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Window of opportunity for barley exports

16 Sep, 2009 03:58 PM
BARLEY production may be small beer on the world grains stage but at least Australia continues to expand the acreage it grows each year.

Noted German barley expert Henning Luetje, with almost 45 years in the grain trade and with a focus on the malting barley industry, gave a global overview at the Barley Technical Symposium earlier this week on the Sunshine Coast, north of Brisbane.

He underscored the point that, contrary to most other barley-growing countries, Australia has expanded its acreage to 2.5m ha, with the latest ABARE estimate upping harvest from 7.6 to 7.7 million tons.

Noting there would be sufficient malting barley to cover the domestic demand of about 1 million tons, Mr Luetje said “considerable quantities” would remain for export purposes and feed supplies.

“(But) I would like to remark that during the past five years Australia has lost a great share of the ‘export cake’ for malting barley,” he said.

“And it will be difficult to regain these markets.”

Australia's malting barley exports, however, will be well placed to take advantage of China's expanding beer market, which remains on track to grow much faster than that of the rest of the world and where, when it comes to beer consumption, the numbers are jaw-dropping, he said.

Mr Luetje is, however, one of an increasing number of experts tracking the stagnation of global malting barley acreages.

While acreages have been growing in Russia and South America, these have been offset by losses in Asia, also partly in Europe, he said.

“In one decade, about 8 million hectares have been lost in China, be it by erosion or by expansion of the metropolises,” Mr Luetje said.

Whether it is political, industrial or environmental issues, China continues to attract almost daily news headlines but its long-term ability to feed itself increasingly looks to becoming a top-of-mind-issue.

Mr Luetje said in 2008 global beer production rose by 30 million hectolitres to stand at 1.8 billion hectolitres with about 15 million of those 30 million hectolitres going to China – the country which turned in the biggest global growth rate with 410 million hectolitres of beer produced over the same timescale.

On these figures, Australia looks well-placed to capitalise on the opportunities likely to flow from Burret and Burston’s recent decision to build an 86,000t capacity malt plant at Pinkenba on the outskirts of Brisbane.

It will help give Australia “an opportunity” to reverse lost export shares, he said.

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Noted German barley expert Henning Luetje says an 86,000t capacity malt plant at Pinkenba, on the outskirts of Brisbane, will provide Australia with an opportunity for this country to reverse lost export shares.
Noted German barley expert Henning Luetje says an 86,000t capacity malt plant at Pinkenba, on the outskirts of Brisbane, will provide Australia with an opportunity for this country to reverse lost export shares.
SE Qld barley grower and GrainCorp chairman Don Taylor catches up with GRDC's Peter Reading.
SE Qld barley grower and GrainCorp chairman Don Taylor catches up with GRDC's Peter Reading.
Barley Technical Symposium chairman Dr David Poulsen with fellow DEEDI representative Ros Ferguson.
Barley Technical Symposium chairman Dr David Poulsen with fellow DEEDI representative Ros Ferguson.

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