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“One consequence of the reduced barley production of 5% has been a rise in prices – up nearly 16% year-on-year,” says Openfield regional manager Adrian Fisher. “Of greater significance to those with high nitrogen content crops to sell, will be the opening of new markets in the Baltic region which is now looking to the UK to satisfy its import needs.”

It is estimated that Great Britain has a surplus of roughly 300,000 tonnes of which an estimated 100-125,000 tonnes has been shipped. 

With more than half the surplus left to move, the addition of a new export market is to be welcomed. As such, UK crops are attracting a premium of about 10% over Danish supplies, the reverse of the norm.

“In a normal year (if such a year exists), finding premium high nitrogen samples would be difficult, if not impossible, leaving growers to accept a feed values for malting varieties. This year though, has been an exception.

“Due to the demand for lager type malt in parts of Europe some continental maltsters are able to blend higher nitrogen barleys with the knowledge that it will   be accepted by consumers. This is not the case in the UK or in some European countries where high nitrogen barleys are unusable,” he adds. 

Part of Openfield’s success in securing this valuable opportunity is due to its network of central stores. With a large quantity of grain in store of a known quality Openfield has been able to blend in the higher nitrogen farm-stored grain at the port, to deliver a consignment that meets the contractual needs of the buyer.

Market outlook

“The outlook for the remainder of 2011 campaign is positive, with continued demand from mainland Europe, most of the UK maltsters have completed their buying for the 2011 crop, however the UK must remain competitive against southern hemisphere malting barley which is expected to have a surplus of about 3.5 million tonnes,” says Mr Fisher.

“For 2012 we are forecasting an increased area of spring barley in Europe, this is contrary to the situation in the UK, particularly East Anglia. This additional area will be needed to replenish stocks of European malting barley – the poor 2011 crop will result in a shortfall of around 200,000 tonnes of European malting barley – but ‘normal’ growing conditions will be needed to ensure sufficient supplies for 2012-13.”

The challenging conditions of the past few years underline the importance of growing varieties to take advantage of the export markets as well as suitability for domestic markets. The established, but declining NFC Tipple is one, while up and coming Propino is becoming widely accepted at home and abroad. Concerto is another option, required for domestic brewing plus the distilling market and is now an accepted variety in France.