One of the world's largest barley exporters, Australia's ABB Grain Ltd, would have only a small quantity of barley available for export from the 2002/03 crop because of drought, the company said in its annual report. "ABB intends to supply the domestic Australian market, which is offering the highest prices in the world at present," it said. Small quantities of barley for export would service the company's premium world markets, the company added. ABB did not reveal any tonnage figures.

ABB said in its annual report for the year to September 30 2002 that Saudi Arabia was its largest customer in 2001/02, taking 41 percent of the company's total bulk barley exports. In 2001/02, China remained a vital market for malting barley, for beer making, taking 28 percent of ABB's bulk barley exports, the company said. Japan, the third key export market, took 14 percent of ABB's bulk barley exports, including feed for its intensive feedlot industry and malting barley for brewing.

The Australian Bureau of Agricultural and Resource Economics (ABARE) has forecast that Australia's 2002/03 barley crop will be cut to 3.3 million tonnes from 7.5 million tonnes the year before. Exports are forecast to fall to 1.6 million tonnes from 4.8 million tonnes the year before.

28 January, 2003