![#](https://e-malt.com/Images/left_top_corner16x200.gif) | E-Malt.com News article: 769
Representatives of two of the largest malting companies of the world gave a very pessimistic outlook on malt business in the years to come during recent malting barley conference in Paris. Both companies have expanded and are still expanding their capacities by several hundred thousand tons, mainly in Central and Eastern Europe. “The EU malt surplus will increase from 2,5 to 3,0 million tons, exports in 2002 were 2,25 million tons. Domestic sales will decrease, specifically in Germany, where per capita consumption will be down from 110 litres/year now to 90 litres/year in 2010. Russian malt production will increase from 536.000 tons in 2002 to 1,1 million tons in 2007. China will not become an importer of malt,” the French Dépêche Agricole reported.
In the EU following expansions are known (new construction minus closures): France 90.000 tons (2 companies), Belgium 40.000 tons, Netherlands max. 20.000 tons, Sweden 100.000 tons, total 250.000 tons. There is the project of a new 100.000 tons malt house in Caen-France, but a final decision has not been taken. The malting industry in the EU has never produced big profits. The cycle in past years has been, that after a few years of modest profits new factories were built and consequently markets were oversupplied and malting margins fell to catastrophic levels. After a while a correction was achieved by factory closures and additional demand in the world. EU exports have risen from 1,0 million tons in 1975 to 1,7 million tons in 1995 and to 2,3 million tons in 2001.
In Central and Eastern Europe new malting capacities have been built in Poland, Czech Republic, Slovakia, Croatia and Russia during the past years. Further factories are being constructed in Russia, Ukraine and Lithuania. Soils and climate favour the cultivation of quality barley in large parts of Eastern Europe.
17 March, 2003
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