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Europe On Track For Good Barley Yields

Published on Jun 14 2021 6:50 AM in Supply Chain tagged: Europe / barley / Summer / Harvest

Europe On Track For Good Barley Yields

Warm weather and showers since last month have put Europe on course for good barley yields this summer, with the timing of the harvest a key issue as crops recover from a cold start to spring, analysts and traders said.

"Across Europe, the situation looks better than last year," Brent Atthill, head of consultancy RMI Analytics, said of barley crops.

"There is no excess heat in weather forecasts and moisture levels are good, so everyone is confident we're coasting to the finishing line."

Reflecting favourable growing conditions, consultancy Strategie Grains and the US Department of Agriculture each raised their forecast of 2021 European Union barley production in separate reports on last week.

Higher yields could offset a decline in spring barley area this year after farmers shifted back towards winter crops.

Malt And Livestock Feed

Barley is used both for beer ingredient malt and in livestock feed. A large European crop could help supply increasing Chinese feed grain imports and recovering beer demand as COVID-19 restrictions are lifted.

It was too early to judge crop quality, which affects suitability for malt, but early signs in Europe were encouraging, analysts said.

In France, the farm ministry projected a 19% jump in winter barley production this year, driven by increased yields, while weekly crop ratings from farming agency FranceAgriMer showed improvements since cold, dry spells in April and early May.

With temperatures expected to reach 30 degrees Celsius (86°F) in much of France in the coming days, traders say storms forecast for the middle of next week should bring moisture and milder heat to avert crop stress.

Warm Weather

The warm weather could reduce a lag in plant growth of about one week currently that has cast doubt over whether initial harvesting will happen before July.

In Germany, crops are also in good condition and summery weather could let barley crops catch up on delays.

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"If we have normal weather in coming weeks without extended rain I would expect harvesting to start in the usual timeframe in early south German regions around July 5, with more widespread harvesting around July 15," one German analyst said.

Germany's winter barley crop will increase 1.5% on the year to 8.97 million tonnes, despite a reduced area, the German farm cooperatives forecast last month.

The condition of Polish barley "is more than satisfactory", said Wojtek Sabaranski of analysts Sparks Polska.

Winter Barley

Depending on June weather, farmers could begin winter barley cuttings in mid-July, compared with the typical first half of July start, he said.

Poland's total barley crop may rise about 2% to 3.8 million tonnes, including 2.6-2.7 million of spring barley, Sabaranski forecast.

In Britain, barley conditions have also improved, helped by May rain.

"The general consensus is that we are heading for an average to good crop this year," said Vikki Campbell, senior analyst at the Agriculture and Horticulture Development Board, adding disease levels were low.

Analysts are expecting UK barley production to fall to about 7 million tonnes from 8.1 million last year, reflecting a drop in spring barley area.

News by Reuters, edited by ESM. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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