The outbreak of the SARS lung disease in China has hit at world malt barley prices, the ATL newspaper reports. As the huge Chinese market withdraws from beer consumption, it affects world demand for malt barley, and prices fall again following the recent hike in the wake of the disastrous Australian and American harvests.

Moreover, other countries have also cut their beer consumption, notably Germany, as the general economic situation is grim, and demand has been saturated by an increased use of feed barley of satisfactory quality. However, an upturn could come quickly, the paper writes. World stocks are low, so a positive turn in any of the above variables could quickly boost prices again.

25 June, 2003