United Kingdom: Malting barley market predicted to remain strong in Scotland next year

The growing world-wide demand for Scotch whisky, coupled with lower carry-over stocks of malt and barley, should see a strengthening in the premium for malting barley next year, Scottish Agricultural College specialist Dr Steve Hoad was quoted as saying by The Scotsman on December, 16.

Writing in a new guide to the cereals market from Bank of Scotland, Hoad predicts the market for both malting barley and wheat - which sets the trend for cereal prices - will remain strong in Scotland, especially given that Scotland uses more wheat than it produces.

"An upbeat message for spring barley growers is that malting premiums will continue to increase so 2011 premiums are likely to be better than 2010," he says. "With malting and distilling capacity expanding, it would be beneficial to maltsters to engage with growers to develop long term contracts. The key for growers is to meet the market specification and develop a longer-term marketing strategy."

Hoad advises growers to pay more heed to the marketing of their crops by co-operating with other growers or joining a grain marketing group.

"Developing strategies to market a proportion of grain by agreeing forward prices should help to buffer against volatility. Engaging over longer term contracts could also help."

World-wide demand for beer and spirits has been hit by the recession but is showing signs of recovery as economic growth resumes.

17 December, 2010