Impacts: Unfavorable conditions during planting and growing seasons—particularly in France and the UK—disrupted crop consistency.
Regional Trends and Insights:
- Scandinavia (Denmark and Sweden): Strong yields (5.0–5.5 tons per hectare) and stable protein levels (9.5–10%) were recorded, supported by favorable weather during the growing season. Denmark's reliable supply has allowed it to import feed barley, enabling more focus on malting barley production.
- France: Average yields of 5.45 tons per hectare were achieved under challenging weather conditions. Protein levels showed high variability (9–12%), and diseases impacted the overall crop. Export levels dropped, with a focus shifting to non-traditional markets like Mexico and Turkey. The surplus of 2.35 million tons forecasted for 2024/25 is below last year’s 3 million tons.
- Germany: Good yields despite wet conditions in spring, though protein content fell below 9% in some areas. Germany’s estimated import need of 650,000 tons is manageable due to ample availability on the European market.
- United Kingdom: Mixed results were seen, with an average yield of 6.0 tons per hectare. Scotland’s harvest faced delays, with 20% of fields unharvested by mid-September. Protein variability has affected pricing and export volumes, which are estimated at 1.4 million tons.
Market Overview and Challenges:
- While Europe enjoys a comfortable malting barley supply, demand from the brewing industry remains muted due to reduced operating capacities (around 85%). This softer demand has resulted in reduced imports and created downward pressure on prices. Key indicators include:
- Lower Exports to China: Declines in French exports to China have created additional availability within the European market.
- Reduced Import Needs: Germany’s demand for imported barley, traditionally around 1 million tons, is substantially lower this year.
Analysis and Future Outlook:
The strong supply situation provides stability for the European malting barley market, but quality challenges—particularly protein variability—remain a concern. Lower global demand for malt and barley, combined with high production levels, could suppress prices further. To maintain competitiveness, producers may need to emphasize quality over volume and explore new export markets.
