Foreign Countries' Policies and Programs

World Malting Barley Supplies Tighten, But Feed Barley Abundant

  Sharply reduced crops in Australia and Canada have constricted global malting barley supplies. With Canada expected to have the smallest crop since 1968, it is in the unusual position of having to import from the EU. China, the world’s largest importer, will have to partially forego its traditional reliance on Australia and Canada, increasing imports from the EU.

  However, the EU’s dominance in malting barley supplies is not matched in the feed market due to the meteoric rise of Russia and Ukraine. The European Commission has, thus far, been unwilling to subsidize exports. With domestic prices significantly higher than prices dictated by the Black Sea region, the EU cannot compete. Saudi Arabia, the world’s largest importer, has increasingly chosen cheap Black Sea supplies. Until the Commission decides to subsidize or until domestic prices fall, Russia and Ukraine will continue to dominate global feed barley trade.

  Black Sea Barley Takes Over Saudi Arabian Imports

* Partial year data

For more information, contact: Hui Jiang, 202-720-2231

Last modified: Thursday, November 13, 2003