Although last year's yields were slightly down for UK barley, as many regions suffered under the effects of drought which began in Spring 2011 and persists in some Midlands regions, the country has seen a surprising level of demand, as crops in other barley growing countries were hit by disease.

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The resultant poor quality of crops from Scandinavia has translated into increased demand for barley from UK growers whose crop quality was also affected. The high levels of nitrogen in last year's crop would usually mean the barley was unacceptable for malting (it causes clouding in beer). However, demand from the Baltic states means UK farmers may be in a favourable position, analysts said last week.

Barley prices have risen 16 per cent year on year, according to farming cooperative Openfield; this rise coincides with a 5 per cent fall in yield. Around half of the UK barley surplus has been exported and UK farmers are currently benefitting from an estimated 10 per cent premium over Danish growers; a reversal of the norm resulting from high levels of fusarium affecting Danish Barley.

The poor Danish crop, which is believed to have caused “exploding beer” has resulted in tight barley supplies throughout the EU. Using the poor crop for malting can result in extreme fizziness, referred to in the industry as “gushing.”

German based barley specialist Grainexx estimated that much of the Danish crop would likely be downgraded to feed and, where possible, barley would be sourced from elsewhere. France looks set to do well from the situation; its winter barley crop will be the first available due to early harvesting.

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