Growth Prospects for Commodities Production, Consumption and Trade

Commodity markets, agriculture included, were driven in the last years by a combination of factors like challenging macroeconomics, effects of climate changes, shifts in consumers’ demand, political imponderabilities and monetary involvements etc., all impacting and changing the market place and making room now to confidence and optimism.

Barley Keeps on Moving

An overview on the international barley sector reveals that the industry is on track to find new ways to grow, despite the economic crisis. The supply and demand chain is in full process of redefining itself. The community has pointed out the threads of a reduction in the supply of malting barley as a consequence of the decline in barley areas in recent years and the need for higher yielding malt barley varieties. The trend is the development of Southern Hemisphere demand, even if the trade is very much price-based, and the contraction of the Northern Hemisphere activity, due to lower demand and poor harvest conditions.

Europe, Canada, and several other regions have registered disappointing harvests, which leads to a lower total amount of available malting-quality barley. The re-entrance of Russia on the market, after the extension of its own export ban, has a significant impact on the industry. On the other hand, Australia’s production, its largest in several years, is expected to shape values within the next period of time.

While the rest of the world contracted, Asia – and especially the largest global customer, China – has continued to grow and is seen as the key-driver of this market, requiring premium products and services and accounting for most of the projected increase in global barley demand over the next couple of years.

Feed barley demand is forecast to remain quite strong in markets such as the Middle East and Asia, while other markets may switch to other feed grain options. New feed barley varieties are introduced on the market, with high-protein types being well-valued.

So, despite the market’s continuing tight feel, there is a robust optimism among the industry players, and Evergrain wants to capitalize on this gradual growth.

We have the knowledge, the structure and the network to contribute to ensuring high-quality malting barley for the malting and brewing industry and to provide feed barley under advantageous conditions for both growers and buyers.