E-Malt.com News article: 1926

Overcapacity in the European malting industry is growing at an enormous speed, industry related analysts reported. In the Netherlands a new factory of 130,000 minus a closure of 30,000 tonnes will add 100,000 tonnes. In Belgium a new tower of 100,000 tonnes minus a closure will give at least 40-50,000 tonnes more production. There will be net additions of 70,000 tonnes in France and 100,000 tonnes in Sweden. Lithuania's new plant of 60,000 tonnes will be lead to the closure of the old 12,000 tonnes factory. Reports on Russia are that 200,000 tonnes went on stream in recent weeks. Further 200,000 tonnes will become operational by spring of 2004, expansion programs and new constructions are announced for 300,000 tonnes operational in 2005, and at least three more factories are talked about. In the extreme case it could lead to an overcapacity inside Russia and a very serious barley short, respectively the need to cultivate much more high quality malting barley within a few year's time. Altogether there are a few hundred thousand tonnes of malting overcapacity in Europe, but new or expanding markets for malt are not in sight. Therefore the closure of large capacities in the coming years seems unavoidable.

12 December, 2003