Maltster insists barley prices will improve

MORE malting barley must be grown if UK demand for the crop is to be met in 2011 – prompting better prices to growers, according to one of the region’s leading maltsters.

Despite current market uncertainties resulting from the on-going economical downturn ahead of autumn planting, growers are being urged to ensure winter barley plays a part in farm rotations.

Global cereal stocks remain delicately balanced and a lot of the surplus will be taken up through increased demand for biofuel production, said Andy Janes, marketing manager for East Anglia-based maltsters Muntons.

Although there was a good global harvest last year, there was at least a 20 % cent reduction in UK winter and spring barley plantings during 2009-2010 compared with the previous season.

“Because of the over-supply, last year maltsters paid up to £20 per tonne below the cost of growing the crop,” admitted Mr Janes. As a result, farmers switched away from malting barley to other crops.

“As supply lessens through fewer plantings, then we could see opportunities for growers if the barley price starts to follow the current upward trend seen in the wheat market.”

About half of Muntons’ turnover comes from its Malted Ingredients Division, which is involved in the supply of malt products to the food industry, a side of the business in which the company is seeing increasing growth.

“Malt extract, for example, is a huge output for the business, with over 30,000 tonnes produced annually for a variety of products including breakfast cereals, malt drinks, the baking industry and home-brewing kits,” said Mr Janes.

It was important to develop these markets alongside Muntons’ core brewing and distilling commitments, and encourage people to understand that malt was a good, natural and wholesome food ingredient, he added.

“Increasing demand for malt and malted ingredients will ensure that farmers have a ready market for malting barley and can continue to benefit from sales of this premium crop.”